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