Notes for this page
Billion cubic feet
Barrels of oil equivalent
Barrels of oil equivalent per day
Barrels of oil per day
Caister Murdoch System
- CMS III
A group development of five satellite fields linked to CMS
Civil Society Organisation
China National Offshore Oil Corporation
Development Leadership Team
Delegation of Authority
Democratic Republic of Congo
Deferred Share Bonus Plan
Exploration and evaluation
Exploration and Appraisal
Exploration and Production
Earnings Before Interest, Tax, Depreciation and Amortisation
Environment, Health and Safety
Environmental Management System
Energy Resource Consultants
Executive Share Option Scheme
Front End Engineering and Design
Floating Production Storage and Offloading vessel
Financial Reporting Council
Financial Reporting Standard
Full Tensor Gravity Gradiometry
- FTSE 100
Equity index whose constituents are the 100 largest UK listed companies by market capitalisation
Fair Value Through Profit or Loss
Global Exploration Leadership Team
Ghana National Petroleum Corporation
Government of Uganda
Company and its subsidiary undertakings
International Accounting Standard
International Accounting Standards Board
International Financial Reporting Interpretations Committee
International Financial Reporting Standards
Information Management System
International Organization for Standardization
London Interbank Offered Rate
Lost Time Incident
LTI Frequency Rate measured in LTIs per million hours worked
Million barrels of oil
Million barrels of oil equivalent
Million standard cubic feet per day
Memorandum of Understanding
Mark To Market
Operational Readiness and Assurance
Reserves and/or resources estimates that have a 10 per cent probability of being met or exceeded
Reserves and/or resources estimates that have a 50 per cent probability of being met or exceeded
Production and Development
Pay As You Earn
Petroleum Revenue Tax
Production Sharing Contract
Performance Share Plan
Supplementary Corporation Tax
Share Incentive Plan
Senior Management Committee
Sale and Purchase Agreement
- sq km
Socially Responsible Investment
- UK GAAP
UK Generally Accepted Accounting Principles
Value Added Tax
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Achieving good governance
The Board is responsible to all Tullow stakeholders for providing strong leadership in Group strategy and ensuring that the risks and rewards of the business are properly balanced and managed.
"A good governance structure must be underpinned by a strong organisational culture that values ethics and integrity and the highest standards of corporate
Pat Plunkett, Chairman
2010 Board evaluation
We undertook an external evaluation of the Board’s effectiveness in 2010, as the last externally facilitated review was in 2007. Overall, the results of the review demonstrate that the Board was effective during the year.
Recognising the important role the Board plays in setting the strategic direction of the Group, the Board performance report identified the need to continue to refine how the Board is engaged in developing strategy. This includes ensuring that adequate time is allocated to discussions on strategy and, as appropriate, that alternative strategies to deliver corporate objectives are fully considered.
As last year, we have provided information on the detailed annual objectives for the Board and the Board’s performance against those objectives. See the Governance highlights for performance against the 2010 objectives and the table for the 2011 Board objectives.
For full information see the review of the Board's effectiveness
2010 Board time allocation
We have set out the approximate time we allocated at Board meetings during the year to various discussion topics. Next to strategy, discussions on the situation and progress in Uganda took up the second highest time. Very considerable effort was devoted at Board level and in-country by Executive Directors and senior management trying to satisfactorily conclude this transaction. Achieving First Oil in Ghana and successful operational delivery across the business was also given high importance to ensure we met our targets and stakeholder expectations. EHS commanded more of our time, mainly as a result of the implications of the Macondo incident in April and what that potentially meant for Tullow. Corporate Governance is another important area for the Board, in relation not just to the new UK Corporate Governance Code but also to the UK Bribery Act and the Group’s Code of Business Conduct. In recognition of the importance attached to these areas, a Group Compliance Manager was recruited early in 2011, reporting to the General Counsel.
The newly appointed Group Compliance Manager has responsibility for Tullow’s anti-bribery and corruption and regulatory compliance programmes worldwide. The UK Bribery Act, which is due to be introduced this year, will place onerous requirements on UK companies to demonstrate the effectiveness of their anti-bribery measures. Tullow is introducing a new Code of Business Conduct, supporting policies and guidelines and detailed reporting requirements for staff. A comprehensive and mandatory training programme is under development which all management, employees and contractor staff will undertake. An online training programme is also planned for later in 2011. Tullow is also establishing a Compliance Committee to oversee the Group’s compliance activities and report regularly to the Board on progress. We will outline these initiatives more fully in our Corporate Responsibility Report, to be published in June.
Tullow has strong stakeholder engagement programmes in place for shareholders and employees as well as increasing levels of engagement with local communities and suppliers, particularly local in-country suppliers. An area we are focusing on this year is our external stakeholder engagement to help us identify and analyse the major issues that impact on our ability to run our business and achieve our plans and strategic objectives. One of our main goals is to operate in a way that creates shared prosperity so that we understand what this means to our key external stakeholders. Our aim, over time, is to develop a best-in-class approach so that all our stakeholders see real benefits from our success.
As I outlined in my Chairman’s Statement, I plan, after more than 12 very enjoyable years as a non-executive Director of Tullow, to step down as Chairman by next year’s AGM. I have announced this early to enable Tullow to identify a successor and to ensure a smooth transition for the new Chairman. This is part of an overall process to develop and implement a succession plan for my role and the ongoing refreshment of the non-executive Directors.
Governance and culture
Achieving good governance and being a responsible company is inextricably linked with organisational culture and how we run and manage our business. Culture defines our values, how decisions are made and what we deem as acceptable risk. Equally, it is about what standards we apply in how we deal with people, whatever stakeholder group they might be. What we strive to do is to adopt and implement what is right for our business, while being open and transparent in all that we do. This helps us to create trust, demonstrate accountability and build our reputation, which in turn will create new opportunities for Tullow and for all our stakeholders.
Pat Plunkett, Chairman
We are in great shape as a business and in a strong position as Africa's leading independent oil company.
We are working to create and share prosperity so that countries and communities where we operate can participate in the benefits of our success.
Board performance evaluation
Overall, the Board performance report concluded that the Board had been effective in achieving its vision, aims and goals of the Company in 2010.