4.3.20Construction Work-In-Progress

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


31 December 2019

31 December 2018

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, 2019 relates to the FPSO Liza Unity and FPSO Sepetiba finance lease projects since the Company will receive most of the payments for the construction only during the lease period through bareboat charter payments.

Costs to fulfill the contract of FPSO Liza Unity, recognized in 2018 as part of construction work-in-progress for US$13 million, were reclassified to project costs during 2019 after formally being awarded the FPSO Liza Unity contract in May 2019. The Company has not recognized any amortization or impairment related to this vessel in 2019 (2018: nil).

Contract liabilities of US$42 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.