4.3.7Research and Development Expenses

Research and development expenses amounted to US$ 23 million (2017: US$ 33 million) and mainly relate to the internal project ’Digital FPSO’, Renewables and FPSO Product Line development costs and investments in laboratory facilities.

The amortization of development costs recognized in the statement of financial position is allocated to cost of sales when the developed technology is used through one or several projects. Otherwise, it is allocated to research and development expenses.