Note 4—Investments,
Loans and Long-Term
Receivables
Australia Pacific LNG Pty Ltd
(APLNG)
APLNG executed project financing
agreements for an $
8.5
billion project finance facility in 2012.
All amounts were
drawn from the facility.
The project financing facility has been restructured
over time and at September 30, 2021,
this facility was composed of a financing agreement
with the Export-Import Bank of the United States,
a
commercial bank facility and
two
United States Private
Placement note facilities.
APLNG made its first principal
and interest repayme
nt in March 2017 and is scheduled to make
bi-annual payments until September
2030.
At
September 30, 2021, a balance of $
5.7
billion was outstanding on these
facilities.
During the fourth quarter of 2020, the estimated
fair value of our investment
in APLNG declined to an amount
below carrying value, primarily due to the weakening
of the U.S. dollar relative to the Australian
dollar.
Based on a
review of the facts and circumstances
surrounding this decline in fair value, we concluded
the impairment was not
other than temporary under the guidance of FASB
ASC Topic
323, “Investments – Equity
Method and Joint
Ventures.”
Due primarily to improved outlooks for
commodity prices and the strengthening
of the U.S. dollar
relative to the Australian
dollar during the first nine months of 2021, the estimated
fair value of our investment
increased and is above carrying value at
September 30, 2021.
On October 25, 2021, Origin Energy Limited agreed
to the sale of
10
percent of their interest
in APLNG for
approximately $
1.6
billion which is expected to close in the fourth
quarter of 2021.
The transaction is subject to
preemption rights in favor
of ConocoPhillips and Sinopec among other considerations.
We will continue to
monitor and evaluate the relationship
between the carrying value and fair value
of APLNG, including any impact
from this announced transaction.
At September 30, 2021, the carrying value
of our equity method investment
in APLNG was $
6.4
balance is included in the “Investments and
long-term receivables” line on our consolidated
balance sheet.
Loans
As part of our normal ongoing business operations,
and consistent with industry practice, we enter
into numerous
agreements with other parties to pursue
business opportunities.
Included in such activity are loans made to
certain affiliated and non-affiliated
companies.
At September 30, 2021, significant loans
to affiliated companies
included $
114
million in project financing to Qatar Liquefied
Gas Company Limited (3), which is recorded
within
the “Accounts
and notes receivable—related
parties” line on our consolidated balance sheet