Tullow Oil plc Annual Report 2011 - The Group

Notes to the Group financial statements continuedYear ended 31 December 2011Note 5. Operating profitOperating profit is stated after charging / (crediting):Staff costs (see note 6) 42.9 55.4Depletion and amortisation 513.6 355.9Impairment of property, plant and equipment 51.0 4.3Impairment reversal (17.4) –Depreciation of other fixed assets 20.2 11.4Write down of physical inventory recognised as an expense – 0.2Exploration write off 120.6 154.7Share-based payment charge (including provisions for NI) 28.5 11.9Operating lease rentals 7.0 6.5Auditor’s remuneration (see below) 2.6 2.92011$m2010$mFees payable to the Company’s auditor for:The audit of the Company’s annual accounts 0.2 0.2The audit of the Company’s subsidiaries pursuant to legislation 1.4 1.0Total audit and other assurance services 1.6 1.22011$m2010$mNon-audit services:Audit related assurance services 0.3 0.2Other assurance services 0.1 0.2Tax advisory services – 0.1Tax compliance services 0.1 0.3Information technology services 0.1 0.3Corporate finance services 0.1 0.3Other services – non assurance 0.3 0.3Total non-audit excluding assurance services 1.0 1.7Total 2.6 2.9Fees payable to Deloitte LLP and their associates for non-audit services to the company are not required to be disclosed becausethe 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 servicesincludes IT security analysis and assistance provided to management in the selection of new systems. The auditor is not involved inthe design or implementation of IT systems.Other services – non assurance includes assistance to management in assessing changes to the finance function resulting fromthe 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 thananother supplier and how the auditor’s independence and objectivity was safeguarded are set out in the Audit Committee Reporton pages 84 to 85. No services were provided pursuant to contingent fee arrangements.130Tullow Oil plc 2011 Annual Report and Accounts