5.3.28Commitments and Contingencies

Parent Company Guarantees

In the ordinary course of business, the Company is committed to fulfil various types of obligations arising from customer contracts (among which full performance and warranty obligations).
As such, the Company has issued Parent Company Guarantees for contractual obligations in respect of several group companies, including equity-accounted joint ventures, with respect to long-term lease and operate contracts.

Bank Guarantees

As of December 31, 2016, the Company has provided bank guarantees to unrelated third parties for an amount of US$ 336 million (2015: US$ 379 million). No liability is expected to arise.

The Group holds in its favour US$ 99 million of bank guarantees from unrelated third parties. No withdrawal under these guarantees is expected to occur.

Commitments

Contingent Liability

At the end of January 2016, the United States Department of Justice (DoJ) informed the Company that it has re-opened its past inquiry of the Company in relation to the alleged improper sales practices over the period 2007 to 2011 and has made information requests in connection with that inquiry.

During the period, the Company has cooperated with the DoJ and remains committed to close out discussions on this legacy issue which the Company self-reported to the authorities in 2012 and for which it reached a settlement with the Dutch Public Prosecutor in 2014.

During the period, the Company has also cooperated with the DoJ for its inquiry into Unaoil, a company that SBM Offshore had engaged as agent prior to 2012.

Commitments

As at December 31, 2016, the remaining contractual commitments for acquisition of intangible assets, property, plant and equipment and investment in leases amounted to US$ 2 million (December 31, 2015: US$ 35 million). Investment commitments have decreased principally due to the completion of the construction of FPSOs Cidade de Maricá, Cidade de Saquarema and Turritella.

The obligations in respect of operating lease, rental and leasehold obligations, are as follows:

Commitments

Contingent Asset

The Company continues to investigate the possibility to recover losses incurred in connection with the Yme development project from insurers. Under the terms of the settlement agreement with Talisman, all pending and future claim recoveries (after expenses and legal costs) relating to the Yme development project under the relevant construction all risks insured shall be shared 50/50 between the Company and Talisman.