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KUWAIT ENERGY PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2017
40
19.
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 (note 17) 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 (note 15).
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 2017, a loss of US$2.6 million on assets held for sale was recognised in the consolidated income statement,
relating to the period between the effective date and completion.
20.
SHARE CAPITAL
The authorised share capital of the Company consists of 451.2 million shares of GBP 1 each, amounting to GBP 451.2
million (2016: GBP 451.2 million). The issued and paid up share capital as at 31 December 2017 consists of 326.9 million
Shares (2016: 359.2 million).
During 2017, the Company cancelled all 32.5 million shares held as treasury shares at 31 December 2016. Further, during
2017, the Company issued 0.1 million (2016: 0.5 million) shares to the shareholders of Kuwait Energy Company K.S.C.C.
(KEC) for acquisition of non-controlling interests in KEC and 0.1 million (2016: 0.2 million) shares to employees as part of
the employee incentive scheme.
21.
OTHER RESERVES
Treasury
shares
Merger
Reserve
Retirement
benefit
obligation
reserve
Share based
compensation
reserve
Total
US$ 000’s US$ 000’s
US$ 000’s
US$ 000’s
US$ 000’s
As at 1 January 2016
(73,749)
(33,589)
1,394
331
(105,613)
Acquisition of minority interest
-
92
-
-
92
Other comprehensive loss for the
year
-
-
(30)
-
(30)
Issue of shares
-
-
-
(311)
(311)
Share-based payments charges
-
-
-
295
295
As at 31 December 2016
(73,749)
(33,497)
1,364
315 (105,567)
Acquisition of minority interest
-
16
-
-
16
Cancellation of treasury shares
73,749
(7,581)
-
-
66,168
Other comprehensive loss for the
year
-
-
254
-
254
Issue of shares
-
-
-
(276)
(276)
Share-based payments charges
-
-
-
399
399
As at 31 December 2017
-
(41,062)
1,618
438
(39,006)
During 2017, the Company cancelled all 32.5 million shares held as treasury shares at 31 December 2016. No gain or
loss was recognised in the consolidated income statement on cancellation of treasury shares.