6.3.12Property, Plant and Equipment

The movement of the property, plant and equipment during the year 2015 is summarized as follows:

2015

Land and buildings

Vessels and floating equipment

Other fixed assets

Assets under construction

Total

Cost

64

3,668

76

1

3,810

Accumulated depreciation and impairment

(6)

(1,826)

(56)

-

(1,887)

Book value at 1 January

59

1,843

20

1

1,923

Additions

-

0

5

2

7

Disposals

-

(4)

(1)

-

(4)

Depreciation

(5)

(185)

(8)

-

(198)

(Impairment)/impairment reversal

-

(13)

(1)

-

(13)

Exchange rate differences

(6)

-

(3)

0

(9)

Other movements/deconsolidation

0

(22)

5

(2)

(19)

Total movements

(11)

(223)

(2)

0

(238)

Cost

57

3,581

71

0

3,709

Accumulated depreciation and impairment

(10)

(1,961)

(53)

-

(2,023)

Book value at 31 December

47

1,620

18

0

1,686

2014

Land and buildings

Vessels and floating equipment

Other fixed assets

Assets under construction

Total

Cost

6

3,926

99

57

4,087

Accumulated depreciation and impairment

(2)

(1,956)

(71)

-

(2,029)

Book value at 1 January

4

1,970

27

57

2,058

Additions

-

39

4

16

59

Disposals

-

0

(2)

(1)

(3)

Depreciation

(4)

(209)

(11)

-

(223)

(Impairment)/impairment reversal

-

37

-

-

37

Exchange rate differences

(6)

-

(2)

(2)

(9)

Other movements/deconsolidation

64

7

3

(69)

5

Total movements

55

(127)

(7)

(56)

(135)

Cost

64

3,668

76

1

3,810

Accumulated depreciation and impairment

(6)

(1,826)

(56)

-

(1,887)

Book value at 31 December

59

1,843

20

1

1,923

During the 2015 period the following main events occurred:

  • US$ 198 million of annual depreciation on existing fixed assets
  • US$ 13 million impairment on FPSO Marlim Sul and FPSO Falcon upon revision of the residual value of the assets (please refer to note 6.2.7.C).
  • US$ 22 million deconsolidation movement of the Pelicano Heavy Lift Floating Crane upon sale of the shares of Pelican Assets S.à.r.l. to the Company’s Joint venture SNV Offshore Limited (Refer to note 6.3.31 Interest in Joint Ventures and Associates)

Property, plant and equipment at year-end comprise:

  • Three (2014: four) integrated floating production, storage and offloading systems (FPSOs), each consisting of a converted tanker, a processing plant and one mooring system
  • One (2014: one) floating storage and offloading system (FSO), consisting of a converted or newbuild tanker and mooring system including the fluid transfer system
  • Two second-hand tankers (2014: two)
  • Zero Heavy Lift Floating Crane (2014: one)
  • One semi-submersible production platform (2014: one)
  • One MOPU facility (2014: one)  

No third-party interest have been capitalized during the financial year as part of the additions to property, plant and equipment (2014: nil).

Operating leases as a lessor

The category ‘Vessels and floating equipment’ mainly relates to facilities leased to third parties under various operating lease agreements, which terminate between 2015 and 2030. Leased facilities included in the ‘Vessels and floating equipment’ amount to:

Leased facilities included in the Vessels and floating equipment

2015

2014

Cost

3,243

3,589

Accumulated depreciation and impairment

(1,671)

(1,820)

Book value at 31 December

1,572

1,769

The nominal values of the future expected bareboat receipts (minimum lease payments of leases) in respect of those operating lease contracts are:

Nominal values of the future expected bareboat receipts

2015

2014

Within 1 year

410

368

Between 1 and 5 years

1,529

1,593

After 5 years

1,296

1,658

Total

3,235

3,620

A number of agreements have extension options, which have not been included in the above table.