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Corporate Governance
In today’s environment, Tullow faces a wide range of challenges
and opportunities in the areas of CSR and EHS responsibility
and performance. This is particularly so given the nature of the
oil and gas industry and the geographic location of the Group’s
operations, many of which are in countries with complex
socio-economic challenges or high environmental sensitivity.
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Tullow has a long track record of respecting,
developing and fostering relationships
in countries and communities where we
operate. This longevity is based on an
awareness and understanding of the
Group’s obligation to its responsibilities.
The Board and senior management are fully
committed to all aspects of good corporate
behaviour and risk management. Corporate
responsibility and accountability is reflected
in our organisational structure, policies and
processes and ensuring we comply fully with
legislative and regulatory requirements.
Clear and effective governance
Tullow’s Board operates within a clear
governance framework for the management
of the Group, the safety of its operations
and employees and the balance of countries,
business units and individual assets
within our portfolio. The Board has overall
responsibility for the financial, business
and operational risks facing the Group, and
to ensure that Tullow consistently applies
its focused growth strategy and maintains
a long-term view in developing the business.
The Board comprises 12 Directors with seven
executive Directors and five non-executive
Directors. Rohan Courtney is the Senior
Independent Director and the Board operates
three principal committees.
Directors’ biographies and Board Committee
information are on pages 34 and 35 of the
2006 Annual Report and a detailed Corporate
Governance Report is on pages 37 to 41.
This information is also contained in the
Group’s website.
Strong risk management
Tullow is exposed to a range of technical,
geological, operational, political,
environmental, health and safety and
financial risks in the conduct of its day-to-day
business. The Group seeks to manage and
mitigate these risks by maintaining a
balanced portfolio, through compliance with
the terms of its licences, the application of
established policies and procedures
appropriate for an international oil and gas
company, and the recruitment and retention
of skilled personnel throughout its business.
The Group’s principal risks are considered to
fall into four key categories of strategic,
financial, operational and external risks.
Detailed information on risk is contained on
page 41 of the Annual Report 2006.
Accounting policies and standards
The Directors are responsible for preparing
the Annual Report and financial statements,
which was published on 19 April, 2007.
The Directors have chosen to prepare the
accounts for the Group in accordance with
International Financial Reporting Standards
(IFRS), and in virtually all circumstances
a fair presentation will be achieved by
compliance with all applicable IFRS.
Political donations
There were no donations made to political
parties during 2006.
ECOFAC
Since 2003, Tullow has supported
the Programme for Conservation
and Rational Utilization of Forest
Ecosystems in Central Africa
(ECOFAC). This support was recently
renewed for a further three years
to 2009, with total funding of
US$155,000. The aim of this project is
to educate local communities to help
them prevent the spread of Ebola to
the human population, to manage and
monitor new epidemics of Ebola on
large monkeys and other wild animals
and to help gorilla families acclimatise
to humans so that eco-tourism can be
developed in the region. Preventing
and managing the spread of Ebola is
a significant factor in maintaining the
gorilla population. A fundamental
element in ensuring the survival of
these incredible primates is the need
for a greater understanding of this
devastating disease, and this is the
key reason for Tullow’s continued
support of this major project.
6 Tullow Oil plc Corporate and Social Responsibility Report 2006