Investments, Loans and Long-Term Receivables

9 Months Ended

Sep. 30, 2021

Investments, Loans and Long-Term Receivables [Abstract]

Investments, Loans and Long-Term Receivables

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

 billion. The

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