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BUSINESS ACQUISITION (Notes)
 12 Months Ended
Dec. 31, 2014
Business Combinations [Abstract]  
Business Acquisition
8.
BUSINESS ACQUISITION

On January 18, 2012, we acquired the remaining 50% equity interest in our joint venture, Bluewater Gandria, which owns the LNG carrier, the Golar Gandria for $19.5 million. Bluewater Gandria is a company pursuing opportunities to develop offshore LNG FSRU projects. Since the Golar Gandria’s acquisition, although it was initially reactivated, it was then subsequently placed into lay-up in April 2013. The vessel is earmarked for conversion to a FLNGV.

Details of the purchase consideration, the net assets acquired and goodwill are as follows:

(in thousands of $)
 
 
January 18, 2012

Fair value of previously held 50% equity interest (a)
 
 
19,500

Purchase consideration - cash
 
 
19,500

Total assumed acquisition consideration
 
 
39,000

Less: Fair value of net assets acquired:
 
 
 
Vessel and equipment, net
40,000

 
 
Inventories
931

 
 
Cash
62

 
 
Prepayments
40

 
 
Other liabilities
(100
)
 
 
Subtotal
 
 
(40,933
)
Gain on bargain purchase of Bluewater Gandria
 
 
(1,933
)


The impact on the statement of operations of the acquisition of Bluewater Gandria is as follows:
(in thousands of $)
 
 
 
Gain on remeasurement (a)
 
 
2,356

Gain on bargain
 
 
1,933

Less: Acquisition related costs
 
 
(205
)
Total gain on acquisition of Bluewater Gandria
 
 
4,084


As a result of acquiring the remaining 50% equity interest, we recognized a gain on bargain purchase of the Bluewater Gandria as the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired. We performed an assessment of the fair values of the assets acquired, liabilities assumed and consideration transferred. The assessment confirmed our gain on bargain purchase.

a)    Remeasurement of equity investment in Bluewater Gandria

On January 18, 2012, we remeasured our previously held 50% equity interest in Bluewater Gandria to its fair value as set forth in the table below:
(in thousands of $)
 
 
Equity investment in Bluewater Gandria

Fair value of previously held 50% equity interest
 
 
19,500

Less: Carrying value at acquisition date
 
 
(17,144
)
Gain on remeasurement of equity interest
 
 
2,356


The fair value of our previously held investment in Bluewater Gandria was assumed to be equal to the purchase price of $19.5 million paid to Bluewater in respect of our 50% share in the joint venture.

b)    Revenue and profit contributions

Since the acquisition date for the period from January 18, 2012 to December 31, 2012, the business has contributed revenues of $nil and a net loss of $14.6 million to our results. Had Bluewater Gandria been consolidated from January 1, 2012, it would have contributed revenues of $nil and a net loss of $15.3 million.