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FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2011

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Interest rate derivatives

As of December 31, 2011, the Company has entered into the following interest rate swap transactions involving the payment of fixed rates in exchange for LIBOR as summarized below.  The summary also includes those that are designated as cash flow hedges:

Instrument (in thousands of $)	Notional value			Maturity Dates		Fixed Interest Rates
Interest rate swaps:
Receiving floating, pay fixed	899,080			2013-2018		0.92% to 5.04%

Effect of cash flow hedging relationships on statements of operations

The effect of cash flow hedging relationships relating to interest rate swap agreements on the consolidated statements of operations is as follows:

	Effective portion Gain/(loss) reclassified from Accumulated Other Comprehensive Loss									Ineffective Portion
Derivatives designated as hedging instruments location	2011			2010			2009			2011				2010				2009
Interest rate swaps Other financial items, net	—			—			—			$	(632	)		$	(427	)		$	(552	)

Effect of cash flow hedging relationships on statements of changes in equity

The effect of cash flow hedging relationships relating to interest rate swap agreements to the consolidated statements of changes in equity is as follows:

	Amount of gain/(loss) recognized in OCI on derivative (effective portion)
Derivatives designated as hedging instruments	2011			2010			2009
Interest rate swaps	1,024			(8,578	)		11,615

Summary of foreign currency contracts

As of December 31, 2011, the Company has entered into the following foreign currency forward contracts as summarized below:

	Notional amount
Instrument (in thousands)	Receiving in foreign currency			Pay in USD			Maturity dates		Average forward rate USD foreign currency
Currency rate swaps:
British Pounds	60,462			111,128			2032		1.5803
Norwegian Kroner	26,000			4,211			2012		0.1619
Singapore Dollar	15,800			12,134			2012		0.7674

Fair value hierarchy of derivative and non-derivative financial instruments

	Fair value		2011			2011			2010			2010
(in thousands of $)	Hierachy(1)		Carrying Value			Fair Value			Carrying Value			Fair Value
Non-Derivatives:
Cash and cash equivalents	Level 1		66,913			66,913			164,717			164,717
Restricted cash and short-term investments	Level 1		213,282			213,282			207,856			207,856
Long-term unlisted investments  - (1)	Level 3		7,347			N/a			7,347			N/a
Long-term debt – fixed (1)			—			—			10,000			10,000
Long-term debt – floating (1)			771,549			771,549			787,078			787,078
Obligations under capital leases(1)			405,843			405,843			411,875			411,875
Derivatives:
Commodity contracts asset	Level 2		—			—			111			111
Interest rate swaps liability (2)	Level 2		59,084			59,084			50,051			50,051
Foreign currency swaps liability	Level 2		27,622			27,622			26,205			26,205

(1) The fair value hierachy is only applicable to each financial instrument on the consolidated balance sheets that are recorded at fair value on a recurring basis.

(2) The fair value/carrying value of interest rate swap agreements that qualify and are designated as a cash flow hedge as at December 31, 2011 and 2010, was $25.9 million (with a notional value of $436.3 million) and $24 million (with a notional value of $284.3 million), respectively. The expected maturity of these interest rate agreements is from April 2012 to March 2018.

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