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KUWAIT ENERGY PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2015
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26.
TRADE AND OTHER PAYABLES
2015
2014
USD 000’s
USD
000’s
Trade Payables
95,001
86,911
Accruals and joint venture partners payables
13,658
31,150
Accrued interest payable
10,251
10,388
Salaries and bonus payables
749
5,204
119,659
133,653
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and on-going 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
.
27.
CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS
2015
2014
USD 000’s
USD 000’s
a)
Contingent liabilities - letters of guarantee
7,500
500
b) Capital commitments (other than covered by letters of guarantee)
46,725
58,531
c)
Agreement to purchase shares (note 32b)
7,121
9,225
Capital commitment includes committed seismic expenditures, exploration and development well drilling as specified
in the licence.
28.
OPERATING LEASE ARRANGEMENTS
2015
2014
USD 000’s
USD 000’s
Minimum lease payments under operating leases recognised in the
consolidated statement of income
1,379
1,527
At the consolidated statement of financial position date, the Group had outstanding commitments for future minimum
lease payments under operating leases, which fall due as follows:
Within one year
1,124
1,423
Between two years and five years
329
58
1,453
1,481
Operating lease payments represent rentals payable by the Group for certain of its office properties. Leases are negotiated
for an average term of one to two years and rentals are fixed for an average of two years with an option to extend for a
further two years at the then prevailing market rate.
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