4.3.20Construction Work-In-Progress

The significant portion of the outstanding balance of construction work-in-progress as of December 31, 2021 (US$ 4,140 million) relates to the Liza Unity (FPSO), Prosperity (FPSO), FPSO Sepetiba, FPSO Almirante Tamandaré, FPSO Alexandre de Gusmão and initial limited scope of the FPSO for the Yellowtail development project finance lease projects since the Company will receive most of the payments for the construction of these assets only during the lease period through bareboat charter payments. The increase compared with the previous period balance (2020: US$2,248 million) in the construction work-in-progress is mainly driven by the progress made in 2021 on these projects.

Contract liabilities of US$64 million comprises the amounts of those individual contracts for which the total instalments invoiced exceed the total revenue recognized. Contract liabilities are reclassified to other current liabilities (see note 4.3.26 Trade and Other Payables).

Regarding information about expected credit losses recognized for construction work-in-progress, refer to note 4.3.28 Financial Instruments − Fair Values and Risk Management.