Key Performance Indicators (KPIs)

We have financial and non financial key performance indicators in place to measure and monitor our progress in delivering our strategy. 

2017

The 2017 Group KPIs are summarised below and were set by the Board in December 2016 and are based on the Group’s current portfolio, prospects and objectives.

Purpose Objective 2016 KPI Risks to the achievement of KPI
Delivering exploration and appraisal success  
Grow the reserves and resources base to provide a basis for future growth

Maximise value in Senegal

Progress the SNE discovery through the prudent investment of capital funds, de-risking the path to commerciality in a cost effective and timely manner. This will be assessed on the 2C valuation, the 3C/1C ratio and the totalcumulative E&A investment divided be 2C resources.

  • Lack of exploration  or appraisal success
Achieve exploration success through discovery or addition of commercial hydrocarbons in 2016

Invest in exploration opportunites with due consideration to finding efficiency, calculated at the estimated cost to take a project to FID divided by the discovered 2C resource.

  • Lack of exploration  or appraisal success
  • Reliance on JV operators for asset performance
Portfolio management  
Active portfolio management and acreage protection Portfolio optimisation and replenishment

Develop an inventory of exploration and appraisal opportunites, including prospects and leads which meet Cairn's technical and commercial criteria and can provide drilling opportunites for the period 2017 onwards.

  • Inability to identify or secure prospective acreage at prices which can generate reasonable returns
Deliver operational excellence  
Deliver operational excellence in all 2016 activites Sucessfully complete operated and non-operated 2016 work programme

Deliver all operated and non-operated E&A projects (technical studies, surveys and seismic) on schedule and budget, with full data recovery.

  • Operational and project performance
  • Reliance on JV operators for asset performance
  • Staff recruitment and retention
 

Progress North Sea development projects, on time and budget.

  • Kraken and Catcher development activites and production start-up not executed on schedule and budget
  • Reliance on JV operators for asset performance
Maintain licence to operate  
Deliver value in a safe, secure and environmentally and socially responsible manner Deliver activites with a focus on the safety of people and the environement Minimise injuries and environmental incidents in 2016 operated activites
  • TRIR target of less than 2.0 TRIR/million hours,
  • No oil spills to the environment
  • Health, safety, environmental, and security incidents
Continue to enhance the Group's HSE culture, behaviours and approach Achieve targets for HSE LPIs linked to elementsof the HSE Culture Framework.
  • Health, safety, environmental, and security incidents
Deliver a sustainable business  
Maintain a self-funding business plan Manage balance sheet strengh Maintain liquid reserves including undrawn comitted banking facilites to meet planned funding commitments plus a cushion at all times
  • Operational and project performance
  • Kraken and Catcher development activites and production start-up not executed on schedule and budget
 

Make tangible progress on Cairn India Limited (CIL) shares freeze by progress of action under the UK-India Investment Treaty

  • Unstability to access internal or external funding
  • Restriction ability to sell CIL shareholding
  • Uncertainty fiscal regimes.