76
77
KUWAIT ENERGY plc AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2011
29
14.
PROPERTY PLANT AND EQUIPMENT
Oil and
gas assets
Other
fixed assets
Total
USD 000’s
USD 000’s
USD 000’s
Cost
As at 1 January 2010
404,278
4,903
409,181
Additions
64,808
3,611
68,419
Transfer to other receivables (See note 30 (a))
(4,775)
-
(4,775)
Farm out of working interests (See note 13)
(2,000)
-
(2,000)
Disposal of other assets
-
(192)
(192)
Currency translation effect
62
1
63
As at 1 January 2011
462,373
8,323
470,696
Additions
105,530
2,894
108,424
Transfer from intangible exploration and
evaluation assets
131,036
-
131,036
Impairment
(5,374)
-
(5,374)
Disposal
(401)
(21)
(422)
Currency translation effect
-
(1)
(1)
As at 31 December 2011
693,164
11,195
704,359
Depreciation, depletion, amortisation and
impairment losses
As at 1 January 2010
102,562
949
103,511
Charge for the year
59,511
906
60,417
Farm out of working interests (See note 13)
(431)
-
(431)
Disposal of other assets
-
(53)
(53)
Currency translation effect
3
-
3
As at 1 January 2011
161,645
1,802
163,447
Charge for the year
48,145
1,307
49,452
Impairment reversal
(1,308)
-
(1,308)
Disposal
(348)
(11)
(359)
Currency translation effect
-
-
-
As at 31 December 2011
208,134
3,098
211,232
Carrying amount
As at 31 December 2011
485,030
8,097
493,127
As at 31 December 2010
300,728
6,521
307,249
During the year, the Group incurred impairment losses on certain oil and gas properties of USD 4,066
thousand (2010: USD Nil) (Note 8). As the related licence has been lost the impairment has been shown as a
deduction from the original cost of the assets and related provisions recorded in previous years have been
reversed. The additions to oil and gas assets include USD 4,997 thousand (2010: USD 4,045 thousand) of
finance costs on qualifying assets capitalised during the year using a weighted average interest rate of 10.1%
(2010: 10.1%).
The property, plant and equipment of the subsidiaries Kuwait Energy Egypt Ltd, Kuwait Energy Yemen Ltd
and Pechora Energy Company Limited, with a net book value at 31 December 2011 of USD 445,835
thousand are under registered mortgage to secure certain bank loans (See note 20).
KUWAIT ENERGY plc AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2011
30
15.
INVENTORIES
2011
2010
USD 000’s
USD 000’s
Crude oil
2,688
3,162
Spare parts, materials and supplies
13,552
14,700
16,240
17,862
Spare parts, materials and supplies are used in operations and are not held for re-sale.
16.
TRADE AND OTHER RECEIVABLES
2011
2010
USD 000’s
USD 000’s
Trade receivables
133,256
65,201
Prepayments, deposits and advances
6,141
18,379
Receivable on farm out of working interests (See note 13)
-
19,464
Other receivables
36,658
32,155
176,055
135,199
Other receivables include amounts to be received in connection with the arbitration claim (See note 30(a)),
amounts owed by joint venture partners and VAT.
The average credit period on sales is 60 days. No interest is charged on the overdue trade receivables.
Included in the Group’s
trade receivables balance are debtors with a carrying amount of USD 97,664
thousand (2010: USD 39,577 thousand) which are past due at the reporting date for which the Group has not
provided against as there has not been a significant change in credit quality and the amounts are still
considered recoverable (See
“Debtor recoverability” in
note 4 for further details).
Ageing of past due but not impaired
2011
2010
USD 000’s
USD 000’s
61
–
90 days
9,225
14,403
91
–
120 days
20,236
5,504
121
–
180 days
24,412
14,016
> 180 days
43,791
5,654
Total
97,664
39,577
During the year, the Group has written off impaired trade receivables of USD Nil (2010: USD 1,329
thousand).
In determining the recoverability of a trade receivable, the Group considers any change in the credit quality
of the trade receivable from the date credit was initially granted up to the reporting date. Management
believes that there is no credit provision required as all the trade receivables are fully collectible.
The maximum exposure to credit risk at the reporting date is the carrying amount of each class of receivable
mentioned above. The directors consider that the carrying amount of trade and other receivables is
approximately equal to their fair value.
Kuwait Energy Plc And Subsidiaries
Notes To The Consolidated Financial Statements
For The Year Ended 31 December 2011
Kuwait Energy Plc And Subsidiaries
Notes To The Consolidated Financial Statements
For The Year Ended 31 December 2011
