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  • Glossary

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    Glossary

    A

    AGM

    Annual General Meeting

    AFS

    Available for sale

    B

    bll

    Barrel

    bcf

    Billion cubic feet

    boe

    Barrels of oil equivalent

    boepd

    Barrels of oil equivalent per day

    bopd

    Barrels of oil per day

    C

    CMS

    Caister Murdoch System

    CMS III

    A group development of five satellite fields linked to CMS

    CR

    Corporate Responsibility

    CSO

    Civil Society Organisation

    CNOOC

    China National Offshore Oil Corporation

    D

    DLT

    Development Leadership Team

    DoA

    Delegation of Authority

    DRC

    Democratic Republic of Congo

    DSBP

    Deferred Share Bonus Plan

    E

    EA

    Exploration Area

    E&E

    Exploration and evaluation

    E&A

    Exploration and Appraisal

    E&P

    Exploration and Production

    EBITDA

    Earnings Before Interest, Tax, Depreciation and Amortisation

    EHS

    Environment, Health and Safety

    EMS

    Environmental Management System

    ERC

    Energy Resource Consultants

    ESOS

    Executive Share Option Scheme

    F

    FEED

    Front End Engineering and Design

    FPSO

    Floating Production Storage and Offloading vessel

    FRC

    Financial Reporting Council

    FRS

    Financial Reporting Standard

    FTG

    Full Tensor Gravity Gradiometry

    FTSE 100

    Equity index whose constituents are the 100 largest UK listed companies by market capitalisation

    FVTPL

    Fair Value Through Profit or Loss

    G

    GELT

    Global Exploration Leadership Team

    GNPC

    Ghana National Petroleum Corporation

    GoU

    Government of Uganda

    Group

    Company and its subsidiary undertakings

    H

    H&S

    Health and Safety

    HIPO

    High Potential Incident

    HNBS

    Hewitt New Bridge Street

    HR

    Human Resources

    I

    IAS

    International Accounting Standard

    IASB

    International Accounting Standards Board

    IFRIC

    International Financial Reporting Interpretations Committee

    IFRS

    International Financial Reporting Standards

    IMS

    Information Management System

    ISO

    International Organization for Standardization

    K

    km

    kilometres

    KPI

    Key Performance Indicator

    L

    LIBOR

    London Interbank Offered Rate

    LTI

    Lost Time Incident

    LTIFR

    LTI Frequency Rate measured in LTIs per million hours worked

    M

    mmbbl

    Million barrels

    mmbo

    Million barrels of oil

    mmboe

    Million barrels of oil equivalent

    mmscfd

    Million standard cubic feet per day

    MoU

    Memorandum of Understanding

    MTM

    Mark To Market

    N

    NGO

    Non-Governmental Organisation

    O

    OR&A

    Operational Readiness and Assurance

    P

    p

    pence

    P10

    Reserves and/or resources estimates that have a 10 per cent probability of being met or exceeded

    P50

    Reserves and/or resources estimates that have a 50 per cent probability of being met or exceeded

    P&D

    Production and Development

    PAYE

    Pay As You Earn

    PRT

    Petroleum Revenue Tax

    PSC

    Production Sharing Contract

    PSP

    Performance Share Plan

    S

    SCT

    Supplementary Corporation Tax

    SIP

    Share Incentive Plan

    SMC

    Senior Management Committee

    SPA

    Sale and Purchase Agreement

    sq km

    Square kilometres

    SRI

    Socially Responsible Investment

    T

    toes

    Tullow Oil Environmental Standards

    TSR

    Total Shareholder Return

    U

    UK GAAP

    UK Generally Accepted Accounting Principles

    V

    VAT

    Value Added Tax

    W

    WAEP

    Weighted Average Exercise Price

    WCTP

    West Cape Three Points

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Governance highlights

"An externally facilitated evaluation of the Board, its Committees and individual Directors was undertaken in 2010. Overall the Board performance reports concluded that the Board had been effective during the year."

Graham Martin, General Counsel and Company Secretary

2010 Board objectives 2010 Board performance
Corporate strategy

Ensure Board focus is on high-level issues and strategy

In 2010, 45% of the Board's time was devoted to strategy, including the evolving Uganda situation. A number of external advisers presented to the Board on topics including the equity and debt markets in relation to our sector, current economic and political developments in our African areas of interest and stakeholder engagement.

The Board performance report identified the need to continue to improve the strategy development process and to allocate sufficient time to strategic debate and the consideration of alternative strategies for the achievement of corporate objectives.

Invite suitable external advisers and speakers to Board meetings to stimulate discussion and debate

Succession planning

Appoint external advisers

External advisers were appointed during the year.

Consider matters within Nominations Committee terms of reference

These were reviewed and revised appropriately.

Develop a clear roadmap for non-executive Director refreshment and Chairman succession

A suitable roadmap was devised and its implementation has already begun successfully. See the Report of the Nominations Committee for further details. Tutu Agyare's appointment during the year has increased the Board's African expertise and within the organisation we have continued to recruit Africans to senior management positions.

Increase African profile of Tullow Board, management and staff

Consider development plan for each of the Executives and senior management

Development plans for the Executives and senior management have been discussed and are now being implemented. The Board performance report identified the need to formalise and continue these efforts and to ensure they cover general compliance training as well as sector-specific training.

Board training and administration

Select suitable external courses for non-executive Directors and Executives and formalise Directors' training register

In accordance with the new UK Corporate Governance Code, the Chairman will agree individual training plans for each of the Directors, tailored to their respective skills and requirements, and a formal Training Register will be established.

Continue to review membership of Board Committees

Membership of the Committees was reviewed in 2010 and it was agreed that no change was required at that stage. However, the issue will be reviewed again in 2011 after the announced changes to the Board have taken place.

Investigate electronic/web-based solutions for Board administration

Some progress was made in electronic/web-based Board administration in 2010 but a more thorough review will be undertaken in 2011.

Board visibility and Group communications

Attendance of Directors at Group functions

The Executive Directors made numerous visits to key offices in 2010 and attended various functions with staff. The full Board visited Ghana prior to First Oil, giving them a chance to meet a wide cross-section of staff there. Some of the non-executive Directors also visited other offices during the course of the year and attended staff events. The Board performance report noted that the non-executive Directors were committed to such visits and to improving the accessibility of the Board to all staff and recommended that advantage be taken of this commitment.

Demonstrate support for key offices

Consider further non-executive Director visits to key offices

Improve accessibility of Board to all staff

KPIs

We measure our progress through seven KPIs that are closely aligned with delivering our strategy.

Corporate governance

A good governance structure must be underpinned by a strong organisational culture that values ethics and integrity and the highest standards of corporate behaviour.

Board of Directors

The Board is well balanced in terms of composition, experience and length of tenure.