2011 Annual Report PDF - Tullow Oil plc

Notes to the Group financial statements continued
Year ended 31 December 2011
Note 31. Related party transactions
The Directors of Tullow Oil plc are considered to be the only key management personnel as defined by IAS 24 – Related
Party Disclosures.
Short-term employee benefits 8.7 7.0
Post employment benefits 1.1 0.9
Amounts awarded under long-term incentive schemes 3.7 1.4
Share-based payments 7.5 5.6
2011
$m
2010
$m
21.0 14.9
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).
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 99.
Note 32. Subsequent events
Since the balance sheet date Tullow has continued to progress its exploration, development and business growth strategies.
In February 2012, Tullow signed two new Production Sharing Agreements (PSAs) with the Government of Uganda. The new
PSAs cover the EA-1 and Kanywataba licences in the Lake Albert Rift Basin. Tullow has also been awarded the Kingfisher
production licence.
In February 2012, Tullow completed the farm-down of one-third of its Uganda interests to both Total and CNOOC for a total
consideration of $2.9 billion paving the way for full development of the Lake Albert Rift Basin oil and gas resources.
In February 2012 the Group announced the Jupiter-1 exploration well in the Block SL-07B-11 offshore Sierra Leone had
successfully encountered hydrocarbons. This has been confirmed by the results of drilling, wireline logs and samples of
reservoir fluids.
Note 33. Pension schemes
The Group operates defined contribution pension schemes for staff and Executive Directors. The contributions are payable
to external funds which are administered by independent trustees. Contributions during the year amounted to $10.1 million
(2010: $4.5 million). At 31 December 2011, there was a liability of $0.3 million (2010: $0.3 million) for contributions payable
included in creditors.
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Tullow Oil plc 2011 Annual Report and Accounts