Pension benefits (Tables)

12 Months Ended

Dec. 31, 2012

Pension benefits [Abstract]

Effect of formerly SFAS No. 158 on the consolidated balance sheet

Consolidated balance sheet position

(In US$ millions)	2012			2011
Non-current liabilities		50			15
Deferred tax		(14	)		(4	)
Shareholders equity		(36	)		(11	)

Annual pension cost

Annual pension cost

(In US$ millions)	2012			2011			2010
Benefits earned during the year		12			9			18
Interest cost on prior years' benefit obligation		5			5			9
Gross pension cost for the year		17			14			27
Expected return on plan assets		(5	)		(5	)		(8	)
Administration charges		-			-			1
Net pension cost for the year		12			9			20
Social security cost		2			1			3
Amortization of actuarial gains/losses		-			-			(1	)
Amortization of net transition assets		(4	)		-			3
Total net pension cost		10			10			19

Funded status of the defined benefit plan

The funded status of the defined benefit plan

(In US$ millions)	December 31, 2012			December 31, 2011
Projected benefit obligations		171			128
Plan assets at market value		(122	)		(91	)
Accrued pension liability exclusive social security		49			37
Social security related to pension obligations		6			6
Accrued pension liabilities		55			43

Change in benefit obligations

Change in benefit obligations

(In US$ millions)	2012			2011
Benefit obligations at beginning of year		128			215
Deconsolidation of Archer		-			(104	)
Interest cost		5			5
Current service cost		12			9
Benefits paid		(2	)		(2	)
Change in unrecognized actuarial gain		22			8
Foreign currency translations		11			(4	)
Acquisition/transfer members		(5	)		-
Benefit obligations at end of year		171			128

Change in pension plan assets

Change in pension plan assets

(In US$ millions)	2012			2011
Fair value of plan assets at beginning of year		91			150
Deconsolidation of Archer		-			(60	)
Estimated return		5			5
Contribution by employer		28			7
Administration charges		-			-
Benefits paid		(2	)		(1	)
Change in unrecognized actuarial loss		(6	)		(8	)
Foreign currency translations		8			(2	)
Acquisition/transfer members		(2	)		-
Fair value of plan assets at end of year		122			91

Assumptions used in calculation of pension obligations

Assumptions used in calculation of pension obligations	2012			2011			2010
Rate of compensation increase at the end of year		3.50	%		4.00	%		4.00	%
Discount rate at the end of year		4.20	%		3.90	%		4.20	%
Prescribed pension index factor		1.40	%		1.10	%		2.00	%
Expected return on plan assets for the year		4.00	%		4.80	%		4.60	%
Employee turnover		3.50	%		4.00	%		4.00	%
Expected increases in Social Security Base		3.25	%		3.75	%		3.75	%
Expected annual early retirement from age 60/62:
Offshore personnel fixed installations								30.0	%
Offshore personnel and onshore employees					50.0	%		50.0	%

Weighted-average asset allocation of funds related to defined benefit plan

The weighted-average asset allocation of funds related to the Company's defined benefit plan at December 31, was as follows:

Pension benefit plan assets	2012			2011
Equity securities		9.2	%		10.4	%
Debt securities		52.4	%		48.6	%
Real estate		18.3	%		18.0	%
Money market		18.3	%		21.7	%
Other		1.9	%		1.20	%
Total		100.0	%		100.0	%

Expected annual pension plan contributions under defined benefit plans

The table below shows the Company's expected annual pension plan contributions under defined benefit plans for the years 2013-2022. The expected payments are based on the assumptions used to measure the Company's obligations at December 31, 2012 and include estimated future employee services.

(In US$ millions)	December 31 2012
2013		28
2014		27
2015		29
2016		30
2017		32
2018-2022		183
Total payments expected during the next 10 years		329