KUWAIT ENERGY PLC
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
For the nine month period ended 30 September 2017
15
9.
CASH AND CASH EQUIVALENTS
30 September
31 December
2017
2016
Unaudited
Audited
US$ 000’s
US$ 000’s
Cash and cash equivalents
43,165
58,311
43,165
58,311
Cash and cash equivalents includes nil (31 December 2016: US$ 4.0 million) which is restricted against issue of letters
of guarantee.
10.
ASSETS HELD FOR SALE
Siba farm-out
In May 2017 the Group has completed a farm-out transaction relating to its interest in the Iraq Siba area gas
development and production service contract. Under the terms of the farm-out agreement, which has an effective
date of 1 January 2016, the farmee has been assigned a 20% paying and 15% revenue interest in Siba and the Group
retains a 40% paying and 30% revenue interest. The farmee has settled a part of the consideration in cash, and part of
the consideration will be settled by paying the Group’s share of costs of a major related contract. The balance owed
to the group after settlement of this contract will be received from the farmee’s allocation of revenue once production
commences from this field. The current portion of deferred consideration is included in other receivables and the fair
value of the non-current portion was calculated by discounting expected receipts based on management’s best
estimate of timing and is included in other non-current assets.
Abu Sennan farm-out
In September 2017 the Group has completed a farm-out transaction to assign a 25% interest in Abu Sennan in Egypt
with an effective date of 31 December 2016.
During the period ended 30 September 2017, a loss of US$2.6 million on assets held for sale was recognised in the
consolidated income statement, relating to the period between the effective date and completion.