XML 88 R135.htm IDEA: XBRL DOCUMENT v2.4.0.6
RELATED PARTY TRANSACTIONS (Details)
 12 Months Ended 9 Months Ended 12 Months Ended 0 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 4 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2012
USD ($)
Dec. 31, 2011
USD ($)
Dec. 31, 2010
USD ($)
Apr. 30, 2003
Oct. 31, 2012
Unsecured debt
Senior Unsecured Bonds
USD ($)
Dec. 31, 2011
Unsecured debt
World Shipholding facility
USD ($)
Dec. 31, 2012
Unsecured debt
World Shipholding facility
May 31, 2012
Unsecured debt
World Shipholding facility
USD ($)
Feb. 29, 2012
Unsecured debt
World Shipholding facility
USD ($)
Jan. 31, 2012
Unsecured debt
World Shipholding facility
USD ($)
Apr. 30, 2011
Unsecured debt
World Shipholding facility
USD ($)
Dec. 31, 2012
Unsecured debt
World Shipholding facility
Rate in excess of LIBOR
Dec. 31, 2012
Bluewater Gandria
Jan. 18, 2012
Bluewater Gandria
USD ($)
Jul. 31, 2008
Bluewater Gandria
Dec. 31, 2012
Golar LNG Partners
Apr. 30, 2011
Golar LNG Partners
Jan. 30, 2011
Golar LNG Partners
Jan. 31, 2012
Golar LNG Partners
USD ($)
Apr. 30, 2011
Golar LNG Partners
Dec. 31, 2012
Golar LNG Partners
USD ($)
Dec. 31, 2011
Golar LNG Partners
USD ($)
Dec. 31, 2010
Golar LNG Partners
USD ($)
Oct. 31, 2012
Golar LNG Partners
Unsecured debt
Senior Unsecured Bonds
USD ($)
Oct. 31, 2012
Golar LNG Partners
Unsecured debt
Senior Unsecured Bonds
NOK
Dec. 31, 2012
Golar LNG Partners
Debt and capital lease obligations
USD ($)
Dec. 31, 2012
Golar LNG Partners
Golar Freeze
Oct. 31, 2011
Golar LNG Partners
Golar Freeze
USD ($)
Jul. 31, 2012
Golar LNG Partners
NR Satu
USD ($)
Dec. 31, 2012
Golar LNG Partners
Trading balances due to Golar and affiliates
USD ($)
Dec. 31, 2011
Golar LNG Partners
Trading balances due to Golar and affiliates
USD ($)
Dec. 31, 2012
Golar LNG Partners
Management and administrative services fees
USD ($)
Dec. 31, 2011
Golar LNG Partners
Management and administrative services fees
USD ($)
Dec. 31, 2010
Golar LNG Partners
Management and administrative services fees
USD ($)
Dec. 31, 2012
Golar LNG Partners
Ship management fees
USD ($)
Dec. 31, 2011
Golar LNG Partners
Ship management fees
USD ($)
Dec. 31, 2010
Golar LNG Partners
Ship management fees
USD ($)
Dec. 31, 2012
Golar LNG Partners
Interest income on vendor financing loan - Golar Freeze
USD ($)
Dec. 31, 2011
Golar LNG Partners
Interest income on vendor financing loan - Golar Freeze
USD ($)
Dec. 31, 2012
Golar LNG Partners
Interest income on vendor financing loan - Golar Freeze
Golar Freeze
USD ($)
Dec. 31, 2011
Golar LNG Partners
Interest income on vendor financing loan - Golar Freeze
Golar Freeze
USD ($)
Dec. 31, 2010
Golar LNG Partners
Interest income on vendor financing loan - Golar Freeze
Golar Freeze
USD ($)
Dec. 31, 2012
Golar LNG Partners
Interest income on vendor financing loan - Golar Freeze
NR Satu
USD ($)
Dec. 31, 2011
Golar LNG Partners
Interest income on vendor financing loan - Golar Freeze
NR Satu
USD ($)
Dec. 31, 2010
Golar LNG Partners
Interest income on vendor financing loan - Golar Freeze
NR Satu
USD ($)
Dec. 31, 2012
Golar LNG Partners
Interest income on high-yield bonds
USD ($)
Dec. 31, 2011
Golar LNG Partners
Interest income on high-yield bonds
USD ($)
Dec. 31, 2010
Golar LNG Partners
Interest income on high-yield bonds
USD ($)
Dec. 31, 2012
Golar LNG Partners
Interest income on Golar Energy loan
USD ($)
Dec. 31, 2011
Golar LNG Partners
Interest income on Golar Energy loan
USD ($)
Dec. 31, 2010
Golar LNG Partners
Interest income on Golar Energy loan
USD ($)
Apr. 13, 2011
Golar LNG Partners
Revolving credit facility
USD ($)
Dec. 31, 2012
Faraway Maritime Shipping Company
USD ($)
Dec. 31, 2011
Faraway Maritime Shipping Company
USD ($)
Dec. 31, 2010
Faraway Maritime Shipping Company
USD ($)
Dec. 31, 2012
Faraway Maritime Shipping Company
Golar LNG Partners
Dec. 31, 2012
Faraway Maritime Shipping Company
CPC Corporation, Taiwan
Mar. 31, 2012
World Shipholding
USD ($)
Dec. 31, 2012
World Shipholding
USD ($)
Dec. 31, 2011
World Shipholding
USD ($)
Dec. 31, 2010
World Shipholding
USD ($)
Mar. 31, 2011
World Shipholding
Secured debt
World Shipholding facility
USD ($)
Jul. 31, 2011
World Shipholding
Secured debt
World Shipholding facility
USD ($)
Dec. 31, 2012
World Shipholding
Secured debt
World Shipholding facility
Apr. 30, 2011
World Shipholding
Secured debt
World Shipholding facility
USD ($)
Dec. 31, 2012
World Shipholding
Secured debt
World Shipholding facility
Rate in excess of LIBOR
Dec. 31, 2012
World Shipholding, loan
USD ($)
Dec. 31, 2011
World Shipholding, loan
USD ($)
Dec. 31, 2012
World Shipholding, other
USD ($)
Dec. 31, 2011
World Shipholding, other
USD ($)
Dec. 31, 2012
Frontline
USD ($)
Dec. 31, 2011
Frontline
USD ($)
Dec. 31, 2010
Frontline
USD ($)
Dec. 31, 2012
Seatankers
USD ($)
Dec. 31, 2011
Seatankers
USD ($)
Dec. 31, 2010
Seatankers
USD ($)
Dec. 31, 2012
Ship Finance
USD ($)
Dec. 31, 2011
Ship Finance
USD ($)
Dec. 31, 2010
Ship Finance
USD ($)
Dec. 31, 2012
Bluewater Gandria
USD ($)
Dec. 31, 2011
Bluewater Gandria
USD ($)
Dec. 31, 2010
Bluewater Gandria
USD ($)
Dec. 31, 2012
Golar Wilhelmsen
USD ($)
Dec. 31, 2011
Golar Wilhelmsen
USD ($)
Dec. 31, 2010
Golar Wilhelmsen
USD ($)
Related Party Transaction:                                                                                                                                                                          
Investments percentage ownership in subsidiaries                                                                                                               60.00%                                                          
Revenue from related parties                                                               $ 2,876,000 [1] $ 1,576,000 [1] $ 0 [1] $ 4,222,000 [2] $ 4,146,000 [2] $ 3,826,000 [2]                                                                                                
Interest income from related parties                                                                               11,921,000 [3] 3,085,000 [3] 0 [3] 4,737,000 [4] 0 [4] 0 [4] 575,000 [5],[6] 0 [5],[6] 0 [5],[6] 829,000 [7] 0 [7] 0 [7]                                                                    
Net (expenses) income (due to) from related parties 1,500,000                                       25,160,000 8,807,000 3,826,000                                                                       (2,961,000) [8] (2,302,000) [8] (532,000) [8]                   (325,000) [9] (972,000) [9] (984,000) [9] 31,000 [9] (64,000) [9] (62,000) [9] 4,000 [9] 190,000 [9] 161,000 [9] 0 [10] 125,000 [10] 0 [10] 0 [10] (2,816,000) [10] 0 [10]
Receivables (payables) from related parties (153,000) (100,824,000)                                     36,984,000 (219,075,000) [11]               2,031,000 [12] 3,235,000 [11],[12]             0 [3] (222,310,000) [11],[3]             34,953,000 [6] 0 [11],[6]                                       0 [8] (80,000,000) [8] 0 [13] (21,134,000) [13] (143,000) 181,000   (12,000) (44,000)   2,000 48,000   0 125,000        
Related party transaction, rate                                   5.00%     6.75%           6.75%   6.75%                                                                                                                
Duration of notice required for contract termination                                         120 days                                                                                                                                
Loan amount                                                       222,300,000 175,000,000                                                                                                                
Final payment amount                                                       222,300,000                                                                                                                  
Amount drawn down                                     25,000,000                   155,000,000                                                                                                                
Amount available for draw down                                                         20,000,000                                                                                                                
Duration requirement for final payment                                                         3 years                                                                                                                
Debt instrument, face amount         (35,000,000)                                     227,000,000 1,300,000,000                                                                                                                        
Maximum borrowing capacity                                                                                                       20,000,000                                                                  
Payments of dividends 32,082,000 12,532,000 3,120,000                                   30,282,000 10,132,000 0                                                           1,800,000 2,400,000 3,120,000     21,100,000                                                      
Percentage ownership in subsidiary       100.00%                         65.40%                                                                                                                                        
Investments, ownership percentage                               54.10%                                                                                                                                          
Ownership interest percentage                                                                                                                 40.00%                                                        
Ownership percentage, equity method investment                             50.00%                                                                                                                                       60.00%    
Proceeds from dividends received                                         47,300,000 19,100,000                                                                                                                              
Environmental Indemnification, deductible amount                                         500,000                                                                                                                                
Environmental indemnification, aggregate cap                                         5,000,000                                                                                                                                
Guarantees issued to Golar Partners 23,265,000 0                                               544,606,000                                                                                                                      
Minimum charter term for rights of first offer                                       5 years                                                                                                                                  
Percentage of voting interest acquired                         50.00% 50.00% 50.00%                                                                                                                                            
Purchase consideration - cash                           19,500,000                                                                                                                                              
Extinguishment of debt, amount                                                                                                                           80,000,000                                              
Maximum borrowing capacity               120,000,000 250,000,000 145,000,000 80,000,000                                                                                                           80,000,000                                        
Amount drawn in period           80,000,000                                                                                                                 80,000,000                                            
Description of variable rate basis LIBOR LIBOR         LIBOR                                                                                                                     LIBOR                                      
Basis spread on variable rate                       3.50%                                                                                                           3.50%                                      
Commitment fee percentage             0.75%                                                                                                                 0.75%                                          
Loan interest and commitment fees expense                                                                                                                     800,000 1,900,000 300,000                                                
Interest incurred on unpaid dividends                                                                                                                     $ 200,000                                                    
[1] Management and administrative services agreement - On March 30, 2011, Golar Partners entered into a management and administrative services agreement with Golar Management, a wholly-owned subsidiary of Golar, pursuant to which Golar Management will provide to Golar Partners certain management and administrative services. The services provided by Golar Management are charged at cost plus a management fee equal to 5% of Golar Management’s costs and expenses incurred in connection with providing these services. Golar Partners may terminate the agreement by providing 120 days written notice.
[2] Ship management fees - Golar and certain of its affiliates charged ship management fees to Golar Partners for the provision of technical and commercial management of the vessels. Each of Golar Partners’ vessels is subject to management agreements pursuant to which certain commercial and technical management services are provided by certain affiliates of Golar, including Golar Management and Golar Wilhelmsen AS ("Golar Wilhelmsen"), a partnership that is jointly controlled by Golar and by Wilhelmsen Ship Management (Norway) AS.
[3] Vendor financing loan - Golar Freeze - In October 2011, in connection with the purchase of the Golar Freeze, Golar Partners entered into a financing loan agreement with Golar for an amount of $222.3 million. The facility is unsecured and bears interest at a fixed rate of 6.75% per annum payable quarterly. The loan is non-amortizing with a final balloon payment of $222.3 million due in October 2014. The loan was repaid in October 2012.
[4] Vendor financing loan - NR Satu - In July 2012, in connection with the purchase of the NR Satu, Golar Partners entered into a financing loan agreement with Golar for an amount of $175 million. Of this amount, $155 million has been drawn down in July 2012. A further $20 million is available for drawdown until July 2015. The facility is unsecured and bears interest at a fixed rate of 6.75% per annum payable quarterly. The loan is non-amortizing with a final balloon payment for the amount drawn down due within three years from the date of draw down. The loan was repaid in December 2012.
[5] The net effect to the Company's consolidated statement of operations for the year ended December 31, 2012 was an aggregate income of $1.5 million.
[6] High-yield bonds - In October 2012, Golar Partners completed the issuance of NOK1,300 million in senior unsecured bonds that mature in October 2017. The aggregate principal amount of the bonds is equivalent to approximately $227 million. Of this amount, approximately $35 million was issued to Golar.
[7] Golar Energy loan - In January 2012, Golar LNG (Singapore) Pte. Ltd. ("Golar Singapore"), the subsidiary which holds the investment in PTGI, drew down $25 million on its loan agreement entered into in December 2011 with Golar Energy. The loan was unsecured, repayable on demand and bears interest at the rate of 6.75% per annum payable on a quarterly basis. In connection with the acquisition of the subsidiaries that own and operate the NR Satu, all amounts payable to Golar Energy by the subsidiaries acquired by Golar Partners, including Golar Singapore, were extinguished.
[8] World Shipholding revolving credit facility - Following the termination of the Company's $80 million credit facility with the Company's major shareholder, World Shipholding in March 2011, the Company entered into a new $80 million revolving credit facility with a company related to World Shipholding. The Company drew down a total amount of $80 million in the period to December 2011. In January 2012, February 2012 and May 2012, the revolving credit facility was extended to $145 million, $250 million and $120 million, respectively, without any further changes to the original terms of the facility. In July 2012, the facility was repaid in full with the proceeds received from Golar Partners from the sale of the companies that own and operate the NR Satu. The facility bears interest at LIBOR plus 3.5% together with a commitment fee of 0.75% of any undrawn portion of the credit facility. The facility is available until September 2013. For each of the years ended December 31, 2012, 2011 and 2010, included within net expenses due to World Shipholding, include loan interest and commitment fees of $0.8 million, $1.9 million and $0.3 million, respectively.
[9] Net expense/income from Frontline, Seatankers and Ship Finance comprise fees for management support, corporate and insurance administrative services, net of income from supplier rebates and income from the provision of serviced offices and facilities. Receivables and payables with related parties comprise primarily of unpaid management fees, advisory and administrative services. In addition, certain receivables and payables arise when the Company pays an invoice on behalf of a related party and vice versa. Receivables and payables are generally settled quarterly in arrears. Frontline, Seatankers and Ship Finance and World Shipholding are each subject to significant influence or the indirect control of Trusts established by our chairman, John Fredriksen, for the benefit of his immediate family.
[10] As of December 31, 2012 the Company held a 60% ownership interest in Golar Wilhelmsen, which it accounts for using the equity method (see note 13).
[11] The balances with Golar Partners and subsidiaries as of December 31, 2011 were eliminated upon consolidation.
[12] Trading balances -Receivables and payables with Golar Partners and its subsidiaries are comprised primarily of unpaid management fees, advisory and administrative services. In addition, certain receivables and payables arise when the Company pays an invoice on behalf of a related party and vice versa. Receivables and payables are generally settled quarterly in arrears. Trading balances due from Golar Partners and its subsidiaries are unsecured, interest-free and intended to be settled in the ordinary course of business. They primarily relate to recharges for trading expenses paid on behalf of Golar Partners including ship management and administrative service fees due to Golar.
[13] The interest incurred on the unpaid dividends amounted to $0.2 million for the year ended December 31, 2012.