INVESTMENT IN FINANCE LEASE

12 Months Ended

Dec. 31, 2016

INVESTMENT IN FINANCE LEASE [Abstract]

INVESTMENT IN FINANCE LEASE

13. INVESTMENT IN FINANCE LEASE

As of December 31, 2016, one of the Company's vessels was accounted for as a sales-type lease (2015: one) and this was acquired as a result of the Merger. The components of the investment in the sales-type lease may be summarized as follows:

(in thousands of $)	2016		2015
Net minimum lease payments receivable	33,563		45,089
Estimated residual values of leased property (unguaranteed)	10,821		10,821
Less: finance lease interest income	(3,731	)	(5,925	)
Total investment in sales-type lease	40,653		49,985
Current portion	9,745		9,329
Long-term portion	30,908		40,656
	40,653		49,985

The minimum future gross revenues to be received under the sales-type lease as of December 31, 2016 are as follows:

(in thousands of $)
2017	11,493
2018	10,419
2019	11,493
2020	158
2021	—
Thereafter	—
	33,563

The counterparty to the lease is a state-owned oil company, which the Company has deemed to have a low credit risk.