Noncontrolling Interest

9 Months Ended

Sep. 30, 2011

Noncontrolling Interest [Abstract]

Noncontrolling Interest

20.

Noncontrolling Interest

Global International Vessels, Ltd. ("GIV"), a private limited company incorporated under the laws of the Cayman Islands, is a wholly owned subsidiary of the Company. On August 10, 2010, GIV sold 60,000 ordinary shares (30 percent) of KGL Ltd. ("KGL"), its wholly owned subsidiary incorporated under the laws of Labuan, to Selecta Flow (M) Sdn. Bhd. ("SF"), an entity incorporated under the laws of Malaysia. SF's 30% share of the net income of KGL is reported as Net income attributable to noncontrolling interest on our Condensed Consolidated Statement of Operations. SF's 30% share in the equity of KGL is reported as Noncontrolling interest in the Equity section of our Condensed Consolidated Balance Sheet. On July 1, 2011, GIV purchased from SF, its Malaysian partner, SF's 60,000 ordinary shares (30% interest) in KGL and SF's 300,000 ordinary shares (40% interest) in Global Offshore (Malaysia) Sdn. Bhd. ("GOM"), the Company's Malaysian operating entity. Concurrently with this transaction, GIV sold 40% of both KGL and GOM to Puncak Oil and Gas Sdn. Bhd. ("Puncak"), a division of Puncak Niaga Holdings Bhd., for combined consideration of $23.6 million. In connection with the transactions, Puncak was granted a one-year option to purchase the remaining 60% interest in KGL and GOM for additional consideration of $35.4 million. Puncak exercised this option and purchased the remaining 60% interest in KGL and GOM on September 28, 2011. The gain on the transactions reflected in earnings in the third quarter of 2011 is $47.8 million. As a result of the transactions, we currently have a receivable of $18.2 million from Puncak, which is included as an Other asset on the Condensed Consolidated Balance Sheets. For the third quarter of 2011, KGL and GOM were no longer consolidated in the financial statements of Global. Our share in the earnings of these two companies for the third quarter of 2011 is presented as a single line item on the Condensed Consolidated Statement of Operations as Equity in earnings of unconsolidated affiliate.