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Current expected credit losses | 6 Months Ended
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Jun. 30, 2021
Credit Loss [Abstract] |
Current expected credit losses | Current expected credit losses The Current Expected Credit Losses model applies to our external trade receivables, related party receivables and other financial assets carried at amortized cost. Our external customers are international oil companies, national oil companies and large independent oil companies. The following table summarizes the movement in the allowance for credit losses for the six months ended June 30, 2021 and June 30, 2020:
(In $ millions) |  | Allowance for credit losses - trade receivables |  | Allowance for credit losses - other current assets |  | Allowance for credit losses - related party ST |  | Allowance for credit losses related party LT |  | Total Allowance for credit losses
As at January 1, 2020 |  | — |  |  | — |  |  | 15 |  |  | 128 |  |  | 143 |
Credit loss expense |  | — |  |  | 5 |  |  | 54 |  |  | 4 |  |  | 63 |
As at June 30, 2020 |  | — |  |  | 5 |  |  | 69 |  |  | 132 |  |  | 206 |
(In $ millions) |  | Allowance for credit losses - trade receivables |  | Allowance for credit losses - other current assets |  | Allowance for credit losses - related party ST |  | Allowance for credit losses related party LT |  | Total Allowance for credit losses
As at January 1, 2021 |  | — |  |  | 3 |  |  | 169 |  |  | 137 |  |  | 309 |
Credit loss expense |  | — |  |  | — |  |  | 48 |  |  | 12 |  |  | 60 |
Write-off (1) |  | — |  |  | — |  |  | (74) |  |  | — |  |  | (74) |
As at June 30, 2021 |  | — |  |  | 3 |  |  | 143 |  | 149 |  | 295
(1) In April 2021 we signed a settlement agreement with Aquadrill (formerly Seadrill Partners) which waived all claims on pre-petition positions held, as such $54 million of trading receivables and $20 million of loans has been written-off. The below table shows the classification of the credit loss expense within the consolidated statement of operations.
(In $ millions) |  |  |  | Six months ended June 30, 2021 |  | Six months ended June 30, 2020
Management contract expenses |  |  |  | 48 |  |  | 50 |
Other financial items |  |  |  | 12 |  |  | 13 |
Total |  |  |  | 60 |  |  | 63 |
Changes in allowances for external and related party trade receivables and reimbursable amounts due are included in operating expenses, while changes in the allowances for related party loan receivables are included in other financial items. The increase in the allowance for the six months ended June 30, 2021 was caused by the restructuring of Seamex and an updated settlement agreement with Northern Ocean.

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- Definition The entire disclosure for credit loss on financial instrument measured at amortized cost basis, net investment in lease, off-balance sheet credit exposure, and available-for-sale debt security. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 30 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=124269663&loc=SL82922895-210455 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919272-210447 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919236-210447 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 20 -URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919269-210447 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=124269663&loc=SL82922888-210455 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919244-210447 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919230-210447 + Details
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