EY Set to Replace Deloitte as Tullow Oil’s New External Auditor
EY is set to be appointed as the new external auditor of multinational gas and oil exploration company with the name of Tullow Oil, replacing another big four firm Deloitte which held the said role since 2002
The oil exploration company conducted a competitive tender process for audit services, which were tendered last in the year 2004.
Five audit firms were officially invited by the company to tender, including two firms not part of the Big Four firms. Deloitte was not invited to participate in the tendering process due to the length of its tenure as the company’s external auditor.
The five firms which accepted Tullow Oil’s invitation to participate in the tender process submitted formal proposals. The participating firms also gave oral presentations which took place in November 2018 and were evaluated together with written submissions against the criteria set by the company’s management. After successfully conducting the tender process for audit services, the company’s management decided to select EY as the group’s new statutory auditor for the fiscal year ending December 31, 2020. The appointment will be subject to shareholders’ approval at the group’s annual general meeting that will be held in 2020.
According to Tullow’s 2018 annual report, Deloitte received $2.2m against audit services and $600,000 for non-audit services.