6.3.14Finance Lease Receivables

The reconciliation between the total gross investment in the lease and the net investment in the lease at the statement of financial position date is as follows:

Finance lease receivables (reconciliation gross / net_investment)

31 December 2015

31 December 2014

Gross receivable

5,972

6,457

Less: Unearned finance income

(2,788)

(3,078)

Total

3,184

3,379

Of which

Current portion

164

202

Non-current portion

3,020

3,177

Finance lease receivables relate to the finance leases of FPSO Aseng which started production in November 2011, FPSO Cidade de Paraty which started production in June 2013, and FPSO Cidade de Ilhabela which started production in November 2014.

The decrease in the finance lease receivables relates to the invoicing of Bareboat charter rates in 2015. The sole addition to the finance lease receivable in 2015 consists in the extension to FPSO Yetagun signed in 2014 (Please refer to Note 6.3.1 Highlights).

Included in the gross receivable is an amount related to unguaranteed residual values. The total amount of unguaranteed residual values at the end of the lease term amounts to US$ 17 million as of 31 December 2015. Allowances for uncollectible minimum lease payments are nil.

Gross receivables are expected to be invoiced to the lessee within the following periods:

Finance lease receivables (gross receivables invoiced to the lessee within the following periods)

31 December 2015

31 December 2014

within 1 year

426

477

between 1 and 5 years

1,487

1,570

after 5 years

4,059

4,410

Total Gross receivable

5,972

6,457

The table above does not include the amounts to be invoiced on the finance lease contracts that were awarded during the period 2013-2015, not delivered at the end of 2015 and therefore included in "Construction contracts". The following part of the net investment in the lease is included as part of the current assets within the "trade and other receivables" of the statement of financial position:

Finance lease receivables (part of the net investment included as part of the current assets)

31 December 2015

31 December 2014

Gross receivable

426

477

Less: Unearned finance income

(262)

(275)

Current portion of finance lease receivable

164

202

The maximum exposure to credit risk at the reporting date is the carrying amount of the finance lease receivables taking into account the risk of recoverability. The company does not hold any collateral as security.