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 2025 and 2031. Leased facilities included in the ’Vessels and floating equipment’ amount to:
Leased facilities included in the vessels and floating equipment
31 December 2022 | 31 December 2021 | ||
|---|---|---|---|
Cost | 1,813 | 1,741 | |
Accumulated depreciation and impairment | (1,596) | (1,447) | |
Book value at 31 December | 217 | 294 |
As of December 31, 2022, the units included under leased facilities are FPSO Cidade de Anchieta and the semi-submersible production facility Thunder Hawk. The book value of the leased facilities included in the vessels and floating equipment has decreased by US$77 million, mainly due to the impairment on asset FPSO Cidade de Anchieta.
The nominal values of the future expected bareboat receipts (undiscounted lease payments) in respect of the remaining operating lease contracts are:
Nominal values of the future expected bareboat receipts
31 December 2022 | 31 December 2021 | ||
|---|---|---|---|
Within 1 year | 113 | 146 | |
2 years | 111 | 109 | |
3 years | 104 | 107 | |
4 years | 91 | 100 | |
5 years | 91 | 90 | |
After 5 years | 306 | 313 | |
Total | 816 | 865 |
A number of agreements have extension options, which have not been included in the above table.
Outstanding purchase and termination options in operating lease contracts
The operating lease contract of semi-submersible Thunder Hawk includes a call option for the client to purchase the underlying asset. The exercise of this call option would have resulted in a gain for the Company as at December 31, 2022.