4.3.20Construction Work-In-Progress
The details regarding construction work -in-progress are included in the following table:
|
Note |
31 December 2020 |
31 December 2019 |
|
|---|---|---|---|
|
Recognized revenue |
2,492 |
1,508 |
|
|
Instalments invoiced |
(309) |
(577) |
|
|
Reclassification to contract liability |
69 |
42 |
|
|
Net impairment losses on contract assets |
(4) |
(0) |
|
|
Total construction work-in-progress |
2,248 |
973 |
The significant portion of the outstanding balance of construction work-in-progress as of December 31, 2020 relates to the Liza Unity (FPSO), FPSO Sepetiba and Prosperity (FPSO) finance lease projects since the Company will receive most of the payments for the construction only during the lease period through bareboat charter payments. The increase in the construction work-in-progress is mainly driven by the progress made in 2020 on the Liza Unity (FPSO), FPSO Sepetiba and Prosperity (FPSO) projects.
Contract liabilities of US$69 million comprises the amounts of those individual contracts 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.