KUWAIT ENERGY plc GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2011
F-151
51.
LONG-TERM PROVISIONS
2011
2010
USD 000’s
USD 000’s
Decommissioning provision
1,578
1,087
Retirement benefit obligation
1,116
703
2,694
1,790
a)
Decommissioning provision
2011
2010
USD 000’s
USD 000’s
As at 1 January
1,087
575
Unwinding of discount
107
58
Changes in estimate
384
454
As at 31 December
1,578
1,087
The provision for decommissioning is based on the net present value of the Group’s share of the expenditure
which may be incurred at the end of the producing life of each field (currently estimated in 2017, 2026 and 2028)
in the removal and decommissioning of the facilities currently in place. The provision has been estimated using
existing technology and current prices.
b)
Retirement benefit obligation
This balance represents immaterial defined benefit retirement obligations relating to certain of the Group’s
employees based in Kuwait.
52.
TRADE AND OTHER PAYABLES
2011
2010
USD 000’s
USD 000’s
Trade payables
29,504
29,783
Joint venture payables and accruals
18,960
13,374
Advances received
-
3,500
Salaries and bonus payables
4,500
3,250
52,964
49,907
Current tax payable
8,991
532
61,955
50,439
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs.
The average credit period taken for trade purchases is 30 days. No interest is charged on the overdue trade
payables. The Group has financial risk management policies in place to ensure that all payables are paid within
the pre-agreed credit terms.
The directors consider that the carrying amount of trade payables approximates their fair value
.
