4.3.28Commitments and Contingencies
Parent Company Guarantees
SBM Offshore N.V., as the parent company, is committed to fulfill various types of obligations arising from customer contracts, such as full performance and warranty obligations.
In the past, the parent company has issued guarantees for contractual obligations in respect of several Group companies, including equity-accounted joint ventures, with respect to long-term lease and operate contracts. The few remaining guarantees still active as of December 31, 2019 relate to the Deep Panuke MOPU unit, Thunder Hawk semi-submersible platform and FPSO Saxi, and have all been signed prior to 2010.
As of December 31, 2019, the Company has provided bank guarantees to unrelated third parties for an amount of US$572 million (2018: US$358 million). No liability is expected to arise under these guarantees.
The Company holds in its favor US$481 million of bank guarantees from unrelated third parties. No withdrawal under these guarantees is expected to occur.
As at December 31, 2019, the remaining contractual commitments for acquisition of intangible assets, property, plant and equipment and investment in leases amounted to US$639 million (December 31, 2018: US$ 135 million). Investment commitments have increased principally due to the construction of the FPSO Liza Unity, FPSO Sepetiba, and the initial limited scope commenced for FPSO Prosperity, which is subject to necessary government approvals and project sanction.
The Company has no significant contingent liabilities or assets to be disclosed for the year ended December 31, 2019.