Tullow Oil plc Annual Report 2011 - The Group

Notes to the Group financial statements continuedYear ended 31 December 2011Note 31. Related party transactionsThe Directors of Tullow Oil plc are considered to be the only key management personnel as defined by IAS 24 – RelatedParty Disclosures.Short-term employee benefits 8.7 7.0Post employment benefits 1.1 0.9Amounts awarded under long-term incentive schemes 3.7 1.4Share-based payments 7.5 5.62011$m2010$m21.0 14.9Short-term employee benefitsThese 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 benefitsThese amounts comprise amounts paid into the pension schemes of the Directors.Amounts awarded under long-term incentive schemesThese amounts relate to the shares granted under the annual bonus scheme that is deferred for three years under the DeferredShare Bonus Plan (DSBP).Share-based paymentsThis is the cost to the Group of Directors’ participation in share-based payment plans, as measured by the fair value of optionsand 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 aredisclosed in the Directors’ remuneration report on pages 88 to 99.Note 32. Subsequent eventsSince 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 newPSAs cover the EA-1 and Kanywataba licences in the Lake Albert Rift Basin. Tullow has also been awarded the Kingfisherproduction licence.In February 2012, Tullow completed the farm-down of one-third of its Uganda interests to both Total and CNOOC for a totalconsideration 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 hadsuccessfully encountered hydrocarbons. This has been confirmed by the results of drilling, wireline logs and samples ofreservoir fluids.Note 33. Pension schemesThe Group operates defined contribution pension schemes for staff and Executive Directors. The contributions are payableto 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 payableincluded in creditors.154Tullow Oil plc 2011 Annual Report and Accounts