Backlog − Directional

Change in ownership scenarios and lease contract duration have the potential to significantly impact the Company’s future cash flows, net debt balance as well as the profit and loss statement. The Company therefore provides a pro-forma Directional backlog based on the best available information regarding ownership scenarios and lease contract duration for the various projects.

The pro-forma Directional backlog at the end of 2023 reflects the following key assumptions:

• The FPSO Liza Destiny contract covers the basic contractual term of 10 years of lease.
• The FPSOs Prosperity and ONE GUYANA contracts covers a maximum period of lease of two years, within which the FPSO ownership will transfer to the client.
• 10 years of operations and maintenance is considered for FPSOs Liza Destiny, Liza Unity, Prosperity and ONE GUYANA following signature of the Operations and Maintenance Enabling Agreement (‘OMEA‘) in 2023.
• The impact of the subsequent sale of FPSOs Prosperity and ONE GUYANA is reflected in the Turnkey backlog at the end of the maximum two-year period.
• With respect to FPSO for the Whiptail development project, for which the full construction, installation and operations contracts award is subject to necessary government approvals and final work order to be received from the client, the amount included in the pro-forma backlog is limited to the value of the initial limited release of funds to the Company to begin FEED activities and secure a Fast4Ward^® hull.
• The 13.5% equity divestment in FPSO Sepetiba to CMFL has not yet been reflected in the backlog as the transaction remains subject to various approvals, which include the consent from co-owners, lenders and export credit agencies.

The pro-forma Directional backlog at the end of December 2023 slightly decreased by US$0.2 billion to a total of US$30.3 billion. This was mainly the result of (i) the signed 10-year OMEA for the Guyana FPSO fleet and (ii) the awarded initial scope to begin FEED activities and secure a Fast4Ward^® hull for the FPSO for the Whiptail development project, offset by turnover for the period which consumed approximately US$4.5 billion of backlog (including the sale of FPSO Liza Unity completed in November 2023, a few months ahead of the end of the maximum lease term in February 2024). The Company’s backlog provides cash flow visibility up to 2050.

Pro-forma Directional backlog (in billions of US$)