2011 Annual Report PDF - Tullow Oil plc

Notes to the Group financial statements continued
Year ended 31 December 2011
Note 5. Operating profit
Operating profit is stated after charging / (crediting):
Staff costs (see note 6) 42.9 55.4
Depletion and amortisation 513.6 355.9
Impairment of property, plant and equipment 51.0 4.3
Impairment reversal (17.4) –
Depreciation of other fixed assets 20.2 11.4
Write down of physical inventory recognised as an expense – 0.2
Exploration write off 120.6 154.7
Share-based payment charge (including provisions for NI) 28.5 11.9
Operating lease rentals 7.0 6.5
Auditor’s remuneration (see below) 2.6 2.9
2011
$m
2010
$m
Fees payable to the Company’s auditor for:
The audit of the Company’s annual accounts 0.2 0.2
The audit of the Company’s subsidiaries pursuant to legislation 1.4 1.0
Total audit and other assurance services 1.6 1.2
2011
$m
2010
$m
Non-audit services:
Audit related assurance services 0.3 0.2
Other assurance services 0.1 0.2
Tax advisory services – 0.1
Tax compliance services 0.1 0.3
Information technology services 0.1 0.3
Corporate finance services 0.1 0.3
Other services – non assurance 0.3 0.3
Total non-audit excluding assurance services 1.0 1.7
Total 2.6 2.9
Fees payable to Deloitte LLP and their associates for non-audit services to the company are not required to be disclosed because
the consolidated financial statements are required to disclose such fees on a consolidated basis.
Tax advisory services include assistance in connection with enquiries from local fiscal authorities. Information technology services
includes IT security analysis and assistance provided to management in the selection of new systems. The auditor is not involved in
the design or implementation of IT systems.
Other services – non assurance includes assistance to management in assessing changes to the finance function resulting from
the Group’s expansion and subscription fees for upstream data.
Details of the company’s policy on the use of auditors for non-audit services, the reasons why the auditor was used rather than
another supplier and how the auditor’s independence and objectivity was safeguarded are set out in the Audit Committee Report
on pages 84 to 85. No services were provided pursuant to contingent fee arrangements.
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Tullow Oil plc 2011 Annual Report and Accounts