Annual Report

Note 13 – Investments in joint venture
The Group owns 40% of Marine Subsea & Consafe Ltd (MSC). MSC is a joint venture with Consafe MSV AB (40%) and Sonangol Pesquisa & Producao
S.A (20%), The joint-venture has a service contract with Sonangol and a purchase agreement with Consafe and Yantai for a semisubmersible crane
vessel, Safe Challenger. Yantai has informed of their intention to acquire Consafe MSV’s interest in the joint-venture. Yantai has further agreed to
take delivery of the unit, which is to be renamed African Challenger, for its own account and lease the unit to Marine Subsea under a 10-year bareboat
lease with purchase option. The contract will be transferred to a new JV with Sonangol, Yantai and Marine Subsea. The terms of the bareboat
agreement reflect the cost of the unit and the payments made to date. Marine Subsea is highly positive to this solution as it means that the new JV
no longer requires financing, Yantai has an increased exposure and the organisational model is simplified. The final agreements are expected to be in
place by the first half of 2010.
The investment is recognized using the equity method in the Group accounts. Shares in MSC are owned by Marine Subsea Cyprus Holding Ltd.
The Group has made a shareholders loan to MSC in December 2007 of USD 33 650, and additonal subordinated loans to fund the acitivity in the
company. See note 15
Net investment in the group has increased by capitalized borrowing cost during the last years.
This led to a write down of the investement to reconcile it with the Groups share of the equity in MSC. See note 10.
The Group’s share of the results of its investments in joint venture, and its share of the assets and liabilities are as follows:
2009
Country Assets Liabilities Revenues Profit / (loss) % interest held
Name
MSC Cyprus 45 299 35 515 0 -1 556 40%
Note 14 – Non-current receivables
Amounts in USD 1 000 2009 2008
Subordinated loan to Marine Subsea & Consafe Ltd (MSC) 4 143 5 461
Shareholderloan to Marine Subsea & Consafe Ltd (MSC) 0 33 650
Prepayments Altic Shipping (note 5) 11 041 11 785
Borrowing cost Marine Subesea Karianne Ltd (note 19) 8 109 0
Other receivables (note 29) 9 524 16
Total non-current receivables 32 818 50 913
The carrying amount of non-current receivables approximate their fair value. The loans to MSC is subordinated external financing in MSC. The duration
of the loan is 3 years from date it is given. Marine Subsea has obligation to prolong loans if necessary to achieve the external financing needed for
MSC. See note 13 and 15.
Note 15 – Trade and other receivables
Amounts in USD 1 000 2009 2008
Trade receivables 17 436 16 449
Option regarding repurchase of shareholderloan to Marine Subsea & Consafe Ltd 25 000 0
Witholding tax Interoil Angola Ltd 1 283 856
Prepayments and accruals 6 120 4 054
Total trade and other receivables 49 839 21 360
42 Marine Subsea Annual Report 2009