Principal risks and uncertainties

During 2016, through a number of internal forums such as the Group Risk Management Committee and Management Team, the Group regularly reviewed the risks which could adversely impact on the achievement of strategic objectives.

The Board also receive a risk report, highlighting the key risks and movements in risks, at each Board meeting.

The Board confirm that a robust assessment of the principal risks facing the Company, including those that would threaten the business model, future performance, solvency or liquidity was completed in 2016.

Strategic objective: Deliver exploration and appraisal success

Principal risks:

  • Exploration and appraisal
  • Sustained low oil and gas price

Strategic objective: Portfolio management

Principal risk:

  • Securing new venture opportunities

Strategic objective: Maintain licence to operate

Principal risks:

  • Health, safety, environment and security
  • Shareholder reaction to operations
  • Fraud, bribery and corruption

Strategic objective: Deliver operational excellence

Principal risks:

  • Delay in Catcher and Kraken production start-up schedule
  • Operational and project performance
  • Reliance on JV operators for asset performance

Strategic objective: Deliver a sustainable business

Principal risks:

  • Restriction on ability to sell CIL shareholding
  • Political and fiscal uncertainties
  • Access to internal or external funding
  • Staff recruitment and retention

 

For more detail please refer to the 'How we manage risk' section of the 2016 Annual Report.