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KUWAIT ENERGY PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 30 June 2016
33
13.
PROPERTY PLANT AND EQUIPMENT
Other fixed assets includes items such as buildings, fixtures and fittings, motor vehicles and office equipment. Its
carrying amount includes US$ 7.1 million (31 December 2015: US$ 7.5 million) in respect of assets held under finance
leases (note 23).
Additions
The additions to oil and gas assets mainly relate to Iraq Siba and Block 9, and include US$ 8.5 million (31 December 2015:
US$ 16.5 million) of finance costs on qualifying assets capitalised during the period (see note 9) and US$ 0.4 million
(31 December 2015: US$ 1.7 million) of fair value loss on convertible loans capitalised.
Acquisition of asset
During the period ended 30 June 2016, there was no acquisition of oil and gas assets. In 2015, the Group acquired an
additional 25% working interest effective 15 January 2015 in the Burg-El-Arab (BEA) in Egypt from Gharib Oil Fields
(‘Gharib’) for a purchase consideration of US$ 21.4 million. The purchase was accounted for as an asset acquisition rather
than a business combination. The net cash outflow arising on the acquisition was US$ 3.9 million. The remaining
consideration was settled by offsetting receivables otherwise due from Gharib. Oil and gas assets with a gross cost of US$
22.2 million were acquired, however the net oil and gas assets addition from the transaction was US$ 16.8 million as US$
5.4 million had been capitalised in prior periods under the terms of a carry arrangement with Gharib.
Oil and
gas assets
Other fixed
assets
Total
Cost
US$ 000’s
US$ 000’s
US$ 000’s
As at 1 January 2015
860,200
18,424
878,624
Additions
210,954
11,311
222,265
Acquisition of assets
16,769
-
16,769
Transfer
6,074
(6,074)
-
Disposal
(37,066)
-
(37,066)
Transfer from Intangible exploration and evaluation assets
10,349
-
10,349
As at 31 December 2015
1,067,280
23,661
1,090,941
Additions
78,569
-
78,569
Disposal
-
(544)
(544)
Transfer from Intangible exploration and evaluation assets
2,533
-
2,533
As at 30 June 2016
1,148,382
23,117
1,171,499
Accumulated Depreciation, depletion, amortisation and impairment
As at 1 January 2015
347,764
8,323
356,087
Charge for the year
67,757
1,390
69,147
Disposal
(24,874)
-
(24,874)
Impairment
69,010
-
69,010
As at 31 December 2015
459,657
9,713
469,370
Charge for the period
32,713
1,122
33,835
Disposal
-
(484)
(484)
As at 30 June 2016
492,370
10,351
502,721
Carrying amount
As at 30 June 2016
656,012
12,766
668,778
As at 31 December 2015
607,623
13,948
621,571