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KUWAIT ENERGY PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 30 June 2016
41
25.
TRADE AND OTHER PAYABLES
30 June
31 December
2016
2015
Audited
Audited
US$ 000’s
US$ 000’s
Trade Payables and accruals
102,313
95,001
Joint venture partners payables
7,153
13,658
Accrued interest payable
9,974
10,251
Salaries and bonus payables
749
749
120,189
119,659
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
.
26.
CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS
30 June
31 December
2016
2015
Audited
Audited
US$ 000’s
US$ 000’s
a)
Contingent liabilities - letters of guarantee
4,000
7,500
b)
Capital commitments
40,025
46,725
c)
Agreement to purchase shares (note 30b)
6,261
7,121
Capital commitment includes committed seismic expenditures, exploration and development well drilling as specified
in the licence.
27.
OPERATING LEASE ARRANGEMENTS
30 June
31 December
2016
2015
Audited
Audited
US$ 000’s
US$ 000’s
Minimum lease payments under operating leases recognised in the
consolidated statement of income
586
1,379
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
829
1,124
Between two years and five years
263
329
1,092
1,453
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.