4.3.31Investment in Associates and Joint Ventures

The Company has several joint ventures and associates:

The Company has no joint operation as per definition provided by IFRS 11 ‘Joint arrangements’.

The movements in investments in associates and joint ventures are as follows:

Acquisition of 75% equity ownership in OS Installer Limited

The Company acquired the remaining 75% equity ownership in OS Installer Limited for a consideration of US$34 million on September 30, 2020. As a result, the 25% investment in OS Installer Limited, which was accounted for at equity method prior to the transaction, was derecognized for an amount of US$12 million, as reported on the line item ’Capital increase/(decrease)’ in the above reconciliation table. OS Installer Limited is fully consolidated as from the acquisition date. Please refer to note 4.3.13 Property, Plant and Equipment.

Purchase and termination options in finance lease contracts − Joint ventures and associates

The finance lease contracts of FPSO N’Goma, FPSO Saxi Batuque and FPSO Mondo, where the Company is the lessor, include call options for the client to purchase the underlying asset or to terminate the contract early. The finance lease contract of FPSO Kikeh also includes options for the client to purchase the underlying asset or to terminate the contract early, but it should be noted that the first option for the client to exercise the purchase option on FPSO Kikeh is early 2022.

The exercise of the purchase option on FPSOs N’Goma, Saxi Batuque and Mondo as per December 31, 2020 would have resulted in a gain for the Company or a near break-even result. The exercise of the option to terminate the contract early, in which case the Company retains ownership of the vessel, would result in a gain for FPSO Kikeh, break-even result for FPSOs Saxi Batuque and Mondo, while this would result in a non-material loss for the Company on N’Goma FPSO . The Company considers the likelihood of the client exercising the option to terminate the contract on this specific contract as remote.

The following tables present the figures at 100%.

Information on significant joint arrangements and associates - 2020

Information on significant joint arrangements and associates - 2019

The bank interest-bearing loans and other borrowings held by joint ventures and associates are as follows:

Information on loans and borrowings of joint ventures and associates

• ¹ Please refer to note 4.3.16 'Loans to joint-ventures and associates' for presentation of the carrying amount of these loans in the Company's Consolidated Statement of financial position.
• ² Mainly loans from the joint ventures SBM Shipyard Ltd to the JV PAENAL - Porto Amboim Estaleiros Navais Ltda.

The book value of the project finance facility related to the OS Installer Limited is not reported anymore at December 31, 2020, as this entity is not anymore a joint venture following the acquisition by the Company of 75% ownership in the entity in 2020. Please refer to note 4.1.2 Financial Highlights for more information.

Aggregated information on joint ventures and associates

Reconciliation equity at 100 % with investment in associates and joint ventures