4.3.21Net Cash and Cash Equivalents

The decrease of the cash and bank balances mainly relates to the significant progress in the projects under construction and the Fast4Ward^® new build multi-purpose hulls, partially covered by the additional project financing granted for FPSO Almirante Tamandaré, FPSO Alexandre de Gusmão, FPSO ONE GUYANA, drawdowns on the Company’s RCF and on the new Revolving Credit Facility for MPF hull financing, the net cash proceeds of the sale of FPSO Liza Unity and the cash generated by the Lease and Operate business segment.

The cash and cash equivalents dedicated to debt and interest payments (and therefore restricted) amounted to US$193 million as per December 31, 2023 (2022: US$235 million). Short-term investment deposits are made for varying periods of up to one year, usually less than three months, depending on the immediate cash requirements of the Company, and earn interest at the respective short-term deposit rates.

The cash and cash equivalents held in countries with restrictions on currency outflow (Angola, Brazil, China, Equatorial Guinea, Ghana and Nigeria) amounted to US$26 million (2022: US$21 million). These restrictions do not limit the liquidity of the cash balances.

Further disclosure about the fair value measurement is included in note 4.3.27 Financial Instruments − Fair Values and Risk Management.