b'3STAATSOLIE MAATSCHAPPIJ SURINAME N.V.REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)Key audit matter How our audit addressed the key audit matterIMPAIRMENT OF OIL EXPLORATION,RESERVES AND RESOURCE ESTIMATES:PRODUCING AND REFINING PROPERTIESAssessed the Groups reserves estimationNOTE 4.11 TO THE CONSOLIDATED FINANCIAL STATEMENTS(CONTINUED) . methods and policies;We compared total reserves included in theimpairment assumptions model to the reserves as per the audited reserves report;We held discussions with Management tounderstand the production profile and evaluated whether it was consistent with our knowledge of the business activity.CAPITAL EXPENDITURE FORECAST:Obtained managements development CapitalExpenditure (CAPEX) plan to maintain 6 million barrels per year. The average annual CAPEX was also compared to the historical information of the Group.We held discussions with management tounderstand the plan for the Group, source of funding, and types of Improved Oil Recovery (IOR) and Enhanced Oil Recovery (EOR) to be implemented to maintain production;We reviewed the historical costs of theturnaround project on the refinery, the budget and nonrecurring expenses. SHALLOW OFFSHORE AREAObtained and reviewed managementsimpairment assessment of the exploration and evaluation assets in the shallow offshore area;We examined documentation to supportmanagements assumptions and plans related to the shallow offshore area.60 STAATSOLIE 2021 ANNUAL REPORT'