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KUWAIT ENERGY plc
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 30 June 2014
50
24.
LONG-TERM LOANS (CONTINUED)
12 months ended 31 December 2013 (continued):
The facility from Arab bank is secured by assigning the rights, title, benefits and interest in the shares of Jannah Hunt
Oil Company Limited to the bank as security. Further, receipts under the crude oil sales agreement with Exxon
Worldwide Trading Company have also been assigned to the bank as security. The loan is repayable in equal
quarterly instalments commencing from March 2014 with final maturity in December 2016. At the year end the
Group failed to comply with a financial covenant within the loan agreement.. Accordingly, the loan has been
classified as a current liability. Subsequent to the year end the Group received an amendment agreement from Arab
Bank.
The initial transaction cost of USD 6,455 thousand for securing the loans is classified as a non-current asset and is
being amortised over the period of the loans.
12 months ended 31 December 2012:
The reserve based facility of USD 165 million is secured by pledges on the assets of the subsidiaries Kuwait Energy
Egypt Ltd and Kuwait Energy Ukraine Ltd. Out of USD 165 Million facility the Group has drawn down the first
tranche of USD 60 Million on 19 December 2012 and utilised it to repay the existing loans from IFC. This loan is
repayable by 30 June 2017 and is measured at amortised cost using the effective interest method. As at 31 December
2012, the Group has undrawn loan facilities amounting to USD 105 Million, although the amount available for
immediate draw down is limited to USD 78 Million based on the latest borrowing base approved by Deutsche Bank
as determined by the forecast cash flows arising from the borrowing base assets.
The facility from IFC which was secured by pledges on the assets of the subsidiaries Kuwait Energy Egypt Ltd and
Kuwait Energy Yemen Ltd was fully repaid during the year. The loan from EBRD which was secured by pledges on
the assets of Pechora Energy Company Limited was repaid in full during the year.
The initial transaction cost of USD 7,647 thousand for securing the Deutsche Bank loan is classified as non-current
assets and will be amortised over the period of the loan.
12
months ended 31 December 2011:
IFC facility of USD 35 million is secured by pledges on the assets of the subsidiaries Kuwait Energy Egypt Ltd and
Kuwait Energy Yemen Ltd. The loan was to be repaid on 15 June 2014.
IFC facility of USD 15 million is secured by pledges on the assets of the subsidiaries Kuwait Energy Egypt Ltd and
Kuwait Energy Yemen Ltd. The facility was to be repaid in 2 annual instalments of USD 7,500 thousand each on 30
June 2014 and 30 June 2015.
EBRD facility of USD 8 million is secured by pledges on the assets of the subsidiary of Pechora Energy Company
Limited.
As at 31 December 2011, the Group has undrawn loan facilities amounting to USD 5,000 thousand (2010: USD 5,000
thousand).
The facilities shown above include certain financial covenants. One of these covenants on the EBRD facility was in
breach as at 31 December 2011 and accordingly the full amount has been disclosed as falling due within one year.