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KUWAIT ENERGY PLC
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
Nine months ended 30 September 2015
8
4.
PROPERTY PLANT AND EQUIPMENT
The Group completed the acquisition of an additional 25% working interest effective 15 January 2015 in the Burg El Arab
(BEA) field in Egypt from Gharib Oil Fields (‘Gharib’) for a purchase consideration of USD 21,361 thousand. The
purchase was accounted for as an asset acquisition rather than a business combination. The net cash outflow arising on
the acquisition was USD 3,984 thousand, which excludes USD 127 thousand cash acquired. The remaining consideration
was settled with receivables due from Gharib. Property, plant and equipment (PP&E) assets with a gross cost of
USD 22,204 thousand were acquired, however the net PP&E additions from the transaction were USD 16,769 thousand
as USD 5,435 thousand had been capitalised in prior periods under the terms of a carry arrangement with Gharib.
The Board approved an exit from Yemen Block 43 effective 30 June 2015. As at 30 June 2015, the carrying value of
Yemen Block 43 was nil (31 December 2014: nil) and following the disposal the associated costs and accumulated
depreciation have been removed with no income statement impact.
On 30 September 2015 the Group completed the assignment of a 10% participating interest in Block 9 exploration,
development and production service contract in Iraq to Egyptian General Petroleum Corporation (EGPC), with an
effective date of 1 July 2013, resulting in a profit of USD 35,000 thousand. The Group now has a 60% share in Block 9.
Oil and
gas assets
Other fixed
assets
Total
Cost
USD 000’s USD 000’s USD 000’s
As at 1 January 2014 (audited)
585,008
17,309
602,317
Additions
208,196
1,130
209,326
Disposal
-
(15)
(15)
Transfer from Intangible Exploration and Evaluation
66,996
-
66,996
As at 31 December 2014 (audited)
860,200
18,424
878,624
Additions
142,953
8,352
151,305
Acquisition of asset
16,769
-
16,769
Disposal
(35,942)
-
(35,942)
Transfer from Intangible Exploration and Evaluation
10,499
-
10,499
As at 30 September 2015 (unaudited)
994,479
26,776
1,021,255
Accumulated Depreciation, depletion, amortisation and impairment
As at 1 January 2014 (audited)
246,664
6,686
253,350
Charge for the period
81,853
1,652
83,505
Impairment
19,247
-
19,247
Disposal
-
(15)
(15)
As at 31 December 2014 (audited)
347,764
8,323
356,087
Charge for the period
64,287
723
65,010
Disposal
(24,874)
-
(24,874)
As at 30 September 2015 (unaudited)
387,177
9,046
396,223
Carrying amount
As at 30 September 2015 (unaudited)
607,302
17,730
625,032
As at 31 December 2014 (audited)
512,436
10,101
522,537