Partex Holding B.V.
Financial statements for the year ended 31 December 2017
Partex Holding B.V.
Contents
Directors’ report 1
Consolidated statement of financial position as at 31 December 2017 6
Consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 2017 8
Consolidated statement of changes in equity for the year ended 31 December 2017 10
Consolidated statement of changes in equity for the year ended 31 December 2016 11
Consolidated statement of cash flows for the year ended 31 December 2017 12
Notes to the consolidated financial statements for the year ended 31 December 2017 13
Appendix 1 60 Payments to Governments 60
Consolidated IFRS FS 2017 FINAL i Partex Holding B.V.
Directors’ report Directors of Partex Holding B.V. (the “Company” or Partex) hereby present its financial statements for the financial year ended on 31st December 2017.
General information The Company is a 100% subsidiary of the Calouste Gulbenkian Foundation, a Portuguese private institution of public utility. Its statutory aims are in the fields of arts, charity, education and science. The Company’s business is the production of oil and gas and operates in this market since 1938, well known as the Partex Oil and Gas Group. With its expertise and technical skills the company is a valued partner for major oil companies in different sized operations. The Partex Oil and Gas Group is organized primarily by geographical areas and holds interests in concessions and joint ventures engaged in upstream activities related to the oil and gas industry namely, exploration, development, production and sales. The group has a long tradition of participating in oil and gas concessions and joint ventures in the Middle East and in most recent years became an operator in oil upstream activities in other parts of the World. The Group was the operator for the initial phase of the Dunga field in Kazakhstan and is presently the operator of two fields in the Northeast of Brazil. Oil Exploration activities by the Group are currently in Angola, whereas exploration activities in Brazil and Portugal have ceased. During 2016 the company’s transfer of the holding company to the Netherlands was fully completed. In addition to this, the Group’s subsidiary PMO Services S.A., based in Vaduz, Liechtenstein, was closed and the formal liquidation of this subsidiary will be executed in the first half of 2018. The Group is structured in sub-holding companies, management units, concession companies and service companies that provide all the necessary advice and financial, technical, management and human resources support to the joint ventures and operating companies in which the Group participates. All activities are carried out in accordance with the strategy and guidelines defined by the Company.
Financial information • The revenue for the year increased USD 69 million to USD 322 million. Main driver behind this revenue increase relates to the increase in average sales price of approximately USD 10, compared with prior year. Production levels remained stable compared to prior year, whereas a decrease in the production levels of the concession in the Sultanate of Oman (due to OPEC production measures), was compensated by an increased production from the Group’s concession in Kazakhstan. The profit for the year is approximately USD 7 million less than prior year, however in prior year the company recorded an impairment reversal gain of USD 60 million approximately, which in current year is less than USD 1 million. This shows an increase in underlying profit (excluding impairment losses / reversal) of the Group of almost USD 53 million. • The increased underlying profit also positively affected the cash position of the Group. Despite a dividend payment of EUR 30 million, which was declared by the end of 2016 to
Consolidated IFRS FS 2017 FINAL 1 Partex Holding B.V.
the shareholder, the cash position of the Group increased USD 11.4 million to USD 74.7 million by the end of 2017. • Dividends from our participation in OLNG were USD 12.5 million and in line with prior year. However, during 2017 the company recorded a (non-cash) adjustment of USD 5.4 million to align the accounting policies of the investment with the Group accounting policies as described by IFRS (IAS 28). • An increase of USD 26 million in deferred tax liability (2016: USD 22 million), solely relating to the Kazakhstan operations, also had a significant negative impact on the results of the Group. • The negotiations between the current partners and Government of Kazakhstan continues regarding a contract extension for another 15 years of the Dunga concession. Earlier in 2018, the Minister of Energy confirmed its interest in continuing to work closely with the Contractor on the matters included in the MoU dated September 2014. This extension should be formally signed after a new law (RoK Code dated 27 December 2017 No 125-VI on Subsurface and Subsurface use taking into account the provisions regarding extension of the contract duration) comes into force in Kazakhstan in June 2018. With the extension until 2039, the alternative development plan which was submitted in October 2016, foresees the full recoverability of the cost pool and a significant increase in the project economics.
Significant risks and uncertainties Risk management is considered a continuous process within the Group and the underlying risk management framework adheres to the requirements set by Group management in this matter. Considering the Industry of the Group and underlying market circumstances, the Group is mainly exposed to the risks coming from the current volatility of oil prices. Management is actively managing these risks and sets the boundaries and maximum level of risk acceptable for the Group. The (development of) significant risks facing the Group are discussed periodically within the Management meetings and adequately actioned upon. In this matter, the risk appetite of Management can be considered conservative as the current exposure from ongoing exploration activities within new oil field is balanced with a regular return from the current long-term oil investments. A breakdown of the risk per category is noted below: • Strategy While being strongly committed to the successful development of those ventures, Partex is actively engaged in the process of identifying new investment opportunities in the oil and gas business. It is the Company’s culture to preserve and further develop the historic partnerships in the Middle East where Partex will continue placing its human and technological resources in support of the continued development of the oil and gas industry. • Operational Despite the stable growth of the oil price, management of the Group will continue to closely monitor the cost of the Group and optimizing the administration structure of the Group. Equally the influence of Partex in operating companies will be used to optimize and improve the operational activities in the companies where the Group is a stakeholder. • Financial It’s the company’s goal to remain financially independent and maintain the ability to pay dividends to its sole shareholder.
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• Financial reporting The solid and reliable financial reporting will be continued and adopted to new requirements, whenever needed. • Laws and regulations The entire Partex Group is adhering to existing laws and regulations. Whenever inconsistencies will be discovered Management will take all necessary steps and set corrective measures.
Financial and non-financial performance indicators Looking at the oil and gas industry in general the oil price development is a major factor for the success or non-success for current developed and new exploration projects. The expected oil price path has its effect on the impairment (loss) or reversal (gain) on the joint venture assets of the company. The investment in the Middle East have matured and the Group expects to benefit from a further increase in the oil price through these investments, as well as in the investment in Kazakhstan. As noted above as well as in note 12 to the financial statements, the current fair value of the joint venture assets in Kazakhstan is mostly sustained by the expected residual value proceed of fixed assets at the end of the concession. Therefore, there is an inherent uncertainty in this amount, as the proceeds are partly dependant on agreement with the local Government. However, following the current negotiations with the partners to the concession and local government, management expects that the current value of the assets will be recovered through extension of the concession. As also noted in note 11 to the financial statements, the company is also awaiting the outcome of ongoing discussions in Angola between the consortium and local government on possible changes to the fiscal regime. Further optimisation of the fiscal regime is considered crucial for the recoverability of the current capitalised exploration costs. Based on the ongoing discussions with the local Government, management of the Group is positive on the outcome and change to the fiscal regime.
Environmental and personnel related information The Company has a no-harm to people and environment policy. In fields operated by Partex the best oil field practices are applied. Management makes sure with permanent staff training that state-of-the-art technologies and safety rules are being applied and observed. The number of average full time employees decreased to 83 in 2017 from 99 in 2016.
Information regarding financial instruments The group operates in an industry which is traditionally considered to be risky compared to other economic areas. The group is managed so as to obtain a reasonable balance between risk and expected reward. • Operational risk: The Partex Group is an active oil and gas exploration company and therefore runs the risk that its exploration activity may be unsuccessful. • Market risk: The Group sells most of its production on annual sales contracts thus reducing its short term exposure to price fluctuations.
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• Credit risk: Credit risk is that a customer or counterparty fails to perform or to pay amounts due causing financial loss to the group. The Group carefully assesses the quality of its counterparties when entering into business relationships with them. • Liquidity risk: Liquidity risk is the risk that suitable sources of funding for group business activities may not be available. The Group believes that it has access to sufficient sources of funding to meet current commitments.
Research and development information As part of its effort to ensure adequate technical support to operations and competitive advantage, Partex undertakes several R&D programmes aimed at the development of specific knowledge and technologies in critical areas of the industry. These programmes are supported and further developed through contacts, partnerships and protocols which the Group has established with technical entities of recognised quality, such as leading technological centres, research institutes and universities. Areas that have been addressed include seismic, reservoir characterization, compositional simulation, fluid characterisation, geo–statistical modelling, geo-mechanics and facilities projects.
Other information
• The Company uses standard IT systems for administration and financial reporting. These systems are kept up-to-date and the persons using them are properly trained to professionally use them. • Partex is seeking long term relationship with its clients. The Group is present at major events in the oil and gas industry and maintains good working relationships with other international oil companies and oil producing countries for being recognized as reliable partners for ongoing and future oil projects. • New and innovative ideas are supported from Group Management. • Financial development and financing is continuously monitored from finance department and Group Management.
Information concerning application of code of conduct
An important cornerstone in the day to day operation and management of activities is the timeous identification and management of Health, Safety and Environmental (HSE) issues. HSE and Social Responsibility principles and philosophies are set out in the HSE & SR policy statement, which has been formulated to ensure that the Company’s intentions are clear to all stakeholders.
Information on male/female partitioning of board members The target figures of at least 30% of the natural members of the Board of Directors and the Supervisory Board being female could not be achieved by the Group given the size of the
Consolidated IFRS FS 2017 FINAL 4 Partex Holding B.V.
Company and number of Board members, despite the current chairman of the Supervisory Board being a female. Partex aims to achieve the quota but given that the oil industry is pre-dominantly a male industry it will remain for the foreseeable future a challenge to find appropriate female candidates.
Future developments • Investments Partex is open for new investments and projects whenever interesting projects are offered or identified. • Financing Partex aims at funding its activities from its own cash flows but is open to alternatives if reasonable or needed. • Human resources The Group aims to be an attractive employer by offering its employees to grow and develop within the organization. Partex makes sure that employees are properly trained and equipped with the necessary skills to perform their work in an appropriate manner. For the near future no significant changes in the employee base is expected. • Research and development The company performs for each of the projects intense research and development opportunities activities in what concerns an optimized approach to explore oil or gas reservoirs. In addition, the company is ready to develop, apply and test new ideas, methods and processes that help to improve the quality, reliability, performance and/or safety. • Circumstances on which the development of the turnover and profitability depends. Being a company that is acting in the oil and gas industry the exposure to oil prices and the global demand for hydrocarbons are major external drivers for the development of the company. Furthermore, Partex is also depending on external factors (price) and global developments which are beyond the control of Group Management. Nevertheless, the current developments in the Industry showing increased demand due to increased economic activity, including the increasing oil price, are setting a positive tone for the coming future of the Group.
Subsequent events There were no material post balance sheet events, which have a bearing on the understanding of the financial statements. Amsterdam, 17 April 2018 The Board of Directors:
A. J. Da Costa Silva
M. C. E. van Gendt
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Consolidated statement of financial position as at 31 December 2017
31 December 31 December 2017 2016
USD USD
Assets Intangible assets 11 38,970,937 41,773,296 Exploration and Evaluation 11 17,065,850 17,014,028 Oil & Gas Properties 12 487,523,190 472,470,652 Property Plant and Equipment 10 624,481 376,311 Other Oil & Gas Financial Assets 13 57,997,481 48,443,310 Financial investments 14 - 4,847,930 Assets available for sale 15 - 795,554
Non-current assets 602,181,939 585,721,081
Inventories 17 14,208,120 20,727,892 Oil and Gas receivables 16 45,568,821 45,631,973 Trade receivables 16 1,535,376 1,341,760 Other receivables 2,931,357 3,723,568 Cash and cash equivalents 18 74,700,329 63,265,474
Current assets 138,944,003 134,690,667
Total assets 741,125,942 720,411,748
The notes on pages 13 to 59 are an integral part of these consolidated financial statements.
Consolidated IFRS FS 2017 FINAL 6 Partex Holding B.V.
31 December 31 December 2017 2016
USD USD Equity Share capital 19 121,410 121,410 Share premium 19 573,266,061 590,266,061 Fair value reserve 19 - 795,554 Translation reserve 19 (5,705,662) (21,789,916) Actuarial gains and losses 0 0 Retained earnings (19,581,504 ) (47,135,663)
Total equity attributable to the owners of the 548,100,305 522,257,446 Company
Liabilities Provisions 20 110,032,256 110,148,721 Other payables 21 197,958 139,352 Deferred tax liabilities 9 34,657,516 8,492,889
Total non-current liabilities 144,887,730 118,780,962
Oil and Gas payables 16 45,611,765 45,792,131 Trade and other payables 22 2,526,142 1,994,624 Payable to shareholder 23 - 31,586,585
Total current liabilities 48,137,907 79,373,340
Total liabilities 193,025,637 198,154,302
Total equity and liabilities 741,125,942 720,411,748
The notes on pages 13 to 59 are an integral part of these consolidated financial statements.
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Consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 2017
2017 2016
Note USD USD USD USD
Continuing operations Revenue Oil & Gas 5 321,849,463 252,484,862 Cost of sales Oil and Gas 5 (88,575,313 ) (93,832,129)
Gross profit 233,274,150 158,652,733
Earnings from Joint Ventures 14 7,385,800 11,316,540 Other income 5 2,649,330 3,801,583 Administrative expenses 6 (3,733,356) (3,115,349) Personnel costs 6 (10,844,704) (11,578,120) Depreciation and amortization 10/11/12 (77,856,717) (100,424,517) Impairment reversals/ (losses) 7 775,445 60,356,596
(81,624,202) (39,643,267)
Operating profit 151,649,948 119,009,466
Finance income 8 4,301,543 2,143,071 Finance costs 8 (285,785 ) (610,610)
Net finance costs 4,015,758 1,532,461
Profit before tax 155,665,706 120,541,927
Income tax expense 9 (132,409,669 ) (90,539,237)
Profit attributable to the owners 23,256,037 30,002,690 of the Company
The notes on pages 13 to 59 are an integral part of these consolidated financial statements.
Consolidated IFRS FS 2017 FINAL 8 Partex Holding B.V.
2017 2016
USD USD USD USD
Other comprehensive income Items that will never be
reclassified to profit or loss Re-measurement of defined benefit liability - (754,987) (asset) OCI movements of equity accounted joint 16,740 6,630 ventures
16,740 (748,357) Items that are or may be
reclassified to profit or loss Foreign operations – foreign currency (915,746) 1,479,166 translation reserves Available-for-sale financial assets – net - (33,527) change in fair value Available for sale financial assets- (795,554) - recycling through P&L
(1,711,300 ) 1,445,639
Other comprehensive income, net (1,694,560) 697,282 of tax
Total comprehensive income attributable to the owners of the Company 21,561,477 30,699,972
The notes on pages 13 to 59 are an integral part of these consolidated financial statements.
Consolidated IFRS FS 2017 FINAL 9 Partex Holding B.V.
Consolidated statement of changes in equity for the year ended 31 December 2017
Attributable to owners of the Company Share capital Share premium Fair value Translation Retained Actuarial gains Total reserve reserve earnings and losses USD USD USD USD USD USD USD
Balance as at 1 January 2017 121,410 590,266,061 795,554 (21,789,916) (47,135,663) - 522,257,446
Total comprehensive income Profit - - - - 23,256,037 - 23,256,037 Translation reserve - - - (915,746) - - (915,746) Net amount reclassified to Profit and Loss - - (795,554) - - - (795,554) Other reclassifications in equity - (17,000,000) - 17,000,000 - - 0 OCI movements in equity accounted investees and Joint Operations - - - - 4,298,122 - 4,298,122
Total comprehensive income - (17,000,000) (795,554) 16,084,254 27,554,159 - 25,842,859
Transactions with owners of the Company Increase in share premium ------Dividends paid ------
Total transactions with owners of the Company ------
Balance as at 31 December 2017 121,410 573,266,061 - (5,705,662) (19,581,504) - 548,100,305
The majority of other movements in equity relate to the JV share of OCI items in PDO and Oman LNG following the accounting requirements of IFRS 11 for this investment. The accumulated amount of OCI items of Joint operations/Ventures included in retained earnings by the end of the year 2017 amounts to USD 4,308,960 (2016 USD: 2,734,540) and is not distributable to shareholders as dividend. The notes on pages 13 to 59 are an integral part of these consolidated financial statements.
Consolidated IFRS FS 2017 FINAL 10 Partex Holding B.V.
Consolidated statement of changes in equity for the year ended 31 December 2016
Attributable to owners of the Company Share capital Share premium Fair value Translation Retained Actuarial gains Total reserve reserve earnings and losses USD USD USD USD USD USD USD
Balance as at 1 January 2016 121,410 590,266,061 829,081 (23,269,082) (44,919,383) (2,588,484) 520,439,603
Total comprehensive income Profit - - - - 30,002,690 - 30,002,690 Actuarial gains and losses - - - - - (754,987) (754,987) Changes in fair value of available for sale financial assets - - (33,527) - - - (33,527) Translation reserve - - - 1,479,166 - - 1,479,166 Reclassifications within equity - - - - (3,343,471) 3,343,471 - OCI movements in equity accounted investees and Joint Operations - - - - 2,736,401 - 2,736,401
Total comprehensive income - - (33,527) 1,479,166 29,395,620 2,588,484 33,429,743
Transactions with owners of the Company Increase in share capital ------Increase in share premium ------Dividend paid - - - - (31,611,900) - (31,611,900)
Total transactions with owners of the Company - - - - (31,611,900) - (31,611,900)
Balance as at 31 December 2016 121,410 590,266,061 795,554 (21,789,916) (47,135,663) - 522,257,446
The notes on pages 13 to 59 are an integral part of these consolidated financial statements.
Consolidated IFRS FS 2017 FINAL 11 Partex Holding B.V.
Consolidated statement of cash flows for the year ended 31 December 2017 2017 2016
USD USD
Cash flows from operating activities
• Oil and Gas income received 314,813,229 245,829,934 • Trade and other payables (83,997,069) (90,598,795) • Personnel costs paid 6 (10,844,704) (17,123,217)
219,971,456 138,107,922
• Income taxes paid 9 (105,009,105) (71,132,903) • Other receipts/payments relating to operating activities 7,717,515 5,053,460
Net cash from operating activities 122,679,866 72,028,479
Cash flows from investing activities Property, Plant and Equipment (402,935) (17,272) Oil and Gas properties (90,531,407) (91,260,256) Exploration and evaluation (121,319) (2,175,835) Intangible assets (21,290) (78,979) Interest received 120,180 152,874 Dividends received 13,207,636 11,392,880
Net cash from (used in) investing activities (77,749,135) (81,986,588)
Cash flows from financing activities Interest paid - - Dividends paid (33,374,100) -
Net cash from (used in) financing activities (33,374,100) -
Net increase/decrease in cash and cash equivalents 11,556,631 (9,958,019) Cash and cash equivalents at 1 January 63,265,474 73,629,282 Effect of movements in exchange rates on cash held (121,776) (405,789)
Cash and cash equivalents at 31 December 18 74,700,329 63,265,474
The notes on pages 13 to 59 are an integral part of these consolidated financial statements.
Consolidated IFRS FS 2017 FINAL 12 Partex Holding B.V.
Notes to the consolidated financial statements for the year ended 31 December 2017
1 Reporting entity Partex Holding B.V. (the ‘Company’) is a limited liability Company domiciled in Amsterdam, The Netherlands. The Company’s registered office is Claude Debussylaan 10, 1082 MD Amsterdam, the Netherlands and its registration number is 58329129. The Company is a wholly owned subsidiary of the Fundaçao Calouste Gulbenkian, a charitable foundation established under the laws of Portugal. The Company was set up in July 2013 as ultimate holding company of the Group which holds investments in the oil and gas industry. The subsidiaries of the Group are active in the oil and gas industry from participating in exploration and development of oil and gas concessions to upstream activities. These consolidated financial statements comprise the Company and its subsidiaries (collectively the ‘Group’ and individually ‘Group companies’).
2 Basis of preparation
(a) Statement of compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (EU-IFRSs). The consolidated financial statements were authorised for issue by the Board of Directors on 17 April 2018.
(b) Basis of preparation The consolidated financial statements have been prepared on the historical cost basis except for the below items: • Pension scheme investments, which are accounted for at fair value in accordance with IAS 19. • Assets available for sale, which are accounted for at fair value through OCI as per IAS 39. These financial assets were sold during 2017. The accounting policies applied by the Group in the preparation of these consolidated financial statements for the year ended 31 December 2017 are consistent with the ones used in the preparation of the Group’s financial statement as at 31 December 2016.
(c) Going concern The financial statements have been prepared under the going concern assumption. In assessing all available financial- and market information, as well as existing and available hydrocarbon reserves in combination with already existing business- and investment plans there are no reasons or indications for Management to assume that an economically successful continuation of the business could not be possible.
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(d) Functional and presentation currency These consolidated financial statements are presented in USD, which is the Group’s functional currency. For each entity, the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. The Group uses the direct method of consolidation and on disposal of a foreign operation, the gain or loss that is reclassified to profit or loss reflects the amount that arises from using this method.
(e) Use of estimates and judgements
In preparing these consolidated financial statements, management has made judgements, estimates and assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year ending 31 December 2017 is included in the following notes: (a) Impairment (and impairment reversals) on oil and gas assets and concession rights.
Assets are impaired when there are events or changes in circumstances that indicate that carrying amounts of the assets are not recoverable. Such impairment indicators include changes in the Group’s business plans, changes in commodity prices leading to unprofitable performance and, for Oil & Gas properties, significant downward revisions of estimated proved reserve quantities or significant increase of the estimated development costs.
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs of disposing of the asset. The value in use calculation is based on a DCF model. The expected future cash flows used for impairment analyses are based on judgmental assessments of future production volumes, prices and costs, considering available information at the date of review and are discounted by using a rate which considers the risks specific to the asset. For oil and natural gas properties, the expected future cash flows are estimated principally based on developed and undeveloped proved reserves including, among other elements, production taxes and the costs to be incurred for the reserves yet to be developed. The estimate of the future amount of production is based on assumptions related to the commodity future prices, lifting and development costs, field decline rates, market demand and other factors. The cash flows associated to Oil & Gas commodities are estimated on the basis of forward market information, if there is a sufficient liquidity and reliability level, on the consensus of independent specialized analysts and on management’s forecasts about the evolution of the supply and demand fundamentals. The discount rate reflects the current market valuation of the time value of money and of the specific risks of the asset not reflected in the estimate of the future cash flows
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The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.
The key assumptions used to determine the recoverable amount for the different CGUs, including a sensitivity analysis, are disclosed and further explained in Note 7.
(b) Income taxes The Group is subject to income taxes in certain jurisdictions. Significant interpretation and estimates are required in determining the group income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. Different interpretations and estimates would result in a different level of income taxes both current and deferred, recognized in the period. (c) Crude oil reserves The estimation of crude oil reserves is an integral part of the decision-making process relating to exploration activity and development assets. The volume of proved crude oil reserves is used to calculate depreciation of the exploration and production assets in accordance with the "Unit of Production" method, as well as to value impairment of investment in assets relating to that activity.
Estimated proved reserves are subject to future revision, as new information becomes available, including information relating to development activities, drilling or production, exchange rates, prices, contract termination dates and development plans. Changes in estimated proved reserves are taken into account in calculating depreciation and provision for abandonment by appropriately adjusting the remaining net book value of the assets being depreciated and the provision for abandonment costs- based on the expected future production.
(d) Environmental liabilities The Group makes judgments and estimates to calculate provisions for environmental matters, including decommissioning liabilities, based on current information relating to expected costs and plans. Such costs can vary due to changes in legislation and regulations relating to a specific location. Any change in the circumstances relating to such provisions, as well as in the legislation and regulations can significantly affect the provisions for such matters.
(e) Pension and other employee benefits Determining pension liabilities requires the use of assumptions and estimates, including the use of actuarial projections, estimated returns on investment, and other factors that could impact the cost and liability of the pension plan.
(f) Measurement of fair values As noted under item (b) above, the Group does not hold financial assets recorded at fair value, except for pension assets, which are outside the scope of IAS 39 “financial instruments: “measurement and recognition” and accounted for under IAS 19 “employee benefits”.
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3 Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements and have been applied consistently by all Group companies.
(a) Basis of consolidation
(i) Subsidiaries The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at 31 December 2017. Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Generally, there is a presumption that a majority of the voting rights result in control. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Non-controlling interest are measured initially at their proportionate share of the acquiree’s identifiable net assets at the date of acquisition. Profit or loss and each component of OCI are attributed to the equity holders of the parent of the Group and to the non-controlling interest, even if this results in the non-controlling interest having a deficit balance. When necessary, adjustments are made to the financial statements of the subsidiaries to bring their accounting policies in line with the Group Accounting policies. All intra group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
(ii) Loss of control When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any non-controlling interests and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost.
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The consolidated financial statements of Partex Holding BV include the financial statements of the following subsidiary companies, all wholly owned: Country of Share capital Company Name incorporation Share Capital denomination Activity Partex Oil and Gas (Holdings) Corp. Cayman Islands USD 50,000 USD c Participations and Explorations Corp. Panama USD 2,800 USD a Partex (Oman) Corporation Panama USD 2,500 USD a Partex Gas Corporation Panama USD 2,000,000 USD a Partex Services Corporation Panama USD 2,300,000 USD b Partex (Kazakhstan) Corporation Cayman Islands USD 5,000 USD a PMO Services, SA Liechtenstein USD 469,925 CHF b Partex Services Portugal S.A. Portugal USD 69,500 EUR b Partex Brasil Ltda. Brazil USD 67,416,137 BRL a Partex (Brazil) Corporation Cayman Islands USD 50,000 USD c Partex (Algeria) Corporation Cayman Islands USD 50,000 USD a Partex (Iberia) S.A. Portugal USD 65,894 EUR a Partex Brasil Oper. Petrolíferas Ltda. Brazil USD 1,715,738 BRL b Partex (Angola) Corporation Cayman Islands USD 50,000 USD a
(a) Companies with interest in oil concessions or contractual operations. (b) Supply of services. (c) Holding Company.
(iii) Interests in equity accounted investees A joint arrangement is present where the Group holds a long-term interest The Group’s interest in equity-accounted investees comprise interests in joint ventures. A joint venture is an arrangement in which the Group has joint control, whereby the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. Interests in joint ventures are accounted for using the equity method. Under the equity method, the investment is carried on the balance sheet at cost plus post acquisition changes in the group’s share of net assets of the entity, less distributions received and less any impairment in value of the investment. The Group income statement reflects the Group share of the results after tax of the equity accounted investment and the Group statement of comprehensive income includes the Group’s share of the equity accounted entity’s other comprehensive income. The equity accounted investee held by the Group relates to the following: Country of 2017 2016 Joint Venture Principal activity operation % % Oman LNG LLC Oman Gas exploration (development) 2% 2%
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(b) Revenue
Sale of goods In relation to oil and gas sales, revenue is recognised when significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods, and the amount of revenue can be measured reliably. Revenue is measured net of returns, trade discounts and volume rebates. Revenue resulting from hydrocarbon production from properties in which the Group has an interest with partners in a joint arrangement is recognised based on the sales method, which implicates that the Group does not adjust the revenue for imbalances between the entitlement from the joint operation and actual quantities lifted, but actually adjusts for the (additional) costs incurred for production of these additional quantities. This implies that, where the Group has lifted and sold more than the ownership interest, an accrual is recognised for the cost of the overlift. Where the Group has lifted and sold less than the ownership interest, costs are deferred for the underlift.
Services Service arising from the Group’s resources are recognized upon delivery of the service and when it is probable that the economic benefits associated with the transaction will flow to the Group and the revenue can be measured reliably.
Dividends, rewards and other income related to Oil and Gas
Interest, dividends, royalties and rewards arising from the Group’s resources are recognised when it is probable that the economic benefits associated with the transaction will flow to the group and the revenue can be measured reliably.
(c) Finance income and finance costs Interest received comprise of interest income on cash and cash deposits, interest received for timing differences between actual and agreed payment dates, unwinding of discount on provisions and the reversal of discounted interest on financial assets which are measured at their net present values. Interest income is recognised as it accrues unless collectability is in doubt.
Financial expenses comprise interest expense on borrowings, cash overdrafts, timing differences between actual and agreed payment dates, discounting of provisions and financial assets measured at net present value. Interest expense is recognised as it accrues.
Consolidated IFRS FS 2017 FINAL 18 Partex Holding B.V.
(d) Foreign currency
(i) Foreign currency transactions Transactions in foreign currencies are translated into the respective functional currencies of Group companies at the transaction date. At the balance sheet date, monetary assets and liabilities are converted at the rate of exchange ruling at that date. Exchange differences are recognised in the income for the year. Non‐monetary assets and liabilities that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non‐monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated at the foreign exchange rates ruling at the dates the fair value was determined. The resulting exchange differences are accounted for in the income statement, except when related to equity instruments classified as available-for-sale, which are included in the fair value reserve.
(ii) Foreign operations
The assets and liabilities of foreign operations are translated into USD at the exchange rates of the reporting date. The income and expenses of foreign operations are translated into USD at the exchange rates at the dates of the transactions. Foreign currency differences are recognised in OCI and accumulated in the translation reserve, except to the extent that the translation difference is allocated to NCI. When a foreign operation is disposed of in its entirety or partially, such that control, significant influence or joint control is lost, the cumulative amount on the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. Exchange differences arising on a monetary item that forms part of the Group's net investment in a foreign operation are presented in the consolidated financial statements in other comprehensive income and reclassified from equity to profit or loss on disposal or partial disposal of the net investment.
(e) Employee benefits
(i) Short-term employee benefits Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
(ii) Pensions
The Group operates an unfunded defined benefits pension scheme for certain staff. Provision is made in the accounts for the Group’s obligations under the scheme, on the basis of an actuarial valuation. The provision represents the estimated present value of benefits to be paid to existing
Consolidated IFRS FS 2017 FINAL 19 Partex Holding B.V.
pensioners and of future benefits payable to current employees in respect of service up to the balance sheet date.
The pension liability is calculated annually at the balance sheet date using the projected unit credit method, by qualified actuaries. The discount rate used in the calculation is determined by reference to interest rates of high quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating to the terms of the related pension liabilities.
The annual costs of the scheme, the net total interest and current service costs, are charged to the income Statement.
Re-measurements of the defined benefit liability are included in the revaluation reserve, which compromise actuarial gains and losses recognised immediately in OCI.
(iii) Other long-term employee benefits The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Re-measurements are recognised in profit or loss in the period in which they arise.
(f) Income tax Income tax expense comprise current and deferred tax. It is recognised in profit or loss, except to the extent that it relates to a business combination, or items recognised directly in equity or OCI. Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax assets and liabilities are offset only if certain criteria are met. Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax basis, and is calculated using the tax rates in force at the balance sheet date in the respective jurisdiction and that are assumed will apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred tax liabilities are recognised for all taxable temporary differences except for goodwill which is not deductible for tax purposes, differences arising on initial recognition of assets and liabilities that affect neither accounting nor taxable profit and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. Deferred tax assets are recognised to the extent it is probable that future taxable profits will be available, from which deductible temporary differences can be deducted. The Company offsets deferred taxes assets and liabilities for each subsidiary, whenever (i) the subsidiary has a legally enforceable right to set off current tax assets against current tax liabilities, and (ii) they relate to income taxes levied by the same taxation authority. This offset is therefore
Consolidated IFRS FS 2017 FINAL 20 Partex Holding B.V.
performed at the level of each subsidiary: thus the deferred tax asset presented in the consolidated balance sheet is the sum of the subsidiaries that present deferred tax assets and the deferred tax liability is the sum of the subsidiaries that present deferred tax liabilities.
(g) Inventories Inventories are measured at the lower of cost and net realizable value. Cost of crude oil is determined using the first-in first-out cost method. Crude oil inventory consists of amounts in pipelines, tanks and stock held by transportation companies, where the right of ownership has not been transferred to the customers. The cost of crude oil inventory includes all direct costs and an appropriate share of overheads. Cost of other inventories is determined at cost using the weighted average cost method. Net realizable value is the estimated selling price in the ordinary course of business, less the cost of completion and selling expenses.
(h) Property, plant and equipment (as included in Oil & Gas properties) (i) Property, Plant, Equipment and depreciation Property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation of oil and gas properties is calculated using the unit-of-production method based upon proved and probable developed reserves. The reserve estimates include only crude oil which management believes can reasonably be produced within the current terms of the respective production agreements. The reserves for this purpose are determined in accordance with generally accepted procedures in the oil and gas industry. Significant individual items of property, plant and equipment (components), except for oil and gas properties, whose useful lives are different from the useful life of the asset as a whole, are depreciated individually, applying depreciation rates reflecting their anticipated useful lives. The cost of replacing major parts or components of property, plant and equipment items is capitalised and the replaced part is retired. Any gain or loss arising is recognised in the income statement when the asset is retired. Subsequent costs are recognized as separate assets when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All repair and maintenance costs are charged to the income statement during the financial period in which they are incurred. Depreciation is calculated using the straight-line method over the assets estimated useful life as follows: Number of Years/Method
Furniture and fixtures 4 to 6 Office equipment 4 to 6 Vehicles 3 to 4 Facilities and machinery (incl. in oil & Gas assets) Unit of production Wells (incl. in oil & Gas assets) Unit-of-production
Consolidated IFRS FS 2017 FINAL 21 Partex Holding B.V.
Depreciation is charged to the income statement on a straight line basis over the estimated useful life of the individual asset or a unit of depletion basis depending on the type of asset. Changes in estimates, which affect unit of production calculations, are taken into account for the year of the change and for future years. When there is an indication that an asset may be impaired, IAS 36 requires that its recoverable amount be estimated and an impairment loss recognized when the net book value of the asset exceeds its recoverable amounts. Recoverable amount is determined by greater of fair value less cost to sell and the value in use. Impairment losses are recognized in the income statement. On an annual basis the Group determines the value in use of (its share in) Oil & Gas assets relating to joint arrangements with third parties. Based on the recoverable amount determined from this calculation, the Group records an impairment on its (proportionate) share in the joint oil producing assets, if relevant.
In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Expected cash flows are determined on the basis of reasonable and supportable assumptions that represent management’s best estimate of the range of economic conditions that will exist over the remaining useful life of the asset, giving greater weight to external evidence. With reference to commodity prices, management assumes the price scenario adopted for economic and financial projections and for whole life appraisal for capital expenditures. In particular, for the cash flows associated to oil, natural gas and petroleum products prices (and prices derived from them), the price scenario is approved by Management. When commodity prices fluctuate quite considerably, management considers the most updated variables available. The discount rate used is the Weighted Average Cost of Capital (WACC) adjusted for the specific country risk of the asset. These adjustments are measured considering information from external parties.
(i) Intangible assets and goodwill
The Group records its intangible assets at acquisition costs less accumulated amortization and impairment losses.
Exploration expenditure Exploration costs are accounted for under the successful efforts method for exploration and development activities from the start of the operation until the beginning of the production phase. Exploration expenditure is initially capitalized as an intangible asset until the drilling of the well is complete and the results have been evaluated. If hydrocarbons are not found, the exploration expenditure is written off as a dry hole. If hydrocarbons are found and, subject to further appraisal activity which may include the drilling of further wells, are likely to be capable of commercial development, the costs continue to be carried as an intangible asset. All such carried costs are subject to management review at least once a year to confirm the continued intent to develop or otherwise extract value from the discovery.
Consolidated IFRS FS 2017 FINAL 22 Partex Holding B.V.
When this is no longer the case, the costs are written off. When proved reserves of hydrocarbons are determined and these are considered commercially producible quantities of reserves and consequent development is determined, the respective expenditure is transferred to Oil and Gas properties.
Concession costs Concession acquisition costs are capitalized within intangible assets and are amortized over the useful life of the concession on a straight-line basis, which varies from 11 to 22 years.
Other intangible assets Other intangible assets that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their estimated useful lives, and is generally recognised in profit or loss.
The estimated useful lives for the other intangible assets varies between 4 to 10 years. Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
(j) Financial instrument
Classification The Group classifies non derivative financial assets into the following categories: financial assets at fair value through profit and loss, held to maturity financial assets, loans and receivables and available for sale financial assets. The Group classifies non derivative financial liabilities into the following categories: financial liabilities at fair value through profit and loss and other financial liabilities. Non derivative financial assets and liabilities - Initial recognition, measurement and de- recognition The Group initially recognises loans and receivables and debt securities on the date when they are originated. All other financial assets and financial liabilities are initially recognised on trade date when the entity becomes a party to the contractual provisions of the instrument. The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risk and rewards of ownership of the financial asset are transferred, or it neither transfers nor retains substantially all of the risk and rewards of ownership and does not retain control over the transferred asset. Any interest in such derecognised financial assets that is created or retained by the Group is recognised as a separate asset or liability. The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.
Consolidated IFRS FS 2017 FINAL 23 Partex Holding B.V.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group currently has a legally enforceable right to offset the amounts and intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously. Available for sale financial assets These financial assets are non-derivative financial assets (i) intended to be held for an indefinite period of time, (ii) designated as available-for-sale at initial recognition or (iii) that are not classified in the other categories referred to above. Available for sale financial assets are initially recognised at fair value plus transaction costs.
Available-for-sale financial assets are subsequently carried at fair value. However, gains and losses arising from changes in their fair value are recognised directly in the shareholders’ equity, until the financial assets are derecognised or impaired, at which time the cumulative gain or loss previously recognised in the shareholders’ equity is recognised in the income statement. Foreign exchange differences arising from equity investments classified as available-for-sale are also recognised in shareholders’ equity, while foreign exchange differences arising from debt investments are recognised in the income statement. Interest, calculated using the effective interest rate method, and dividends are recognised in the income statement. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are initially recorded at fair value plus any directly attributable transaction costs and subsequently at amortized cost using the effective interest method. Gains and losses are recognized in income when the loans and receivables are derecognized or impaired, as well as through the amortization process. This category of financial assets includes trade and other receivables.
Financial liabilities An instrument is classified as a financial liability when it contains a contractual obligation to transfer cash or another financial asset, independently from its legal form. Non-derivatives financial liabilities include Group payables and other payables. The financial liabilities are recognised (i) initially at fair value less transaction costs and (ii) subsequently at amortised cost, using the effective interest rate method.
(k) Share capital
Ordinary shares Incremental costs directly attributable to the issue of ordinary shares, net of any tax effects, are recognised as a deduction from equity.
(l) Cash and cash equivalent Cash and cash equivalents comprise balances with a maturity of less than three months from the balance sheet date and include cash and deposits with banks.
Consolidated IFRS FS 2017 FINAL 24 Partex Holding B.V.
(m) Impairment The Group assesses periodically whether there is objective evidence that a financial asset or group of financial assets is impaired.
A financial asset or a group of financial assets is impaired if there is objective evidence of impairment as a result of one or more events that occurred after their initial recognition, such as: (i) for equity securities, a significant or prolonged decline in the fair value of the security below its cost, and (ii) for debt securities, when that event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets, that can be reliably estimated.
If there is objective evidence that an impairment loss on available-for-sale financial assets has been incurred, the cumulative loss recognised in the shareholders’ equity – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in the income statement – is taken to the income statement. If, in a subsequent period, the amount of the impairment loss decreases, the previously recognised impairment loss is reversed through the income statement up to the acquisition cost if the increase is objectively related to an event occurring after the impairment loss was recognised, except in relation to equity instruments, in which case the reversal is recognised in OCI.
(n) Leases The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.
(i) Group as lessee
A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all risks and rewards incidental to ownership to the Group is classified as a finance lease. Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance costs in the statement of profit or loss. A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term. An operating lease is a lease other than a finance lease. Operating lease payments are recognized as an operating expense in the statement of profit or loss on a straight-line basis over the lease term.
Consolidated IFRS FS 2017 FINAL 25 Partex Holding B.V.
(ii) Group as lessor Leases in which the Group does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.
(o) Provisions
Provisions are recognised when the Group has a legal or constructive obligation, and it is probable that a cost will be incurred as a result of past events and a reasonable estimate can be made of the liability.
Provisions for asset retirement are measured based on current requirements, technology and price levels and the present value is calculated using amounts adjusted for expected future inflation and discounted over the useful economic life of the assets. The liability is recognised (together with a corresponding amount as part of the related property, plant and equipment) once an obligation crystallizes in the period when a reasonable estimate can be made. The effects of changes resulting from revisions to the timing or the amount of the original estimate of the provision are reflected through adjustments to the carrying amount of the related property, plant and equipment.
(p) Joint operations
Arrangements under which the Group has contractually agreed to share control with another party or parties are joint ventures where the parties have right to the net assets of the arrangement, or joint operations where the parties have rights to the assets and obligations for the liabilities relating to the arrangement. Investment in joint ventures are accounted for using the equity method.
The activities of a joint operation are primarily designed for the provision of output to the parties to the arrangement, indicating that: • the parties have the rights to substantially all the economic benefits of the assets of the arrangement; and • all liabilities are satisfied by the joint participants.
This indicates that, in substance, the joint participants have an obligation for the liabilities of the arrangement. Following the above, in accordance with IFRS 11 the Group consequently recognises its assets and liabilities relating to its interests in joint operations, including its share of assets held jointly and liabilities incurred jointly with other partners. Normally this leads to the accounting for the joint operation in a manner similar to the previous proportionate consolidation method. In addition to this, the Group recognises its revenue from the sale of its share of the output arising from the joint operation and its share of any expenses incurred.
The Group recognises its proportionate share in assets and liabilities relating to its interests in joint operations, including its share of assets held jointly with other partners in the oil producing assets.
Consolidated IFRS FS 2017 FINAL 26 Partex Holding B.V.
Significant joint operations of the Group, which are those with the most significant contributions to the Group’s net profit and/or net assets, are the following:
Country of 2017 2016 Significant joint operations Principal activity operation % % Oman Block 6 Oman Oil exploration (b) 2% 2% Mukhaizna – Block 53 Oman Oil exploration (b) 1% 1% Gasco Abu Dhabi Natural Gas Liquids (b) 2% 2% Dunga Kazachstan Oil exploration (b) 20% 20% Block 17/06 Angola Oil exploration (a) 2.5% 2.5% Algarve – Lagosta & Lagostim Portugal Gas exploration (a) 10% 10% Algarve – Caranguejo & Portugal Gas exploration (a) 30% 30% Sapateira Peniche Portugal Oil exploration (a) 30% 30% Espírito Santo Brazil Oil Exploration (a) 15% 15% Sergipe Alagoas Brazil Oil Exploration (a) 50% 50% Potiguar Basin Brazil Oil exploration (b) 50% 50%
a) Exploration Phase b) Production Phase
4 New standards and interpretations
(i) New and amended standards and interpretations
The Group applied for the first time certain amendments to the standards, which are effective for annual periods beginning on or after 1 January 2017. The Group has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective.
The nature and the impact of each amendment is described below:
Amendments to IAS 7 Statement of Cash Flows: Disclosure Initiative
The amendments require entities to provide disclosure of changes in their liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes (such as foreign exchange gains or losses).
These amendments did not affect the Group’s financial statements since no liabilities arising from financing activities exist.
Amendments to IFRS 12 Disclosure of Interests in Other Entities: Clarification of the scope of disclosure requirements in IFRS 12 from Annual Improvements Cycle - 2014-2016
Consolidated IFRS FS 2017 FINAL 27 Partex Holding B.V.
The amendments clarify that the disclosure requirements in IFRS 12, other than those in paragraphs B10–B16, apply to an entity’s interest in a subsidiary, a joint venture or an associate (or a portion of its interest in a joint venture or an associate) that is classified (or included in a disposal group that is classified) as held for sale.
These amendments did not affect the Group’s financial statements since as at 31 December 2017 no interests in other entities are classified as held for sale.
Amendments to IAS 12 Income Taxes: Recognition of Deferred Tax Assets for Unrealised Losses
The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of deductible temporary difference related to unrealised losses. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount.
Their application has no effect on the Group’s financial position and performance as the Group has no deductible temporary differences or assets that are in the scope of the amendments.
(ii) IFRS not yet effective
The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group’s financial statements are disclosed below. The Group intends to adopt these standards, if applicable, when they become effective.
IFRS 9 Financial Instruments
In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments that replaces IAS 39 Financial Instruments: Recognition and Measurement and all previous versions of IFRS 9. IFRS 9 brings together all three aspects of the accounting for financial instruments project: classification and measurement, impairment and hedge accounting. IFRS 9 is effective for annual periods beginning on or after 1 January 2018. The most significant change to possibly effect the group relates to the impairment of financial assets, following the “expected credit loss” model prescribed in the standard. However, based on its current history of limited impairment of trade receivables, the Group expects the impact of IFRS 9 on impairment results of financial assets to be very limited.
With respect to the classification and measurement requirements of IFRS 9, the Group expects to continue measuring at fair value all financial assets currently held at fair value, which are currently considered limited and immaterial.
Loans as well as trade receivables are held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interest. Thus, the Group expects that these will continue to be measured at amortised cost under IFRS 9. The Group does not apply hedge accounting currently and therefore does not expect a significant impact as a result of applying IFRS 9.
IFRS 15 Revenue from Contracts with Customers
Consolidated IFRS FS 2017 FINAL 28 Partex Holding B.V.
IFRS 15 was issued in May 2014 and establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing revenue recognition guidance, including IAS 18, IAS 11 and IFRIC 13 (relating to Costumer loyalty programmes). IFRS 15 is effective for annual periods beginning on or after 1 January 2018.
Contracts with customers in which oil sales are delivered is considered the main revenue activity of the Group. The current revenue recognition method based on transfer of the risk and rewards of ownership does not differ significantly from the revenue recognition requirements of IFRS 15 (and therefore it is expected to have limited impact on the Group). The Group expects the revenue recognition to occur at a point in time when control of the asset is transferred to the customer, generally on delivery of the oil, which is the same revenue recognition moment currently used in the consolidated financial statements. In particular, the impact relates essentially to the accounting for agreements with partners within oil & gas operations, due to the fact that they do not meet the definition of a customer. In particular, the case concerns the accounting for amounts of production lifted by a partner within oil & gas operations different from its proportionate entitlement (the so called lifting imbalances), by recognizing revenues on the basis of the quantities actually sold (the so called sales method) instead of the entitled quantities (the so called entitlement method). Since the Group already adopted the sales method (as describe in Note 3 (b) no effect of applying the new standard at January 1, 2018 will occur.
IFRS 16 Leases
IFRS 16 introduces a single on-balance lease accounting model for lessees. A lessee recognises a right of use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. There are optional exemptions for short term leases and leases of low value items. As a lessee, the Group can either apply the standard using a: 1.Retrospective approach; 2. Modified retrospective approach with optional practical expedients.
IFRS 16 replaces existing lease guidance including IAS 17, SIC 15 and SIC 27. The standard is effective for annual periods beginning on or after 1 January 2019. The Group plans to apply IFRS 16 initially on 1 January 2019, using the modified retrospective approach. Therefore, the cumulative effect of adopting IFRS 16 will be recognised as an adjustment to the opening balance of retained earnings at 1 January 2019, with no restatement of comparative information.
The Group has not finalised the full assessment of the potential impact on its consolidated financial statements, but based on the first analysis, the impact of this new standard is expected to be immaterial.
Consolidated IFRS FS 2017 FINAL 29 Partex Holding B.V.
5 Revenue, cost of sales and other income The geographic information below analyses the Group’s revenue by the Company’s country of domicile and other countries. In presenting the following information, segment revenue has been based on the geographical location of customers.
2017 2016 USD USD
Brazil 3,434,597 3,115,376 Kazakhstan 41,577,319 24,676,555 Sultanate of Oman 236,723,785 194,108,024 United Arab Emirates 40,113,762 30,584,907
321,849,463 252,484,862
Sales breakdown The sales breakdown (in price and quantity) is as follows: 31 December Average 2017 Quantity price Revenue
(BOE) (USD) (USD)
Sultanate of Oman 4,573,185 51.76 236,723,785 United Arab Emirates 989,793 40.53 40,113,762 Kazahkstan 916,542 45,36 41,577,319 Brazil 71,073 48.32 3,434,597 Total for the financial year 6,550,593 49.13 321,849,463
Average 31 December 2016 Quantity price Revenue
(BOE) (USD) (USD)
Sultanate of Oman 4,738,815 40.96 194,108,024 United Arab Emirates 1,022,053 29,92 30,584,907 Kazahkstan 721,700 34,19 24,676,555 Brazil 78,945 39.46 3,115,736 Total for the financial year 6,561,513 38.5 252,484,862
Consolidated IFRS FS 2017 FINAL 30 Partex Holding B.V.
Cost of sales 2017 2016 USD USD
Share in joint oil production costs 63,944,387 74,950,083 Share in joint gas production costs 24,630,926 18,882,046
88,573,313 93,832,129
Other income 2017 2016 USD USD
Secondment and technical services 2,284,123 3,785,344 Other operational gains 365,207 16,239
2,649,330 3,801,583
6 Administrative expenses 2017 2016 USD USD
Employee benefit expenses 10,844,704 11,578,120 Other administrative expenses 3,733,356 3,115,349
14,578,060 14,693,469
Employee benefit expenses Directors and key management 802,526 606,411 Salaries and wages personnel 6,977,892 7,785,635 Social security charges 1,284,884 1,432,550 Pension charges 1,000,247 1,099,989 Other personnel costs 779,155 653,535
10,844,704 11,578,120
Headcount 2017 2016 USD USD Directors 2 2 Staff 81 97
83 99
Consolidated IFRS FS 2017 FINAL 31 Partex Holding B.V.
7 Impairment 2017 2016 USD USD Impairment of exploration costs/ dry wells in Brazil - 2,782,248 Impairment of exploration costs Portugal (Peniche/Algarve) 487,415 17,252,631 Impairment/ (reversal) of (joint share in) fixed assets in Oman (Block 6) 11,943,000 (47,490,000) Impairment/ (reversal) of (joint share in) fixed assets Oman (Mukhaizna) 2,231,000 (1,422,250) Impairment/ (reversal) of (joint share in) fixed assets Abu Dhabi (Gasco) 405,000 (3,419,460) Impairment/ (reversal) of (joint share in) fixed assets Kazakhstan (Dunga) (15,017,000) (39,397,520) Impairment of (joint share) in fixed assets Brazil (925,218) 10,194,815 Write off of assets in Abu Dhabi (GASCO) 287,660 - Impairment of assets on dry wells in Oman (Block 6) 151,600 1,142,940 Gain/loss on sales of fixed assets (338,902 ) -
Total impairment losses/(reversals)for the year 775,445 (60,356,596)
The impairment loss (reversal) on the joint share in fixed assets of the Group was calculated by comparing the Group’s joint venture share in the net book value of the fixed assets with the fair value of the investment as per year end 2017. The recoverable amount of the investments was calculated by discounting the estimated free cash flows generated through the respective investment, considering the period until the end of the concession. In order to calculate the free cash flow the Group used an estimated Brent price projection for 2018 to 2022 which includes the projection of all market analyst available on Bloomberg. For the year 2018 this implicates an estimated average Brent price of USD 61.1 per bbl. For the period after 2022 an average real (nominal) growth rate of the Brent price of 1.6% (3.9%) was considered, which is in line with the latest Energy Information Administration (EIA) publication available from February 2018. The discount rate used for calculating the present value of the cash flows amounts to 10.4% for the Oman joint arrangements of PDO and Mukhaizna (2016:10%), 9.9% for the Abu Dhabi joint arrangement of GASCO (2015: 9.6%), 10.2% for the Kazakhstan joint arrangement of Dunga (2016: 10.5%) and 10.8% for the Brazilian joint arrangement of Potiguar (2016:11.4%) respectively. The value in use estimated for each investment as per 31 December 2017 and related sensitivity analysis is as follows: (i) The maximum (minimum) value shows the estimated value in use considering a price increase/(decrease) of 20% as compared to the base case scenario.
Max. Value Actual Min. Value
MUSD MUSD MUSD
PDO 306.3 238.4 170.5 Mukhaizna 15.4 10.4 3.2 Dunga 160.9 146.5 131.6 GASCO 52.5 44.5 36.3 Potiguar 7.4 3.3 (0.9)
Consolidated IFRS FS 2017 FINAL 32 Partex Holding B.V.
(ii) Underlying table shows the sensitivity of the estimated values considering a 1% increase/decrease in the discount rate used.
1% decrease Actual 1% increase
USD USD USD
PDO 255.6 238.4 222.6 Mukhaizna 11.1 10.4 9.82 Dunga 153.4 146.5 140.8 GASCO 46.8 44.5 43 Potiguar 3.5 3.3 3.0
8 Net finance costs 2017 2016 USD USD
Unwinding of discount abandonment liability 1,216,482 - Interest arising on bank deposits 166,541 152,874 Interest arising from the discounting of advances to present value - 1,990,197 Profit on disposal of available for sale financial assets 785,998 - Release of withholding tax payable on intercompany interest 2,132,522 -
Finance income 4,301,543 2,143,071
Interest and other financial expenses (117,648) (428,666) Withholding taxes on interest (46,361) (47,667) Unwinding of discount abandonment liability - 271,424 Net foreign exchange loss (121,776) (405,701)
Finance costs (285,785) (610,610)
Net finance costs recognised in profit or loss 4,015,758 1,523,461
Following the loan conversion exercise incurred during the year for intercompany loans outstanding to equity, within the Brazilian subsidiaries, the accumulated withholding tax
Consolidated IFRS FS 2017 FINAL 33 Partex Holding B.V.
liability relating to the accumulated interest charged on the loans was released to the profit and loss, which had an impact of USD 2,132,522 (loss).
9 Income taxes
Income tax recognised in profit or loss 2017 2016 USD USD
Current tax expense (106,245,042) (68,656,254) Movement in deferred tax (26,164,627 ) (21,882,983)
Tax expense recognised in profit and loss (123,409,669 ) (90,539,237)
Deferred tax movement Balance at the beginning of the year (8,492,889) 13,390,094 Recognised in the income statement (26,164,627 ) (21,882,983)
Balance at the end of the year (34,657,516) (8,492,889)
Deferred taxes
Deferred tax Deferred tax 31 December 2017 31 December 2016 assets liabilities USD USD USD USD
Tax losses carried forward 14,041,617 - 14,041,617 23,305,710 Provision for asset retirement obligation 367,464 - 367,464 227,603 Provision for obsolete stock 1,921,043 - 1,921,043 1,311,703 Property, Plant and Equipment - (50,987,640 ) (50,987,640 ) (33,337,905)
16,330,124 (50,854,731 ) (34,657,516 ) (8,492,889)
The deferred tax asset/(liability) fully relates to the Kazakhstan subsidiary. Current income tax relates to (income) taxes paid on oil and gas sales incurred following the agreed upon tax payments as stipulated in the individual concession agreements of the Group with the local governments. The majority of the income taxes paid relates to the Government of Oman amounting to USD 99,065,355 (2016: USD 62,594,377) and Abu Dhabi amounting to USD 6,787,198 (2016: USD 5,415,281).
Consolidated IFRS FS 2017 FINAL 34 Partex Holding B.V.
10 Property, plant and equipment
Reconciliation of the carrying amount
Building, Office equipment Vehicles Total furniture and fixtures
USD USD USD USD Cost Balance at 1 January 2016 788,993 1,110,863 595,556 2,495,412 Additions - 13,721 - 13,721 Disposals - (16,710) - (16,710) Effect of movements in exchange rates (20,719) 5,947 (15,741) (30,513)
Balance at 31 December 2016 768,274 1,113,821 579,815 2,461,910
Balance at 1 January 2017 768,274 1,113,821 579,815 2,461,910 Additions 20,886 151,649 230,400 402,935 Disposals - (54,575) (136,299) (190,874) Effect of movements in exchange rates 86,958 118,397 66,066 271,421
Balance at 31 December 2017 876,118 1,329,292 739,982 2,945,392
Accumulated depreciation, and impairment losses Balance at 1 January 2016 773,215 863,709 305,809 1,942,733 Depreciation / Depletion 6,068 82,959 88,661 177,688 Disposals - 1,261 - 1,261 Effect of movements in exchange rates (21,036) (3,849) (11,198) (36,083)
Balance at 31 December 2016 758,247 944,081 383,272 2,085,600
Balance at 1 January 2017 758,247 944,081 383,272 2,085,600 Depreciation / Depletion 9,025 76,044 75,878 160,947 Disposals - (53,668) (107,031) (160,699) Effect of movement in exchange rates 86,972 105,867 42,224 235,063
Balance at 31 December 2017 854,244 1,072,324 394,343 2,320,911
Carrying amounts At 31 December 2016 10,027 169,740 196,543 376,311 At 31 December 2017 21,874 256,969 345,638 624,481
Consolidated IFRS FS 2017 FINAL 35 Partex Holding B.V.
11 Intangible assets
Reconciliation of carrying amount Exploration Concession Software Total drilling rights USD USD USD Cost Balance at 1 January 2016 58,593,312 124,896,876 1,171,670 184,661,858 Additions 1,261,364 - 78,979 1,340,343 Effect of movements in exchange rates 3,333,896 1,219,294 (30,176) 4,523,015
Balance at 31 December 2016 63,188,573 126,116,170 1,220,473 190,525,216
Balance at 1 January 2017 63,188,573 126,116,170 1,220,473 190,525,216 Additions 121,319 - 21,290 142,609 Disposals - - - - Effect of movements in exchange rates 2,037,055 (110,409) 164,013 2,090,659
Balance at 31 December 2017 65,346,947 126,005,761 1,405,776 192,758,484
Accumulated amortisation and impairment losses Balance at 1 January 2016 23,146,247 84,480,370 1,004,548 108,631,165 Amortization - 2,063,402 78,404 2,141,806 Disposals - - - - Impairment loss 20,008,332 (3,218,020) - 16,790,312 Effect of movements in exchange rates 3,019,966 1,184,891 (30,248) 4,174,609
Balance at 31 December 2016 46,174,545 84,510,643 1,052,704 131,737,892
Balance at 1 January 2017 46,174,545 84,510,643 1,052,704 131,737,892 Amortization - 2,338,537 96,825 2,435,362 Disposals - - - - Impairment loss/(reversals) 72,049 405,000 - 477,049 Effect of movements in exchange rates 2,034,503 (110,409) 147,300 2,071,394
Balance at 31 December 2017 48,281,097 87,143,771 1,296,829 136,721,697
Carrying amounts At 31 December 2016 17,014,028 41,605,527 167,769 58,787,324 At 31 December 2017 17,065,850 38,861,990 108,947 56,036,787
Consolidated IFRS FS 2017 FINAL 36 Partex Holding B.V.
In 2016, impairment losses were recorded on capitalised exploration costs in Brazil and in Portugal, amounting to USD 2,755,669 and USD 17,252,663. The impairment charge in Portugal resulted from the contract termination in Algarve basin and the withdrawal from the concession agreements in Peniche basin. The intangible assets include capitalized exploration & evaluation costs and concession rights paid until now for our interests in Angola Block 17/06, amounting to USD 17,065,850 and USD 27,084,004, respectively (2016: USD 17,014,028 and USD 28,315,000). Block 17/06 is located in one of the more prolific exploration areas in deep-offshore South Atlantic eastern coast, the Lower Congo Basin. After the drilling of the seven (7) commitment wells the results showed five (5) discovered wells with estimated 2C resources of around 85 Mbbls of oil, 35 Mbbls of condensate and around 1 Tcf of non associated gas. As at 31 December 2017, the development of block 17/06 is suspended pending further evaluation of the economic and operating viability of the project based on the following facts: • In 2016 was issued the decree nº2/16 of 13 June 2016 related to the contractual and fiscal terms applicable to marginal oil discoveries; • At the end of 2017, an informal group composed by major oil companies, Sonangol, Minister of Petroleum was created with the support of the new Angola Government to actively discuss and present concrete measures to further develop the oil and gas industry (which aims also to open to private companies the exploration and production of gas resources); • Ongoing discussions between Operator, Contractor Group and Concessionaire to revise the current contractual and fiscal terms applicable to block 17/06. To be noted that recently the Angola Government demonstrated its willingness to maximize and preserve the future of the oil industry by revising the terms of other PSAs (Production Sharing Agreements); • End of 2017, the exploration and development expenditures for the next 5 years were submitted for Sonangol approval and foreseen the first oil in Begonia end of 2023; • Earlier in March 2018, the Operator submitted to Sonangol a new update of the development plan of one of the areas inside block 17/06 (Begonia), highlighting that further technical works to optimize costs (which may include a joint development with a nearby block), combined with contractual and fiscal enhancements are needed to enable any further appraisal and development. Management is fully confident on the success of the ongoing initiatives that will allow the future development of the project and the recoverability of the carrying amount.
Consolidated IFRS FS 2017 FINAL 37 Partex Holding B.V.
12 Oil and Gas properties
Mukhaizna PDO Dunga field Gasco PBL Total USD USD USD USD USD USD Cost Balance as at 1 January 2016 87,347,739 844,656,424 265,586,001 51,520,083 12,683,650 1,261,793,895 Additions 4,792,131 86,467,580 16,031,130 2,064,590 654,377 110,009,808 Disposals - (4,997,860) - (130,981) - (5,128,840) Translation adjustments - - - - 2,515,934 2,515,934
Balance as at 31 December 2016 92,139,870 926,126,144 281,617,131 53,453,692 15,853,961 1,369,190,797
Balance as at 1 January 2017 92,139,870 926,126,144 281,617,131 53,453,692 15,853,961 1,369,190,797 Additions 5,008,042 71,098,600 9,875,759 1,150,020 39,198 87,171,619 Disposals - (1,795,200) - (343,300) - (2,138,500) Translation adjustments - - - - (237,633) (237,633)
Balance as at 31 December 2017 97,147,912 995,429,544 291,492,890 54,260,412 15,655,526 1,453,986,283
Accumulated amortization and impairment losses Balance as at 1 January 2016 72,960,177 621,956,540 176,786,001 9,462,454 1,604,455 882,769,627 Amortization for the year 5,526,638 77,808,880 8,466,051 3,814,980 479,045 96,095,594 Disposals - (4,077,600) - (128,480) - (4,206,080) Impairment loss (1,422,250) (47,490,000) (39,398,484) - 10,019,954 (78,290,780) Translation adjustment - - - - 351,784 351,784
Balance as at 31 December 2016 77,064,565 648,197,820 145,853,568 13,148,954 12,455,238 896,720,145
Balance as at 1 January 2017 77,064,565 648,197,820 145,853,568 13,148,954 12,455,238 896,720,145 Amortization for the year 5,228,945 52,686,680 10,428,554 4,250,817 740,297 73,335,293 Disposals - (1,522,928) - (55,640) - (1,578,568) Impairment loss/ (reversals) 2,231,000 11,943,000 (15,017,000) - (997,267) (1,840,267) Translation reserve - - - - (173,510 ) (173,510 )
Balance as at 31 December 2017 84,524,510 711,304,572 141,265,122 17,344,131 12,024,758 966,463,093
Carrying amounts Mukhaizna PDO Dunga field Gasco PBL Total USD USD USD USD USD USD
As at 31 December 2016 15,075,305 277,928,324 135,763,563 40,304,738 3,398,722 472,470,652 As at 31 December 2017 12,623,402 284,124,972 15 0,227,768 36,916,281 3,630,768 496,823,19 0
Consolidated IFRS FS 2017 FINAL 38 Partex Holding B.V.
A significant portion of the recoverable amount of Dunga field is attributed to the residual value related to the repayment of 50% of the total unrecovered capital expenditures at the end of the concession (1st of May 2024), estimated to be around USD 122 million.
Management notes that as per the Dunga Production Sharing Agreement (PSA), the Kazakh Party has the right (not the obligation) to acquire such equipment from Contractor for the unrecovered Recoverable Cost of such equipment. This entails the risk of negotiation and “cherry picking” by the Authority.
The Group, with its local partners, already secured a MoU with the local authorities to extend the concession for another 15-year term. This extension should be formally signed after a new law (RoK Code dated 27 December 2017 No 125-VI on Subsurface and Subsurface Use taking into account provisions regarding extension of the contract duration) comes into force in Kazakhstan in June 2018. With the extension until 2039, the alternative development plan, which was submitted in October 2016, foresees the full recoverability of the cost pool and a significant increase in the project economics. As such Management considers that the carrying amount will be fully recovered.
The Group has production facilities in Brazil where two fields are operated. The share on PDO, GASCO, Dunga and Mukhaizna property, plant and equipment is recorded under the terms of IFRS 11 with their respective proportional share of the values reported by the Company. The Company makes provision for the abandonment of wells (see note 20), dismantling of facilities, installations and to restore the exploration sites which has been capitalized in the corresponding assets, in the accumulated amount of USD 56,198,553 (2016: USD 58,849,943).
13 Other Oil and Gas financial assets 2017 2016 USD USD
Pension scheme investments 45,418,480 37,453,920 Housing loans 5,199,040 4,202,400 Deferred staff benefits 2,882,180 2,930,300 Restricted cash 2,830,181 2,213,630 Prepayments and other receivables 1,667,600 1,643,060
57,997,481 48,443,310
Consolidated IFRS FS 2017 FINAL 39 Partex Holding B.V.
The maturity of the Oil and Gas financial assets can be classified as follows:
2017 2016 USD USD
Between 6 -12 months 8,815,900 8,603,340 Between 1 to 5 years 33,121,520 33,385,100 After 5 years 16,060,061 6,454,870
57,997,481 48,443,310
The majority of the amounts relate to pension scheme investments from the Omani pension scheme executed by the joint operation of the Group. The corresponding liability is recorded under the provisions as “staff pension joint operation”. Information about the Group’s exposure to credit and market risks, and fair value measurement, is included in note 24.
14 Financial investments
USD
Balance as at 1 January 2016 4,917,640 Profit for the period 11,316,540 Dividend payments (11,392,880) Other movements 6,630
Balance as at 31 December 2016 4,847,930
Profit for the period 12,848,260 Dividend payments (12,250,400) Other movements (OCI) 16,740 Adjustment alignment accounting policies (5,462,530 )
Balance as at 31 December 2017 -
The financial investments fully relate to the equity share of the company in Oman LNG LLC. As per IAS 28, the Group has aligned the accounting policies of OLNG with the group accounting policies and following this has recorded an adjustment on its share in the result of the Company of USD 5,462,530 during the year 2017. Underlying table provides summarised financial information relating to Oman LNG LLC. This is information is presented on Partex Group ownership basis (2%) and reflects adjustments made by the Group in applying the equity method of accounting.
Consolidated IFRS FS 2017 FINAL 40 Partex Holding B.V.
2017 2016 USD USD
Current assets 10,259,720 11,591,100 Non-current assets 14,024,540 14,708,440 Current liabilities (11,632,260) (11,583,620) Non-current liabilities (17,670,540) (22,174,060)
Net assets (5,018,540) (7,458,140)
15 Available for sale financial assets
USD Balance as at 1 January 2016 829,081 Impairment (33,527)
Balance as at 31 December 2016 795,554
Disposals 795,554 Fair value movement through equity -
Balance as at 31 December 2017 -
During the year the shares in Fund 4D Global Energy Development Fund were sold to the Calouste Gulbenkian Foundation at book value, leading to an income of USD 782,257
16 Oil and Gas receivables and payables 2017 2016 USD USD
Oil and Gas receivables and prepayments 43,764,099 42,951,047 Oil and Gas related taxes receivable 1,804,722 2,680,926
Subtotal Oil and Gas receivables 45,568,821 45,631,973
Oil and gas payables 39,843,972 41,260,274 Oil and Gas taxes payable 5,767,793 4,531,856
Subtotal Oil and Gas payables 45,611,765 45,792,130
Net position Oil and Gas receivables/payables (42,944) (160,157)
Consolidated IFRS FS 2017 FINAL 41 Partex Holding B.V.
Oil and Gas receivables and payables relate to balances receivable from clients and payable for oil and gas which arise from the group’s normal business. Trade receivables relate to the outstanding amount to third parties for seconded services provided. Information about the Group’s exposure to credit and market risks, and fair value measurement, is included in note 24.
17 Inventories 2017 2016 USD USD Raw materials, spares and supplies 14,044,507 20,550,167 Crude oil 163,613 177,725
14,208,120 20,727,892
The Group holds working stores of spare parts. The stocks are held at the lower of cost and market value.
18 Cash and cash equivalents 2017 2016 USD USD
Cash on hand 3,316 12,567 Bank balances and short-term deposits 74,697,013 63,252,907
Cash and cash equivalents 74,700,329 63,265,474
Cash and cash equivalents are available on demand.
19 Group equity
Share capital Ordinary shares 2017 2016 USD USD
In issue at 1 January 121,410 121,410 Issued for cash - -
In issue at 31 December – fully paid 121,410 121,410
Authorised – par value 1.214 1.214
Consolidated IFRS FS 2017 FINAL 42 Partex Holding B.V.
Ordinary shares The share capital of Partex Holding B.V. (issued and fully paid as at 31 December 2016) is EUR 100,000 (USD 121,410) divided into 100,000 shares of EUR 1 each. Until 23rd September 2014 the parent company for the Partex Group of Companies has been Partex Oil and Gas (Holdings) Corporation. As of this date Partex Oil and Gas (Holdings) Corporation has been transferred by its shareholder to Partex Holding B.V., which became with this transfer the new parent company for the Group.
Nature and purpose of reserves
Translation reserve The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations, as well as the effective portion of any foreign currency differences arising from hedges of a net investment in a foreign operation.
Share premium At the end of 2013 the Calouste Gulbenkian Foundation held a loan of USD 556,105,376 for a period of five years starting from 21 December 2012. This loan has been converted to share premium in July 2014. The share premium reserve is not available for distribution to the shareholder.
Fair value reserve The fair value reserve comprises the cumulative net change in the fair value of available-for-sale financial assets until the assets are derecognised or impaired. The revaluation reserve is introduced only when the current and probable future value of the financial asset is higher than the recorded historic cost of the same asset. With reference to note 15, the fair value reserve relates to the fair value of shares held until 2017 in the 4D Global Energy Development Fund.
Consolidated IFRS FS 2017 FINAL 43 Partex Holding B.V.
OCI accumulated in reserves, net of tax
Attributable to owners of the Company Fair value Translation Actuarial Retained earnings Total reserve reserve gains and
losses
USD USD USD USD USD 2017 Foreign operations – foreign currency translation reserves - (915,746) - - (915,746) Available-for-sale financial assets – recycles through P&L (795,554) - - - (795,554)
OCI movements of equity accounted investees - - - 16,740 16,740
Total (795,554 ) (915,746) - 16,740 1,694,560
2016 Foreign operations – foreign currency translation reserves - 1,479,166 - - 1,479,166 Available-for-sale financial assets - net change in fair value (33,527) - - - (33,527) Re-measurement of defined benefit liability - - (754,987) - (754,987) OCI movements of equity accounted investees - - - 6,630 6,630
Total (33,527) 1,479,166 (754,987) 6,630 697,282
Consolidated IFRS FS 2017 FINAL 44 Partex Holding B.V
20 Liabilities
Provisions
2017 2016 USD USD
Staff pension joint operations 49,767,020 37,632,880 Asset retirement obligation 56,198,553 58,849,343 End of service benefits group companies 873,446 1,970,956 End of service benefits joined operations 2,840,000 11,342,305 Other provisions 353,237 353,237
110,032,256 110,148,721
Staff pension joint operations The staff pension for joint operations relates to the pension obligation for Omani staff employees through Petroleum Development Oman (“PDO”). The Omani staff pension scheme is a defined benefit retirement scheme. The contribution by Omani staff is 7% of their basic salaries plus allowances whilst the contributions made by PDO are on the basis of actuarial valuations. The combines contributions are used to purchase investments, which are legally held in the name of PDO, on behalf of the pension scheme. As such, the value of these investments has a corresponding liability in relation to the pension obligations to employees. As at 31 December 2017, the fair value of the pension assets amounts to USD 45,418,480, with a corresponding liability in the staff pension for joint operations.
The assumptions used in the calculation of the pension liability were as follows:
2017 2016 Projected unit credit Discount rate 6.2% 6.2% Expected rate of return on assets 6.2% 6.2% Future salary increases 3.0% 3.0% Rate of pension increase 1% 1%
The Scheme exposes the Company to actuarial risks such as investment risk, longevity risk and salary risk.
Consolidated IFRS FS 2017 FINAL 45 Partex Holding B.V
Investment risk The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to high quality bond yields; if return on plan asset is below this rate, it will create a plan deficit.
Interest risk A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan’s debt investments.
Longevity risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.
Salary risk The present value of the defined benefit plan liability is calculated by reference to future salaries of the plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability
Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analyses below has been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
- If the discount rate is 100 basis points higher (lower), the defined benefit obligation would increase by USD 11.1 million (decrease by USD 8.4 million) approximately. - If the expected salary growth increases (decreases) by 1%, the defined benefit obligation would increase by USD 4.3 million (decrease by USD 3.6 million). - If the expectancy increases (decreases) by one year for both men and women, the defined benefit obligation would increase by USD 0.8 million (decrease by USD 0.7 million).
In accordance with IAS 19, the Company’s pension provision as at 31 December 2017, is analysed as follows:
2017 2016 USD USD
Defined benefit obligation 49,767,020 37,632,880
Consolidated IFRS FS 2017 FINAL 46 Partex Holding B.V
The amounts recognized in profit and loss are as follows:
2017 2016 USD USD
Cost of current service 3,345,440 3,307,020 Net Interest expense 511,180 634,380
Cost of current service 3,856,620 3,941,400
Less: contribution paid 3,731,960 3,610,360
124,660 331,040
Amounts recognised in other comprehensive income:
2017 2016 USD USD
Return on plan assets (other than net interest) 3,384,680 214,600 Actuarial gain form changes in financial assumptions - 2,233,160 Actuarial gain form changes in experience adjustments 896,700 282,020
4,281,380 2,729,780
Pension provision group companies Until the end of the financial year 2016, one of the subsidiaries of the Group operated a defined benefit obligation plan for certain of its current and prior employees. The cost of providing benefits under this plan was calculated using the projected unit credit method. In prior years, until the end of 2016 financial year, the Group has fully provided for the liability arising from this arrangement based on a third-party actuary report. As per the end of 2016, the pension plan, and accordingly the obligations arising from this plan, have been transferred to the shareholder of the Group.
The assumptions used in the calculation of the pension liability, before derecognition and subsequent transfer to the shareholder, were as follows:
2017 2016 Projected unit credit Mortality table: men - TV73/77-2 Mortality table: women - TV88/90-3 Rate of salary increase - 2.0% Rate of pension increase - 0.5% Discount rate - 1.5%
Consolidated IFRS FS 2017 FINAL 47 Partex Holding B.V
In accordance with IAS 19, the Company’s pension provision as at 31 December 2016, before derecognition and subsequent transfer, is analysed as follows:
2017 2016 USD USD
Defined benefit obligation - 5,246,185
The movements in the provision have been the following:
2017 2016 USD USD
Opening balance - 4,842,893 Pensions paid - (288,740) Interest costs - 57,732 Cost of current service - 35,627 Actuarial gains/(losses) - 754,987 Exchange differences - (156,314 )
Balance at the end of the year - 5,246,185
USD
Defined benefit obligation before transfer 5,246,184 Consideration paid to shareholder (5,396,510)
Settlement loss on derecognition of defined benefit obligation 150,326
The amounts recognized in profit and loss are as follows:
2017 2016 USD USD
Cost of current service - 35,627 Interest cost - 57,732 Exchange differences recognized - (156,315) Settlement loss - 150,326
Cost of current service - 87,370
Consolidated IFRS FS 2017 FINAL 48 Partex Holding B.V
Accumulated actuarial (gains) and losses recognized in other comprehensive income:
2017 2016 USD USD
At the beginning of the period - (2,730,175) - Changes in the actuarial assumptions - (559,073) - Experience adjustments - (195,915) - Other - 141,692
Unrecognized actuarial gains (losses) - (613,296)
At the end of the period - (3,343,471)
Due to transfer of the pension scheme as per 31 December 2016, the actuarial gains and losses accumulated in OCI, where transferred to the retained earnings of the Company.
End of service benefits provision The Group, through its subsidiaries and its joint operations (PDO and Gasco), has made provision for end of service benefits payable to employees on termination of their contracts in the Middle East. 2017 2016 USD USD
Balance as at 1 January 13,313,261 16,396,388 - Additions/reversal (7,664,139) 747,779 - Amounts paid (1,915,732) (1,294,722) - Experience adjustments - (2,515,180) - Foreign currency effect 98,961 (63,465)
Gross liability 3,832,351 13,270,800 Effect of discounting to net present value (118,905) 42,461
Net present value as at 31 December 3,713,446 13,313,261
The assumptions for the end of service benefits operated by the subsidiaries of the group were future increase rates for salaries of 2% (2016: 2%), average remaining employment period of 5 years (2016: 5 years) and the discount rate used for discounting was 0.54% (2016: 0.21%).
Defined contribution pension scheme Total contributions paid by the Group for defined contribution pension schemes amount to USD 299,000 for the year 2017 (2016: USD 445,000). This amount is included in the income statement under employee benefit expense (refer to note 6).
Consolidated IFRS FS 2017 FINAL 49 Partex Holding B.V
Asset retirement provision The Group records its share in the obligation on the abandonment and relinquishment of installations at the end of the concession and/or joint operation and has provided for such cost on the basis of amortized costs. These liabilities are recognised as part of the related property, plant and equipment, as mentioned in note 12.
The movement of the provision during the year was as follows: 2017 2016 USD USD
At the beginning of the period 58,849,343 42,333,336 Additions/(reversal) (1,326,703) 16,665,005 Amortised cost effect (1,097,461) (244,515) Foreign currency effect (226,626) 95,517
At the end of the period 56,198,553 58,849,343
The discount rate used in 2017 is between 6.15% and 7.5 % (2016: 5.82% and 8%).
Other provisions
The movement in other provisions was as follows:
2017 2016 USD USD
At the beginning of the period 353,273 353,237 Additions/(reversal) - -
Balance at the end of period 353,237 353,237
A final settlement of this provision is expected within 12 months from the balance sheet date.
Consolidated IFRS FS 2017 FINAL 50 Partex Holding B.V
21 Other payables-non current 2017 2016 USD USD
Finance lease liabilities 197,958 139,352
197,958 139,352
The group finances part of the acquisition of vehicles through finance lease contracts. The amount payable in coming 12 months relating to these finance lease obligations amounts to approximately USD 106,721 and is recorded as other current account payables. The non-current amount of USD 197,958 is payable between 2-5 years.
22 Trade and other payables Other payables and accrued expenses
2017 2016 USD USD
Tax and social security liabilities 309,924 335,585 Other accrued expenses 2,109,496 1,089,512 Other payables 106,722 569,527
2,526,142 1,994,624
Information about the Group’s exposure to interest rate, foreign currency and liquidity risk is included in note 24.
23 Payables to shareholder 2017 2016 USD USD
Dividend payable - 31,611,900 Other payables - (25,315)
- 31,586,585
The dividend payable as per end of 2016 was paid in May 2017.
Consolidated IFRS FS 2017 FINAL 51 Partex Holding B.V
24 Financial instruments
Financial risk management
The Group has exposure to the following risks arising from financial instruments:
• credit risk; • liquidity risk; • market risk.
Risk management framework The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework and Risk Management Policies. The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. Credit risk Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers and financial assets. On an ongoing basis the Group carefully assesses the quality of its counterparties when entering upon and during the business relationship. The carrying amount of financial assets represents the maximum credit exposure. With the vast majority of the Group’s customers a long term co-operation has been established and no impairment loss has been recognised against these customers since. At 31 December 2017, the maximum exposure to credit risk for trade and other receivables by geographic region was as follows:
Oil and gas receivables Carrying amount 2017 2016 2017 2016 USD USD USD USD
Brazil 899,646 691,022 899,646 691,022 Kazakhstan 14,376,288 12,821,194 14,376,288 12,821,194 Japan 19,457,124 21,046,828 19,457,124 21,046,828 Sultanate of Oman 4,347,216 5,881,675 4,347,216 5,881,675 United Arab Emirates 6,488,547 5,191,254 6,488,547 5,191,254
45,568,821 45,631,973 45,568,821 45,631,973
Consolidated IFRS FS 2017 FINAL 52 Partex Holding B.V
At 31 December 2017, the Group’s most significant customer accounted for USD 19,457 thousand of the trade and other receivables carrying amount (2016: USD 21,046 thousand). Impairment Based on the subsequent receipt of customer receivables and prior year experience, management estimates that no impairment of the Oil & Gas receivables is considered necessary by the end of the financial year 2017 (2016: nil). Cash and cash equivalents The Group held cash and cash equivalents of USD 74,700 thousand at 31 December 2017 (2016: USD 63,265 thousand). The cash and cash equivalents are held with banks with solid credit ratings (A-). Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. The liquidity risk is monitored on local as well as Group consolidated level by means of liquidity and cash flow forecasting per relevant entity. Through this, local funding needs are determined and anticipated. Management of the Group is continuously reported and updated on the liquidity status of the Group. The Group believes that it has access to sufficient sources of funding to meet current commitments. Exposure to liquidity risk At 31 December, the exposure to liquidity risk is as follows:
1 year 1-5 years 31 December 2017 Carrying amount More than 5 years or less USD USD USD USD
Other Oil &Gas Financial Assets 57,997,481 7,148,300 34,789,120 16,060,061
Financial Investments - - - - Oil & Gas Receivables 45,568,821 45,568,821 - - Trade Receivables 1,535,376 1,535,376 - - Other Receivables 2,931,357 2,931,357 - - Cash and Cash Equivalents 74,700,329 74,700,329 - - Pension provisions 49,767,020 2,000,000 8,000,000 39,767,020 Asset retirement obligation 56,198,553 616,000 2,646,000 53,118,553 End of service benefits 3,713,446 - 3,713,446 - Other provisions 353,237 353,237 - - Other long term payables 197,958 - 197,958 - Oil & Gas Payables 45,611,765 45,611,765 - - Trade Payables 472,194 472,194 - - Other Payables and Accrued 2,053,948 2,053,948 - - expenses
Consolidated IFRS FS 2017 FINAL 53 Partex Holding B.V
1 year 1-5 years 31 December 2016 Carrying amount More than 5 years or less USD USD USD USD
Other Oil &Gas Financial Assets 48,443,310 8,603,340 33,385,100 6,454,870
Financial Investments 4,847,930 - - 4,847,930 Oil & Gas Receivables 45,631,973 45,631,973 - - Trade Receivables 1,341,760 1,341,760 - - Other Receivables 3,723,568 3,723,568 - - Cash and Cash Equivalents 63,265,474 63,265,474 - - Pension Provisions 37,632,880 2,000,000 8,000,000 27,632,880 Asset retirement obligation 58,849,343 616,000 2,464,000 55,769,343 End of service benefits 13,313,261 - 13,313,261 - Other privisions 353,237 - 353,237 - Other Payables / Provisions 139,352 - 139,352 -
Oil & Gas Payables 45,792,131 45,792,131 - - Trade Payables 223,881 223,881 - - Calouste Gulbenkian Foundation 31,586,585 31,586,585 - - payable Other Payables and Accrued 1,770,743 1,770,743 - - expenses
Market risk Market risk is the risk that changes in market prices – such as foreign exchange rates, interest rates and equity prices – will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. Currency risk The Group is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales, purchases and borrowings are denominated and the respective functional currencies of Group companies. The functional currencies of Group companies are primarily US Dollars. The currencies in which these transactions are primarily denominated are US Dollars and Euros. Exposure to currency risk The summary of quantitative data about the Group’s exposure to currency risk as reported to the management of the Group is as follows:
Consolidated IFRS FS 2017 FINAL 54 Partex Holding B.V
Foreign exchange risk: The group’s functional currency is the US dollar. As at 31 December 2017 the exposure to foreign currency rate risk is as follows
31/12/17 USD AED EUR OMR Other Other Oil &Gas Financial Assets 52,161,061 - 274,820 3,234,600 2,876,640 Financial Investments - - - - - Oil & Gas Receivables 42,932,397 - - - 2,636,424 Trade Receivables 39,265 - 1,496,111 - - Other Receivables 3,301,269 143,930 278,369 - - Cash and Cash Equivalents 63,092,327 9,481 9,970,897 8,804 1,618,820 Other Payables / Provisions - - 197,958 - - Oil & Gas Payables 42,043,052 - - - 3,568,713 Trade Payables 5,207 - 461,748 - 5,239 Gulbenkian Foundation payable - - - - - Other Payables and Accrued expenses 320,465 28,019 1,142,185 14,565 548,714
31/12/16 USD AED EUR OMR Other Other Oil &Gas Financial Assets 43,898,090 - 2,020 3,156,840 1,386,360 Financial Investments 4,847,930 - - - - Oil & Gas Receivables 42,951,047 - - - 2,680,926 Trade Receivables - - 1,341,760 - - Other Receivables 3,301,269 143,930 278,369 - - Cash and Cash Equivalents 56,260,363 30,053 6,776,372 - 198,686 Other Payables / Provisions - - 139,352 - - Oil & Gas Payables 45,792,131 - - - - Trade Payables 30,995 - 192,886 - - Gulbenkian Foundation payable - - 31,586,585 - - Other Payables and Accrued expenses 634,470 18,308 1,117,965 - -
Sensitivity analysis Due to the limited foreign currency outstanding as per year end noted above, the Group’s exposure to foreign currency is considered limited.
The following significant exchange rates have been applied during the year:
Average rate Year-end spot rate
2017 2016 2017 2016
USD USD USD USD
EUR 1 1.13 1.1062 1.2005 1.0537
BRL 1 0.3134 0.2917 0.3019 0.3069
CHF 1 1.0160 1.0151 1.0259 0.9842
OMR 1 2.5973 - 2.5971 -
Consolidated IFRS FS 2017 FINAL 55 Partex Holding B.V
Exposure to interest rate risk The Group’s exposure to interest rate risk is considered limited as the Group has no outstanding external debt. The interest rate profile of the Group’s interest-bearing financial instruments is as follows:
Carrying amount 2017 2016 USD USD Variable rate instruments Loans and advances - - Cash and cash equivalents 74,700,329 63,265,474 Financial liabilities - -
74,700,329 63,265,474
25 Capital management The Group manages its capital to ensure that it will be able to continue as a going concern while maximising the return to its shareholders through the optimization of debt and equity balance.
26 Fair value of financial assets and liabilities As at 31 December 2017 and 2016 there were no significant differences between the carrying amount and the fair value of the financial assets and liabilities.
Cash and cash equivalents: Considering the short-term nature of these financial instruments, carrying value is believed to be a reasonable estimate of its fair value. Debtors, advances and creditors and other liabilities: Considering the short-term nature of these assets and liabilities, the carrying value is believed to be a reasonable estimate of its fair value. Advances and creditors and other non-current liabilities: Considering that these assets and liabilities are booked at their present value, the carrying value is believed to be a reasonable estimate of their fair value.
Consolidated IFRS FS 2017 FINAL 56 Partex Holding B.V
27 Commitments and contingencies (i) Guarantees Banks, through the shareholder of the Group, have given performance guarantees to the value of USD 612,625 (2016: USD 2,581,289) that the group will carry out undertakings given in relation to Angolan and Portuguese concessions held.
(ii) Commitments Contractual obligations related to asset retirement obligations and leases can be set forth as follows (nominal values):
Due in 1 year Due in 1-5 years Due in more than 5 31 December 2017 Total commitment or less years USD USD USD USD Asset retirement commitments 145,780,000 616,000 2,464,000 142,700,000 Financial lease obligation 304,676 106,721 197,955 - Operational lease liabilities 94,380 86,193 8,187 -
Due in 1 year Due in 1-5 years Due in more than 5 31 December 2016 Total commitment or less years USD USD USD USD Asset retirement commitments 145,756,000 616,000 2,464,000 142,676,000 Financial lease obligations 251,334 103,510 147,824 - Operational lease liabilities 162,012 129,995 32,057 -
Capital expenditures are considered to be committed when the project has received the appropriate level of internal management approval. Estimated share in capital expenditure of the Group in its joint operations for the following year amounts to USD 128 million approximately. For the 5 years following this amounts to USD 587 million approximately. (iii) Contingent liabilities Currently there are no civil actions and administrative and arbitral and other judicial proceedings outstanding.
28 Related parties
Parent The Company is a wholly owned subsidiary of the Fundaçao Calouste Gulbenkian, a charitable foundation established under the laws of Portugal.
Consolidated IFRS FS 2017 FINAL 57 Partex Holding B.V
Transactions with key management personnel
Key management personnel compensation Key management personnel compensation comprises the following:
2017 2016 USD USD Salaries and other short term benefits 1,569,523 836,301 Post-employment benefits 81,392 35,627
1,650,915 871,928
Compensation of the Group’s key management personnel includes salaries, accrued performance bonuses and contributions to a post-employment defined benefit plan.
Key management personnel transactions None of the directors of the Company are holding any interest in the Company’s share capital.
Other related party transactions
Transaction values for the Balance outstanding
year ended 31 December as at 31 December
2017 2016 2017 2016
USD USD USD USD
Dividend to shareholder - (31,611,900) - (31,611,900)
Payables to shareholder - - - 25,315
All outstanding balances with these related parties are priced on an arm’s length basis.
Consolidated IFRS FS 2017 FINAL 58 Partex Holding B.V
29 Subsequent events There were no subsequent events identified which could have a material effect on the financial statements of the Group.
Amsterdam, 17 April 2018
The Board of Directors: The Supervisory Board: A.J. Da Costa Silva I.M. De Lucena Vasconcelos Cruz de Almeida Mota
M.C.E. van Gendt J.M. Trindade Neves Adelino
E. Carrega Marçal Grilo
J.F.B. Sampaio
M.S. Essayan
M.T. Pinto Basto Gouveia
E.R. Da Veiga Peixoto Vilar
G.V. Pereira de Oliveira Martins
P. Lopo de Carvalho Norton de Matos
Consolidated IFRS FS 2017 FINAL 59 Partex Holding B.V
Appendix 1 – UNAUDITED
Payments to Governments
According to the Directive 2013/34/EU of the European Parliament, extractive companies have to report payments made to Governments linked to the activity. In this list, we have excluded corporate income tax paid for services income (in Portugal, Liechtenstein and the Netherlands). All values are presented in USD and represent only the share of Partex Group in all operations.
Payments to Governments 2017
Country Beneficiary Operation Production Taxes Royalties Bonuses Fees Infrastructure Total Entitlement Improvements Abu Dhabi National Government GASCO 18,347,012 6,824,570 0 0 0 0 25,171,582 Total Abu Dhabi 18,347,012 6,824,570 0 0 0 0 25,171,582
Angola National Government Block 17/06 0 1,781 0 0 9,375 0 11,156 Total Angola 0 1,781 0 0 9,375 0 11,156
Brazil National Government BM-SEAL-9 24,280 24,280 Brazil Local Authorities BM-SEAL-9 0 Brazil National Government Colibri/Cardeal PBL 441,021 337,719 778,739 Brazil Regional Authorities Colibri/Cardeal PBL 8,701 8,701 Brazil Local Authorities Colibri/Cardeal PBL 160,366 160,366 Brazil National Government Colibri/Cardeal PBOPL 369,964 369,964 Brazil Regional Authorities Colibri/Cardeal PBOPL 0 Brazil Local Authorities Colibri/Cardeal PBOPL 659 659 Total Brazil 0 1,004,992 337,719 0 0 0 1,342,710
Kazakhstan National Government Dunga 6,103,148 0 0 0 0 0 6,103,148 Total Kazakhstan 6,103,148 0 0 0 0 0 6,103,148
Oman National Government PDO 0 100,776,082 0 0 0 0 100,776,082 Oman National Government Mukhaizna 0 7,511,389 0 0 5,000 0 7,516,389 Oman National Government OLNG 0 4,743,760 0 0 0 0 4,743,760 Total Oman 0 113,031,231 0 0 5,000 0 113,036,231
Portugal National Government Algarve - Caranguejo 0 36,901 36,901 Portugal National Government Algarve - Lagosta 0 20,151 20,151 Portugal National Government Algarve - Lagostim 0 9,990 9,990 Portugal National Government Algarve - Sapateira 0 36,949 36,949 Portugal National Government Peniche - Ameijoa 0 12,750 5,980 18,730 Portugal National Government Peniche - Camarao 0 12,335 16,854 29,189 Portugal National Government Peniche - Mexilhao 0 13,762 16,854 30,616 Portugal National Government Peniche - Ostra 0 13,429 11,973 25,401 Total Portugal 0 52,276 0 0 0 155,653 207,929 TOTAL 24,450,160 120,914,850 337,719 0 14,375 155,653 145,872,756
Consolidated IFRS FS 2017 FINAL 60