6.3.28Commitments and Contingencies

Parent Company Guarantees

In the ordinary course of business, the Company is committed to fulfil various types of obligations arising from customer contracts (among which full performance and warranty obligations).
As such, the Company has issued Parent Company Guarantees for contractual obligations in respect of several group companies, including equity-accounted joint ventures, with respect to FPSO long term lease and operate contracts.

Bank Guarantees

As of 31 December 2015, the Company has provided bank guarantees to unrelated third parties for an amount of US$ 379 million (2014: US$ 422 million). No liability is expected to arise.

The Group holds in its favour US$ 198 million of bank guarantees from unrelated third parties. No withdrawal under these guarantees is expected to occur.

Commitments

At year-end, the remaining contractual commitments for acquisition of property, plant and equipment and investment in leases amounted to US$ 35 million (2014: US$ 191 million). Investment commitments have decreased principally due to the progress of FPSOs Cidade de Marica and Saquarema and FPSO Turritella projects.

The obligations in respect of operating lease, rental and leasehold obligations, are as follows:

Commitments

2015

2014

< 1 year

1-5 years

> 5years

Total

Total

Operating lease

34

82

93

209

198

Rental and leasehold

25

79

27

131

234

Total

59

160

120

340

432

Contingent Asset

The Company continues to investigate the possibility to recover losses incurred in connection with the Yme development project from insurers. Under the terms of the settlement agreement with Talisman, all pending and future claim recoveries (after expenses and legal costs) relating to the Yme development project under the relevant construction, all risks insurance shall be shared 50/50 between the Company and Talisman.