196 Annual Report 2025 NOTES TO THE FINANCIAL STATEMENTS 3 EXPLORATION AND EVALUATION ASSETS (CONTINUED) Impairment assessment In 2025, the Group recognised impairment loss of US$10,893,000 with respect to the relinquishment of licences (PL1190 and PL1093) in Norway due to limited further prospectivity and the drilling of a dry well. In 2024, the Group recognised impairment loss of US$378,000 due to certain relinquished licences (PL867 and PL838B) in Norway. Based on the approved budgets and plans for exploratory activities, no other impairment of E&E assets was required as at 31 December 2025 and 31 December 2024. The impairment of E&E assets is included in ‘other expenses’ in the consolidated statement of comprehensive income. 4 OIL AND GAS PROPERTIES Group Note 2025 2024 US$’000 US$’000 Cost At 1 January 475,098 384,128 Additions 263,196 95,886 Acquisition of interests in oil and gas licences 1,967 – Acquisition through business combinations – 12,884 Change in decommissioning provision 19 21,592 6,929 Transferred from exploration and evaluation assets 3 4,082 4,343 Adjustments 261 687 Translation differences 42,959 (29,759) At 31 December 809,155 475,098 Accumulated depletion and impairment loss At 1 January 301,242 175,328 Depletion 107,283 97,931 Impairment of oil and gas properties previously capitalised 24 88,679 41,421 Translation differences 26,460 (13,438) At 31 December 523,664 301,242 Carrying amount at 31 December 285,491 173,856 Impairment assessment An impairment assessment was performed over the Group’s oil and gas properties. Based on the impairment assessment performed, impairment loss of US$88,679,000 was recognised in 2025 with respect to oil and gas properties in Norway due to lower forecasted oil prices in Yme Field and significant cost overruns for drilling operations due to technical complications in Benin (2024: US$41,421,000 was recognised with respect to Yme Field in Norway).
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