psc - Kufpec

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KUWAIT FOREIGN PETROLEUM EXPLORATION COMPANY K.S.C. (CLOSED) AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2010 28. JOINT VENTURE INTERESTS (CONTINUED) Operator Country Block Interest (Unaudited) Remarks ENI Pakistan Kirthar (Badhra Area B) 34.00% Paying interest 42.50% ENI Pakistan Kirthar (Bhit) 34.00% ENI Pakistan Tajjal (Kadanwari) 15.789% ENI Paksitan Sukhpur 25.00% OGDCL Pakistan Qadirpur 13.25% BHP Petroleum Pakistan Dadu (Zamzama) 9.375% Shell Philippines SC-60 30.00% TOTAL Sudan Block B 27.50% Paying interest 41.27% Stratic Energy Remov Syria Block 17 33.33% KUFPEC / CNPCIT Tunisia North Kairouan 50.00% CTKCPT Tunisia Sidi El Kilani 22.50% Mitra Energy Vietnam Block 19 40.00% Mitra Energy Vietnam Block 20 40.00% Mitra Energy Vietnam Block 51 35.00% KEC Yemen Block 15 (Mukalla) 45.00% Paying interest 47.37% Hunt Yemen Block 5 (Jannah) 20.00% TOTAL Yemen Block 10 (East Shabwa) 14.2857% Oil Search Yemen Block 7 20.25% Paying interest 23.8235% KEC Yemen Block 74 21.25% Paying interest 25.00% Enquest UK Licence P995 (Blk 28/3a) 30.00% 29. CAPITAL COMMITMENTS Commitments under various joint ventures for future exploration and development expenditure at 31 December 2010 amounted to approximately KD 401.8 million (2009: KD 387 million). 30. CONTINGENT LIABILITIES a) Pursuant to the Group’s interest in a joint venture in Australia encompassing production from the Harriet Field and various exploration permits, KUFPEC Australia Pty Ltd (“KAPL”) has entered into three deeds of cross charge in favour of each of the other participants for the purpose of securing the Group’s obligations under the Joint Venture Agreement. The cross charges comprise a prior ranking charge over the Group’s interest in the joint venture to a limit of Australian Dollars 250 million (KD 48 million). b) As a result of a pipeline explosion on Varanus Island, offshore North West Australia on 3 June 2008, KUFPEC Australia Pty Ltd (“KAPL”) and its co-venturers (“the HJV”) have been prosecuted by the Western Australian Department of Mines and Energy under Section 38 (b) of the Petroleum Pipelines Act 1969 (WA), for failing to maintain the subject pipeline in good condition and repair. The maximum fine payable for the breach is 10,000 Australian Dollars which has been accounted in the consolidated statement of income. Delivery of gas by the HJV was fully reinstated in August 2010. Also a civil claim has been filed against the HJV by one of the gas buyers in March 2011. Legal analysis and cost estimation of the claim are still in progress. KAPL and the other HJV co-venturers intend to vigorously defend their contractual position as the gas sales agreement contains express provisions limiting the liability of the gas sellers, including Force Majeure and liquidated damages. 37 66
KUWAIT FOREIGN PETROLEUM EXPLORATION COMPANY K.S.C. (CLOSED) AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2010 30. CONTINGENT LIABILITIES (CONTINUED) c) On 23 November 2006, KUFPEC Australia Pty Ltd (“KAPL”) issued a Notice of Force Majeure (“HJV Force Majeure”) to a gas buyer of the Harriet Joint Venture (“HJV”). Three of the four limbs of the HJV Force Majeure continue to be in force. Any claim in relation to any shortfall in gas supply under the relevant contract is subject to the HJV Force Majeure and the HJV sellers’ limitation of liabilities set out in the contract. 31. SALES COMMITMENTS With reference to the contract referred to in note 30 (c) above, subject to the Varanus Island Force Majeure and the HJV Force Majeure, the HJV continues to supply gas in accordance with the terms of the relevant contract. HJV expects that based upon current proved reserves, it will be able to do so for a number of years. 32. STATEMENT OF COMPREHENSIVE INCOME During 2010, an amount of KD 2,812 thousand was debited (2009: KD 27,904 thousand was credited) to equity in accordance with International Financial Reporting Standards which is consistent with the previous years. However, due to the introduction of IAS 1 (Revised 2007) effective for annual periods beginning on or after 1 January 2009, such foreign currency translation adjustments are being included in “other comprehensive income” and shown separately in the “consolidated statement of changes in equity” and “consolidated statement of comprehensive income” . In the financial years prior to 31 December 2009, this account was shown separately in the “consolidated statement of changes in equity” as “net income / expenses recognized directly in equity” under the “foreign currency translation reserve” account. Although such amount is included in the “statement of comprehensive income”, it does not form part of the profits eligible to be distributed as “dividends”. 33. SUBSEQUENT EVENTS Subsequent to the year end, Egypt, Yemen, Tunisia and Ivory Coast have experienced significant political events that had an impact on the business environment in these countries as a whole. These events did not have an impact on the consolidated financial statements of the Group as at 31 December 2010. However, such political disruptions could have an impact on the Group’s future performance, profits and growth due to the expected fluctuations in the foreign currency exchange rate, interest rate, oil prices etc. and possible change in the value of the Group’s assets in these countries. However, the management of the Group believes that the Group will not be exposed to any significant implications due to the nature of its business and industry characteristics.. 34. PROPOSED DIVIDENDS The Board of Directors proposed to distribute cash dividends of KD 35,623 thousand for 2010 (2009: KD 23,319 thousand). This proposal is subject to the approval of the Annual General Assembly. 38 67
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Kuwait City 2
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Commitment to HSE We Wear Many Helm
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About Us KUFPEC Mission, Vision, an
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Message from the Chairman and Manag
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KUFPEC Areas of Operation As our fo
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Indonesia, Natuna Sea : Drilling Op
Page 15 and 16: VIETNAM Ho Chi Minh City - Vietnam
Page 17 and 18: PAKISTAN Bhit & Badhra fields (KUFP
Page 19 and 20: Jannah - Yemen YEMEN East Shabwa Bl
Page 21 and 22: FAR EAST AUSTRALIA REGION The Far E
Page 23 and 24: KUFPEC intends to develop the WA-35
Page 25 and 26: Western Desert - Onshore West Sitra
Page 27 and 28: TUNISIA KUFPEC has been operating i
Page 29 and 30: CONGO Congo Marine Block-IX (KUFPEC
Page 33 and 34: KUWAIT FOREIGN PETROLEUM EXPLORATIO
Page 35 and 36: KUWAIT FOREIGN KUWAIT PETROLEUM FOR
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Page 71 and 72: معلومات عن الشركة ا
Page 73 and 74: ب(‏ الشركة الكويتي
Page 75 and 76: الشركة الكويتية لل
Page 95 and 96: مال مال الشركة الكو
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Page 107 and 108: الشركة الكويتية لا
Page 109 and 110: موريتانيا وادان - م
Page 111 and 112: غرب المتوسط قطاع -1
Page 113 and 114: أفريقيا منطقة لقد ر
Page 115 and 116: أستراليا مشروع هار
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البركة قطاع -7 ‏)كوف
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مرافق حقل غاز كادنو
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الشرق األوسط منطقة
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ماليزيا PM-304 ‏)شيند
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تقرير مجلس اإلدارة
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مؤشرات مالية وتشغي
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اإلدارة السيد/‏ فه
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مجلس اإلدارة أعضاء
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حضرة صاحب السمو الش
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نحن نرتدي االلتزام
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