Replacement - Annual Report and Notice of AGM

RNS Number : 6948H
Tullow Oil PLC
17 March 2015
 

Tullow Oil plc ("Tullow" or the "Company")

 

 

17 March 2015

 

Replacement - Annual Report and Accounts and Notice of Annual General Meeting

 

The following amendment has been made to the 'Annual Report and Accounts and Notice of AGM' announcement released on 17 March 2015 at 14.37 under RNS No 6731H.

 

The Company's 2015 AGM will be held at Haberdashers' Hall, 18 West Smithfield, London EC1A 9HQ on Thursday 30 April 2015 at 12 noon.

 

All other details remain unchanged.

 

The full amended text is shown below.

 

Following the release on 11 February 2015 of the Company's preliminary full year results announcement for the year ended 31 December 2014 (the "Preliminary Announcement"), the Company announces it has published its Annual Report and Accounts for 2014 (the "Annual Report and Accounts").

 

The Company's 2015 AGM will be held at Haberdashers' Hall, 18 West Smithfield, London EC1A 9HQ on Thursday 30 April 2015 at 12 noon.

 

Copies of the Annual Report and Accounts and the Notice of the Annual General Meeting 2014 are available to view on the Company's website: www.tullowoil.com.

 

In accordance with Disclosure and Transparency Rule 6.3.5(2)(b), additional information is set out in the appendices to this announcement. This information is extracted in full unedited text from the Annual Report and Accounts.

 

The Preliminary Announcement included a set of condensed financial statements and a fair review of the development and performance of the business and the position of the Company and the group.

 

In accordance with Listing Rule 9.6.1, a copy of each of the Annual Report and Accounts, the 2015 Notice of Annual General Meeting and the form of proxy in relation to the 2015 Annual General Meeting has been submitted to the Financial Conduct Authority via the National Storage Mechanism and will be available for viewing shortly at www.morningstar.co.uk/uk/nsm. Those documents are also being submitted to the Irish Stock Exchange and the Ghana Stock Exchange.

 

In addition, all of the above documents will shortly be available for inspection at the Irish Stock Exchange (which is situated at: Irish Stock Exchange, 28 Anglesea Street, Dublin 2, Ireland) and will be available to shareholders located in Ghana by contacting the Company's registrar: Central Securities Depository (Ghana) Limited, 4th Floor, Cedi House, PMB CT 465 Cantonments, Accra, Ghana (Telephone: +233 (0)302 689 3103 or +233 (0)302 689 314).

 

 

 

For further information, please contact:

 

Tullow Oil plc (London) (+44 20 3249 9000)

 

·      Chris Perry (Investor Relations)

·      James Arnold (Investor Relations)

·      George Cazenove (Media Relations)

 

 

 

 

 

 

 



Appendices

 

Appendix A: Directors' responsibility statement

 

The following directors' responsibility statement is extracted from the Annual Report and Accounts (page 112).

 

Directors' responsibility statement required by DTR 4.1.12R

 

We confirm that to the best of our knowledge:

 

·      The Financial Statements, prepared in accordance with International Financial Reporting Standards as adopted by the EU, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole;

 

·      The Strategic Report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole together with a description of the principal risks and uncertainties that they face; and

 

·      The Annual Report and Financial Statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's performance, business model and strategy.

 

By order of the Board 

 

Aidan Heavey                                        Ian Springett

Chief Executive Officer                          Chief Financial Officer

 

10 February 2015                                  10 February 2015

 

Appendix B: A description of the principal risks and uncertainties that the Company faces

 

The following description of the principal risks and uncertainties that the Company faces is extracted from the Annual Report and Accounts (page 43 and pages 73 -77).

 

2015 to 2019 Short-to-Medium Term Performance Risks

Each year Tullow identifies a number of key risks and uncertainties with regard to the successful delivery of the Group's business plan. These short-to-medium term risks are set out below, and indicate the principal risks associated with the 2015 to 2019 business plan period.

 

High-margin production cash flow

·      Sustained low oil prices

·      Performance and uptime of FPSO and onshore gas processing facility impacts Jubilee production

·      Decline in non-operated West African production through lower investment or operational issues

·      Delays in start-up of the TEN field

Exploration & Appraisal

·      Sustained exploration failure

·      Further reductions in E&A spend

·      Partners' financial ability to fund exploration programmes

·      Lack of viable opportunities to grow portfolio

Monetisation options & portfolio management

·      Sustained downturn in the market reduces opportunities for asset acquisitions and divestments

·      Exploration remains out of favour with the wider market, reducing farm-in and farm-out activity

Selective development

·      Delay in first oil from the TEN field

·      Further changes to capital allocation which could delay Jubilee FFD

·      Lack of incremental investment opportunities in West African non-operated assets

 

Funding

·      TEN start-up is delayed or budget is exceeded, impacting the balance sheet

·      Failure to deliver on cost efficiencies, capital allocation and hedging programme

Organisation

·      Loss of key staff during strategic organisation review and industry downturn

·      Inability to achieve appropriate cost controls and efficiencies

 

 

Long-Term Performance Risks

We have identified a number of risks to our longer-term performance and strategic delivery, which are in addition to the short-to-medium term risks that are specifically associated with the delivery of our business plan. Each year we review the risks Tullow faces and refresh these to reflect the changes in our business and operational profile. The tables below present the Board and Management view of the most material and important long-term performance risks to Tullow. They do not comprise all the risks and uncertainties we face.

 

 

Stategy fails to meet shareholder objectives

 

Strategic priority

Deliver substantial returns to

shareholders.

Executive responsibility

Aidan Heavey

Chief Executive Officer

Performance indicator

 Long-term TSR

Impact

Ineffective or poorly executed strategy fails to create shareholder value and to meet shareholder expectations, leading to a loss of investor confidence and a decline in the share price. This in turn reduces the Group's ability to access finance and increases vulnerability to a hostile takeover.

 

Policies and systems

Exploration-led growth strategy,

ongoing portfolio management, five year business plan, active Investor Relations programme, bi-annual investor survey, annual review of strategic objectives and monthly operational and financial reporting.

Mitigation process

Clear and consistent strategy execution high-impact exploration and appraisal programme, selective development projects, asset monetisation across the value chain, resource growth, portfolio renewal and high-grading, strong balance sheet and financial flexibility and effective communication with all stakeholders based on open and transparent dialogue.

 

Risk mitigation activities and outcomes in 2014

 Proactive review, adaptation
and communication of strategy. Shift away from expensive complex exploration wells to focus on lower cost plays onshore and offshore

 Exploration success in Kenya

 TEN Project on track
and on budget in Ghana

 Feedback through meetings with some 300 institutions

 Capital Markets Day followed by perception survey

 

Cost and capital indiscipline

 

Strategic priority

Manage financial and business assets to enhance our portfolio, replenish upside potential and support funding needs.

Executive responsibility

Ian Springett

Chief Financial Officer

Performance indicator

• Cash operating costs per boe

• Finding and development costs
  per boe

 • Capital expenditure and
   cost management
   targets

 Administrative expenses

 

Impact

Ineffective cost control leads to reduced margins and profitability, reducing operating cash flow and the ability to fund the business.

Policies and systems Delegation of Authority (DoA) and budgeting and reporting processes, and project approval process for all significant categories of expenditure.

Mitigation process Comprehensie annual budgeting processes covering all expenditure are approved by the Board. Executive management approval is required for major categories of expenditure, and

 

investment and divestment opportunities are ranked on a consistent basis, resulting in effective management

of capital allocation.

Risk mitigation activities and outcomes in 2014

Capital expenditure for 2014
  was $2.0 billion (2013: $1.8
  billion)

• Finding costs $19.5 per boe

(2013: $5.1) after

contingent resource bookings deferred to 2015

 Cash operating costs
   $18.6 per boe

Monitoring of expenditure integrated with quarterly Business Unit reviews of performance

 

Insufficient liquidity, inappropriate financial strategy

 

Strategic priority

Manage financial and business assets to enhance our portfolio, replenish upside potential and support funding needs.

Executive responsibility

Ian Springett

Chief Financial Officer

Performance indicator

 Operating cash flow

 Debt profile and capacity

 Gearing

Impact

Asset performance and excessive leverage leads to the Group being unable to meet its financial obligations. This scenario, in the extreme, impacts on the Group's ability to continue as a going concern, or causes a breach of bank covenants.

Policies and systems Financial strategy, cash flow forecasting and management and capital allocation processes.

Mitigation process

Prudent approach to debt and equity,with a balance maintained through refinancing, cash flow from operations and portfolio management activity. Board review and approval of financial strategy. Short-term and long-term cash forecasts reported on a regular basis to Senior Management and the Board. Strong banking and equity relationships maintained.

 

Risk mitigation activities and outcomes in 2014

 Reserves based lending and

corporate debt facilities refinanced in 2014

 Second $650 million corporate bond issued, increasing the diversity of the Group's debt financing

 Partial sales of Schooner & Ketch UK gas assets and Brage field in Norway and agreement to sell interests in L12/L15 block, Q4 and Q5 blocks in the Netherlands

 Decision to retain current
    stake in TEN to first oil

 

Oil and gas price volatility

 

Strategic priority

Manage financial and business assets to

enhance our portfolio, replenish upside potential and support funding needs.

Executive responsibility

Ian Springett

Chief Financial Officer

Performance indicator

 Realised commodity
   prices

Impact

Volatility in commodity prices impacts the Group's revenue streams, with an adverse effect on liquidity.

Policies and systems

Hedging strategy.

Mitigation process

Hedging strategy agreed by the

Board, with monthly reporting of hedging activity

Risk mitigation activities and outcomes in 2014

 Realised oil price $97.5/bbl

 Realised gas price 51.7 pence per therm

 Secured average floor price for around 60% 2015 entitlement oil volumes at circa $86/bbl

 

Sustained exploration failure

 

Strategic priority

Execute selective high-impact

exploration and appraisal programmes.

Executive responsibility

Angus McCoss

Exploration Director

Performance indicator

 Resources growth

 Success ratios commensurate
  
with E&A programme mix

 Portfolio renewal and high
   g
rading

 Finding costs

 

Impact

Failure to sustain exploration success is costly and limits replacement of reserves and resources, which impacts investor confidence in long-term delivery of the Group's exploration-led growth strategy.

Policies and systems

Clear exploration strategy based on core campaigns, GELT peer challenge, competitive capital allocation process and annual E&A programme.

Mitigation process

Board approved E&A programme. Monthly reporting to the Board on finding costs per boe and high-grading of

Group's portfolio, with a view to measuring success of exploration investment. Application of technical excellence and appropriate technologies in exploration methodologies.

 

Risk mitigation activities and outcomes in 2014

 Tullow's multi-basin campaign

approach hedges the natural annual variability in exploration results

 A re-balancing of Group exploration spend away from high-cost complex drilling toward lower-cost shelf/ onshore exploration with material

oil potential

 The capital allocation process resulted in a prudent and risk-weighted E&A capex profile with 15% of spend on exploration business development,

20% on frontier drilling, and 65% on core activities. Notable 2014 successes included the Hanssen oil discovery in Norway, and in Kenya, the Amosing oil discovery and South Lokichar Basin appraisal programme support our 600mmbl mean recoverable estimate for the basin to date

 

Key operational or development failure

 

Strategic priority

Safely manage, and cost effectively deliver major projects and production operations on time, while increasing cash flow and commercial reserves. Comprehensively assess, consult with stakeholders, and mitigate any potential environmental and social impacts of activities to maintain positive Company reputation with stakeholders and licence to operate.

Executive responsibility

Paul McDade

Chief Operating Officer

Performance indicator

 Annual operations targets,
  
including safety, social
  
performance and environment

   indicators

 Delivery targets for project
  
budget estimates and
  
schedule forecasts

 Production forecasts

•  Maintenance hours and

   backlogs on preventative
  
equipment

•  Well and surface asset
   integrit
y indicators

Impact

 Project and operational
  
delivery fails to meet cost and
  
schedule budgets or
   ope
rational objectives, causing
  
returns to be eroded

 Activities negatively affect the
   envi
ronment and local
  
communities, impacting
   Company reputation and
   li
cence to operate

 

Policies and systems

 An Integrated Management
  
System (IMS) including
  
Operational, Financial, People
  
and Safety, Sustainability and
   Externa
l Affairs (SSEA)
 
principles, policies, and
  s
tandards

 Well-defined accountabilities for Development and Operations staff and leadership

 Clear Delegation of Authority
  
(DoA) of financial controls

 Code of Business Conduct

 Asset delivery risk management including the process for multi- discipline major project reviews/audits at various stage gates from project concept through to execution

Mitigation process

 Multi-discipline project
  
review/audit of

'stage gate' process by experienced professional personnel including Technical, Financial/Economic, Safety, Sustainability, Commercial, Operational and Political aspects

 Executive and Board approval required for all major projects and for staffing all dedicated project teams

 Multi-discipline risk evaluation, mitigation and monitoring are completed on all projects and reported on monthly

 

Risk mitigation activities and outcomes in 2014

 Multi-discipline project reviews

conducted throughout the year including for activities in Kenya, Uganda, Mauritania, Namibia, Ghana, UK and Norway. Findings documented and reported to Executive; action

plans implemented

 Major deepwater TEN Project
    ov
er 50% complete and on
   
track to deliver first oil in mid
    2016

 Major Uganda front-end engineering work under way including major ESIA work. Target project sanction in

late 2016

 Kenya early concept selection work under way including ESIA and water supply impact studies. Target project sanction in late 2016

 East Africa onshore pipeline front end engineering work under way including routing survey and ESIA activities

 Group-wide crisis management structure with regular drills

 Preventive maintenance programme; well and plant integrity monitoring; business continuity planning; and PDBI insurance programme

 

Supply chain failure

 

Strategic priority

Manage financial and business assets to enhance our portfolio, replenish upside potential and support funding needs.

Achieve strong governance across all Tullow activities and continue to build trust and reputation with all stakeholders.

Executive responsibility

Graham Martin

Executive Director & Company Secretary

Performance indicator

 Timeliness and completion
   of deliveries

 Contract management
   
scorecard

 Local content expenditure

Impact

A delay in delivery of products or services results in value erosion and project delivery delays, causing significant financial penalties, increased costs and a loss of reputation with stakeholders.

Insufficient local content will jeopardise our licence to operate and breach legislation in some countries.

Policies and systems

 Group contracting and procurement

procedures

 Market, contract and supplier due diligence

 Post-contract award procedures

 Logistics standard operating procedures

 Local content policy

 Transparent governance structure with a hierarchy of contract review boards from the Business Unit level to the Group

 Delegation of Authority

Mitigation process

 Risk assessment and full due

diligence of all suppliers carried out prior to award of the contract

 

•  Risk management embedded in the Group contracting and procurement procedures at all stages of the process

 Comprehensive supplier monitoring undertaken to ensure that any issues are identified promptly and rectified

Risk mitigation activities and outcomes in 2014

 Independent review of all
  
suppliers;

new contracting and procurement assurance model; new supplier management tool rolled out; ongoing programme to improve contract holder capability in supplier management

 Supplier risk assessment and due diligence revised and risk management now embedded for pre- and post-award activities

 Supply chain management scorecard rebalanced

 Local content reporting

 

Adverse environmental impact, safety or security incident

 

Strategic priority

Ensure safe and secure operations and minimise environmental impacts.

Executive responsibility

Paul McDade

Chief Operating Officer

Performance indicator

 Environmental, Health and
  
Safety (EHS) elements of
  
corporate scorecard, tied to
  
executive remuneration,
  
including LTIf and Spills/ million
 
man hours quantitative targets
 
and qualitative delivery targets
  such as delivery of Transport
 
Safety Plans in each BU

 EHS KPIs in Business Unit
 
scorecards

Impact

Major event from exploration,

development or production operations may impact staff, contractors, communities or the environment, leading to increased costs, loss of reputation, revenue and/or shareholder value.

 

Policies and systems

 Board-level EHS Committee

 Group EHS Policy

 Group-wide EHS standards, as part of Tullow Integrated Management System (IMS)

 Adherence to the Voluntary Principles of Security and Human Rights (VPSHR) in operations

 Group and Business Unit level assurance processes

Mitigation process

 Board-level commitment and

Active oversight

 EHS standards set and monitored across the Group through Business Unit performance reporting and target setting

 Clear EHS standards and procedures supported by strong leadership accountability and commitment throughout the organisation

EHS professionals embedded in the business to support delivery of safe and sustainable operations

 

Risk mitigation activities and outcomes in 2014

 EHS and External Affairs
  
teams integrated in late 2013
  
to enhance non-technical risk
  
management

 Improvements made to better reflect non-technical risks in the corporate scorecard

• EHS Standards implemented and conformance assured via independent Group audits

 Board EHS Committee made operational

 

Political risk

 

Strategic priority

Nurture long-term relationships with national and local governments and ensure compliance with applicable laws and regulations.

Executive responsibility

Paul McDade

Chief Operating Officer

Performance indicator

 Unscheduled non-production    
   time due to work stoppage to
   our activities, disturbances or
   Force Majeure events

 • Degree of conformance
  with internationally
  recognised conventions
  such as VPSHR

 

Impact

Political factors can lead to necessary re-negotiation of licence and agreement terms, delays in grants of licensees, or approval of agreements, and/or other state action.

Policies and systems

 Board level oversight of
  
political risks

 Board level oversight of country- specific non-technical risk
(NTR) strategies

 Portfolio risk management assessments, including active monitoring of political changes, risks and opportunities

 

Mitigation process

 Early identification and
  
ongoing

monitoring of political risks and opportunities

 Management plans addressing political impacts associated with existing or planned operations

 Appropriate levels of resourcing and competency to identify, analyse and advise on political risk management

Risk mitigation activities and outcomes in 2014

 Development of a forward
    l
ooking quarterly Political Risk
   
Report for Executive
   
Committee (ExCom) and the
   
Board

 Development of Board level country strategy papers

 

Social risk

 

Strategic priority

Nurture long-term relationships

with communities, Non-Government Organisations (NGOs), Civil Society Organisations (CSOs), multilateral organisations, and other key stakeholders.

Executive responsibility

Paul McDade

Chief Operating Officer

Performance indicator

 Unscheduled non-production
    time due to work stoppage to
    our activities, disturbances or
    Force Majeure events

•  Social performance
    elements of corporate
    scorecard, tied to
    executive remuneration

 Social performance KPIs in
   Business Unit Scorecards

 

Impact

Erosion of Tullow's social licence to operate leading to reduced value of projects, possible local disruptions, delays in project schedules and increased project costs. Impacts to our external stakeholders include effect on traditional livelihoods, local employment and business opportunities, and land acquisition and resettlement,

among others.

Policies and systems

 Board level oversight of

country-specific non technical risk (NTR) strategies

 Group Social Performance Standards and tools embedded in the IMS

• Group Local Content Guidelines to drive 'shared prosperity' and tools embedded in the IMS

 Group Social Investment Standard and tools embedded in the IMS

 

Mitigation process

 Social investment projects
  
targeted at managing social

   risks and at delivering
 
opportunities to maximise our
 
business benefits

 A risk-based approach to operating in sensitive/protected areas coupled with a World Heritage 'no go' policy

 Proactive community engagement, supported by grievance management processes

 Proactive land acquisition and relocation procedures

Risk mitigation activities and outcomes in 2014

 Doubled discretionary
  
investment in social projects in

   Kenya

 Strengthened focus on social performance in Group-wide Environmental Social Impact Assessments (ESIAs)

 Conducted a Human Rights Assessment in Kenya, to be used to inform Group-wide processes for future development and employment

 Recruited additional

   Community Liaison Officers in
   
Kenya

 

Bribery and corruption

 

Strategic priority

Ensure adequate procedures to prevent bribery are in place, in line with the UK Ministry of Justice's Guidance, to minimise opportunities for bribery and corruption.

Executive responsibility

Graham Martin

Executive Director & Company Secretary

Performance indicator

 No active bribery cases and
   any known or suspected
   cases of passive bribery
   investigated and appropriate

   action taken

Impact

Corrupt actions or practices in

the Group's activities leading to investigations or prosecution which would impact the Group's reputation and lead to loss of shareholder value.

 

Policies and systems

 Code of Business Conduct and

 Safecall whistle blowing
  
procedures

Mitigation process

 Consistent ethical standards

established and applied through the Code of Business Conduct and associated standards and procedures

 Continual awareness programme delivered across the Company using a variety of media

 Regular monitoring of compliance across the business, both internal and external assessments of the adequacy of the anti-bribery and corruption programme

 Periodic reporting to the
   Compliance Committee and

   the main Board.

 Internal and external independent reporting mechanisms (Safecall) embedded and used across

the business

 

Risk mitigation activities and outcomes in 2014

 Online Code of Conduct
   Certification process extended
   to all staff; enhancement of
   the awareness of mechanisms

   to report concerns

 Additional compliance team resources recruited

 Enhanced investigation resources and capability

 Bribery and corruption risk management process implemented

 Good Corporation compliance review recommendations implemented; further review carried out to assess Tullow as upper quartile

 An enhanced anti-corruption due diligence evaluation procedure developed and implemented

 

Information and cyber security

 

Strategic priority

Achieve strong governance across all Tullow activities and continue to build trust and reputation with all stakeholders.

Executive responsibility

Angus McCoss

Exploration Director

Performance indicator Prevention of cyber attacks and information security breaches.

Impact

Loss of sensitive proprietary

information, financial fraud, reduction or halt in production.

Policies and systems Information security policy and standards.

 

Mitigation process

 The information security strategy

integrates information, personnel and physical security, as it relates to the protection of information assets

 A collaborative cross-functional risk group provides governance and ensures technical and non-technical solutions are prioritised, effective and proportionate

 An intelligence-led Protect, Monitor, Analyse and Respond cyber methodology recognises the ever- changing threat landscape that drives investment in next

generation technologies

 

Risk mitigation activities and outcomes in 2014

 

• Advanced 24/7 Security
  Operating Centre established

• Information security policy and
  standards framework updated

  with training ongoing

• Continued oversight by multi-
  functional Information Security

  Committee of delivery of the
  security programme

• Active member of Cyber
  Information Sharing
  Partnership (CISP) and Oil and
  Gas Information Security
  Forum

• Cyber Governance Health
  Check completed

Governance and legal risk

 

Strategic priority

Achieve strong governance across all Tullow activities and continue to build trust and reputation with all stakeholders.

Executive responsibility

Graham Martin

Executive Director & Company Secretary

Performance indicator

 No material issues or claims
   arising

Impact

Contractual or other liability claims cause unplanned financial, reputational or operational impact on business continuity, ultimately eroding shareholder value.

Policies and systems

Stakeholder engagement. Ensure timely identification, resourcing and management of potential legal liability claims.

 

Mitigation process

Experienced legal and commercial teams integrated with business decision making process; comprehensive knowledge of contractual and regulatory regimes.

Risk mitigation activities and outcomes in 2014

 Established relationships with

experienced local and international external counsel

 

Loss of key staff & succession planning

 

Strategic priority

Build a strong unified team with

excellent commercial, technical and financial skills and entrepreneurial flair.

Executive responsibility

Graham Martin

Executive Director & Company Secretary

Performance indicator

 Staff turnover

 Recruitment for key roles

 Localisation

Impact

The loss of key staff and a lack of internal succession planning for key roles within the Group causes short and medium-term business disruption.

 

Inability to recruit for key roles hinders performance.

Policies and systems

 The Tullow Values

 HR strategy

 Localisation plans

 HR policies and standards

 Performance management

 Training and development

Mitigation process

Clearly defined people strategy based on culture and engagement, talent development and reward and recognition, together with the continuing success of the Group.

 

Risk mitigation activities and outcomes in 2014

 Succession planning
   completed for senior people in
   critical roles

 Training and development capability strengthened

 Staff survey carried out annually and scheduled earlier to accommodate following year business planning

 Reward policy changes

 

 

 

 

 

Appendix C: Related party transactions

 

The following related party transactions are extracted from the Annual Report and Accounts (page 151).

 

The Directors of Tullow Oil plc are considered to be the only key management personnel as defined by IAS 24 - Related party disclosures.

 


2014

$m

2013

$m

Short-term employee benefits

9.5

9.9

Post employment benefits

1.2

1.1

Amounts awarded under long-term incentive schemes

3.3

4.1

Share-based payments

10.4

11.2


24.4

26.3

 

Short-term employee benefits

These amounts comprise fees paid to the Directors in respect of salary and benefits earned during the relevant financial year, plus bonuses awarded for the year.

 

Post-employment benefits

These amounts comprise amounts paid into the pension schemes of the Directors.

 

Amounts awarded under long-term incentive schemes

These amounts relate to the shares granted under the annual bonus scheme that is deferred for three years under the Deferred Share Bonus Plan (DSBP) and Tullow Incentive Plan (TIP).

 

Share-based payments

This is the cost to the Group of Directors' participation in share-based payment plans, as measured by the fair value of options and shares granted, accounted for in accordance with IFRS 2 - Share-based Payments.

 

There are no other related party transactions. Further details regarding transactions with the Directors of Tullow Oil plc are disclosed in the Directors' Remuneration Report on pages 88 to 104. 

 

END

 


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