Annual Report 2015

KUWAIT ENERGY PLC

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2015

INCORPORATION AND ACTIVITIES

Kuwait Energy plc (“

the

Company”) is a company incorporated on 12 September 2011

in Jersey in accordance with the

Commercial Companies Law in the Bailiwick of Jersey.

The Company and its subsidiaries (together referred to as “the Group”) have been established with the objective of

exploration, production and commercialisation of crude oil and natural gas.

The Company’s registered address is Queensway House, Hilgrove St

reet, St Helier, Jersey, JE1 1ES.

ADOPTION OF NEW AND REVISED STANDARDS

At the date of authorisation of these financial statements, the following Standards and Interpretations which have not

been applied in these financial statements were in issue but not yet effective (and in some cases had not yet been adopted

by the EU):

IFRS 9

Financial Instruments

IFRS 15

Revenue from Contracts with Customers

IFRS 16

Leases

IFRS 11 (amendments)

Accounting for Acquisitions of Interests in Joint Operations

IAS 1 (amendments)

Disclosure Initiative

IAS 16 and IAS 38 (amendments)

Clarification of Acceptable Methods of Depreciation and Amortization

IAS 27 (amendments)

Equity Method in Separate Financial Statements

IFRS 10 and IAS 28 (amendments)

Sale or Contribution of Assets between an Investor and its Associate or Joint

Venture

IFRS 10, IFRS 12 and IAS 28

(amendments)

Investment Entities: Applying the Consolidation Exemption

Annual Improvements to IFRSs:

2012-2014 Cycle

Amendments to: IFRS 5 Non-current Assets Held for Sale and Discontinued

Operations, IFRS 7 Financial Instruments: Disclosures, IAS 19 Employee

Benefits and IAS 34 Interim Financial Reporting

The directors do not expect that the adoption of the Standards listed above will have a material impact on the financial

statements of the Group in future periods, except that:

a) IFRS 9 will impact both the measurement and disclosures of financial instruments; and

b) The Group has not yet assessed the potential impact of IFRS 15 and 16 on its financial results, which applies for

periods beginning on or after 1 January 2018 and 2019 respectively.

SIGNIFICANT ACCOUNTING POLICIES

Statement of compliance

These consolidated financial statements have been prepared in accordance with International Financial Reporting

Standards (“IFRS

”) as adopted by the

European Union.

Basis of preparation

These consolidated financial statements have been prepared on the historical cost basis, except for the financial

instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies

below. These consolidated financial statements are

presented in US Dollars (“USD”), which is the Company’s functional

and presentation currency, rounded off to the nearest thousand. The principal accounting policies adopted are set out

below.