Annual Report 2010 - Ophir Energy

health, safety & environment
committee
Members of the Health, Safety & Environment Committee
are Messrs Powell (Chairman), Lander and Taylor.
The Heath, Safety & Environment Committee assists the
Board to fulfil its overall responsibilities in relation to health,
safety, environmental and community matters arising out
of the activities of Ophir and as they affect employees,
contractors and the communities in which it operates.
The Committee met twice during 2010.
Directors’ remuneration
Directors’ remuneration is summarised in note 5 to the
Financial Statements and detailed in the Remuneration
Report on pages 34 and 35.
internal controls
The Directors acknowledge their overall responsibility for
Ophir’s systems of internal control, which are designed to
safeguard the assets of Ophir and to ensure the reliability
of financial information for internal and external use.
The Board has put an organisational structure in place
with clearly defined lines of responsibility and delegation
of authority. Procedures include Board approval of all
significant new projects and senior management approval
at appropriate stages of the transaction cycle. There is a
comprehensive annual budgeting and planning process.
Actual results are reported against budgets approved by the
Board. Revised financial forecasts are prepared regularly
through the year.
The Directors do not believe the size of the Company
warrants an internal audit function.
The Board has overall responsibility for the effectiveness
of Ophir’s risk management activities and internal control
processes. Any system of controls can provide only
reasonable, but not absolute, assurance that assets are
safeguarded, transactions authorised and correctly recorded
and that any material errors or irregularities are detected
within a reasonable timeframe.
The consideration of business risk is a regular matter for
Board discussion. The Health, Safety & Environment
Committee has also considered certain operational risks
and their management and mitigation. However, the
Board has not yet implemented a more formal process for
identification and evaluation of risks in all areas of the
business and review of the effectiveness of Ophir’s system
of internal controls. The Board intends to further develop
its processes in this regard in 2011 as Ophir develops in
complexity and also in order to comply fully with the Code
requirements. By order of the Board
nicholas smith
Chairman
28 March 2011
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Ophir energy plc | 2010 ANNUAL REPORT
gOvernAnce | CORPORATE gOvERNANCE sTATEmENT
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Drilling operations, Deepsea Stavanger