Directors’ report 2012
Risk management and internal control
The board conducted an assessment of the risk picture in 2012 on the basis of the approved strategy, and set targets for the coming year. Compensatory measures were identified for the biggest risks Petoro has an opportunity to influence through the frameworks available to it. The most important identified risks relate to the delayed availability of new drilling rigs and the quality of drilling services, the threat posed to the profitability of new projects in the planning phase by high costs, and a failure to realise the value potential because insufficient account is taken of new market realities for gas. A risk also
exists that the SDFI’s agreed unitisation interest in the new Johan Sverdrup discovery will fail to reflect Petoro’s view on the division of the assets. In addition, a failure by operators and partners to give sufficient priority to the large mature fields in a long-term perspective could pose a risk, as would the inability of Petoro to win through in the licences with its efforts on Snorre, Gullfaks and Heidrun.
The most important operational risks are followed up in the management committees for priority fields in the business areas. Principles for risk management in Petoro build on the internationally recognised Coso/ERM framework for internal control, and on in-house expertise.