4.3.8Research and Development Expenses

Research and development expenses consist of US$ 33 million (2016: US$ 29 million) and mainly relate to Digital FPSO, Renewables and FLNG product line development costs and investments in new laboratory facilities.

The amortization of development costs recognized in the statement of financial position is allocated to the ’cost of sales’ when the developed technology is used through one or several projects. Otherwise, it is allocated to the ’Research and development expenses’.