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VARIABLE INTEREST ENTITIES ("VIEs") (Tables)

12 Months Ended

Dec. 31, 2022

VARIABLE INTEREST ENTITIES [Abstract]

The following table gives a summary of our sole sale and leaseback arrangement, including the repurchase option and obligation as of December 31, 2022:

Vessel

Effective from

Lessor

Sales value (in $ millions)

Lease duration

Next repurchase option (in $ millions)

Date of next repurchase option

Net repurchase obligation at end of lease term (in $ millions)

End of lease term

FLNG Hilli

June 2018

CSSC entity

1,200.0

10 years

633.2

June 2023

300.0

June 2028

Summary of the bareboat charter rates per day based on Base LIBOR Interest Rate for the next five years

A summary of our payment obligations (excluding the repurchase option and obligation) under the bareboat charter with our sole lessor VIE as of December 31, 2022, are shown below:


(in thousands of $)	2023	2024	2025	2026	2027	2028
FLNG Hilli (1)	115,954	110,779	105,348	100,044	94,741	22,841

(1) The payment obligations above include variable rental payments due under the lease based on assumed LIBOR plus a margin.

Schedule of assets and liabilities of lessor VIEs

The assets and liabilities of the lessor VIE that most significantly impact our consolidated balance sheets as of December 31, 2022 and 2021, are as follows:


(in thousands of $)	2022	2021
Assets	Total	Total
Restricted cash and short-term deposits (note 15)	21,691	16,523

Liabilities
Debt:
Current portion of long-term debt and short-term debt (1)	(337,547)	(380,554)
Long-term debt (1)	(156,563)	(216,313)
	(494,110)	(596,867)

(1) Where applicable, these balances are net of deferred finance charges (note 21).

The most significant impact of the lessor VIE’s operations on our consolidated statements of operations and consolidated statements of cash flows, for the years ended December 31, 2022, 2021 and 2020 are as follows:


(in thousands of $)	2022	2021	2020
Continuing operations
Statement of operations
Interest expense	8,406	5,178	11,687

Statement of cash flows
Net debt repayments	(123,554)	(97,056)	(446,484)
Net debt receipts	20,640	2,848	354,901
Financing costs paid	—	—	(3,731)

Discontinued operations
Statement of operations
Interest expense	3,814	17,492	23,046

Statement of cash flows
Net debt repayments	—	(234,873)	(104,179)
Net debt receipts	—	10,402	104,806
Financing costs paid	—	(1,568)	(200)

The assets and liabilities of Hilli LLC(1) that most significantly impacted our consolidated balance sheet as of December 31, 2022 and 2021, are as follows:


(in thousands of $)	2022	2021
Balance sheet
Current assets	105,738	157,643
Non-current assets	1,481,722	1,280,217
Current liabilities	(381,131)	(444,352)
Non-current liabilities	(240,146)	(270,371)

(1) As Hilli LLC is the primary beneficiary of the lessor VIE (see above) the Hilli LLC balances include the lessor VIE.

The most significant impacts of the lessor VIE’s operations on our consolidated statements of operations and consolidated statements of cash flows, for the years ended December 31, 2022, 2021 and 2020 are as follows:


(in thousands of $)	2022	2021	2020
Statement of operations
Liquefaction services revenue	213,970	221,020	226,061
Realized and unrealized gain/(loss) on oil and gas derivative instruments	520,997	204,663	(42,561)

Statement of cash flows
Net debt repayments	(123,554)	(97,056)	(322,304)
Net debt receipts	20,640	2,848	230,721
Cash dividends paid	(55,169)	(33,136)	(26,072)

The assets and liabilities of Gimi MS that most significantly impacted our consolidated balance sheet as of December 31, 2022 and 2021, are as follows:


(in thousands of $)	2022	2021
Balance sheet
Current assets	12,460	7,107
Non-current assets	1,195,725	877,835
Current liabilities	(10,666)	(18,127)
Non-current liabilities	(516,298)	(389,244)

The most significant impacts of Gimi MS VIE’s operations on our consolidated statement of cash flows, for the years ended December 31, 2022, 2021 and 2020 are as follows:


(in thousands of $)	2022	2021	2020
Statement of cash flows
Additions to asset under development	267,421	213,481	217,590
Capitalized financing costs	(2,748)	(5,605)	(11,302)
Net debt receipts	125,000	110,000	170,000
Proceeds from subscription of equity interest	39,275	25,403	11,081

Schedule of other ownership interests

The ownership interests in Hilli LLC are represented by three classes of units: the Hilli Common Units, the Series A Special Units and the Series B Special Units. After the Hilli Disposal and as of December 31, 2022, the ownership structure of Hilli LLC is as follows:


	Percentage ownership interest
	Hilli Common Units		Series A Special Units		Series B Special Units
Golar LNG Limited	44.6	%	89.1	%	89.1	%
Golar Partners	50.0	%	—	%	—	%
Keppel	5.0	%	10.0	%	10.0	%
B&V	0.4	%	0.9	%	0.9	%

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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