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KUWAIT ENERGY plc
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 30 June 2014
41
16.
INTANGIBLE EXPLORATION AND EVALUATION (‘E&E’) ASSETS
E&E assets
(Restated)
Cost
USD 000’s
As at 1 January 2011
228,636
Additions
36,273
Exploration expenditure written off
(18,053)
Transfer to Property, plant and equipment
(115,675)
As at 31 December 2011
131,181
Additions
37,447
Exploration expenditure written off
(14,304)
As at 31 December 2012
154,324
Additions
49,685
Exploration expenditure written off in relation to discontinued operations (see note 13)
(11,121)
Other exploration expenditure written off
(43,852)
As at 30 June 2013
149,036
Additions
29,243
Exploration expenditure written off in relation to discontinued operations (see note 13)
(7,501)
Other exploration expenditure written off
(29,403)
As at 31 December 2013
141,375
Additions
34,382
As at 30 June 2014
175,757
6 months ended 30 June 2014
As at 30 June 2014, exploration costs of USD 175,757 thousand (30 June 2013: USD 149,036) were capitalised
pending further evaluation of whether or not the related oil and gas properties are commercially viable.
12 months ended 31 December 2013
As at 31 December 2013, exploration costs of USD 141,375 thousand were capitalised pending further evaluation of
whether or not the related oil and gas properties are commercially viable. Exploration expenditure written off of USD
73,255 thousand includes USD 29,181 thousand relating to Licence 1 in Latvia where, due to unsuccessful
exploration well results, the Group has decided to exit the country. Further the Company has written off exploration
expenditure amounting to USD 16,856 thousand related to Abu Sennan, Area A and B6 fields in Egypt, USD 11,204
thousand related to block 83 in Yemen, USD 14,919 thousand in Pakistan Jherruk and Kunri fields and USD 1,095
thousand in Somalia due to unsuccessful exploration well results.
Of the total write off outlined above, USD 43,852 thousand was recorded in the first six months of the year, which
includes USD 29,133 thousand relating to Licence 1 in Latvia where, due to unsuccessful exploration well results, the
Group has decided to exit the country. Further in the first six months of the year, the Company has written off
exploration expenditure amounting to USD 14,719 thousand related to Area A and Abu Sennan fields in Egypt due to
unsuccessful exploration well results.
12 months ended 31 December 2012
As at 31 December 2012, exploration costs of USD 154,324 thousand were capitalised pending further evaluation of
whether or not the related oil and gas properties are commercially viable. Exploration expenditure written off of
USD 14,304 thousand includes USD 9,136 thousand relates to block 74 in Yemen, where the licence was surrendered
during the year due to unsuccessful exploration well results. Further the Company has written off exploration
expenditure amounting to USD 5,168 thousand related to Abu Sennan, Area A and block 6 fields in Egypt due to
unsuccessful exploration well results.
12 months ended 31 December 2011
As at 31 December 2011, exploration costs of USD 131,181 thousand were capitalised pending further evaluation of
whether or not the related oil and gas properties are commercially viable. The transfer during the year to property,
plant and equipment reflects assets for which commercial reserves have been discovered during the year. Exploration
expenditure written off of USD 18,053 thousand includes USD 14,594 thousand related to block 15, 35 and 49 fields
in Yemen, USD 3,459 thousand related to East Ras Qattara and Area A fields in Egypt, due to unsuccessful
exploration well results.