4.3.20Construction Work-In-Progress

The details regarding construction work-in-progress are included in the following table:


31 December 2018

31 December 2017

Recognized revenue



Instalments invoiced



Reclassification to contract liability




Total construction work-in-progress



The significant portion of the outstanding balance of construction work-in-progress as of December 31, 2018 relates to the FPSO Liza Destiny finance lease project, since the Company will receive most of the payments for the construction only during the lease period through bare boat payments.

In 2018, the Company incurred costs amounting to US$ 13 million related to fullfiling the contract of the FPSO Liza Unity project. These costs are recognized as an asset within ’Construction work-in-progress’ as per December 31, 2018. The Company has not recognized any amortization or impairment related to this asset during 2018. The assets are recoverable since the client is obliged to reimburse the costs incurred by the Company.

Contract liabilities of US$ 143 million comprises the amounts of those individual contracts, mainly Turret Mooring System EPC projects, for which the total instalments invoiced exceed the total revenue recognized. Contract liabilities are reclassified to other current liabilities (see note 4.3.27 Trade and Other Payables ).

Regarding information about expected credit losses recognized for construction work-in-progress, refer to note 4.3.29 Financial Instruments − Fair Values and Risk Management.