84
85
KUWAIT ENERGY plc AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2011
37
26. RELATED PARTY TRANACTIONS (CONTINUED)
The other
related party transactions and balances included in the Group’s consolidated financial
statements are
as follows:
a) Compensation of key management personnel:
Key management personnel are considered to be the Board of Directors of the Company and, prior to the
restructuring described in note 1, Kuwait Energy K.S.S.C. and other members of the management team
The remuneration of key management personnel during the year was as follows:
2011
2010
USD 000’s
USD 000’s
Salaries and other short-term benefits
1,938
2,187
Termination benefits
102
40
Share-based payments
240
249
2,280
2,476
27.
SUBSIDIARY COMPANIES
The principal subsidiaries of the Company are as follows:
Company’s name
Ownership %
Country of
incorporation
Country of
operations
Type of
activity
2011
2010
KEC (Egypt) Ltd
100
100
British Virgin
Islands
Egypt
Exploration /
development/
production
Kuwait Energy Egypt Ltd
100
100
British Virgin
Islands
Egypt
Exploration /
development/
production
KEC (Eastern Desert)
Petroleum Services SAE
100
100
Egypt
Egypt
Exploration /
development/
production
Kuwait Energy Yemen Ltd
100
100
British Virgin
Islands
Yemen
Exploration /
development/
production
Kuwait Energy Iraq
Limited
100
100
British Virgin
Islands
Iraq
Exploration /
development/
production
Kuwait Netherlands
Cooperative
100
100
Netherlands
Ukraine/
Latvia/
Russia
Holding
Company
Rudis Drilling Company
100
100
Ukraine
Ukraine
Exploration/
Production
Pechora Energy Company
100
100
Russia
Russia
Exploration/
Production
Kuwait Energy Pakistan
Ltd
100
100
British Virgin
Islands
Pakistan
Exploration
KUWAIT ENERGY plc AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2011
38
28.
OPERATING LEASE ARRANGEMENTS
2011
2010
USD 000’s
USD 000’s
Minimum lease payments under operating leases recognised in
the consolidated statement of income
1,781
1,548
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
1,410
1,135
Between two years and five years
591
918
2,001
2,053
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.
29.
FINANCIAL INSTRUMENTS
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the
basis of measurement and the basis on which income and expenses are recognised, in respect of each class of
financial asset and financial liability are disclosed in note 3 to these consolidated financial statements.
Categories of financial instruments
2011
2010
USD
000’s
USD
000’s
Financial assets
Trade and other receivables
176,055
135,199
Cash and bank balances
40,477
58,092
Financial liabilities
Long-term loans
45,000
53,000
Trade and other payables
52,964
49,907
Derivative financial instruments
750
4,337
Current portion of long term loans
8,000
-
Financial risk management objectives
The Group
’s
management monitors and manages the financial risks relating to the operations of the Group
through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include
market risk (including commodity price risk, interest rate risk and foreign currency risk), credit risk and
liquidity risk.
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
