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A message from Aidan Heavey Throughout Tullow’s 21-year existence, we have always maintained a long-term perspective on our operations and our responsibilities. We seek to establish partnerships with governments, other oil and gas companies, shareholders and the communities where we work. We rely heavily on the dedication, skills and professionalism of our employees to ensure that our reputation, or their safety, is not compromised by the actions of ourselves or others. The Group now employs over 250 people spread across 22 countries and during 2006 worked 6.1 million hours. Our growth has resulted in higher levels of day-to-day activity, a more widespread portfolio of operated and non-operated licence interests and substantial investment in our assets, our systems and our staff. I am happy to report that 2006 was another year of successful progress in the ongoing development of our Environment, Health and Safety (EHS) practises and Corporate Social Responsibility (CSR), which we manage through our community and social programmes. In recent years, the oil and gas industry has come under increasing scrutiny in respect of its environmental performance and safety culture. Our performance is not only measured by hard statistics like a lower Lost Time Incident Frequency Rate (LTIFR), better water management or carbon emissions, but also by the endorsement of agencies such as Royal Society for the Prevention of Accidents (RoSPA) in the UK and the achievement of International Standards Organisation (ISO) 14001 certification for our corporate environmental management system. We have clear management standards and policies for CSR and EHS and these are implemented and communicated across the Group. On the ground, Tullow’s flat structure and open culture ensures that any issues are disclosed and employees feel comfortable in offering suggestions. We actively support continuous improvement in our performance in these areas through strong leadership and ongoing training at all levels in the business. The value of our social programmes is demonstrated by the positive community relations Tullow has established in each of its core areas and the tangible improvements in living standards, health and education that result from our programmes. For example, at the 2005 Ernst & Young Entrepreneur Awards in Ireland, John O’Shea, who founded GOAL, challenged the awardwinners and audience to visit developing countries and see if they could make a difference by focusing their skills on helping communities to help themselves. He emphasised the need to develop new commercial initiatives in addition to health and educational support projects. Tullow undertook this challenge and chose the Kaiso-Tonya area in Uganda on the shore of Lake Albert, where we have a 100% operating interest in Block 2 in the Lake Albert Rift Basin. Full details of this project are on pages 4 and 5 of this report, and throughout the report there are several examples of projects we supported or undertook during the year. Through our CSR Committee, which includes both senior executives and non-executive Directors of the Group, we ensure that our community and social funding, which in 2007 will be US$2.5 million, is allocated to countries and projects where our contribution can make a real difference. At Tullow, we are committed to comprehensive disclosure and openness in everything we do. This is our second annual CSR Report and we have taken on board much of the valuable feedback we received last year. We apply and expect the highest standards every day in our work, and our performance is closely monitored by Tullow’s Board and has a direct influence on appraisal and reward systems throughout the Group. Ultimately, as Chief Executive, I am responsible for ensuring that Tullow is seen as a responsible and safe operator, a partner of choice and a good neighbour wherever we work. I am proud of Tullow and the work we do in the countries where we have operations and hope this report will help you to understand why. Aidan Heavey Chief Executive Officer Nominated Director with CSR and EHS Responsibility 2 Tullow Oil plc Corporate and Social Responsibility Report 2006
Aidan Heavey in Kaiso-Tonya, Uganda BitC ’Big Tick’ environment award A £1 million investment was undertaken at the Bacton Gas Terminal, which significantly improved the environmental performance of this operation including a 55% reduction in Carbon Dioxide (CO 2 ) emissions. In recognition of this achievement, Tullow received a ‘Big Tick’ award in the International Climate Change Category of the Business in the Community Awards (BitC) for Excellence. This demonstrates that such projects can significantly reduce environmental impacts, while making sound business sense. This award is a welcome external recognition of our commitment to improving our environmental performance, and full details of this project are on page 21. RoSPA ‘Gold Award’ The Royal Society for the Prevention of Accidents (RoSPA) is a registered charity established over 80 years ago to promote safety and the prevention of accidents. The charity recognises outstanding health and safety performance through an annual awards programme. In 2007, Tullow received a RoSPA ‘Gold Award’ for occupational health and safety management, based on results for the period 2002 to 2006. Tullow is delighted with this recognition, which is a reflection of the level of organisational and management support given to reviewing and championing health and safety initiatives and policies throughout the Group. Whether it be an office, gas terminal, offshore installation or drilling rig, this level of commitment ensures that health and safety is an integral part of our daily activities. BitC Environment Index ‘Bronze Award’ The Environment Index assesses the extent to which an organisation integrates environmental responsibility into their business functions. It is an annual assessment of environmental performance that benchmarks companies against both their sector peers and all other companies that participate in the Index. It measures companies on the integration of environmental issues into their core business and on environmental management issues. Participating companies are also assessed on their assurance processes and their commitment to disclose their Index submission. The Environment Index Executive Summary and Report are used by a myriad of organisations, ranging from investors and the media to Non-Governmental Organisations (NGO) and academia. In 2006, Tullow participated for the first time in the 11 th Environment Index and received a ‘Bronze Award’ for its environmental management and performance. This represents a score of just over 70% and is a good performance relative to the sector and the index. The individual company report we received on Tullow’s performance has also given us some great feedback and ideas on how we can improve our performance further. Evolving our CSR reporting In the 2005 report, we committed to evolving our CSR reporting and part of this process was meeting with and inviting comments from key stakeholders to assist us in improving our disclosure and transparency. Feedback was received from Tullow employees and management, institutional shareholders and the Ethical Investment Research Service (EIRIS). EIRIS is a sustainability rating agency which collects data for fund managers and other clients, including the FTSE4Good Responsible Investment Index. We have incorporated this feedback into this year’s report. Look out for this symbol throughout the report to see where direct changes have been made. Working with Communities We have developed a social initiative called ‘Working with Communities’ (formerly ‘Adopt a Village’) to encapsulate what Tullow aims to achieve in its social and community initiatives across the Group. Our goal is to foster and support longer-term development and self-sustaining enterprise in local communities, and our involvement is designed to be minimal after the initial organisation and set-up of the project. In 2006, Tullow spent US$1.5 million on CSR projects and many of these are outlined in this report. Just look out for this logo. Tullow Oil plc Corporate and Social Responsibility Report 2006 3
Page 1 and 2: Tullow Oil plc Corporate and Social
Page 3 and 4: 1 About us Tullow Oil plc is one of
Page 5: Welcome to our Corporate and Social
Page 9 and 10: About Tullow in Uganda Post the Har
Page 11 and 12: Audit Committee Remuneration Commit
Page 13 and 14: 2006 CSR expenditure US$1.5 million
Page 15 and 16: Community Our goal is to conduct al
Page 17 and 18: Our EHS team 1 2 3 4 5 6 7 3. Paul
Page 19 and 20: Turtles in Chachar Tullow’s EHS P
Page 21 and 22: 2006 hours worked by country by ons
Page 23 and 24: Lost Time Incidents (LTI) 2006 5 20
Page 25 and 26: The Environment Our focus is on pro
Page 27 and 28: Produced water - Quantity (m 3 ) 20
Page 29 and 30: Water usage (m 3 ) 2006 18,678 2006
Page 31 and 32: Art competition The Children’s ar
Page 33 and 34: ConocoPhillips-operated Murdoch pla
Page 35 and 36: India Tullow Oil plc Corporate and
Page 37 and 38: Flexible working arrangements A fle
Page 39 and 40: 1 and 6 Great Gorilla Run. 2 Breakt
Page 41 and 42: Bangora, Bangladesh Tullow Oil plc
Page 43 and 44: Bangladesh educational project Tull
Page 45 and 46: An integrated approach CSR and EHS
Page 47 and 48: 2006 Social data South Côte UK Ire
Page 49 and 50: Other information Annual report Pub

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