5.3.12Property, Plant and Equipment

The movement of the property, plant and equipment during the year 2016 is summarized as follows:

2016

2015

During the 2016 period the following main events occurred:

• On October 12, 2016, SBM Offshore has officially inaugurated its new R&D facilities at Carros – Le Broc, near Nice in France. The laboratory covers 2,300 m², and will cater to a variety of testing and research requirements across the Company’s product lines in new technological developments. Investments in these new R&D facilities amounted to US$ 2 million reported in addition to other fixed assets in 2016.
• US$ 216 million of annual depreciation on existing fixed assets
• FPSO Falcon was sold in July 2016, resulting in the impairment reversal of US$ 5 million in the lease and operate segment.

Property, plant and equipment at year-end comprise:

• Three (2015: three) integrated floating production, storage and offloading systems (FPSOs), each consisting of a converted tanker, a processing plant and one mooring system
• One (2015: one) floating storage and offloading system (FSO), consisting of a converted or newbuild tanker and mooring system including the fluid transfer system
• One second-hand tanker (2015: two)
• One semi-submersible production platform (2015: one)
• One MOPU facility (2015: one)  

The depreciation charge for the Thunder Hawk facility is calculated based on its future anticipated economic benefits, resulting in a depreciation charge partly based on the unit of production method and, for the other part, based on the straight-line method. All other Property, plant and equipment are depreciated on a straight-line method.

No third-party interest have been capitalized during the financial year as part of the additions to property, plant and equipment (2015: nil).

Operating leases as a lessor

The category ‘Vessels and floating equipment’ mainly relates to facilities leased to third parties under various operating lease agreements, which terminate between 2017 and 2030. Leased facilities included in the ‘Vessels and floating equipment’ amount to:

Leased facilities included in the Vessels and floating equipment

The nominal values of the future expected bareboat receipts (minimum lease payments of leases) in respect of those operating lease contracts are:

Nominal values of the future expected bareboat receipts

A number of agreements have extension options, which have not been included in the above table.