NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  NOTE 33 – FINANCIAL RISK MANAGEMENT continued  Year ended 31 December  2014  US$’000 2013  US$’000 Effect on profit before tax  Increase / (Decrease)  Oil  -  improvement in US$ oil price of $10 per barrel  (2,400)  (2,351)  -  decline in US$ oil price of $10 per barrel  3,041  1,477  Gas  -  improvement in US$ gas price of $0.50 per mcf  (120)  (124)  -  decline in US$ gas price of $0.50 per mcf  120  180  Interest Rate Risk  Interest Rate Sensitivity Analysis  Interest rate risk is the risk that the fair value of the future cash flows of a financial instrument will fluctuate  because of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates  relates primarily to the Group’s long-term debt obligations with floating interest rates.  Based on the net debt position as at 31 December 2014 and 2013, taking into account interest rate swaps, with  all other variables remaining constant, the following table represents the effect on income as a result of changes  in the interest rate. The impact on equity is the same as the impact on profit before tax.  Year ended 31 December  2014  US$’000 2013  US$’000 Effect on profit before tax  Increase / (Decrease)  -  increase in interest rates + 2%  (906)  (177)  decrease in interest rates - 2%  184  -  This assumes that the change in interest rates is effective from the beginning of the financial year and the net  debt position and fixed/floating mix is constant over the year. However, interest rates and the debt profile of  the Group are unlikely to remain constant and therefore the above sensitivity analysis will be subject to change.  - 101 - 