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Download the CR Report PDF (1.90MB) - Tullow Oil plc

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A message from Aidan Heavey<br />

Throughout <strong>Tullow</strong>’s 21-year existence, we have always maintained<br />

a long-term perspective on our operations and our responsibilities.<br />

We seek to establish partnerships with governments, o<strong>the</strong>r oil and<br />

gas companies, shareholders and <strong>the</strong> communities where we work.<br />

We rely heavily on <strong>the</strong> dedication, skills and professionalism of our<br />

employees to ensure that our reputation, or <strong>the</strong>ir safety, is not<br />

compromised by <strong>the</strong> actions of ourselves or o<strong>the</strong>rs.<br />

The Group now employs over 250 people<br />

spread across 22 countries and during<br />

2006 worked 6.1 million hours. Our growth<br />

has resulted in higher levels of day-to-day<br />

activity, a more widespread portfolio of<br />

operated and non-operated licence interests<br />

and substantial investment in our assets, our<br />

systems and our staff. I am happy to report<br />

that 2006 was ano<strong>the</strong>r year of successful<br />

progress in <strong>the</strong> ongoing development of<br />

our Environment, Health and Safety (EHS)<br />

practises and Corporate Social Responsibility<br />

(CSR), which we manage through our<br />

community and social programmes.<br />

In recent years, <strong>the</strong> oil and gas industry has<br />

come under increasing scrutiny in respect<br />

of its environmental performance and<br />

safety culture. Our performance is not only<br />

measured by hard statistics like a lower<br />

Lost Time Incident Frequency Rate (LTIFR),<br />

better water management or carbon<br />

emissions, but also by <strong>the</strong> endorsement<br />

of agencies such as Royal Society for <strong>the</strong><br />

Prevention of Accidents (RoSPA) in <strong>the</strong><br />

UK and <strong>the</strong> achievement of International<br />

Standards Organisation (ISO) 14001<br />

certification for our corporate environmental<br />

management system. We have clear<br />

management standards and policies for<br />

CSR and EHS and <strong>the</strong>se are implemented<br />

and communicated across <strong>the</strong> Group. On<br />

<strong>the</strong> ground, <strong>Tullow</strong>’s flat structure and open<br />

culture ensures that any issues are disclosed<br />

and employees feel comfortable in offering<br />

suggestions. We actively support continuous<br />

improvement in our performance in <strong>the</strong>se<br />

areas through strong leadership and ongoing<br />

training at all levels in <strong>the</strong> business.<br />

The value of our social programmes is<br />

demonstrated by <strong>the</strong> positive community<br />

relations <strong>Tullow</strong> has established in each of<br />

its core areas and <strong>the</strong> tangible improvements<br />

in living standards, health and education that<br />

result from our programmes.<br />

For example, at <strong>the</strong> 2005 Ernst & Young<br />

Entrepreneur Awards in Ireland, John O’Shea,<br />

who founded GOAL, challenged <strong>the</strong> awardwinners<br />

and audience to visit developing<br />

countries and see if <strong>the</strong>y could make a<br />

difference by focusing <strong>the</strong>ir skills on helping<br />

communities to help <strong>the</strong>mselves. He<br />

emphasised <strong>the</strong> need to develop new<br />

commercial initiatives in addition to health<br />

and educational support projects. <strong>Tullow</strong><br />

undertook this challenge and chose <strong>the</strong><br />

Kaiso-Tonya area in Uganda on <strong>the</strong> shore of<br />

Lake Albert, where we have a 100% operating<br />

interest in Block 2 in <strong>the</strong> Lake Albert Rift<br />

Basin. Full details of this project are on<br />

pages 4 and 5 of this report, and throughout<br />

<strong>the</strong> report <strong>the</strong>re are several examples of<br />

projects we supported or undertook during<br />

<strong>the</strong> year.<br />

Through our CSR Committee, which includes<br />

both senior executives and non-executive<br />

Directors of <strong>the</strong> Group, we ensure that our<br />

community and social funding, which in<br />

2007 will be US$2.5 million, is allocated to<br />

countries and projects where our contribution<br />

can make a real difference.<br />

At <strong>Tullow</strong>, we are committed to<br />

comprehensive disclosure and openness in<br />

everything we do. This is our second annual<br />

CSR <strong>Report</strong> and we have taken on board<br />

much of <strong>the</strong> valuable feedback we received<br />

last year. We apply and expect <strong>the</strong> highest<br />

standards every day in our work, and our<br />

performance is closely monitored by <strong>Tullow</strong>’s<br />

Board and has a direct influence on appraisal<br />

and reward systems throughout <strong>the</strong> Group.<br />

Ultimately, as Chief Executive, I am<br />

responsible for ensuring that <strong>Tullow</strong> is seen<br />

as a responsible and safe operator, a partner<br />

of choice and a good neighbour wherever<br />

we work. I am proud of <strong>Tullow</strong> and <strong>the</strong> work<br />

we do in <strong>the</strong> countries where we have<br />

operations and hope this report will help<br />

you to understand why.<br />

Aidan Heavey<br />

Chief Executive Officer<br />

Nominated Director with<br />

CSR and EHS Responsibility<br />

2 <strong>Tullow</strong> <strong>Oil</strong> <strong>plc</strong> Corporate and Social Responsibility <strong>Report</strong> 2006

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