Tullow Oil plc 2011/2012 Corporate Responsibility Report - The Group

Tullow Oil plc 2011/2012 Corporate Responsibility ReportCREATING SHAREDPROSPERITY

Tullow has more than 100 licences in22 countries, organised into three RegionalBusinesses. The Group has key producingassets in six countries in Africa, includingthe Jubilee field in Ghana, where Tullow isoperator. Other producing assets are in theUK, the Netherlands, Pakistan andBangladesh. We have major developmentprojects under way in Ghana and Ugandaand have made significant recent oildiscoveries in French Guiana and Kenya.RESPONSIBLE BUSINESSCreating shared prosperity shapes our approach to our corporate responsibilities.It ensures that our strategic priorities and business objectives are aligned with ourcommitment to play our role in contributing to the development of new oil countriesin our portfolio of assets. We know we will only earn the trust of the local, national andinternational community, and change perceptions of the oil industry, if we act as aresponsible business with honesty and transparency. Our special feature provides aRegional Business overview of our progress with creating shared prosperity andhighlights some of the key initiatives in each country.Pages 23-47Cover Stevedores at work, quayside Takoradi port, Ghana.

ABOUT THIS REPORTEach year, we solicit feedback and suggestions on howwe can improve our reporting. This has resulted in newfeatures in our 2011/2012 report, including a letter fromour new Chairman, Simon Thompson, discussing thechallenge of how to maximise the benefits of oil whileminimising any adverse impacts; a more extensiveoverview of how we define stakeholders’ issues andmateriality; a new Regional Business special feature;and expanded 2011/2012 performance informationand 2012/13 KPIs. Assured data in this report is forthe financial year ending 31 December 2011.Our reporting objective is to give a fair and transparentoverview of our corporate responsibility performance.Sections 1 and 2 provide a summary of our progressin 2011/2012, with detailed information for those whowish to read more in sections 3 and 4.The report has been published online as an interactivepdf. We have also published a summary reportin English and French for easy use in externalengagements, particularly where the audience islarge and the majority of readers may not wish toaccess the most detailed information.June 2012CREATING SHARED PROSPERITY‘Creating Shared Prosperity’ is the ‘big idea’ we are workingtowards to make sure we run our business in a way that makesa positive and lasting contribution to economic and socialdevelopment in our host countries. This year’s report charts ourprogress toward this and our plans for 2012/2013. We use thesesymbols throughout to signpost the eight key elements ofCreating Shared Prosperity.Financial performanceGovernanceStakeholder engagementEnvironment, Health & SafetyOur peopleSustainable supply chainLocal contentSocial enterprise1234CONTENTSOVERVIEWTullow had a record year in 2011 and there is much to lookforward to in 2012. Learn more about us, our performanceand our approach to corporate responsibility.4 Chairman’s statement6 Performance highlights8 Tullow at a glance10 Chief Executive’s review12 Strategy, business model and values14 Governance, risk and corporateresponsibility frameworkSTAKEHOLDER PRIORITIESEngaging with our stakeholders, listening to their issuesand concerns and addressing these through our actionshelps build a strong foundation for our business activities.Read about our approach to identifying the issues ofmost importance.18 Stakeholder engagement19 About this report20 Why we engage23 Special feature: Responsible businessMEASURING OURPERFORMANCEWe made good progress in all aspects of creating sharedprosperity in 2011 and have exciting plans to deliver anotheryear of achievement against our objectives in 2012. Readabout our Corporate Responsibility performance here.50 Performance overview56 Governance60 Stakeholder engagement62 Environment, Health & Safety (EHS)68 Our people72 Sustainable supply chain74 Local content76 Social enterpriseSUPPLEMENTARYINFORMATIONThis section contains the independent assurance report,supplementary data, including payments made to theGovernment of Ghana, and a resource guide to help you findout more about Tullow.80 Independent Assurance Report81 Supplementary Data84 Key Corporate Responsibility Policiesand Systems85 Glossary86 Index87 Contacts and feedback88 Other resources1www.tullowoil.com

Ugandan students at the TTE training college, Middlesbrough, UK.

4Chairman’s statementFor companies involved in the discovery andextraction of oil, the question is how to maximisethe developmental benefits of this vital resourcewhile minimising its adverse impacts on theenvironment and society.6Performance highlights 2011Record financial results and industry leadingexploration success were underpinned by astrong corporate responsibility performance.8Tullow at a glanceWe are Africa’s leading independent oil companyand our global portfolio of licences spans22 countries, 15 of which are in Africa.10Chief Executive’s reviewCreating shared prosperity underpins ourphilosophy of how we aim to run our business.It stems from our commitment to make ameaningful contribution to economic andsocial development in our host countries.12Strategy, business model and valuesOur vision is to be the leading globalindependent exploration and productioncompany. We are establishing an unrivalledcompetitive position that differentiates usfrom our peers.OVERVIEW14Governance, risk and corporateresponsibility frameworkWe have a strong governance framework thatgives direct ownership of risk managementand corporate responsibility to the Boardand Executive Directors.FOCUS ON RESULTSWe have a strong sense of focus onresults, driving tasks and projectsthrough to completion with theflexibility to adapt to changingsituations.1

Chairman’s statementMEETING THECHALLENGE“ Oil is a unique resource without whichmodern industrialised society cannotexist. It is also a remarkable sourceof wealth creation that can make adramatic contribution to economicdevelopment and the alleviation ofpoverty. For responsible companiesinvolved in the discovery and extractionof this vital raw material, the challengeis therefore how to maximise thedevelopmental benefits of oil whileminimising any adverse impactson the environment and society.”For more informationwww.tullowoil.com/crr2011/chairmaninterviewSimon ThompsonChairmanThe case against oil is threefold: its extraction and transportationcan damage the environment; the revenues that it generates candistort both the local economy and the political processes of hostcountries; and its combustion generates greenhouse gases thatcontribute to climate change. The case in favour is that it iscurrently an irreplaceable source of energy; that while the riskof harm to the environment can never be totally eliminated itcan be minimised; and that oil revenues, properly managed,can break the cycle of poverty and kick-start a country on thepath to sustainable economic growth.In some sections of the media, civil society and academia,there appears to be a presumption that while oil wealth may beappropriately managed in developed economies, it is a ‘curse’in Africa. As Africa’s leading independent oil company, we rejectthe inevitability of this analysis, but we fully acknowledge ourresponsibility to play an active part in trying to ensure thatthe mistakes of the past are not repeated in the future. Ouraspiration is to ensure that our technical expertise and thecapital that we put at risk in the search for oil will create sharedprosperity for our shareholders and for our host countries andlocal communities.We do not under-estimate the scale of the challengewe face. Oil exploration is a high-risk but potentiallyhigh-return activity and there is a danger of creatingunrealistic expectations. During the developmentphase, the industry is very capital intensive but thenumber of direct jobs created is relatively small,particularly for unskilled workers. When production isfinally achieved, the use of and benefits accruing fromthe revenues generated may appear inequitable oropaque to many stakeholders.At Tullow we seek to address these challenges in threeways: we try to identify and engage with all the partiesaffected by our activities from the outset, keeping theminformed and listening to their views in an open, honestand transparent manner; we try to create linkagesbetween our activities and the rest of the economy,facilitating opportunities for local suppliers,entrepreneurs and community enterprise development;and we seek to be as transparent as possible, within theconstraints imposed upon us by our host governments,about the source and application of oil revenues.4Tullow Oil plc 2011/2012 Corporate Responsibility Report

More informationPageSpecial feature:Responsible business 23Measuring our performance 501OVERVIEWTullow has a variety of production sharing and tax royaltycontracts across its portfolio of exploration and productionassets. Typically some 60%-80% of net oil revenues after costaccrue to our host governments. The decisions taken on howthis revenue is invested largely determine whether oil is ablessing or a curse. As a foreign company, with no democraticmandate, Tullow cannot and should not be involved in thesedecisions. But we can work in partnership with others to buildcapacity and try to ensure that the decisions taken by thepoliticians and citizens of our host countries are well-informed.We invest heavily in the recruitment, training and developmentof our local employees. In part, this is enlightened self-interest.We know that a well-trained and motivated local workforcecreates a safer and more productive operating environment,and that the best ambassadors for Tullow in-country are ourown employees. But we also believe that by providing on-the-joband classroom training, and scholarships for tertiary education,we are helping to create the next generation of leaders who willdrive the economic development of our host countries.The cornerstone of our contribution to shared prosperity isthat we remain a successful and profitable business, able toinvest in new projects, meet our obligations to employees andsuppliers, generate returns for our shareholders and pay taxesto our host governments. We are committed to maintainingthe highest EHS standards, and underpinning all our activitiesis a dedication to good governance: managing our business inan ethical manner and treating all stakeholders with respectand integrity.We are under no illusion that the connection between oil andsustainable development is straightforward. The discovery of oilcan lead to wrenching changes in local communities and nationaleconomies and inevitably gives rise to vigorous debate, withdisparate and often conflicting views on how best to utilise thewealth created in the national interest. As we approach thiscomplex issue we seek to apply the same innovative and creativethinking that we bring to the rest of our business. And we knowthat we will only earn the trust of the local, national andinternational community if we act in partnership withother stakeholders, with honesty and transparency.This report charts our progress so far along the journey towardsachieving our aspiration of creating shared prosperity from oil,particularly in Africa.Simon R ThompsonChairmanCREATING SHARED PROSPERITYThe creating shared prosperity element of ourbusiness model brings together eight areas of focus toensure we have a positive and enduring legacy wherewe operate. It also helps to establish clear linksbetween the need to both manage our impacts andachieve our strategic priorities.Financial performanceDelivering returns for shareholders andproviders of capital is the Group’s core strategicpriority and enables us to continue to createand share wealth.GovernanceManaging our business ethically and withintegrity ensures we maintain our goodreputation and manage bribery and corruptionrisk effectively.Stakeholder engagementEngaging with and responding to allour stakeholders shapes our operatingenvironment and plays a vital role inour continued commercial success.Environment, Health & SafetyKeeping our people safe and minimisingour environmental footprint will help usto consistently achieve top quartile EHSindustry performance.Our peopleBeing a rewarding, challenging and great placeto work builds the pool of talent we need todeliver our major development projects andmanage our growing portfolio of assets.Sustainable supply chainBuilding long-term sustainable supplierrelationships adds value and protects thebusiness through strong contractingstrategies and competitive markets.Local contentCreating real opportunities for local peopleand local enterprise development encourageslocal participation in the oil industry.Social enterpriseWorking with and supporting ourlocal communities, and managing oursocial footprint with a growing strategicemphasis on education and enterprisedevelopment projects.5www.tullowoil.com

Performance highlightsSTRONGPERFORMANCEThe Group had an excellent year in 2011. Record financial results,strong operational performance and industry leading explorationsuccess were underpinned by good progress in key creating sharedprosperity initiatives and a strong performance against our corporateresponsibility targets and objectives.$2.3 BILLIONSALES REVENUETullow delivered record financial results in 2011.Sales revenue grew 111% to $2.3 billion as a resultof a 41% increase in sales volumes and significantlyhigher average oil and gas prices. Profit after taxincreased 670% to $689 million. The Group’sfinancial performance was complemented by a74% Exploration and Appraisal (E&A) success ratio.$1.8 BILLIONOPERATING CASH FLOWHigher production and increased commodityprices drove operating cash flow 132% higherto $1.8 billion. In 2011 this cash flow, togetherwith increased debt facilities, was used to fund$1.7 billion in capital investment in explorationand development activities, $502 million inacquisition expenditure, $114 million in dividendpayments and the servicing of the Group’s debt.795% INCREASEBASIC EARNINGS PER SHAREBasic earnings per share grew 795% to 72.5 centsper share, and the total dividend payout doubled inrespect of 2011 to 12.0 pence per share. Over fiveyears to the end of 2011, Tullow delivered totalshareholder returns of 266%.$2.9 BILLIONUGANDA FARM-DOWNTullow’s commitment to reaching an agreementthat will benefit all parties, and to building durablerelationships, was rewarded in early 2012 withthe completion of the farm-down of two thirds ofour Ugandan licences to CNOOC and Total. Thispartnership is now ready to commence developmentof the country’s oil industry, which creates theopportunity to transform the economy of Uganda.Sedco Energy rig, offshore Ghana.

More informationPageCode of Business Conduct 58Talkback Survey 691OVERVIEWNEWCODE OF BUSINESS CONDUCTTo date 35% of staff have received Codeof Business Conduct compliance training,including those in key or high risk posts.17 companies in Bangladesh and72 companies in Kenya have attendedindustry partner workshops.NEWONLINE SUPPLIER CENTREThis was created to provide all suppliers,but particularly local companies, withan understanding of how to do businesswith Tullow. To date over 900 companieshave registered with us.81%ENGAGEMENTOur 2011 global employee and contractorsurvey, Talkback, shows that we areachieving significantly higher levelsof engagement than the energysector benchmark.TWOMULTI-STAKEHOLDER FORUMSWe have held two forums since thebeginning of 2011. These broughttogether Tullow senior management andoperational teams with leading expertsfrom Civil Society Organisations (CSOs),Non-Governmental Organisations(NGOs), policy organisations andwider business.$147 MILLIONLOCAL CONTENT EXPENDITUREWe spent $147 million with local suppliersin 2011. Expenditure was lower in Ghanadue to a natural decrease in activity afterachieving First Oil in 2010. Expenditure inUganda grew 173% to $73 millionas our project there progressed duringthe year. Expenditure in Kenya was$24 million.79%LOCAL WORKFORCEAt the end of 2011, 85% of our workforcein Ghana and 84% in Uganda were local.Localisation is a key strategic pillarfor us, as it aligns our business objectiveswith those of our stakeholders. In thelong term it also provides us with askilled and motivated group of people fordevelopment and succession planning.0.38LOST TIME INJURYFREQUENCY RATE (LTIFR)$11.6 MILLIONSOCIAL ENTERPRISEEXPENDITURE3.2%STAFF TURNOVER15511.2511.612501,207100Hours worked (million)12963007 08 09 10 11Hours worked LTIFR43210LTIFR9.006.754.502.2500.91.82.12.607 08 09 10 11Number of employees1000935750669534500371250007 08 09 10 11Number of employees Staff turnover806040200Staff turnoverIn 2011, we achieved our lowest LTIFR.While we had no major environmentalincidents during the year, there aretrends in our emissions, water usageand spills that we are addressing withnew standards and enhanced reporting.We are saddened to report onecontractor fatality in 2011 from malaria.Year to date in 2012, we have had twothird-party vehicle fatalities.We spent $11.6 million on socialenterprise projects in 2011. The singlelargest project funded was the pilotphase of the Tullow Group ScholarshipScheme. Over 80% of our total socialenterprise investment was in education,health and enterprise development.93% of our total social enterpriseinvestment was in Africa.Staff turnover in 2011 was 3.2%. Ourgoal is to be the employer of choice inthe industry so that we attract and retainthe best people. Talent management andsuccession planning are very importantfor our future growth plans and deliveryof our major projects.7www.tullowoil.com

Tullow at a glanceFOCUSED PORTFOLIOOF WORLD-CLASS ASSETSIn recent years we have discovered two new oil basins in Africa, one inthe Tano Basin offshore Ghana, and the other in the Lake Albert Rift Basin,onshore Uganda. Our success in West Africa led us across the Atlantic in2011 to a related geological play in South America, where we discovereda substantial new oil basin offshore French Guiana. In March 2012,we discovered oil in the Kenya Rift Basin.LICENCE TO OPERATE EXPLORATION SURVEYS EXPLORATION DRILLINGOUR INDUSTRYIn order to explore we must first begranted a licence by the governmentof the country we wish to invest in.We identify those countries throughcareful geological evaluation and wefocus on finding oil in commercialquantities in the regions and geologicalplays where we have proven expertise.OUR ACTIVITIESWe collect seismic data to capture2D and 3D pictures of what liesbeneath the surface. The interpretationof seismic data allows us to gatherinformation without drilling. Afterextensive analysis we plan explorationcampaigns to try and discover oil andgas fields or, more strategically, openup new basins.In the first instance, we drill an initialwell to establish the presence of oil orgas. If there is none, or if it will not beproducible, the well is abandoned. Whenwe make a significant discovery, we drill aseries of appraisal wells to determine thesize and quality of the discovery. Furtherexploration wells may then be drilled todetermine the extent of the geologicalplay over a much larger area.106 LICENCES22 countries, three Regional BusinessesSEVENNew operated licences in Kenyaand Ethiopia acquired in 2011Tullow has 106 licences in 22 countries,spanning 275,895 sq km. The Groupis organised into three RegionalBusinesses: West & North Africa,South & East Africa, and Europe,South America & Asia, and employsa workforce of over 1,500 people.$2 BILLIONPlanned capital expenditure in 201250:50Split between exploration anddevelopment activitiesIn 2011, Tullow conducted the world’slargest high-resolution gravity surveyof Kenya and Ethiopia. The data qualityis excellent and has strong similaritieswith the successful survey acquired inUganda in 2009. The Group conductedseismic surveys in 11 countries in 2011.74% SUCCESS RATIOIn E&A in 20111,743 MMBOETotal reserves and resourcesA substantial new oil basin wasdiscovered offshore French Guianain 2011. Thirty-five exploration andappraisal wells were drilled during theyear, of which 26 were successful infinding hydrocarbons. This representsan industry-leading 74% success ratio.A 40-well programme is plannedin 2012.8Tullow Oil plc 2011/2012 Corporate Responsibility Report

1OVERVIEWCOMMERCIAL QUANTITIESOF OIL AND GASFinding new oil and gas is ahigh-risk and capital intensive task.Making a discovery does not meanthat oil and gas will be extracted.We must first confirm that adiscovery is commercially andfinancially viable to exploit. This is acritical point on the journey towardscreating shared prosperity.DEVELOPMENT OF DISCOVERIES PRODUCTION OF OIL AND GAS DECOMMISSIONINGWe begin work on a Plan of Development(PoD) once we have confirmed that the oildiscovery we have made is commercial.The PoD involves extensive stakeholderengagement and must considerenvironmental, social, economic andoperational issues. These plans areapproved by governments and regulatoryauthorities and their implementation iscarefully monitored.The ultimate goal of any successfuldevelopment is to achieve production in asafe, environmentally conscientious andcost effective way. On an ongoing basis itis important to maintain the highestlevels of safety as an operator, with astrong regard for the environment andwith attention to the local communitieswho may be affected by our work.Oil and gas production can last manydecades and new technologies arehelping to extend the life of maturefields. When production ceases, facilitiesare decommissioned and the locationis remediated and reinstated.THREEMajor development projects in Africa2015 ONWARDSRamp-up in new production fromsuccessful completion of developmentsTullow has three major developmentprojects under way. Phase 1A of theJubilee field in Ghana was approved inJanuary 2012. The PoD for the Tweneboa-Enyenra-Ntomme discoveries (TEN) inGhana and options for development ofthe Lake Albert Rift Basin in Uganda areexpected to be submitted later in 2012.35% GROWTHIn production in 201178,200 BOEPDWorking interest productionThe Group has key producing assetsin six countries in Africa, including theJubilee field in Ghana, where Tullow isoperator, and which achieved First Oilin November 2010. Other producingassets are in the UK, the Netherlands,Pakistan and Bangladesh.Tullow’s portfolio of producing assets isa mix of mature and new fields. We areinvesting to maintain production andmaximise extraction in mature fields.New fields are at the start of theirlifecycle and decommissioning islikely to be 30+ years into the future.9www.tullowoil.com

Chief Executive’s reviewCREATING SHAREDPROSPERITYCreating shared prosperity is a critical element of our business model andunderpins the philosophy of how we aim to run our business. It is part ofour commitment to make a meaningful contribution to economic and socialdevelopment in our host countries.“ Our goal is to achieve the strongestpossible external operating environmentfor our activities and to align this withour ambition to benefit the lives of localpeople where we operate and improveperceptions of the oil and gas industry.We recognise the scale of this task andthat Tullow cannot do it alone.”Creating shared prosperity shapes our approach to ourcorporate responsibilities. It ensures that our businessobjectives are aligned with our determination to play our role inredressing the underdevelopment of Africa and other emergingregions in our portfolio. We are asking ourselves some bigquestions about how we want to do business and what ourimpact is on our local communities and host countries. Thesequestions include those that are raised by our wide anddisparate range of stakeholders.In trying to find the right answers we are investing in the people,tools, projects and relationships that will enable us to realiseour vision for creating shared prosperity. We are also buildingpartnerships outside the Group to help us bring some of ourplans and ideas to life. The key issues we face on our journeyare addressed in this review and throughout this report. Morein-depth information is provided on these topics and ourperformance online at www.tullowoil.com/crWe had an excellent year in 2011. Record results were achievedand industry leading exploration success continued with theopening of a major new basin, offshore French Guiana, togetherwith further discoveries in Africa. Sales revenue grew 111% to$2.3 billion. Profit after tax grew 670% to $689 million as a resultof a 35% increase in production and significantly higher oil andgas prices. Operating cash flow increased 132% to $1.8 billion.Basic earnings per share grew 795% to 72.5 cents and the Boarddoubled the dividend payout to 12.0 pence per share. Capitalexpenditure exceeded $1.4 billion during the year, 83% ofwhich was invested in Africa. Our vision, strategy and businessmodel are set out in detail on page 12 of this review. Furtherinformation on our performance and strategy is availableonline at www.tullowoil.com/ara2011Aidan HeaveyChief Executive OfficerMany companies talk about making a contribution and thereare lots of good examples of responsible businesses. Tullow’sproposition of creating shared prosperity and its underlyingactivities may not be unique, but our approach is. Increasingly,we appreciate that creating shared prosperity is a complex andmulti-faceted challenge. And, while real change in economiesFor more informationwww.tullowoil.com/crr2011/ceointerview10Tullow Oil plc 2011/2012 Corporate Responsibility Report

More informationPageGovernance 56Local content 741OVERVIEWand society can only be seen in hindsight, and takes many years,we can demonstrate the tangible benefits we are delivering andthe progress we are making each year through our corporateresponsibility initiatives.How can Tullow’s presence benefit the lives of local people?We have to respect the traditions, culture and way of life of hostcountries. It is not within our remit to change things that areoften based on centuries of belief. We must also abide by themandate of elected local and national governments. What Tullowcan do, however, is help build capacity to support economicgrowth and through this influence social progress. We canundertake projects and initiatives to change people’scircumstances and outcomes by facilitating education, creatingemployment, building infrastructure, developing local businessesand fostering water and food security. We have plenty ofopportunities across our business to make a difference inhost countries, particularly for future generations.How can we change perceptions of the oil industry?The oil industry does not have a good image. As our Chairmanhas outlined it is perceived as negative for the environment andhistorically has distorted local economies in developing regions.Tullow has a unique opportunity to address these perceptions.We are a young company and are in the process of developingtwo new oil basins in Africa. This means that while we havesome significant strategic and operational challenges, we don’tsuffer from any major legacy issues. This gives us a goodstarting point. We believe that to change perceptions we musttake a long-term view and plan for success. This affectseverything from stakeholder management to how we drill ourfirst well or when we commence supplier development. The netresult is that we invest up front to ensure that our activities areundertaken with due care and attention. We are also a learningorganisation and continue to grow our knowledge andunderstanding of our impacts and how to optimise local contentopportunities and skills transfer.How do we manage bribery and corruption risk?We manage bribery and corruption risk in a number of ways.We launched a new Code of Business Conduct in response toboth a tightening of the regulatory environment and an increasein the ethical risks we are facing across the Group. We havedeveloped detailed guidance on our expectations of thebehaviour, in any circumstances, of our employees, contractorsand suppliers and have supported this with policies, systemsand training. A Compliance Committee has been formed toguide and challenge the Group Compliance function, andregular compliance presentations are made to the Executiveand the Board. In addition, we have become members ofTransparency International’s Corporate Supporters Forum andwe are a supporter of the Extractive Industries TransparencyInitiative (EITI). Compliance adds value by ensuring that wemeet the requirements of applicable laws, consistently live upto our ethical responsibilities and protect our good reputation.How did we defend our good name in the face of serious butfalse allegations of bribery?We faced serious allegations in Uganda in 2010/2011 that Tullowemployees had bribed senior government ministers. These werebased on forged documents and we aggressively defended ourgood name. We worked closely with the UK Serious Fraud Office,the Metropolitan Police, the Ugandan Police and other relatedauthorities. We also published detailed information presentedto a Ugandan Parliamentary Ad Hoc Committee to demonstrateour unqualified commitment to being transparent and toupholding high ethical standards. To mitigate any potentialdamage to Tullow’s and the wider industry’s reputation, we haveundertaken a reputation management programme in Ugandaacross all our stakeholder groups. During the year, wecontinued to negotiate with the Government to progress thecompletion of the farm-down, which occurred in February 2012.We are committed to the success of Uganda and we havealready contributed to social enterprise development, localemployment, local supplier and institutional development andbuilding capacity for its nascent oil industry. We have beenawarded an East African CSR award for our local contentapproach in Uganda.ENSURING WE’RE A RESPONSIBLE BUSINESSIn 2011, we have strengthened our operationalorganisation through a new regional businessstructure. In this year’s special feature we havecreated individual regional profiles that give anoverview of the region and its corporateresponsibility performance and initiatives.West & North Africa Page 24South & East Africa Page 32Europe, South America & Asia Page 4211www.tullowoil.com

Chief Executive’s review continuedWhy do we explore in areas of environmental sensitivity?From a commercial perspective, most of the easy oil has beenfound in the world today. Therefore finding big oil, which is coreto our exploration-led growth strategy, requires us to look infrontier areas. We are doing this at a time when the industryhas a wealth of technical know-how and experience and whenthe world is demanding very high standards of environmentalstewardship and performance. At Tullow, we are committed tocombining both. We want to conserve biodiversity, leave a smallfootprint and undertake our activities in a way that ensures thesustainability of eco-systems. In 2012, the Tullow OilEnvironmental Standards (toes) have been significantly revised.We are addressing the issues that arise when working insensitive areas through our new Biodiversity Standard. Wehave also developed an Operating in Sensitive Areas strategywhich provides guidance on best practice when working inany location classified as sensitive. We have a mandated riskmapping process prior to entering a new area, which canidentify all important sites, to help us focus on the key issuesand risks of entering such areas. Executive approval is alsorequired before undertaking any activity in a sensitive area.How can we consistently achieve top quartile EHS performance?Our biggest priority is to keep people safe and minimise ourimpact on the environment. To do this, we need to consistentlyachieve top quartile industry performance in EHS over the longterm. We are approaching this objective from a number ofperspectives. We have enhanced our EHS capability with a newleadership structure, additional EHS resources in our RegionalBusinesses, and through the introduction of new toes. We haverevised how we manage EHS with new 2012 key performanceindicators that focus on encouraging the right behaviours andleadership. We have developed an innovative programme that weare rolling out to employees and contractors to ‘Think Forward’for the health and safety of our people and local communitiesand the wellbeing of the environment.OUR VISIONTo be the leading global independentexploration and production companyOUR STRATEGYOur exploration-led growth strategy isbased on building a balanced resourceportfolio that includes a diversified mixof high-impact exploration, near-termdevelopment projects and materialproduction growth, underpinned by astrong balance sheet that includes abroad range of funding from cash flow,portfolio management and thecapital markets.Our strategy is focused on buildingsustainable long-term value growthand our objectives are to deliversubstantial returns to shareholdersas well as fulfil our commitmentto make a positive and lastingcontribution where we operate.OUR VALUESFocus on resultsStrong sense of focus on results,driving tasks and projects throughto completion, with the flexibility toadapt to changing situations.Integrity and respectWork with integrity and with respectfor people and for the environmentsin which we operate.Entrepreneurial spirit and initiativeMaintain our entrepreneurial andcreative spirit as we challengeourselves to develop the businessand ourselves.Commitment to Tullowand each otherWork in a collaborative manner,empowering ourselves and others,whilst taking responsibility forour actions.OUR BUSINESS MODELWe create value in two ways. We findoil through successful exploration andstrategic acquisitions. We sell oil, bydeveloping to produce or farming downto enhance our portfolio of assets andskills, both of which generate cashflow for reinvestment in the businessand support a well funded balancesheet. How we run our business isequally important in enabling us tosuccessfully deliver our businessplans and continue our growthstrategy. Protecting our business,sustaining our good reputation,maintaining our entrepreneurialculture and contributing to socialand economic development arethe cornerstones on which we arebuilding our business.Learn more about how we are establishingan unrivalled competitive position thatdifferentiates us from our peers.Visit: www.tullowoil.com/ara2011SF12Tullow Oil plc 2011/2012 Corporate Responsibility Report

More informationPageEHS performance 52toes 631OVERVIEWHow do we change misconceptions of investing in Africa?Africa is, in my view, the world’s best investment secret.Since 2000, GDP growth has consistently outperformed OECDcountries and, in 2012, seven out of the 10 fastest growingeconomies in the world are forecast to be in Africa. This putsAfrica second only to Asia in terms of economic growth. In 2012,Tullow became the founding partner of ‘Invest in Africa’ (IIA)whose mission is to challenge misconceptions of doingbusiness on the continent. IIA will do this by inspiring newinvestors to confidently enter new markets in partnership withlocal businesses in Africa. The plan is to build a coalition offounding partners, whose African expertise, knowledge andnetworks will foster business opportunities on the continentand act as a bridge for new investment. A sponsorship deal hasalready been signed with Premiership football club SunderlandAFC to take awareness of the IIA brand and the investmentopportunities in Africa to a global audience. More effort hasto be geared towards the development of entrepreneurship inAfrica as well as building robust regional markets and a strongbusiness environment. This is the vision for Invest in Africa.“ By using the oil industry as aspringboard, a much greateropportunity exists for allstakeholders to work together inthe interests of achieving moreprivate sector investment andsustained economic growth.”1Exploration& appraisal7SharedprosperityHOW WE CREATE VALUE6Organisation& culture2Development& operationsSUSTAINABLELONG-TERMVALUE GROWTH5Governance& valuesHOW WE RUN OUR BUSINESS3Finance & portfoliomanagement4RiskmanagementOUR STRATEGIC PRIORITIES1 Execute selective high-impactexploration and appraisalprogrammes.2 Safely manage and deliver allmajor projects and productionoperations, increasing cash flowand commercial reserves.3 Manage financial and businessassets to enhance our portfolio,replenish upside potential andsupport funding needs.4 Ensure safe people, proceduresand operations and minimiseenvironmental impacts.5 Achieve strong governance acrossall Tullow activities and continueto build trust and reputation withall stakeholders.6 Build a strong unified team withexcellent commercial, technicaland financial skills andentrepreneurial flair.7 Contribute to ensuring that thesuccess of our industry bringstransparent and tangible benefits tolocal people and national economieswhere we operate.13www.tullowoil.com

Chief Executive’s review continuedHow would we rate our progress on creating shared prosperity?The big challenge is to achieve shared prosperity in a way that isself-sustaining in the longer term. This makes the task complex.We have made good progress in 2011, particularly with somelonger-term projects such as developing a model for enterprisecentres and technical training, and launching the Tullow GroupScholarship Scheme. While there are a number of wellestablished African owned and managed companies, many smalland medium-sized businesses lack the management skills,resources and access to finance to respond to the opportunitiespresented by the oil industry. For example, the scale of investmentin developing the oil industry over the next five to seven yearsin Uganda makes it one of the largest capital investmentprogrammes in the region. Our goal is to enable local businessesto embrace this commercial opportunity. We have a Group localcontent strategy which includes contract incentives to promotelocal content throughout our supply chain. We are now expandingsupplier development to include an independent EnterpriseDevelopment Centre in Hoima, in the Lake Albert Basin, tostrengthen Ugandan business capability in core areas suchas accounting, tax, technology and marketing.We have completed a study to assess opportunities for Ugandannationals to be employed in the construction workforce requiredto develop the Lake Albert Basin. As local standards often fallshort of those demanded on an oil and gas construction site,training will be required to bring successful applicants up tominimum, internationally recognised, certification andqualification. Our intention is to develop an oil and gas trainingprogramme with our joint venture partners, national and localgovernment and education institutions as well as private andpublic vocational colleges. Part of this project will be to developUgandan colleges, through additional facilities and trainertraining, to meet minimum standards and to help them buildpartnerships with established overseas training institutions.Once the construction phase is completed there will be demandfor operator and maintenance training and the skilled andexperienced construction workforce can be deployed elsewherein support of diversified economic development.GOVERNANCE, RISK AND CORPORATE RESPONSIBILITY FRAMEWORKTullow has a strong governance and risk framework that gives direct ownership of riskand corporate responsibility to the Board and Executive Directors.Risk managementRisk management is the overall responsibility of the Board. Each Executive Director has a definedresponsibility and accountability for a specific aspect of the Group’s key risks.The Audit Committee also plays an important role.Board of Directors11 membersFive Executive DirectorsSix non-executive Directorsincluding Chairman andSenior Independent DirectorExecutive DirectorsThere are five Executive Directors with collectiveresponsibility for strategic and externalrisk managementBoard CommitteesAudit CommitteeNominations CommitteeRemuneration CommitteeRegionalBusinessesCreate value through safelydelivering the business planand long-term targetsCorporate businessfunctionsCreate value through providingappropriate resourcing for theRegional Businesses andachieving corporate objectives14Tullow Oil plc 2011/2012 Corporate Responsibility Report

More informationPageGhana baseline study 29Tullow Group Scholarship Scheme 771OVERVIEWIn 2011, we moved our social enterprise strategy to the nextlevel, to focus on projects that support capacity building forthe oil and gas industry and improve education and training.In 2011, we launched the pilot phase of the Tullow GroupScholarship Scheme with bursaries to 24 Ghanaians from thepublic sector to study industry related Masters Degrees in theUK. This year up to 110 scholarships will be awarded to localnationals, mainly in Africa.In 2012, we are undertaking a macro socio-economic study inGhana to document the impact of Tullow’s activities to date andto highlight areas for future development. In Uganda and Kenyawe are undertaking socio-economic baseline studies to identifyways that we can mitigate our impacts and create a wide rangeof social and economic development opportunities. We have alsodecided to review our social investment strategy in Uganda andKenya to evolve these into a long-term, measurable set ofstrategic objectives.None of this would be possible without the commitment andenthusiasm of Tullow people. Our 2011 global employee andcontractor survey demonstrated high levels of engagement aswell as some inevitable growing pains. Maintaining andenhancing our culture and building our organisational capacityremain key priorities for the Board.We are evolving into the leading global independent explorationand production company, giving us a higher profile that attractsmore attention and scrutiny. Tullow operates in a diversepolitical, social and environmental arena and we are dealingwith an increasingly complex group of stakeholders. We aremaking good progress with creating shared prosperity and Ilook forward to reporting on another year of achievementagainst our objectives in my next review.Aidan HeaveyChief Executive OfficerTullow’s 2012 principal risks and uncertainties in relation to theGroup’s financial and operational performance are set out indetail in the 2011 Annual Report. These include completion ofthe Uganda farm-down and timely approvals from Ugandanauthorities for basin-wide development, delivery of productiontargets, exploration and appraisal risks with 40 wells planned in2012, management of shareholder expectations and strongfinancial and portfolio management.Tullow also has a number of specific corporate responsibilityrisks, in particular government relations and stakeholderengagement, in reference to the 2012 Board objective tosignificantly improve political and economic risk informationand country risk profiling. In addition, the Group has a range oflong-term risks, including corporate responsibility risks, whichcould potentially adversely impact our employees, operations,performance and assets. For more information visitwww.tullowoil.com/riskExecutive DirectorsAidan HeaveyChief ExecutiveOfficerGraham MartinGeneral Counsel &Company SecretaryPaul McDadeChief OperatingOfficerAngus McCossExplorationDirectorIan SpringettChief FinancialOfficerRisk management External risk Governance risk Operational risk Exploration risk Financial riskRisk assurance Executive team ComplianceCommitteeDevelopment& OperationsLeadership TeamGlobal ExplorationLeadership TeamFinance RiskCommitteeCR ResponsibilitiesExternal affairs,Stakeholderengagement,Social performancePeople, Localisation,Governance,Ethics,ComplianceEnvironment,Health & Safety,Crisis managementInformation systemsmanagement andsecuritySustainablesupply chain,Local content,Shareholderrelations15www.tullowoil.com

Environmental team members reviewing GIS data, London office, UK.

18Stakeholder engagementBuilding a strong foundation of understandingamong our different stakeholder groups can helpto secure local buy-in to our operations and easethe path to development.19About this reportWe prioritise the topics of current and long-termstrategic importance to Tullow, along with thetopics identified by our stakeholders as being ofmost significance to them.20Why we engageOur aim is to identify non-technical andreputational risks and to leverage opportunitiesto support the growth of our business.23Special feature: Responsible businessIn 2011 we strengthened our organisationalstructure by creating three Regional Businesses.We take a regional view of our progress onmaking a lasting and positive contributionwherever we operate.STAKEHOLDERPRIORITIESWORKING WITHINTEGRITY & RESPECTWe work with integrity and respectfor people, and for the environmentsin which we operate.2

Stakeholder prioritiesENGAGING TO SUPPORTTULLOW’S SUCCESSWe engage with a large and diverse set of stakeholders to help us identifyand manage non-technical and reputational risks and leverage opportunitiesto support the growth of our business.Stakeholder engagementTullow’s stakeholders include anyone who is impacted by orwho can influence the direction or outcome of a Tullow projector of our operations. They are the individuals and groups thatwe need to engage with on a regular basis to effectively manageour non-technical and reputational risks and leverageopportunities to support business growth.Among our stakeholder groups are employees, shareholdersand other providers of capital, governments (national, regionaland local), regulators, policymakers, communities, NGOs andCSOs, the Diaspora, international and local businesses,academics and the media. Every day, and at every level of thebusiness, Tullow people are having conversations with thesegroups to move our business forward.Building a strong foundation of understanding among ourdifferent stakeholder groups can help to secure local supportfor our operations. Failure to engage effectively can lead todelays in executing our business plans. It can have seriousimplications for Tullow’s ability to secure a social licence tooperate, lead to erosion of shareholder value and make it muchmore difficult to attract and retain the talent we need.We are working to improve the way we engage our full range ofstakeholders, and over the last 12 months we have begun todevelop a more strategic approach to external stakeholdermanagement. This will ensure we are effective in: Communicating factual information about our operationsand ambitions, so that our stakeholders understand ourbusiness and can ask questions and make decisions in aninformed way. Monitoring social and political risk, enabling us to identifyand assess threats to the business, and to addressproblems early on when they arise. Soliciting input and ideas, incorporating these into ourbusiness plans, practices and processes. Creating a direct link between our social enterpriseinitiatives and business priorities.Prioritising our stakeholdersEach Tullow business unit identifies, prioritises and engages thestakeholders that are most relevant to its operations. It does thiswith central support from the Group External Affairs team, which isresponsible for engaging with, and advising on, matters relating tostakeholders with a global reach. The creation of senior externalaffairs roles for each of our Regional Businesses has meant thatGroup External Affairs is shifting its focus to delivering corporatepolicy, standards, guidelines and tools in support of more effectivestakeholder management across the organisation.In 2012/13 we expect this work to enhance our ability to refineand report on our key stakeholder issues. This should help usto move towards the development of the type of performanceindicators that we would need to be able to align with theAccountAbility AA1000 Stakeholder Engagement Standard.We may also conduct a gap analysis to understand properlyhow to move towards implementing this standard effectively.Understanding our stakeholder issuesWe commissioned a global reputation survey in 2011 to gainstrategic insights on the company’s key external reputationdrivers and to benchmark our reputation against other oil andgas companies working in the same areas. The surveycanvassed views in Uganda, Ghana, UK, Gabon, French Guiana,Mauritania, Brussels (EU) and USA. Eight stakeholder groupswere included in the research sample: business community,regulators, national government, policy makers, NGOs, thinktanks, local community leaders and the media.The results of the survey were cross-referenced with relevantand material issues identified through a range of sources,including other forms of direct engagement with ourstakeholders. This gave us an understanding of some requiredareas of focus for our tactical programme, message contentand platforms for each area of operation moving forward.Tullow’s strongest reputational asset is being a well-runbusiness. Stakeholders recognised the company has a clearlong-term vision, is run by an effective management team andis financially strong.18Tullow Oil plc 2011/2012 Corporate Responsibility Report

Area for improvementTullow’s contribution to development, creating sharedprosperity, and our ability to listen to and respond tocommunity concerns.Actions to dateCommunity engagements have continued to highlight theimportance of managing Tullow’s social risks as an inclusivepart of operational project design and delivery. Topics raised,among others, include land access and acquisition,compensation, resettlement, impact on traditional livelihoodsand cultural heritage issues. To manage these risks moreeffectively as the business grows, we are developing newsystems, standards and processes for social impactmanagement, including an improved approach to ESIAs, moreextensive grassroots stakeholder engagement programmes andmore targeted social investment.In some countries where our level of local content activity isactually high, we received a low rating on local contentcontribution. Since then we have focused on improving theeffectiveness of our communication and engagement through thelaunch of an online supplier centre. In Ghana our local contentteam now produces a newsletter for suppliers and has increasedits participation in external industry events sponsored by Tullow.Our Ugandan team has run a public information programmeabout Tullow’s supply chain and local supplier developmentprogramme, and continues to run workshops for suppliers.Area for improvementProvision of accurate information on our activities and listeningand responding to stakeholder requests.Actions to dateIn Uganda we have begun to address this in several ways,including work to develop a centralised social information systemfor stakeholder engagement, baseline data management andland issues. This is complemented by a programme of activitiesaimed at more effective communication with parliamentarians,two new community information centres and additional‘introduction to oil and gas’ courses. Dedicated stakeholdersessions have also been held to provide updates on thecompany’s activities in the Albertine basin.Area for improvementTullow’s approach to transparency, particularly in relation topayments to host governments.Actions to dateThe survey was taken before we had announced our decision tobecome a corporate supporter of EITI and before we hadpublished our Ghana Petroleum Agreements online. Feedbackon both initiatives has been positive. We were also asked to bemore transparent about our hiring and contracting practices. Inaddition to specific outreach from the local content teamsoutlined above, our new Group Localisation Manager engagesactively with different groups in-country and abroad to identifyprospective skilled employees who are nationals of countries inwhich we operate.More informationPageStakeholder engagementperformance 51Local content 74About this reportThis report covers Tullow’s corporate responsibilityperformance for 2011, plus significant events anddevelopments occurring in the first half of 2012. Our goalin this report is to provide an overview of our operationsand how corporate responsibility issues are tied to ourcore business, while discussing in more detail relateddevelopments and major events that occurred during thereporting period. We also prioritise the topics of current andlong-term strategic importance to Tullow, along with thetopics identified by our stakeholders as being of mostsignificance to them. A full basis of reporting is availableonline at www.tullowoil.com/crr2011/borWho this report is forEvery year, report contributors from across the businessidentify the primary audiences they wish to reach through theCorporate Responsibility (CR) report. The output of this year’sexercise has identified our key audiences as governments andregulators, shareholders (particularly Socially ResponsibleInvestors), NGOs and Tullow’s supply chain. Local communitiesform a very significant part of our engagement effort, and whiletheir feedback will feature in this report, core outreach to thisstakeholder group is through channels such as CommunityLiaison Officers, town hall meetings and radio programmes.Sources reviewed in determining the structure and contentof this report included: Direct feedback and input from our key internal andexternal stakeholder engagement initiatives Input from our operations highlighting pivotal issues Tullow policies, guidelines and risk framework Peer group reporting Internal and external feedback on previous reporting External requests for information from CR benchmarkingand accreditation organisations GRI G3.1 guidelines and the Oil & Gas Sector SupplementKey topics included in this year’s report are: (see page 20for details) Bribery and corruption and transparency of payments(page 58) Opportunities for local people and local businessesto enter the supply chain, including employmentopportunities with Tullow (pages 68-77) Providing transparent, accurate information about ouroperations (page 60) New country entry, operating in sensitive areas andemissions reduction targets (pages 62-67) Plans to develop a strong social performance systemand processes across Tullow (pages 19 and 36]2STAKEHOLDER PRIORITIES19www.tullowoil.com

Why we engageWHY WE ENGAGEMAKING SURE WEARE THE PARTNER OFCHOICEOBTAINING OURSOCIAL LICENCETO OPERATEGROWING SKILLS ANDBUILDING CAPACITYFOR OUR INDUSTRYMAINTAINING OURORGANISATION ANDCULTUREOur relationship with national,local and regional governmentsand industry regulators spans thefull lifecycle of our projects, fromcountry entry at the licensingstage to rehabilitation after ourwork ceases. We engage toprovide updates on ouroperations, solicit input andfeedback on our plans, to buildinstitutional capacity for the oiland gas industry and to ensurecompliance with regulationsgoverning our industry in eachcountry. We engage throughformal meetings, visits to ouroperations, informationprogrammes for parliamentariansand through initiatives such asour Introduction to Oil and Gascourse programme. Being thepartner of choice also depends onour ability to listen and respond tocommunity issues and feedbackon our projects.Oil and gas exploration anddevelopment projects can havesignificant impacts on the lives ofthe communities where weoperate. Regular, face to faceengagement helps us to identifyand mitigate the key socialimpacts of our operations, and tounderstand the concerns andneeds of our stakeholders. OurCommunity Liaison Officers arededicated to providing informationabout our projects. They alsolisten to and discuss grievancesand ensure that the people livingor working near our operationsare kept safe at all times. We alsocontinue our dialogue with CSOsand NGOs at both local andnational level, and with therelevant international NGOs. Weaim to understand their prioritiesand challenges, help them tounderstand our project plans andform partnerships to deliversocial enterprise projects.Tullow has a local supplierdevelopment programmedesigned to provide support tosuppliers, not only to enablethem to respond to tenders, butalso to help them improve theirbusiness processes, allowingthem to compete withinternational suppliers.Our Local Content team worksto build sustainable and viablesupplier networks in hostcountries and to develop traininginitiatives. In 2011 Tullow alsolaunched an online suppliercentre to provide all suppliers,but particularly local companies,with the opportunity to registertheir interest to become asupplier. The Centre provideseasy access to key information,current opportunities anddates for supplier eventssuch as compliance workshopsand seminars.An engaged and motivatedworkforce is essential to Tullow’scontinued growth and success.Our Internal Communicationsprogramme plays a key role inensuring that Tullow employeesworldwide are involved andengaged around the Group’sinitiatives and activities. Thisincludes supporting visibility ofthe Board, providing projectupdates and other news fromacross the organisation on healthand safety, social enterpriseprojects and initiatives. Employeecommunication and consultationforms part of our changemanagement approach. It alsoplays a central role in preservinga values-based entrepreneurialculture as we grow. Our Talkbacksurvey provides a voice toemployees and contractorsglobally to feed back andcontribute to the future directionof Tullow in areas such ascommunications, training, workenvironment and fair treatment.KEY ISSUES RAISED Providing accurate informationon Tullow’s activities Transparency on employmentand contracting policy forlocal staff and companies Commitment to governmentas a long-term partner Improving institutionalcapacity for the oil andgas industry Impact of oil and gasdevelopments on environmentand traditional livelihoods Employment and supply chainopportunities for members ofthe local community Land rights and access toadequate compensation fordamage to or access to land Ensuring that localcommunities receive a fairshare of oil revenues Accessibility of Tullowscholarships and training atthe local level Opportunities for localcompanies to enter oursupply chain Transparency on Tullow’scontracting policy and process How local companies canmeet industry standards toqualify as a potential supplier The need for businesses toreceive updates on progressof Tullow’s projects/tenderopportunities Effective change managementas our workforce grows at arate of 20-40% each year Ensuring high levelsof efficiency as theorganisation grows Increasing challenges ofmanaging a diverseinternational pool of talent Further embedding our values20Tullow Oil plc 2011/2012 Corporate Responsibility Report

2STAKEHOLDER PRIORITIESACCESS ANDINFLUENCE IN THECAPITAL MARKETSOur strategic objective is todeliver substantial returns toshareholders. This ensures thatwe can continue to pursue ourbusiness plans and invest increating shared prosperity. Tullowhas a very active investor relationsprogramme through whichthe CEO, the CFO, the otherExecutive Directors and SeniorManagement regularly meetmajor shareholders. In 2011,370 investor meetings were held,presentations were made at15 international conferences and18 broker sales team briefingswere conducted. We also engagewith Socially Responsible Investorsthrough investor meetings,roadshows, invitations to ourmulti-stakeholder meetings andby answering direct enquiries andSRI benchmarking questionnaires.INDUSTRY AND PEERGROUP ISSUES ANDBENCHMARKINGWe maintain a number of industrymemberships and affiliations thatenable us to participate in, learnfrom and contribute to industryissues and benchmark ourpractices, particularly inoperational areas. Theseaffiliations cover areas such astransparency, human rights, oilspill response and industryreporting standards and we seekindependent critiques of ourreporting and communicationsfrom a variety of stakeholders.All of these help to ensure weadopt relevant good practicesfrom our industry, contributingto our competitive edge, andmaintain an appropriate level ofdialogue and transparencyaround our operations.BUILDING ANDMAINTAINING OURREPUTATIONBeyond targeted engagementwith specific stakeholder groups,we work hard to tell the Tullowstory to a wide audience.We participate in nationalgovernment sponsored publicdialogue on the oil and gasindustry and look foropportunities to explain ourapproach to creating sharedprosperity to the Diaspora anddiplomatic representatives ofeach of our countries of operationand locally. We also sponsorevents focused on promotingAfrica as an investmentdestination and engage withinternational universities onidentifying potential sources ofAfrican talent for our business.We engage with the media toinform and engage on industryand Tullow related issues, wecommission stakeholderperception surveys and respondto corporate responsibilitybenchmarking andaccreditation surveys.2012 BOARD RISKMANAGEMENTOBJECTIVESContinue to ensure thatthe Group’s financial andoperating risks areidentified and thatadequate systems are inplace to monitor andmitigate them, with aparticular focus on:1 External StakeholderRelationships2 Portfolio management3 Improving the quality ofBoard reporting onevolving risks4 Building organisationalcapacity5 EHS and asset integrity;and6 Maintaining andenhancing the Tullowculture Setting meaningful emissionsreduction targets Transparency on paymentsto governments Bribery and corruption risksfaced and implementationof the UK Bribery andCorruption legislation Providing transparent,accurate updates onkey areas of corporateresponsibility progress The need for clarity onTullow’s approach tooperating in sensitive areas Bribery and corruption risksfaced and implementationof the UK Bribery andCorruption legislation Transparency on paymentsto governments Operating in sensitiveareas, particularly WorldHeritage Sites Industry solutions to oil spillresponse issues Human Rights and Securityand implementation of theRuggie Principles Opportunities to enter theTullow supply chain in Africa How to avoid the ‘Oil Curse’ innew oil producing countries– lack of economic diversification Employment opportunitieswith Tullow in Africa Providing information onTullow’s activities Responding to allegations ofbribery and corruption inUganda21www.tullowoil.com

Tools, process, audiencesExternal sustainability initiatives and standardsWe maintain a number of industry memberships and affiliationswhich enable us to engage with our industry peers in discussionsaround industry issues and to benchmark our practices: We have become a member of Transparency International’sCorporate Supporters Forum. We are corporate supporters of EITI. We are also activelyinvolved in the EITI implementation process in the countriesin which we operate that are implementing the EITIstandard. Our payments under the Deepwater Tano andWestcape Three Points Petroleum Agreements arepublished on page 83 of this report, and online. We report our greenhouse gas (GHG) emissions through theCarbon Disclosure Project and participate in independentenvironmental, social and governance performanceresearch such as the EIRIS and Vigeo surveys. We are a full participant member of Oil Spill ResponseLimited (OSRL) and through our membership of Oil & GasUK we have participated in the Oil Spill Prevention andResponse Advisory Group (OSPRAG). We have requested admission to the Voluntary Principles onSecurity and Human Rights. We have also conducted a gapanalysis to understand implications for operationalising theGuiding Principles for the UN ‘Draft Norms on theResponsibilities of Transnational Corporations and OtherBusiness Enterprises with Regard to Human Rights’(the Ruggie Principles). These will be used by Tullow as aguide to developing our Human Rights policy. During 2011 we conducted a gap analysis to understand ourFTSE4Good rating. While Tullow scores reasonably wellagainst most of the FTSE4Good criteria, our current lack ofquantitative climate change targets means that improvingour score in this area remains a challenge. We have reviewed the services and opportunities for knowledgesharing and engagement available through membership of theInternational Petroleum Industry Environmental ConservationAssociation (IPIECA). This review has led us to conclude thatwe would benefit from wider interaction on social responsibilityissues such as human rights, social impact assessments andindigenous peoples in countries where we operate, and we arecurrently talking to IPIECA about becoming a member.Applying the GRI G3.1 GuidelinesThis report applies the Global Initiative G3.1 Guidelines and Oiland Gas Sector Supplement, which are designed to helporganisations to measure and report on their economic,environmental and social performance over time.A full GRI content index for this report, and covering elementsof our 2011 Annual Report and website, can be found online atwww.tullowoil.com/crr2011/griGRI has not assured this report, and the GRI Application LevelCheck is not a form of assurance. Deloitte provide limitedassurance on this report – more information is found on page 80.22Tullow Oil plc 2011/2012 Corporate Responsibility Report

RESPONSIBLEBUSINESSCreating shared prosperity shapes ourapproach to our corporate responsibilities.It ensures that our strategic priorities andbusiness objectives are aligned with ourcommitment to play our role in contributingto the development of new oil countriesin our portfolio of assets. We know we willonly earn the trust of the local, nationaland international community, and changeperceptions of the oil industry, if we act asa responsible business with honesty andtransparency. Our special feature providesa Regional Business overview of ourprogress with creating shared prosperityand highlights some of the key initiativesin each country.23www.tullowoil.com

SHARINGSUCCESSIN WEST & NORTH AFRICA24Tullow Oil plc 2011/2012 Corporate Responsibility Report

25www.tullowoil.com

West & North AfricaSHARING SUCCESSWest & North Africa is the largest Regional Business in the Group. In 2011,it represented 73% of our working interest production, 84% of our salesrevenue and 38% of our reserves and resources.NineCountries374Employees42Licences66,425 SQ KMLicence acreage657.8 MMBOEReserves & resources57,400 BOEPDWorking interest production$1,944 MILLIONSales revenue$768 MILLION2012 forecastcapital expenditureKey2011 drilling activityED26Key producing assetCompliance training and forumsCommunity Liaison team in-countryEHS data reportedTullow employees (2011)Local content expenditure reportedTullow Group Scholarship SchemeOffshoreExplorationDevelopmentPOnshoreProductionKey officeCurrently all our African productioncomes from this region, including theworld-class Jubilee field, offshoreGhana. West & North Africa also hashigh-impact exploration acreage inseven countries.In this section you will find fast factsabout West & North Africa includingfinancial, environmental and corporateresponsibility data. There is also asummary overview of our operationstogether with the key corporateresponsibility initiatives in each country.These are a reflection of operatorship orlicence ownership as well as the currentlevel of activity being undertaken.In addition, we have included a specialsection on Ghana which is the mainoperating and development focus for thisregion in 2012.MAURITANIANon-operated production.The Group is looking to replicate thesuccess of its West African exploration inMauritania. Tullow has significant acreageof 29,488 sq km extending along 750 kmof coastline and is planning a number ofexploration activities across its variousexploration licences in the Mauritania-Senegal basin during 2012. In 2012,five postgraduate scholarships willbe awarded in Mauritania under theTullow Group Scholarship Scheme.SENEGALIn 1986, Tullow signed its first everlicence agreement in Senegal. Tullownow operates the 2,807 sq km St Louisexploration licence. Our 2011 socialenterprise projects in Senegal mainlyfocused on local fish processingenterprises to contribute to improvingliving conditions.CONGO (BRAZZAVILLE)Non-operated production.CÔTE D’IVOIRENon-operated production. In June 2012we announced that the Paon-1Xexploration well had discovered oil, inthe CI-103 licence.In 2011, we provided emergency fundingto help a local women’s association backinto business so they could support theirfamilies. The funds also renovated adamaged hospital on the outskirts ofAbidjan, and repaired roofing and powersupplies in 21 primary schools. Thisyear five postgraduate scholarshipswill be awarded by the Tullow GroupScholarship Scheme.EQUATORIAL GUINEANon-operated production.GABONNon-operated production.During 2011, our social enterpriseinvestment was focused on educationprojects. This included equipping thecountry’s first HIV/AIDS training anddrop-in centres for Gabon’s youth inLibreville and the neighbouring town ofOwendo, and the renovation of a primaryschool and kindergarten. A multimediatraining centre was also set up in Ntoum,38 km east of Libreville. This is to buildlocal capacity in line with Gabon’snational initiatives to build a betterqualified national workforce. In 2012,10 postgraduate scholarships willbe awarded by the Tullow GroupScholarship Scheme.Tullow Oil plc 2011/2012 Corporate Responsibility Report

MauritaniaEDPSenegalESierra Leone ELiberia ECôted’IvoireEDPGhana EDPccracEquatorialGuinea DPGabon EDPCongo(Brazzaville) DPGHANAOperated production.Two successful exploration wellsdiscovered the world class Jubilee field inmid-2007 and First Oil was achieved inlate 2010. Cumulative production toend-2011 was over 33 million barrels and34 liftings have been completed.Government approval for the Phase 1Adevelopment of the Jubilee field has beenreceived allowing us to work to increasedaily production from the field. Grossproduction from Jubilee is expected toaverage between 70,000 and 90,000 bopdin 2012 and field capacity is expected tobe reached in early 2013. Read moreabout Ghana on pages 28 and 29 ofthis report.LIBERIA & SIERRA LEONETullow has four contiguous non-operateddeepwater licences offshore Liberia andSierra Leone, where the Group is lookingto capitalise on the success of theJubilee play in Ghana. Explorationdrilling, which finished in early 2012,encountered oil and confirmed a workinghydrocarbon system in the LiberianBasin. An exploration well is plannedoffshore Liberia later this year.27www.tullowoil.com

West & North AfricaIN FOCUSGHANA$930.3 MILLIONSales revenue$496.6 MILLION2012 forecast capital expenditure239Employees85%Local employees$46.9 MILLIONSpent with local suppliers1,223Contracts awarded to local suppliers$4.1 MILLIONSocial investment24Scholarships awarded in theTullow Group Scholarship Schemepilot phase, 201150Additional scholarships to beawarded in 2012Employing GhanaiansOur operations in Ghana, incorporating offices in Accra andTakoradi, account for most of our regional headcount. We have acommitment to developing an industry run by Ghanaians and atthe end of 2011 85% of our employees in Ghana were local. Wecontinue to invest in training and development to increase theskills of local employees and to build a succession plan formanagerial and technical roles.Developing local suppliersIn 2011, we spent almost $47 million with local suppliers. Thiswas substantially down compared with 2010, mainly due to thechanging nature of our activities during the year, post First Oil in2010. We continued to host workshops and seminars for potentialsuppliers as part of our ‘Closing the Gap’ programme, whichfocuses on helping local suppliers to achieve the standardsrequired in key areas such as environment, health and safety.Phase 1A of the Jubilee field and the TEN development willprovide significant further opportunities for local suppliers toparticipate in activities associated with our industry.Investing in building capacityAlong with our initiatives to help develop local businesses, weare investing in building capacity in our host countries throughthe Tullow Group Scholarship Scheme. 70 postgraduatescholarships have been allocated to West & North Africa for2012, 50 of these to Ghana. These scholarships, which areadministered by the British Council, will allow applicants tostudy oil and gas related Masters Degrees, and other nonrelatedcourses, before they return to work in host countryinstitutions. Increased capacity will assist our host countriesin developing their oil and gas industries and enhance ourrelationships with stakeholders, which strengthens Tullow’soperating environment.28Tullow Oil plc 2011/2012 Corporate Responsibility Report

Côte d’IvoireGhanaLEGENDOil Field/DiscoveryGas Condensate &Oil DiscoveryOil DiscoveryUnder AppraisalEnyenraDEEPWATER TANONtommeTweneboaJubileeMahoganyTeakAkasaWEST CAPETHREE POINTSGhanaOption tore-licenceBandaThe Jubilee field was discovered in 2007 andproduction began in late 2010. Another majordiscovery was made further along the coast in 2009and since then a successful exploration andappraisal campaign has resulted in the Tweneboa-Enyenra-Ntomme commercial discoveries, nowcollectively known as the TEN Project. Technicalwork on TEN is progressing to plan and theschedule to submit the PoD to the Minister ofEnergy is on track for submission during the thirdquarter of 2012. Phase 1A development of theJubilee field was approved in January 2012.Enhancing our EHS processesTullow Ghana’s environmental management system wasISO 14001 certified in late 2011. In April 2012, we undertook theannual independent external verification of implementation andmonitoring of the Environmental and Social Action Plan for theJubilee Phase 1 development project as part of Tullow’scommitments to the International Finance Corporation (IFC).This review involved field visits to the FPSO and supportlocations such as the Takoradi Shore Base and meetings withTullow personnel and local stakeholders including fishingcommunities. No instances of non-compliance were found.The FPSO has achieved a best-in-class safety performance fromits arrival in Ghanaian waters in June 2010 to the early monthsof 2012. Since then there has been a diesel discharge fromthe FSPO and a High Potential Incident on one of our rigs. Inaddition, there has also has been a third party driving fatalityin Ghana. A 2012 deliverable for the Tullow Ghana team isa gap analysis and self-assessment against the Tullow OilEnvironmental Standards (toes) and the Tullow Safety Rules.Engaging our stakeholdersTo date, much of our community engagement activity in Ghanahas centred on Western Region fishing communities, focusingon health, education, environmental, and enterprisedevelopment activities. Our engagement programme is drivenby community concerns and requests for assistance from keystakeholder groups. The work is executed by members of theTullow Ghana Corporate Affairs team in Takoradi and Accra andsupported by six Community Liaison Officers. Our programmeincludes project design and delivery, stakeholder engagement,community support activities and grievance management.CLOs provide an essential reference point in each communityfor managing grievances, receiving project proposals/donationsrequests, maintaining day-to-day relationships with keystakeholders, and supporting ongoing project activity.Tullow’s social enterprise projects reflect an effort to addressstakeholder concerns in a way that attends to community needsand, at the same time, provide a valuable return to Tullow. Weare currently supporting a multi-year intervention in the healthsector in partnership with the Ghana Health Service andimplemented through Jhpiego, an international not-for-profithealth organisation affiliated with Johns Hopkins University.Significant infrastructure development projects support botheducational and health facilities in partnership with Ghanaianinstitutions. These include hospital rehabilitation, sciencelaboratory modifications, and classroom/school facilitiesconstruction. Our investment in training and skills developmentat the community level is helping to develop community healthworkers, entrepreneurs, students, unemployed youth andfisher folks.Five years after discovery of the Jubilee field, and 18 monthsinto production, Tullow is taking the opportunity to review thesocio-economic footprint of its activities in Ghana. This is toconsider how the key identified areas of progress might be bestharnessed for the future development of the country, and learnlessons for the future. We have commissioned an independentreport aimed at providing an account of the past, current andlikely future impact of Tullow’s activities on Ghana’s economy,society and environment. Impacts to be measured includetaxes and revenues (economic), local content (including localsuppliers, employment and training), social impacts, socialenterprise projects, business standards (ethics andtransparency) and EHS standards. The report, which will bepublished in early 2013, will make recommendations inpursuit of a positive sustainable legacy for the developmentof Ghana’s oil and gas industry.29www.tullowoil.com

West & North AfricaHOW WE PERFORMED IN 2011Greenhouse gas emissions1,285,901 TONNESWater usage10,275,448m 3Waste produced3,199 tonnes1,250,0001,285,9011,000,000750,000500,000250,000259,4960CO 2CH 4as CO 2e1011West & North Africa 99%Rest of Group 1%West & North Africa 10%Rest of Group 90%Greenhouse gas (GHG) emissions for2011 accounted for around 93% of Grouptotal emissions. GHG emissions fromthe FPSO were the most significantcontributor to the overall increase in GHGemissions for Tullow during the year.Tonnes CH 4as CO 2equivalent is calculated astonnes CH 4x 21, where 21 is the conversionfactor used to give methane in terms of CO 2e.CO 2e figures have not been assured by Deloitte,however figures for CO 2and CH 4emissions havebeen assured.The Group’s water usage during 2011saw a large increase compared with2010, primarily due to water injectionfrom the FPSO into the Jubilee fieldreservoir. The Jubilee field is offshoreGhana and Group water usage wastherefore 99% seawater and 1% freshwater for 2011.Tullow has started recording waste datain 2011. West & North Africa accountedfor 10% of waste produced during 2011,with operations in Ghana contributingalmost all of this figure.Local employees88%Local supplier expenditure, Ghana$46.9 MILLIONSocial enterprise expenditure$5 MILLION2502001941501005046.9Local employees 88%01011West & North Africa 43%Expatriate employees 12%Rest of group 57%At the end of 2011, local employees andcontractors in Accra and Takoradinumbered 210 in total.30$46.9m was spent with local suppliers inGhana during 2011. The decrease relatesto the level and nature of our activitiesduring a given year. During 2010 we builttowards First Oil from the Jubilee field,requiring intense activity. We expectspend on local suppliers to increase againwith forthcoming activities in Ghana.The single largest project in our socialenterprise programme in 2011 was theTullow Group Scholarship Scheme pilotphase, which was delivered in Ghana andrepresented $1.5 million of the totalGroup social enterprise spend. In 2012the Scheme is being rolled-out in severalother countries in the region.Tullow Oil plc 2011/2012 Corporate Responsibility Report

LISTENING AND RESPONDING TOOUR STAKEHOLDERSGrievance management is an essential part of communityengagement and support. In Ghana, grievances are received,recorded and reported internally to the IFC and the GhanaEnvironmental Protection Agency (EPA). Issues gathered throughthis process are discussed and investigated with the relevantTullow functions (EHS, Operations and HR, for example) with thegoal of resolving and reporting back to the respective source ofeach grievance. This robust process has involved the investigationof health and environmental concerns in fishing communities,perceived under-employment from within the Western Region,and requests for educational support. While not every grievancecan be resolved, or is necessarily the responsibility of Tullow tomanage, the process and detail required to understand eachconcern underpins our community work and strengthens oursocial licence to operate.31www.tullowoil.com

BUILDINGTRUSTIN SOUTH & EAST AFRICA32Tullow Oil plc 2011/2012 Corporate Responsibility Report

33www.tullowoil.com

South & East AfricaBUILDING TRUSTWe have licences in six countries in South & East Africa. Our activities in theregion centre on a major development project in Uganda and high-impactexploration in Kenya and Ethiopia. In March 2012, oil was discovered in theKenya Rift Basin.SIXCountries297Employees18Licences151,677 SQ KMLicence acreage964 MMBOEReserves & resources$426 MILLION2012 forecast capital expenditureKey2011 drilling activityEDKey producing assetCompliance training and forumsCommunity Liaison team in-countryEHS data reportedTullow employees (2011)Local content expenditure reportedTullow Group Scholarship SchemeOffshoreExplorationDevelopmentOnshoreKey officeFor more detailed operations andmajor projects informationwww.tullowoil.com/ourbusinessThe latest operations newsis available @www.tullowoil.com/newsSouth & East Africa is an exciting regionfor Tullow. The successful farm-downof two-thirds of our acreage in Ugandapositions us well to commencedevelopment and construction of one of thelargest capital investment programmes inthe region in the next five to seven years.The discovery of oil in the Kenya RiftBasin has opened up the opportunityfor a multi-well campaign in Kenya andEthiopia, across vast acreage.Our corporate responsibility activitiesin this region are developing quickly,particularly as we try to manage oursocial impacts in remote onshore areaswith large and diverse communities.In focus countries in this section areEthiopia, Kenya and Uganda.ETHIOPIATullow has a 50% operated interest in theSouth Omo Block in Ethiopia. A 1,000 km2D seismic programme in this block wascompleted in 2012, and we plan to drill awell in the South Omo Block in the fourthquarter of 2012.KENYATullow has a 50% operated interest inseven onshore licences in the Kenya &Ethiopia Rift Basins covering in excessof 100,000 sq km. In 2012, the Groupannounced that oil had been discoveredin the Kenya Rift Basin. The Ngamiastructure is the first prospect to bedrilled as part of a multi-well drillingcampaign in Kenya, with three wellsplanned in 2012. The basin where thediscovery has been made is one of sevenbasins mapped in Tullow’s acreage andis similar in size to the Lake Albert RiftBasin in Uganda.MADAGASCARIn Madagascar, Tullow has had anexploration interest in the onshoreMandabe licence since 2005. Since then,Tullow has added the Berenty licence andtogether these two exploration licencescover 20,100 sq km. In 2011, the Groupundertook over 450 km of 2D seismic dataacquisition, which is in the final stages ofprocessing. Based on encouraging data,further seismic is planned and theintention is to use this data to selectexploration drilling locations. A farm-outprocess is also planned to reduce Tullow’sequity participation to 50%.NAMIBIAIn Namibia, Tullow is working towards thedevelopment of the Kudu gas field located170 km offshore the south-west coast.Following the award of a new 25 yearProduction Licence in November 2011,design concepts for both offshoredevelopment and the Power Station havebeen agreed and Front End EngineeringDesign (FEED) tenders are ready to beissued upon finalisation of the commercialagreements. An investment decision istargeted for late 2012, which could meanthe delivery of gas and power generationin 2016.TANZANIAIn November 2011, Tullow farmed downhalf its 50% interest in the Lindi andMtwara Blocks in Tanzania to its partners.Subsequently, Tullow has withdrawn fromthis licence.34Tullow Oil plc 2011/2012 Corporate Responsibility Report

Ethiopia EUganda EDKampalanya ETanzania EUGANDAThe Group has had interests in Ugandasince 2004, where over 1.1 billion barrelsof oil have been discovered to date in theLake Albert Rift Basin. In February 2012,Tullow successfully completed thefarm-down of two-thirds of its Ugandanacreage to CNOOC and Total for$2.9 billion. The Group, together withits partners, is now preparing to embarkupon the development of the country’soil industry. Development planning isprogressing and major production fromthe Lake Albert Basin is expected tocommence approximately 36 monthsafter a final investment decision is taken.Concurrently, options are beingconsidered that would allow for the saleof small volumes of crude from welltesting as well as some potential smallscale power projects. The partnershipexpects to submit options fordevelopment of the Lake Albert Basinto the Government later this year. Theseoptions are primarily premised on thedevelopment of a crude export pipeline.Capital investment in 2012 is expectedto be $262 million.Namibia DSouth AfricaCape TownMadagascar E35www.tullowoil.com

South & East AfricaIN FOCUSUGANDA“We aim to conduct all our businessacross the region with due care for theenvironment and for the communities wework in. We want Tullow to be the partnerof choice in South & East Africa and thismeans we are taking a long-termperspective in managing our activitiesethically and responsibly.”$2.9 BILLIONFarm-down of Uganda acreagecompleted in February 2012Martyn MorrisRegional Business Manager, South & East Africa$262 MILLION2012 forecast capital investment175Employees84%Local employeesResponsibly managing our social performanceAs we progress towards the development phase, we recognisethe importance of responsibly managing our social andenvironmental impacts. Earlier this year we created a dedicateddepartment which will be responsible for the identification,assessment and management of social and socio-economicimpacts throughout the development and construction phaseinto production. This department will also manage a multitudeof stakeholder engagements with impacted communities, NGOs,civil society organisations and religious and traditional leaders.$73.1 MILLIONSpent with local suppliers, up 173%1,049Contracts awarded to local suppliers$5.1 MILLIONSocial enterprise expenditure, 201120Tullow Group Scholarships beingawarded in 2012Keeping communities informedWe have a team of Community Liaison Officers (CLOs) in theLake Albert area working alongside our operations teams. Theiractivities to date have focused on keeping local communitiesinformed about our progress and addressing stakeholderconcerns. In recent months there has been considerableengagement to support the introduction of our partners. CLOsfrom across the partner organisations have worked togetherto consult with local communities and other stakeholders onongoing operational activities and associated timeframes. Wecontinued to run introductory oil and gas courses for externalstakeholders in Uganda. During 2011 more than 200participants from a wide cross-section of stakeholders,including national, district and local governments, NGOs, mediaand traditional leaders, benefited from these programmes.NINECommunity Liaison OfficersOVER 200Participants in oil and gas courses36Tullow Oil plc 2011/2012 Corporate Responsibility Report

UgandaLEGENDOil FieldCongo(DRC)Oil & Gas FieldOil DiscoveryUnder AppraisalKingfisherEA-3ABugomaJobi - RiiKaisoEA-3ALakeAlbertTonyaEA-2ButiabaEA -1EA-2Tullow OperatedTullow Non-OperatedUgandaIn accordance with the Government of Ugandafarm-down consents, completed February 2012,operatorship responsibilities within the basin willbe divided between the Partners. Total will operateExploration Area-1 (EA-1) and Tullow will operateExploration Area-2 (EA-2). CNOOC Limited willoperate the new Kanywataba licence and theKingfisher production licence in the formerExploration Area-3A.The Partners have recommenced drilling activitiesin the area as part of a wide-ranging explorationand appraisal programme in 2012. Immediateexploration priorities include drilling the Kanywatabaprospect, a series of prospects west of the Nile,starting with the Omuka well in EA-1 and furtherappraisal work in both EA-1 and EA-2.Developing the capability of local staffTullow employs 175 people in Uganda, 84% of whom are localemployees. The primary localisation challenge for Tullowremains the availability of suitably qualified Ugandans in thecore petroleum technical disciplines such as geoscience,reservoir, petroleum and well engineering. Initiatives such asmentoring and competency development are being deployedwith the intention of bridging this gap and developing thelong-term capability of local staff.In 2011, funding was provided for five Uganda Masters studentsto pursue seismic related research in Uganda. In November, afurther five Ugandan Field Operations Supervisors begansix-month training programmes at TTE, a technical trainingcollege in the UK. We currently have three Ugandan GraduateGeoscientists on secondments in London, following TullowsponsoredMasters Degrees at UK universities, and anticipatetaking on more graduates from Uganda in the near future. Anactive employee engagement programme is also under way tokeep Tullow Uganda staff fully informed of progress associatedwith development planning and ongoing exploration andappraisal activities, including regular meetings with TullowGroup management.Evolving our social investment strategyIn 2011, we invested $5.1 million in social projects in Uganda.This represents almost 45% of total Group social investmentand 90% of social investment in the region. The majority of thisinvestment was in local communities with a particular focuson health, education and enterprise development. In 2012,we are undertaking a socio-economic baseline survey and acomprehensive review of our existing social investment activitiesin Uganda. The baseline, together with the social investmentreview, will inform our evolving Ugandan social investmentstrategy and ensure we support the needs of our localcommunities and align more closely with our business activities.Fostering local businessThrough our supply chain we are working with local suppliersand helping them to develop skills to deliver goods and servicesto international standards. Local content expenditure increased173% to $73.1 million in Uganda in 2011, 54% of the total valueof contracts awarded during the year. 1,049 contracts wereawarded to Ugandan suppliers which represents 81% of thetotal number of contracts awarded. As we progress towards thedevelopment phase greater opportunities will become availablethroughout the industry’s supply chain and within the widereconomy. We are undertaking a public information programmeabout Tullow’s supply chain and local supplier developmentprogramme to ensure that as many potential suppliers andinterested parties as possible can participate in our activitiesand upcoming opportunities and events.In 2011, we partnered with Traidlinks, an Irish not-for-profitorganisation, which aims to strengthen Irish-Ugandanpartnerships in business and trade development, to supportthe development of small and medium-size enterprises. InMay 2012 the pilot phase of an Enterprise Centre in Hoimacommenced. This centre will provide a range of services whichaim to foster local businesses and help them grow and ideallybecome part of the industry’s supply chain. We are hoping thatthis will become a blueprint for the development of EnterpriseCentres throughout our areas of operation.37www.tullowoil.com

South & East AfricaIN FOCUSKENYA & ETHIOPIA$115 MILLIONForecast capital expenditure37 EMPLOYEES89% of whom are local$24 MILLIONSpent with local suppliersOVER $275,000Social enterprise expenditure, 201115Tullow Group Scholarshipsbeing awarded in 2012Building community relationshipsDuring 2011, four CLOs were employed inKenya and three in Ethiopia in preparationfor exploration activities. The logistics oflocal stakeholder engagement in thisregion is hugely challenging given the sizeof the combined acreage. In addition, manyof the local communities are nomadic andthere are a number of inter-communityconflicts. During the year we conductedan introductory course to the oil and gasindustry in Kenya and we are currentlyplanning to co-host a second course witha local provider, with a view to buildinglocal capacity in the delivery of suchtraining. We have also run a shortintroductory course for government andother stakeholders in Ethiopia.Understanding the socio-economiccontextAs in Uganda, we are establishing adedicated social performance departmentin Kenya given the social and socioeconomicchallenges of operating in thisparticular region. We have recentlycompleted the first phase of a socialbaseline survey and will tender for acomprehensive socio-economic baselinesurvey in the coming months. This willhelp us to gain a thorough understandingof the existing social and economic contextsuch that we are able to measure ourimpacts, both positive and negative, infuture. The baseline will also inform thedevelopment of our long-term socialinvestment strategy.Increasing our social investmentOur social investment in any countryaccounts for the level of exploration activity,the likely impacts of those operations andthe needs and wishes of local communities.In Kenya, together with our partners, wehave invested in the provision of education,healthcare and access to water within ourareas of operation. Our work programmehas increased in scope following theoil discovery in Kenya and our socialinvestment strategy is evolving into onewith a longer-term outlook.In Ethiopia, road accidents arecommonplace and the medical serviceis not well equipped to deal with suchincidents. As a result we are investing intrauma-related nurse training. We havealso made investments in the provision ofclean water and funded school furnitureand other materials.In 2012, Kenya will receive 10 scholarshipsand Ethiopia will receive five scholarshipsunder the Tullow Group ScholarshipScheme, designed in part to build capacityin national institutions in new oil countries.Building local capacityWe are also committed to building localcontent as early as possible in ouractivities and have already engaged withand contracted several local suppliers inKenya. In 2011, we spent $24 million withlocal suppliers in Kenya. In addition, wehosted a logistics supplier forum inEthiopia in May this year to enable us toidentify and support local companies whocan bring in the requisite goods andservices we need in preparation for thefirst exploration well there in the fourthquarter of 2012.38Tullow Oil plc 2011/2012 Corporate Responsibility Report

THE ENVIRONMENTOur activities in South & East Africa are in the Great Rift Valley,which encompasses Kenya, Uganda, Ethiopia and Tanzania.It is a varied terrain and environment with mountains and deepvalleys, freshwater lakes, national parks and internationallyprotected areas such as World Heritage sites. It is a regionof major human evolution discoveries and considered to bethe cradle of mankind. These sensitive and highly valued areaspresent unique challenges in minimising the impact that ouroperations have on wildlife, tourism, fisheries and land use.We are committed to applying the highest standards ofenvironmental protection and to using our global experienceto ensure we minimise our impacts. In 2011, we developed astrategy for operating in sensitive areas which provides theframework for all our operational activities in protected areasacross our portfolio.39www.tullowoil.com

South & East AfricaHOW WE PERFORMED IN 2011Greenhouse gas emissions6,051 TONNESWater usage96,601m 3Waste25,846 tonnes6,2506,0515,0003,7502,5001,2501,6850CO 2CH 4as CO 2e1011South & East Africa 1%Rest of Group 99%South & East Africa 79%Rest of Group 21%South & East Africa currently has noproduction. GHG emissions for theregion relates to E&A drilling andseismic data acquisition. As a resultGHG emissions by South & East Africaaccounted for a small portion of theGroup’s overall emissions profile in 2011.Tonnes CH 4as CO 2equivalent is calculated astonnes CH 4x 21, where 21 is the conversionfactor used to give methane in terms of CO 2e.CO 2e figures have not been assured by Deloitte,however figures for CO 2and CH 4emissions havebeen assured.Local employees83%As with GHG emissions, water usage inSouth & East Africa accounted for asmall portion of total Group water usage.However, we are conscious that waterusage in this region, particularly Ugandaand Kenya, has increased, and this isunder review.Local supplier expenditure$96.7 MILLIONUganda accounted for 25,764 tonnes ofthe region’s waste for 2011. Of Tullow’stotal waste produced during 2011, over84% was reused, recycled or treated.We had been storing drill cuttings onsiteuntil we could identify an approvedcontractor to handle our waste. One ofour objectives this year is to develop arobust waste management position.Social enterprise expenditure$5.8 MILLIONLocal employees 83%Uganda$73.1mSouth & East Africa 50%Expatriate employees 17%Kenya$23.6mRest of Group 50%Our local employee figures for Ugandahave remained at 84% from 2010 through2011. We will continue to invest inbuilding the capability of local staff incore oil and gas industry skills as wemove towards the development phasein Uganda.40Expenditure with local suppliers inUganda increased 173% from 2010 to2011. While our operations in Kenya areat an early stage we are focused oncreating opportunities for localbusinesses, and spent almost $24million in preparation of our first wellthere in early 2012.Uganda accounts for the majority of our2011 social enterprise expenditure inSouth & East Africa, with several healthand education infrastructure projectsnearing completion during the year.Tullow Oil plc 2011/2012 Corporate Responsibility Report

“As part of Tullow’s social enterprise teamI play a role in advancing our projectsand get to see people benefiting from ourinvestments around Lake Albert.Improving our understanding of ourimpacts will help us to refine the workwe do, and focus our efforts to have thegreatest positive effect.”Fridah KunihiraSocial Enterprise Monitoring Officer, Uganda41www.tullowoil.com

42Tullow Oil plc 2011/2012 Corporate Responsibility Report

DEVELOPINGOPPORTUNITIESIN EUROPE, SOUTH AMERICA & ASIA43www.tullowoil.com

Europe, South America & AsiaDEVELOPINGOPPORTUNITIESThis portfolio contains key producing assets and a number of excitingexploration opportunities. We have gas production assets in Asia, the UKand the Netherlands, significant exploration acreage in South America anddiscovered oil offshore French Guiana in September 2011.SevenCountries154Employees47Licences57,793 SQ KMLicence acreage120.8 MMBOEReserves & resources20,800 BOEPDWorking interest production$360 MILLION2011 sales revenue, 16% of Group total$390 MILLION2012 forecast capital expenditureKey2011 drilling activityED44Key producing assetCompliance training and forumsCommunity Liaison team in-countryEHS data reportedTullow employees (2011)Local content expenditure reportedOffshoreExplorationDevelopmentPOnshoreProductionKey officeThis map gives an overview of ouractivities in the Europe, South America& Asia (ESA&A) region. In addition,Tullow has qualified as an operator onthe Norwegian Continental Shelf andwe are actively looking at investmentopportunities as a first step in theGroup’s strategy in the North Atlantic. InApril 2012, Tullow was awarded Block 15in the offshore Uruguay licensing round.The block is 8,030 sq km and Tullow hascommitted to shoot a 300 sq km 3Dseismic survey.In March 2012, we announced ourintention to divest our assets in Asia inorder to focus on our core African andAtlantic Margin strategy. Across theESA&A portfolio, the mix of operated andnon-operated, mature and more recentassets creates a wide variety in the scopeof our corporate responsibility activities.NETHERLANDSIn 2011, we expanded our Dutch portfoliowith a $432 million acquisition of anon-operated portfolio of gas producingfields, a range of explorationopportunities and an equity interest ininfrastructure. We think offshore theNetherlands is an area of greatexploration potential and our experiencein the North Sea provides a strongplatform for expansion. In 2012, we willdrill our first operated exploration well inthe Netherlands and we have begun toidentify potential partners for socialinvestment and environmental initiatives.UNITED KINGDOMIn 2000, Tullow entered the UK offshore,with the acquisition of a significantnumber of Southern North Sea gasassets. The Group’s strategy for the UKis to offset natural decline and prolongthe life of these mature fields. Thenon-operated Katy development (block44/19b) is on track for first gas inDecember 2012.The Europe Business Unit operates inOrganisation for Economic Co-Operationand Development (OECD) countries.Social investment may seem lessrelevant here than in the developingcountries where Tullow Oil has interests,however, a strong NGO sector isspearheading socio-economic andenvironmental initiatives in thesecountries, supported by public andprivate sources of capital. Funding forthese can be limited, especially in timesof recession, and Tullow is looking atmeaningful ways to invest and buildpartnerships. Our aim is to demonstrateour commitment to societies, buildcapability and develop our relationshipswith host country stakeholders. Otherbenefits to Tullow include developing ourunderstanding of each country,supporting our commercial objectivesand strengthening the Tullow brand.FRENCH GUIANAIn September 2011, the first explorationwell offshore French Guiana encounteredoil, establishing a new basin and provingthat the Jubilee play is mirrored acrossthe Atlantic from West Africa to SouthAmerica. At the time of the discoveryTullow was operator of the GuyaneMaritime licence – since then operatorshiphas transferred to a joint venture partner.Tullow Oil plc 2011/2012 Corporate Responsibility Report

United Kingdom EDPIrelandDublinLondonNetherlands EDPPakistan EPBangladeshEDPGuyana ESuriname EFrench Guiana EGUYANAIn February 2012, our joint venturepartners commenced drilling a strategicbasin-testing well, the Jaguar-1prospect, offshore Guyana. We haveundertaken a multi-stage riskassessment to identify all majorhazards and implement detailedcontingency plans for all well designand drilling elements. Guyana is anon-operated licence.SURINAMEIn 2010, we signed a Production SharingContract for Block 47, a 2,369 sq kmdeepwater exploration licence offshoreSuriname. We commenced a 3D seismicsurvey in Block 47 in May 2012 and inpreparation for this a PreliminaryEnvironmental and Social ImpactAssessment (PESIA) was undertaken(published online at www.tullowoil.com/surinamePESIA). Engagement withenvironmental NGOs has been central tothe management of our activities in thearea. In addition, Tullow has a nonoperatedinterest in the Coronie block,onshore Suriname, where a five-wellcampaign began in late 2011.BANGLADESHWe entered Bangladesh in 1997 andbegan producing gas from the BangoraGas field in 2006. The Bangora fieldcontributes a significant volume of gas toBangladesh’s national grid, and asoperator we have maintained our focuson safe and efficient operations andcontribute to grassroots socio-economicdevelopment in the villages around ouroperations. We have made, and continueto make, investments in education andincome generation schemes as proactivemeasures aimed at reducing poverty inthe area. These have included providingbursaries for high-achievingunderprivileged students, and a wideprogramme of skills training focused oncapacity building and sustainabledevelopment.We are working with local partner NGOsto provide access to safe drinking waterthrough installation of arsenic removalplants, and are introducing a sanitationprogramme at 15 local schools. We alsorun a successful tree plantingprogramme, which in 2011 distributed20,000 saplings through students in thelocal area.PAKISTANTullow has been active in Pakistan since1991, where we hold an explorationportfolio. Exploration drilling has beenongoing and production from theextended well test at Shekhan in theKohat licence was maintained during2011 at low levels, providing reservoirdata which will be used to plan additionalappraisal or development drilling.45www.tullowoil.com

Europe, South America & AsiaHOW WE PERFORMED IN 2011Greenhouse gas emissions84,636 TONNESWater usage36,191m 3Waste3,663 TONNES100,00080,00084,63660,00040,00033,54820,0000CO 2CH 4as CO 2e1011Europe, South America & Asia 99%Europe, South America & Asia 11%Rest of Group 89%Factors such as a drilling campaign inthe UK and improved reporting of coldventing in Bangladesh for 2011contributed to the increase in GHGemissions for the region in 2011.Our drilling campaign in French Guianaaccounted for 18,916m 3 of water usagefor the region in 2011.Waste produced in the ESA&A regionduring 2011 accounts for a relativelysmall percentage of Group total waste.Tonnes CH 4as CO 2equivalent is calculated astonnes CH 4x 21, where 21 is the conversionfactor used to give methane in terms of CO 2e.CO 2e figures have not been assured by Deloitte,however figures for CO 2and CH 4emissions havebeen assured.Local employees97%Local supplier expenditure,Bangladesh$3.0 MILLIONSocial enterprise expenditure$774,8155.04.03.03.63.02.01.0Local employees 97%Expatriate employees 3%01011Europe, South America & Asia 7%Rest of Group 93%Our offices in Bangladesh and Pakistanaccount for a significant portion of theESA&A workforce. Employees andcontractors at these offices are 88%and 100% local, respectively.4617 companies in Bangladesh attendeda recent industry partner forum oncompliance and ethics.In South America and in Europe we areconducting scoping studies and researchto identify and select partners for oursocial enterprise programme. In parallel,we are working with state partners andstakeholders to align our strategy. In Asiawe have continued to invest in education,health, enterprise development andenvironmental projects local to ouroperations.Tullow Oil plc 2011/2012 Corporate Responsibility Report

“Our region’s diversity and the range ofactivities we are involved in present manyopportunities for the business, our peopleand the countries in which we operate. Ouroperations will continue to be carried outto the highest levels of safety, with strongregard for the environment and withattention on local communities who maybe affected by our work. We are deliveringour business plan by establishing stronglinks with our stakeholders, particularlygovernments and societies, to build ourbrand as Tullow furthers its reach.”Claire HawkingsRegional Business Manager, Europe, South America & AsiaImage courtesy of Graham Eaton www.eatonnature.co.uk47www.tullowoil.com

Tullow local supplier, Homebound, Dhaka, Bangladesh

50Performance dataWe measure our corporate responsibilityperformance for 2011/2012 against a range ofagreed objectives. We have made good progressand our objectives for 2012/1013 are designedto move us closer to our goal of creatingshared prosperity.56GovernanceThe highlight of 2011 activity in governance andcompliance was the launch of the new TullowCode of Business Conduct.60Stakeholder engagementOur growing business sits within an increasinglycomplex stakeholder landscape, and ourstakeholder management initiatives mustkeep pace.62Environment, Health & SafetyEHS is a priority in all that we do. We want tobuild an EHS culture where people proactivelythink about the risks they are responsible for.68Our peopleAt Tullow we’re committed to providing our peoplewith a diverse and open working environment thatencourages everyone to make a difference.72Sustainable supply chainOur supply chain strategy looks to add valueand protect the business. Building a sustainablesupply chain is integral to achieving this.74Local contentOur strong commitment to local content inour supply chain can contribute significantlyto the capacity of local businesses to enterour supply chain.76Social enterpriseMaking a positive contribution means investingin strategic social enterprise projects tocontribute towards host country andcommunity development.MEASURING OURPERFORMANCEENTREPRENEURIAL SPIRIT& INITIATIVEWe maintain our entrepreneurialand creative spirit as we challengeourselves to develop the businessand ourselves.3

Our performanceMEASURING OURPERFORMANCEWe made good progress this year in corporate responsibility performance.The targets we are setting to assess our progress are increasingly informedby our stakeholder engagement processes.HIGHLIGHTS FOR THE YEARStakeholder engagementStakeholder engagement highlights include buildingmore robust capacity and internal processesand putting in place more effective methods foridentifying, assessing and managing social andpolitical risk.Environment, Health & SafetyTullow achieved a good EHS performance in 2011.A detailed review of KPIs undertaken by the newEHS Strategy Forum has refocused 2012 leadingand lagging indicators to improve the overall qualityand effectiveness of EHS at Tullow.Our peopleStaff turnover remained low and our global employeeand contractor survey achieved good participationlevels and a strong engagement score.Social enterpriseA working group has been established to linkTullow’s social enterprise strategy more closelywith the Group’s business activities and objectives.MORE INFORMATIONSection 3 contains more detailed information onour performance and activities during the year.Supplementary data is provided at the back of thisreport and you will find the basis of reporting andthe GRI Content Index for this report online.We have reintroduced a detailed performanceoverview into our 2011 Corporate ResponsibilityReport. We received feedback from sociallyresponsible investors and corporate responsibilityanalysts, in particular, that they had a strongpreference for a clear and informative summaryof our performance against objectives, includingan overview of our targets and plans for thefollowing year.In this section, we have incorporated an overviewof each of the key elements of creating sharedprosperity. We have indicated through a traffic lightsystem the status of each objective. A green lightindicates that we achieved the objective. An amberlight indicates that we are within 10% of achievingour target or on track for delivery. A red light meansthat we have failed to achieve our objective duringthis reporting period. In total we had over 30corporate responsibility objectives for the year.These included a range of both quantitative andqualitative targets. We achieved 22 of our targets.In addition, the Board had a number of corporateresponsibility objectives relating to corporate risk,which formed part of their 2011 Board objectives.These included: External stakeholder relationships; Health & safety, with particular emphasison malaria awareness and performance; UK Bribery Act and Tullow’s Code ofBusiness Conduct; Organisational capacity; and Maintenance of Tullow culture.The Board is satisfied that appropriate discussionand action took place, with particular emphasisduring the year on health and safety, bribery andorganisational capacity.50Tullow Oil plc 2011/2012 Corporate Responsibility Report

GOVERNANCE2011/2012 key objectives 2011/2012 performance StatusDeliver a new Code of Business Conduct, takinginto account the UK Bribery Act.More informationNew Code of Business Conduct launched in August 2011.PageStakeholder priorities 18Governance 56Stakeholder engagement 603MEASURING OUR PERFORMANCEGroup-wide roll-out of a new compliance programme,complemented by a range of new training initiatives,tools and processes.Form a new Compliance Committee to monitorand advise on the compliance programme andreport to the Board.Develop and publish a separate HumanRights policy.As of June 2012 over 500 members of our workforcehave received training in our Code of Business Conductand policy awareness.Compliance Committee was formed and two meetingsheld to date in 2012. Regular Board reporting planned.Our Human Rights Statement of Policy has beenpublished separately from the new Code of BusinessConduct but no detailed review or restatement wasundertaken.2012/2013 objectives StatusDevelop and enhance the capability of the compliance team and network of compliance champions.NEWContinue to roll out the Code of Business Conduct awareness programme across Tullow.Enhance bribery and corruption risk assessment and due diligence procedures.Ensure early involvement in major projects or areas of risk to embed compliance.Same as2011NEWNEWSTAKEHOLDER ENGAGEMENT2011/2012 key objectives 2011/2012 performance StatusComplete stakeholder mapping and roll out Tullow’senhanced approach to stakeholder engagement.Stakeholder Engagement Guidelines were drafted in2011 and will be finalised and rolled out in 2012-2013.Stakeholder mapping is ongoing.Develop and implement a planned andproactive annual external stakeholderengagement programme.Develop a robust material issues matrix andrefine our understanding of the big issues thatconcern our stakeholders.Deliver the Board’s external stakeholderengagement objective.Achieved for 2011. Our programme of engagement isongoing for 2012-2013.A central material issues matrix has not been developed,however work has been carried out at regional businesslevel to improve understanding of stakeholder issues atthe centre.The Board is satisfied that appropriate discussiontook place in 2011, although external stakeholderengagement remains a focus for the Board in 2012.2012/2013 objectives StatusDevelop a three-year External Affairs strategy.NEWDefine, develop and roll out best-in-class corporate policy, standards, guidelines and tools for stakeholderrelationship management.Update stakeholder engagement competency framework to ensure that the right capabilities exist at Corporate,Regional and business unit level.NEWNEWMeeting targetWithin 10% of target or on track for deliveryFailing to meet target51www.tullowoil.com

Our performance continuedENVIRONMENT, HEALTH & SAFETY (EHS)2011 key objectives 2011 performance StatusAchieve all lagging and leading performanceindicators and targets.Achieved 60% of indicators.Draft standards for biodiversity, resourcemanagement and climate change withinTullow Oil Environmental Standards.Deliver the Board’s health and safety objectives,in particular malaria awareness and prevention.Rolled out in the first quarter of 2012.The Board is satisfied that appropriate discussion tookplace in 2011 around the principal identified risks, withparticular emphasis on health and safety issuesincluding malaria prevention.2011 lagging indicatorLost time injury frequency rate (LTIFR) per millionhours workedTotal recordable injury frequency rate (TRIFR)per million hours workedHigh potential incident frequency rate (HiPoFR)per million hours workedVehicle accident frequency rate (VAFR) per millionkilometres drivenUncontrolled releases defined as number of lossof containment incidents >50 litres2011baseline target2011stretch target2011performance

ENVIRONMENT, HEALTH & SAFETY 2012 OBJECTIVESMore informationIn 2012, the EHS Strategy Forum reviewed EHS corporate Key Performance Indicators (KPIs) and decided to refocus laggingindicators on ensuring that the organisation learns the ‘free lessons’ from incidents that could have had a major impact on thebusiness, including the most serious category of high potential incidents, significant spills and exposure to malaria.PageChief Executive’s review 10Environment, Health & Safety 623MEASURING OUR PERFORMANCE2012 lagging indicator Rationale 2012 performance target StatusUncontrolled releasesdefined as number ofloss of containmentincidents.To measure the loss of containment of allliquid releases to the environment. Allreleases contained within bunds will beclassified as a near miss.Number of loss of containment incidents(water, diesel, oil, chemicals) >50 litreswith ≤3 incidents.Same as2011Malaria case frequencyrate (MAFR) per 1,000exposures.To monitor the effectiveness of Tullow’smalaria management programme, this KPI isaimed at reducing malaria case incidents innon-immune staff year-on-year by 10%.Reduce case incidents 10% year-on-year per1,000 exposures. The base line is 2011 whichhad an MAFR of 0.34. The 2012 target is 0.30.NEWLevel 4 and 5 incidents(the most seriouscategories).To ensure maximum learning from all Level 4and 5 incidents across the business. Industrystandard safety measures (LTIFR, TRIFR,HiPoFR, VAFR) will continue to be recordedand reported.100% closeout of investigation actions forevery incident.NEWThe 2012 leading KPIs are intended to improve the overall quality and effectiveness of Tullow’s EHS controls and processes.2012 leading indicator Rationale 2012 performance target StatusAction trackingDevelop, implementand roll out an actiontracking system.To ensure visibility and control, a moreeffective global action tracking system isrequired in order to capture, monitor andreport on all EHS actions.Action tracking system defined, in place andfully operational by year end.NEWSafety caseTo enable visibility of the case for safetyfor each operated production facility andensure that safety-critical elements areclearly identified and tested at anappropriate frequency. For operationswith mature management systems,ensure that safety-critical elements testregimes are being achieved.Establish safety cases for all operatedproduction facilities, including definingsafety-critical elements and associated testingregimes. Where already established, set targetfor achievement of test regime. Operatedproduction facilities will set milestones forachieving the KPI. These milestones will beverified through periodic audit.NEWContractormanagementTo ensure that all medium and high riskcontracts have defined and implementedan effective EHS process.Define and establish an EHS managementcontracts register with compliancebecoming part of the Contract Review Boardprocess within the supply chain by year end.NEWTullow OilEnvironmentalStandards (toes)To monitor performance of and compliancewith the new toes standards rolled out inearly 2012.Self-assessment must be completed by eachbusiness unit and/or project by year-end.NEWEnvironmental andSocial ManagementPlansTo ensure that all Environmental andSocial Impact Assessments (ESIAs) haveimplemented an Environmental andSocial Management Plan (ESMP).An ESMP compliance closure report isto be submitted to Group EHS for all projectsthat are completed in 2012, within twomonths of completion.NEWEHS leadership To drive more visible EHS leadership. To be able to demonstrate actions taken,audits will be carried out at mid-andyear-end to verify EHS leadership activityagreed in EHS actions plans.NEW53www.tullowoil.com

Our performance continuedOUR PEOPLE2011/2012 key objectives 2011/2012 performance StatusMaintain staff turnover below 5% per annum, with astretch target of 2%.Staff turnover was 3.2% in 2011, a good outcome in lightof a 29% increase in employees.Launch global employee and contractor surveyin the third quarter of 2011.Deliver Board Human Resources (HR) objectives inorganisational capacity and maintaining our culture.Develop our relationships with hostgovernments and regulators and definelocalisation plans for Ghana and Uganda.Talkback was successfully completed with an84% participation rate and demonstrated an 81%engagement level.The Board is satisfied that appropriate discussionand activity took place in 2011. Building organisationalcapacity remains a focus in 2012.Localisation plans and the relevant host-countryrelationships continue to be developed and enhanced.2012/2013 objectives StatusMaintain staff turnover at below 5% per annum.Same as2011Deliver actions from the 2011 Talkback survey.Deliver Board HR objectives in organisational capacity and further embedding our values.Complete global succession plans and review with all functions.NEWSame as2011NEWSUSTAINABLE SUPPLY CHAIN2011/2012 key objectives 2011/2012 performance StatusReview master contract agreements to embed EHSstandards and mandate local content requirements.Updated master contracts in place.Develop a supply chain strategy that reduces risk,waste and unsustainable practices.Improve reporting to provide greater transparencyin contracting processes and supplier contracts.Supplier evaluation criteria addresses the 10 principlesof the UN Global Compact to develop more sustainablesupply chain practices.Tullow’s online Supplier Centre was launched in 2011and provides current and potential suppliers with detailsof our contracting processes, opportunities and more.2012/2013 objectives StatusEmbed contractual commitment to fabrication in local communities or regions.NEWContinue with industry partner forums on compliance and ethics.Improve land/vehicle safety with the roll-out of mandated supplier driver training and standards.Innovate in logistics management to improve our environmental footprint.NEWNEWNEWMeeting targetWithin 10% of target or on track for deliveryFailing to meet target54Tullow Oil plc 2011/2012 Corporate Responsibility Report

LOCAL CONTENT2011/2012 key objectives 2011/2012 performance StatusContinue our ‘Closing the Gap’ programme, which isaimed at helping local people and businesses to enterthe oil and gas industry supply chain.More informationOver 100 Ghanaian businesses took part in our ‘Closingthe Gap’ workshops during 2011. We are continuing torun this programme.PageOur people 68Sustainable supply chain 72Local content 74Social enterprise 763MEASURING OUR PERFORMANCETrack, record and report local content.Develop a business incubation centre pilot in Uganda, inconjunction with local communities and organisations.Further work is required to assure local content data,and to track, record and report it in an appropriate way.A centre for small and medium enterprises (SMEs)has been developed in Hoima in partnership withTraidlinks. More information can be found on p37of this report.2012/2013 objectives StatusTrack, record and report local content. Achieve assured data for 2012.Same as2011Open enterprise centres in Uganda and Ghana.Launch pilot of vocational skills training.NEWNEWSOCIAL ENTERPRISE2011/2012 key objectives 2011/2012 performance StatusRoll out the new social enterprise (SE) guidelines andsupport effective implementation.SE guidelines were published and we have runworkshops on implementation at various locations.We are supporting this roll-out with more user-friendlyguidance material and further workshops.Ensure that effective systems and processes are inplace so that SE data is assured in 2011.Develop a process and working group so thatLocal Content, HR and country offices input intothe development of our strategic SE investmentstrategy and projects.Completed, will continue to assure data going forwards.SE working group established in 2011.2012/2013 objectives StatusCommit $20 million to SE projects for 2012.NEWAward up to 110 scholarships to students from selected countries during 2012 under the Tullow GroupScholarship Scheme.Develop and publish a three-year SE strategy to better embed our long-term approach to doing business in ourdiscretionary investments.NEWNEW55www.tullowoil.com

GovernanceMAINTAINING HIGHSTANDARDSMaintaining high standards of corporate governance is about managing thebusiness in order to create long-term sustainable value for the benefit ofall our stakeholders.STRATEGIC IMPORTANCEGood governance and regulatory compliance makegood business sense. They guide correct actions,protect value and maintain our good reputation. It isalso vital to demonstrate that our decisions andactions have integrity and are based on sound process.HIGHLIGHTS FOR THE YEARNEWTullow Code of Business Conduct launched in2011 together with an ongoing compliance andawareness programme.89Companies have participated in our first twoindustry partner forums on compliance and ethics,which were held in Bangladesh and Kenya in 2012.35%Of employees, approximately 500 people, havereceived dedicated compliance training to date,including those in key or higher risk posts.NEWMember of Transparency International’sCorporate Supporters Forum and becamea supporter of the Extractive IndustriesTransparency Initiative.DETAILED PERFORMANCE INFORMATIONGo to page 51 for further information on 2011/2012performance and 2012/2013 objectives. For detailedinformation on our Board and governance go onlineto www.tullowoil.com/aboutus56The value of governanceGood governance and being a responsible company is definedby our values and upheld by the standards we apply in how wedeal with people and how we manage our business. The TullowBoard is committed to maintaining high standards of corporategovernance and has overall responsibility for the strategicleadership and stewardship of Tullow. As the Group continuesto grow in size and complexity, the Board seeks to ensure thatwe maintain and enhance the culture and values of the entireGroup and that we have the right people and processes in placeto achieve the correct balance between entrepreneurial risktaking and prudent risk management. Governance and valuesare embedded in our business model and one of our keystrategic priorities is to achieve strong governance across allTullow activities and continue to build trust and reputation withall stakeholders. Our aim is to be open and transparent and todemonstrate accountability and strong ethics.Board performance and objectivesAs part of Simon Thompson’s induction for his role as the newChairman of Tullow, he undertook the Board evaluation in 2011.In summary, the Board is functioning well and all the Directorsfeel proud to be part of the Tullow team. In 2011, the Board setobjectives in six key areas and the successful launch of the newTullow Code of Business Conduct was particularly important.The Board evaluation showed that the Board is building from astrong base and there is a high degree of alignment on theprincipal challenges facing Tullow and the areas of focus for2012. These include enhanced political and risk analysis,industry benchmarking and information on the competitivelandscape. In order to meet the needs of Tullow’s growthambitions, talent management, succession planning, portfoliomanagement and medium-term cash flow forecasting alsoform part of the Board’s 2012 objectives. Some 2011 objectivesrelating to training of Directors and Board administration havealso been carried over into this year.New UK Corporate Governance CodeDuring the year, the Board reviewed the new UK CorporateGovernance Code. The Chairman’s introduction to corporategovernance and the detailed corporate governance section inour 2011 Annual Report set out how the specific principles areapplied and implemented in practice at Tullow. It is the Board’sview that the Group has fully complied with the Code provisionsduring 2011. Visit: www.tullowoil.com/ara2011Tullow Oil plc 2011/2012 Corporate Responsibility Report

Governance, risk and corporate responsibility frameworkTullow has a strong framework for governance, risk andcorporate responsibility management. It is outlined in the CEO’sreview on pages 14 and 15 of this report. Each Executive Directorhas risk management and risk assurance responsibilities. Theyalso have individual operational and corporate responsibilities.Tullow’s organisational structure overall is relatively flat with justtwo levels between the Board and the frontline of businessactivity. This facilitates integrated and responsive decisionmaking.In 2011, we strengthened our operational organisationstructure through the formation of three regional businesses.We have complemented this with the development of strongexploration, operations and corporate functions at the centre.This is to ensure that our regional businesses are provided withworld-class financial, technical and non-technical resources.Risk managementThe oil and gas industry is inherently high risk and dynamicand often operates in a fluid geopolitical and social environment.Risk management is a critical business function and is embeddedin our business model. Understanding the risks and opportunitieswe face shapes our decisions, and our strategic priority inrelation to risk management is to ensure safe people, proceduresand operations and minimise our environmental impacts. Thereis a detailed risk management section in our 2011 Annual Report.It explains how risk is integrated in our organisation, how wemanaged our 2011 risks and the long-term performance risksTullow faces. As part of our 2012 to 2014 business plans we haveidentified key risks and uncertainties in relation to our financialand operational performance for the period. These are: Delivery of a Lake Albert Rift Basin development plan andtimely approvals for this from the Ugandan authorities; Exploration associated risks, with approximately40 high-impact wells planned in our 2012 E&A campaign; Achieving plateau production in the Jubilee field, offshoreGhana, and delivery of Group production targets; Government relations/stakeholder engagement withparticular reference to the 2012 Board objective tosignificantly improve political and economic risk informationand country risk profiling; Achieving the appropriate balance between cash flow fromoperations, equity/debt market opportunities and portfoliomanagement activities; and Managing shareholder expectations, specifically withregard to the Group’s long-term strategy, productionprofile and funding.Key corporate responsibility policies and systemsTullow has a full set of management systems, policies,procedures, standards and behaviours designed to ensure wedeliver value for our shareholders and operate our businessresponsibly. These provide a consistent approach across all ofour business activities and are complemented by our corporategovernance processes and oversight by the Tullow Board andExecutive. Key corporate policies and systems are outlined onpage 84 of this report. For additional information on these andrisk management go online to www.tullowoil.comStephen Rees, Group Compliance ManagerQ&A WITH STEPHEN REES, GROUP COMPLIANCE MANAGERMore informationWhy is compliance strategically important to the business?I think a lot of people believe that compliance issomething that is used to exercise control over whatpeople do, but actually, having a consistent set ofprocedures is good for business. With Tullow’s rate ofgrowth, and the number of people joining and movingaround the business, it’s important that we haveconsistency across all of our locations, regardlessof what stage they are at in their business cycle.Compliance also allows us to demonstrate how we dobusiness to our staff, investors, partners and otherstakeholders, which is key to maintaining our reputation.PageGovernance performance 512011 Board time 59How does compliance help Tullow manage risk?Compliance with established policies and proceduresensures that we consistently do the right thing and thatwe proactively assess and manage decisions or eventsin advance. For example, if Tullow did not have aCode of Business Conduct or make staff fully aware ofTullow’s Code, a member of staff could inadvertently riskbreaching the UK Bribery Act. With our Code of Conductand the awareness sessions we are running to support it,we are better placed to manage these non-technical risks.How does Tullow ensure a culture of compliance –where people want to do the right thing?It requires sensible, practical policies and guidance inconjunction with an appropriate awareness programme.Everyone needs to understand the importance ofcompliance and how it protects both the individual andthe company. A key aspect is leadership demonstratingcommitment via their personal behaviours andencouraging a compliance culture across the organisation.Read more of Stephen’s Q&A:www.tullowoil.com/crr2011/complianceinterviewOUR PERFORMANCE3MEASURING57www.tullowoil.com

Governance continuedCode of Business Conduct and policy awarenessWe have an increasing headcount, larger geographical presenceand staff with varied experience from a diversity of cultures.This, coupled with enhanced scrutiny, means that it is evenmore important to be able to demonstrate that our decisionsand actions have integrity and are based upon sound processes.We recognise that compliance is not a one-off event butrequires an ongoing programme to maintain awareness. Werun an induction programme for all new staff and since theintroduction of the new Code of Business Conduct (the Code)in 2011, we have been rolling out a half-day Code awarenessprogramme across the Group, starting with those considered asbeing in higher-risk posts. This programme is ongoing and hasnow been presented to staff in London, Dublin, Bangladesh,Ghana, Kenya and Uganda, covering around 500 people. Theinteractive programme explains the scope and impact of briberyand corruption worldwide, the UK Bribery Act, application of theCode and related policies, and how to report concerns. It alsouses group exercises to resolve real-life dilemmas. Keymethods for maintaining awareness include an anti-briberyand corruption e-learning programme which will beintroduced in 2012, management briefs, an online quiz andelectronic ethics game, formal quarterly compliance statusreports and regular updates to Tullow employees andcontractors via our intranet.InvestigationsThe Code is clear in that it expects staff to speak up if they knowof, or suspect, a breach of the Code or are concerned about anyaspect of Tullow’s processes. During 2011, a number of concernswere raised internally by staff. This resulted in 12 investigationswhich led to a number of process improvements, three staffdismissals and one termination of a supplier contract. 11 peoplewere provided with investigation training in 2011 and we willenhance our investigation capability during 2012. If staff do notfeel able to raise a concern internally we have an alternative,confidential reporting line which is operated by Safecall, anindependent company. Details of how to contact Safecall havebeen distributed widely to staff and our industry partners alike.Enhancing the compliance programmeWe are required to implement adequate procedures to preventbribery as a consequence of the UK Bribery Act which cameinto force in July 2011. While our adequate procedures are welldeveloped there are still a number of areas where we wish toincrease effectiveness and these include: Risk management: We have been continuing to formallydevelop and enhance our understanding of the bribery andcorruption risks that we face. We have worked individually witheach business unit to identify their specific risks and to identifyappropriate mitigation actions. This is an ongoing process.SUPPLIER COMPLIANCE IN MAJOR PROJECTSAn excellent example of robust compliance is beingdemonstrated by the Ghana deepwater Tweneboa,Enyenra, Ntomme (TEN) FPSO development.The project team built compliance into the DNAof the project from the start by developing andimplementing project specific rules coveringphysical and information security and strictadherence to the requirements of the Code.Everyone involved in the project office in Singaporewas required to confirm in writing that they hadreceived formal training on the compliancerequirements. We are carrying out a robust duediligence on the potential bidders. This will befollowed up with compliance workshops betweenTullow and each individual bidder, with both partiespresenting their compliance programme to highlightsynergies and any gaps. Each bidder will also beaudited to ensure that their commitmentsto compliance are being met. Finally, a formalevaluation of each bidder’s compliance programmeforms part of the overall technical and commercialbid evaluation. The TEN Project plan to take asimilar approach to all its major bidding activityduring the project phase.Mariama Issaka, Project Controls Engineer with other members of the TENProject team, London, UK.58Tullow Oil plc 2011/2012 Corporate Responsibility Report

Due diligence: We already carry out due diligence activitiesbased on risk, using industry partner questionnaires coupledwith independent enquiries. During 2012 we will be initiatinga project to examine how we might further enhance duediligence to carry out independent assessments more rapidlyfrom any of our locations using online sources of information. Anti-corruption: We are producing an anti-corruption manualto bring together in one place all of the policies, processesand guidance that we have implemented to counteract briberyand corruption. This will provide management and staff withinformation and links to enable them to fully understand howthese activities are coordinated and managed and wherefurther support can be obtained. Certification: We are developing a certification process during2012 which will require staff to certify against a set ofcompliance criteria. Conflicts of interest: Where actual or potential conflicts ofinterest exist, staff are required to declare this in writing to theirline manager to enable the conflict to be managed. This iscurrently a manual process, using printed forms, but we intendto produce an online system to make it easier to declare andtrack the reporting and management of such conflicts.More informationPageTEN discoveries 9Industry partner workshopsThe compliance team has worked closely with Supply Chainto present Tullow’s anti-bribery programme to our industrypartners. To date we have presented to 17 companies inBangladesh and 72 in Kenya. A key message is that we will nottolerate bribery or corruption in any form and if our suppliersare exposed to it while working for Tullow we expect them toraise it with us.ResourcingIn April this year, an EHS secondee joined the compliance teamto build their expertise in the Code, anti-bribery & corruptionand compliance. Two further compliance professionals, one tobe based in London and another in Accra, Ghana, are also beingrecruited. A network of compliance champions has beenformed to assist with compliance within the business units andto provide local support to management on emerging issuesand dilemmas as well as participate in investigations whenrequired. A compliance committee was formed in early 2012comprising senior management and a non-executive Director.The role of the committee is to review the annual complianceplan, monitor progress and provide input and challenge. Thecommittee will also evaluate the status of compliance acrossthe Group and determine the regular compliance input andreporting to Board Meetings.OUR PERFORMANCE3MEASURINGNEW CODE OF BUSINESS CONDUCTCode of Business ConductThe Code is published online atwww.tullowoil.com/codeA booklet has been rolled out to all Tullowemployees and contract staff. A network ofcompliance champions in-country is beingdeveloped to help promote and embed thecode in all of our locations.2011 Board timeStrategy 25%Uganda 15%Financial management 15%Corporate governance 12.5%Development & Operations (D&O) 10%E&A 10%EHS 5%HR 5%Stakeholder management 2.5%Uganda took up a considerable amount of the Board’s timeagain during 2011, as would be expected given the strategicimportance of this major project. Corporate responsibility –governance, environment, health and safety, human resourcesand stakeholder management – took up a third of the Board’stime, which underlines the importance of our wider social andenvironmental responsibilities. Strategy and risk managementare core elements of the Board’s activities and in 2012 theBoard has committed to seeking to increase the amount oftime spent preparing for the future and discussing the majoropportunities and challenges that the Group faces.59www.tullowoil.com

Stakeholder engagementENGAGING WITH ANDRESPONDING TO OURSTAKEHOLDERSEvolving our approach in line with the growth of the organisation to betterrespond to stakeholder issues.STRATEGIC IMPORTANCETrust, reputation and relationships are vital to Tullow.Our stakeholders can influence the direction oroutcome of a Tullow project, positively or negatively.We engage at every level of the organisation with arange of stakeholders to help ensure the smoothcontinuation of our business.HIGHLIGHTS FOR THE YEARGLOBALPERCEPTIONS SURVEYCompletion of a reputation survey across eightcountries, canvassing stakeholder perceptions.FIRSTSocially Responsible Investor roadshow in Europe.THREERegional External Affairs Managers recruited.OIL & GASCOURSESFor external stakeholders held in Ghana, Uganda,Kenya, UK, French Guiana and Ethiopia.DETAILED PERFORMANCE INFORMATIONPage 51 provides detailed information on ourperformance against key objectives and our aimsfor 2012/2013.Key engagements in 2011/2012Our growing business sits within an increasingly complexstakeholder landscape, and our stakeholder managementinitiatives must keep pace. We continued to expand ourIntroduction to Oil and Gas courses and built on the successof our first multi-stakeholder forum to hold an environmentfocused event for experts from civil society, policymakers,academics and the SRI community and with members ofTullow’s EHS and operations teams.New initiatives included a stakeholder perceptions survey,canvassing the views of key opinion formers in Uganda, Ghana,the UK, Gabon, French Guiana, Mauritania, Brussels (EU) andthe USA, to ensure we continue to address the right issues.SRI RoadshowIn November 2011 Tullow held its first roadshow for SociallyResponsible Investors in Europe. We provided a focused updateon our approach to corporate responsibility, allowing investorsto ask questions and challenge us on our progress and plansfor the future.Issues discussed included transparency around payments togovernment, implementation of the UK bribery and corruptionlegislation and the setting of meaningful emissions reductionstargets. Feedback from investors was that they appreciated thishonest and clear communication and that they would value anannual meeting of this type.Community engagementNew teams of Community Liaison Officers (CLOs) have beenestablished in Kenya and Ethiopia as our operations begin andexpand in these countries. In Ghana our community work in 2011included targeted engagement activities on the Jubilee Project,TEN Project and oil spill response awareness. CLOs alsoundertook community visits to deepen engagement withTraditional Authorities, deliver important EHS messages, attendtraditional festivals and address emergency response needs instrategic locations. Other initiatives included support to fishingcommunities, training for community health workers andvolunteers, community health screenings and regularinformation sessions with local NGOs, media briefingsand support for community sporting events.60Tullow Oil plc 2011/2012 Corporate Responsibility Report

More informationPageGlobal Perceptions Survey 18Uganda community engagement 36“We are increasingly working in remoteonshore areas with large indigenouscommunities. This has major implicationsfor how we manage the social impacts ofour activities and places clear strategicimportance on the policies, standardsand processes we are putting in placein this area.”OUR PERFORMANCE3MEASURINGRosalind KainyahVice President External Affairs & CSRTullow Uganda, with its new partners Total and CNOOC, helddedicated sessions for stakeholders in key districts of theAlbertine Basin. The aim was to provide accurate updates onthe oil and gas sector in the region, to introduce the partnersand to share plans on how new operatorship in Blocks 1, 2and 3A will work. The meetings also generated stakeholderfeedback on the oil and gas developments generally.Developing our approachIn 2011 we focused on building more robust internal processesand capacity for stakeholder engagement. The External Affairsfunction completed a full skills audit, including keycompetencies for effective stakeholder engagement, to driveresourcing and training across the global team. Professionaltraining can be hard to come by in many of our countries ofoperation and we are identifying appropriate courses andplacements to build capacity of External Affairs professionalsin line with the changing needs of the business. We haveestablished a set of Stakeholder Engagement Guidelines andtools for the Group to both govern and support stakeholderengagement and stakeholder issues management at all levels.Three regional external affairs managers have been recruitedto new roles designed to support each Regional Business Unitteam in London and individual Business Units in-country,ensuring that the right resources are in place for the successfulexecution of external stakeholder engagement programmes andsocial impact management strategies throughout our regions.Understanding our impacts and opportunitiesWe have commissioned socio-economic baseline studiesin Uganda and Kenya to identify both our key impacts andopportunities for development, as well as an independentreport aimed at providing an account of the past, current andlikely future impact of Tullow’s activities on Ghana’s economy,society and environment. We are also putting in place moreeffective methods for identifying, assessing and managingsocial and political risk – a potential long-term performancerisk for Tullow. This includes recruitment of a country riskanalyst who will input to work to improve Board reporting onevolving risks.INTRODUCTION TO OIL & GAS COURSESWe have continued to run Introduction to Oil andGas courses for external stakeholders in ourcountries of operation, taught by Robert GordonUniversity (RGU). The courses cover the basics ofoil and gas exploration and production, some ofthe key decisions and risks taken by oil companiesopening up new basins and challenges faced bynational governments in developing a sustainableoil industry. Attendees are also given a presentationby Tullow on our activities in their country followedby a full and frank Q&A session.This year we repeated the courses in Ghana andUganda and also ran a course in London for UKstakeholders including national government,international NGOs and overseas diplomats fromour African countries of operation. We also ran ourfirst French language course in French Guiana,delivered through the Institut français du pétrole. In2012 we have run one course in Kenya and will holda second course to be run by RGU, with a view to alocal provider being able to take on future teachingrequirements. We have also run an introductorycourse for government stakeholders in Ethiopia.Susan Busingye, EHS technical assistant, and Sidney Tindyebwa, SupplyChain planner, attending an Oil & Gas course in Kampala, Uganda.61www.tullowoil.com

Environment, Health & SafetyTHINKING FORWARDWe want to build an EHS culture based on confident interventions, wherepeople proactively think about the EHS risks they are responsible for. Thiswill influence EHS behaviours and enable us to manage EHS in a much moreresponsive and tailored way.STRATEGIC IMPORTANCEOur number one priority is to keep people safe.It is the cornerstone of our approach to operatingresponsibly and is reflected in our goals to minimiseour environmental footprint and achieve top quartileindustry performance.HIGHLIGHTS FOR THE YEAR0.38 LTIFRWe achieved the lowest LTIFR in our history, givingus our best ever safety performance.0.90 HIPOFRIn 2011, we achieved our stretch target of less than1.0 high potential incidents per million hours worked.FIRSTEnvironment focused multi-stakeholder forum heldin April 2012, where we brought together expertsfrom civil society, the policy community and ourbusiness.93%Of respondents to Talkback believe that Tullow activelyseeks to keep people safe and 90% believe that Tullowhas a responsible attitude to the environment.DETAILED PERFORMANCE INFORMATIONWe manage our EHS performance througha combination of leading and lagging KPIs.Pages 52 and 53 provide detailed information on2011 performance and the new 2012 EHS KPIs.Interview with Group EHS Managerwww.tullowoil.com/crr2011/ehsinterviewWe delivered a strong EHS performance overall in 2011. Weachieved an excellent safety performance. We had zero highpotential environmental incidents, despite a significant numberof higher risk activities across Tullow during the year. In totalover 13 million hours were worked, representing an increase of57% compared with 2010. This is a new scale of activity drivenby exceptional exploration success and an exciting and growingportfolio of development and production assets in both Africaand South America. We have identified clear areas whereimprovements are required – driving safety, spills andunderlying trends in environmental data – and these arebeing targeted in 2012.Enhancing our approach to EHSWe strengthened our EHS organisation in 2011 as part of amove to a new regional business structure. We created a newEHS Strategy Forum, comprising of both Executive Directorsand senior management, to ensure we have a dynamic andinnovative approach to EHS. We appointed regional EHSManagers who act as a strong link between operations andcorporate EHS and are a working group for sharing bestpractice, common issues and experience. We are also focusedon consistently delivering high-level performance and havecontinued to enhance our EHS resources and standards byinvesting a lot more rigour into all our EHS processes, meetingsand reporting. This year we have rolled out a new EHS visionand an updated EHS policy. New Tullow Oil EnvironmentalStandards (toes) have been launched as outlined in the casestudy opposite. We have also introduced Tullow Safety Rules,which are a set of safety requirements designed to managehigh-risk activities.2012 KPIsEach year the EHS team sets out a number of leading andlagging KPIs, which are approved by the Executive and Board.We select five leading and five lagging KPIs to prioritise theseactivities for the year, although across the business 30 or moreEHS indicators are monitored. Leading indicators are qualitativeand focus on key activities during the year that will deliverimproved performance in targeted areas. Lagging indicatorsshow how we have performed based on quantitative dataand targets.62Tullow Oil plc 2011/2012 Corporate Responsibility Report

More informationPageEHS performance 52EHS multi-stakeholder forum 66Supplementary EHS data 81“At Tullow, EHS is everyone’s responsibility.It is front of mind for operational peoplebut non-operational people cancontribute to our EHS performance too.We want everyone at Tullow to ThinkForward for the health and safety of ourpeople and local communities, and thewellbeing of the environment.”OUR PERFORMANCE3MEASURINGPaul McDadeChief Operating OfficerIn 2012, we took a very structured approach to reviewing ourKPIs. We evaluated our 2011 performance and reviewed allreports of accidents and incidents to identify our key exposures.We held EHS forums in each region and spent considerable timecollecting data about what needs to be done, where our EHSrisks are and how our business is changing. The objective wasto define KPIs that would encourage the right EHS leadershipand behaviours in each of our areas of activity. In 2012, leadingindicators will build on the progress we have made in 2011, witha refined focus on action tracking, safety critical equipment,contractor management, toes and EHS leadership.A more significant change has been made in lagging indicatorsbecause the EHS Strategy Forum concluded that there wastoo much emphasis on statistical information and not enoughon learning and improvement. As a result, this year we havedecided to take a different direction to the industry and removeLost Time Injuries (LTIs) from our headline KPIs. Instead we arechoosing to focus on level 4 and level 5 High Potential Incidents(HiPos). We have a matrix of five levels to rate the severity of aHiPo, with the top level indicating a potential fatality. Learningand managing HiPos is more proactive and will help us to stopan accident before it happens rather than simply record aninjury after it has occurred. We will still continue to measureand report on LTIs.In 2011, we did not perform well with regard to Vehicle AccidentFrequency Rate (VAFR) and have had two third-party fatalities todate in 2012. We have already commenced a major vehicle andsafe driving audit and this will help us to identify and mitigategaps in our systems. VAFR is retained as a lagging KPI this year.Uncontrolled releases was a new KPI in 2011. Our operationsare mainly based in environmentally sensitive areas so it isimportant to demonstrate good practice and the integrity of ourequipment. While we recognise that we set a challenging targetfor 2011, we did not perform as well as we would have expected.Details of 2011 spills and the steps we are taking to improve ourperformance are set out on page 65 of this report. Malaria isprobably our most significant occupational health issue. Weundertook a major audit of malaria management in 2011,including a gap analysis of best practice, as part of a Boardmandated objective. Malaria Case Frequency Rate is a KPIfor 2012.TULLOW OIL ENVIRONMENTAL STANDARDSIn 2011, we reviewed toes, which were originallylaunched in 2009, to assess the evolvingenvironmental challenges our business faces.In March this year we launched standards thatrevolve around biodiversity, greenhouse gases,resource management and socio-economicimpacts. Each of these areas is supported byproject tools to reinforce consistent delivery. Thestandards complement existing Tullow guidelinesand policies including our values, Code ofBusiness Conduct and Tullow Safety Rules.toes is mandatory where Tullow is operator or hasownership control. In addition, we will make everyreasonable effort to influence our partners’commitment to toes or equivalent performancestandards. If the requirements of toes are morestringent than local laws, or accepted local practice,then toes must be applied. We are committed tocontinuous improvement and toes will be updatedregularly to meet our growing environmentalchallenges. Find out more at www.tullowoil.com/toesFourNew environmental standards launched in 2012ThreeGroup-wide environmental KPIs in 201263www.tullowoil.com

Environment, Health & Safety continued2011 environmental performanceDuring the year we simplified ourenvironmental data collationmethodology and formalised theadoption of industry recognisedstandards for environmental datareporting. Data is monitored on aquarterly basis at Group level by thecorporate EHS team. We assureGroup-level performance datathrough Deloitte.For 2011, we have reported data for ourproduction and drilling operations inGhana, the UK, Uganda, Bangladesh,Pakistan and French Guiana. We alsobegan monitoring our seismicprogramme environmental data thisyear, which included seismic acquisitioncampaigns in Kenya, Mauritania andMadagascar. Data has been collected forthe following parameters: atmosphericemissions, water usage and spills.In the 2010 Corporate ResponsibilityReport we highlighted that wastemanagement is a challenging issue forus, particularly in remote sites inisolated parts of the world. We havetherefore incorporated our waste datainto our environmental performancedata review for 2011. One of our 2012environmental objectives is to develop aGroup position on waste management.Greenhouse gas (GHG) emissions1,376,590 TONNES2010: 294,732 TONNES1,500,0001,200,000900,000600,000300,0000CO 2241,056 294,732197,60387,0471,376,59007 08 09 10 11CH 4as CO 2eGHG emissions are generated byour production, drilling and well testactivities. We have also incorporatedseismic acquisition activities in our datathis year. These emissions contribute tothe total atmospheric GHG emissions,which impact climate change. GHGemissions include Carbon Dioxide (CO 2)and Methane (CH 4).This year in line withindustry guidance we are reportingannual emissions as the CO 2equivalent(CO 2e) of each GHG. CO 2e emissionsincreased 367% in 2011. CO 2emissionsfor the Group have increased by 361%between 2010 and 2011. CH 4emissionshave increased by 420% during 2011. Thekey reason for this is the first full year ofproduction and resultant flaring duringthe year in Ghana. In March 2012, weintroduced a GHG Standard as part oftoes. The objective of this new standardis to promote the efficient andresponsible use of energy resourcesthroughout Tullow operations.The conversion factor used to give methane interms of CO 2e is 21.CO 2e figures have not been assured by Deloitte,however figures for CO 2and CH 4emissions havebeen assured.Greenhouse gas emissions per1,000 tonnes hydrocarbon produced260.98 TONNES2010: 197.53 TONNES250200150100500CO 2127.5790.107 08CH 4as CO 2e89.42In 2011, GHG emissions (CO 2e) per tonneof hydrocarbon produced increased 32%.The most significant contributor wasincreased production in Ghana and theneed to flare additional gas. During theyear, we continued to stabilise FPSOplant and processes in the Jubilee field,offshore Ghana. These hydrocarbons aredefined as light sweet crude and have arelatively high gaseous content in the oil.As a result gas injection compressionfacilities are required to enable this gasto be re-injected into the reservoir, asthis is the only available gas disposalroute at this time. While the gasreinjection system was commissioned inthe first half of 2011, technical issuesarose in what is a complex engineeringprocess. We have worked hard to resolvethese issues and have made very goodprogress towards achieving the optimumlevel of 97.5% gas reinjection, withreinjection rates consistently exceeding90% since the beginning of 2012. Thelong-term plan is that there will be nocontinuous flaring of hydrocarbonsduring normal operations.Total CO 2e per thousand tonnes hydrocarbonproduced is calculated as: Tonnes CO 2per thousandtonnes hydrocarbon produced plus 21x tonnesCH 4per thousand tonnes hydrocarbon produced.CO 2e figures have not been assured by Deloitte,however figures for CO 2and CH 4per thousandtonnes hydrocarbon produced have been assured.09197.5310260.981164Tullow Oil plc 2011/2012 Corporate Responsibility Report

More informationPageAssurance 803Water usage10,408,240m 32010: 107,423m 3Oil and chemical spills142010: 4Supplementary EHS data 81Waste32,707 TONNES84.29% RECYCLEDMEASURING OUR PERFORMANCE151412100%(waste)96365484.29%(recycled)Fresh water 1%0107 08 09 10 11Seawater 99%Water management is important in anyarea where fresh water, in particular, isconstrained due to limited supply orextensive water needs. Water availabilitycan impact the local environment andinfluence socio-economic activity. In2011, we have reported the use of bothfresh and seawater in our operations.Fresh water accounted for 1% andseawater 99%. We have seen asignificant increase in water usageduring 2011, attributable to the start-upof production in Ghana. The waterreinjection system in these operationsuses a significant amount of seawater,and this has accounted for almost 99%of our total water usage. The Ugandaand French Guiana drilling programmesused 86,667 m 3 and 18,916 m 3respectively. Although relatively small,this represents a significant increase inthe use of water in Uganda. During 2011,there were five operational camps and12 well sites, compared with threeoperational camps and seven well sitesin 2010. We are concerned about theincrease in water usage in Uganda andKenya as our activities expand in thesecountries, and in 2012 we are developinga position on the issue.We did not achieve our UncontrolledReleases KPI, which was introducedin 2011. This indicator measures thenumber and volume of spills, orunintended releases, of any materialswhich could impact the environment.The effect of Uncontrolled Releasesto the environment depends on twocomponents – the volume released andthe receiving environment. In 2011,Tullow had 14 incidents of uncontrolledreleases, which was over four times ourtarget. Eight incidents were in Ugandaand six in Ghana. While none of theincidents were particularly significant,they do demonstrate that spills need tobe a key area of focus for the business,specifically drilling fluid storage andmanagement. The EHS and WellEngineering Teams have developed aDrilling Fluids and Cuttings DisposalStandard and a set of guidelines that ouroperations must comply with. During2011, we also significantly improved thereporting of environmental incidents,which will help us to enhance ourprocesses and the integrity of ourequipment.Waste is a new reporting parameterfor Tullow in 2011. Effective wastemanagement is an important aspectof operational efficiency to reduce theenvironmental, social and economicimpacts of our activities. Wastemanagement is a challenging issuein remote locations with limited or noinfrastructure for waste disposal. Tullowoperations produced 32,707 tonnes ofwaste in 2011, over 84% of which hasbeen reused, recycled or treated. Themost significant contributor to our wastetonnage was our Ugandan activities,which accounted for almost 80% of totalGroup waste. We had been storing drillcuttings onsite until we could identifyapproved waste contractors in thecountry who could legally andresponsibly deal with our waste. In 2011,we were able to work with local suppliersto dispose of a considerable volumeof waste. One of our environmentalobjectives this year is to develop aGroup position on waste management.65www.tullowoil.com

Environment, Health & Safety continuedEHS Multi-Stakeholder ForumIn 2011, Tullow held its first multi-stakeholder forum covering abroad range of operational topics. The environmental issuesand concerns raised at that event led us to host an environmentfocused forum in April 2012. We brought together experts fromcivil society, policymakers, academics and the SRI communitywith Tullow EHS, operational and technical managers. Theobjective was to review the full spectrum of our EHS activitiesand identify some of the key issues that would promote ordetract from Tullow consistently maintaining the highest EHSstandards and performance. We also hoped to gain insight fromkey stakeholders to help shape developments in our approachto EHS. Subjects included industry best practice, Tullow’sapproach to environmental standards, new country entry,working in protected areas and oil spill and emergencyresponse plans. A number of key issues emerged. We have setout our preliminary responses to some in this review and haveundertaken to respond to all issues raised by the end of theyear. One of the issues was the need for Tullow to set emissionstargets, to which our initial response is set out in the case studyon page 67. Another was our position on operating inenvironmentally sensitive areas, which we address in the newfrontier entry commentary in the next paragraph. Other areasinclude more frequent updates on environmental issues andprogress on these, a long-term view on sustainable energy, awider perspective on resource benefits and how we intend toclose environmental performance gaps.New frontier entryWe have identified the need for earlier integration of EHS andsocial impact assessment in new frontier entry. As a result theEHS team has set up a Geographic Information System (GIS)covering Africa and the Atlantic margins to provide high-levelscreening of environmental biodiversity and social riskinformation for our business development teams. GIS is asystem for managing a range of data and associated attributeinformation, which are spatially referenced to the Earth. Thisprovides a database of information layers as a digital andinteractive map. It can be used to identify, manage and monitorchange during all phases of exploration, development andremediation, to optimise and effectively manage activities. Weare putting multiple layers into these maps. We start withgeology, allowing us to focus on the areas in which we think wehave a chance of finding big oil. This is core to our explorationledgrowth strategy. We then look at security, environmental,health, political and commercial considerations. This bringstogether an holistic view which also allows us to identify and takeaccount of sensitive areas in the very early stages of anydecisions. We have put GIS systematic screening into ourworkflows and have reinforced our environmental expectationswith the launch of toes in March 2012 and an Operating inSensitive Areas strategy for the Group. If we intend to enterinternationally protected sensitive areas it is now mandatory inTullow that this is reviewed and approved by the Executive.“I am pleased to see so manyoperations people at the sessionand the tremendous opennessshown by Tullow. There has beenno instance of rejection of anyidea out of hand.”ParticipantEHS Multi-Stakeholder Forum“It is crucial that oil and gasactivities are undertaken in away that ensures sustainabilityof ecosystems. They needto co-exist with the tourismand conservation activitiestaking place.”ParticipantEHS Multi-Stakeholder ForumApril 2012Green Backed Heron, French Guiana. Image courtesy of Graham Eatonwww.eatonnature.co.uk66Tullow Oil plc 2011/2012 Corporate Responsibility Report

EHS risk management and asset protectionIn 2011, a new Group Asset Protection Manager was appointed.Crisis management, emergency preparedness and security arecritical EHS risk and reputation management issues for Tullow.We consider all forms of EHS risk, from major accidents tosimple workplace hazards. We maintain a dynamic EHS riskinventory that sets out our top 10 EHS risks which are alsoranked by significance. This enables us to take a strategicapproach to EHS risk management. Tullow’s Chief OperatingOfficer gives an EHS update at each Board meeting. EHS risksand statistics are reported monthly and there is a quarterlyreview process with participation from Tullow operations,regional business management, corporate EHS and Executives.Twice a year the Board receives a detailed update on EHSissues and risks. In 2012, we introduced a Group SecurityStandard. Tullow has interests in 22 countries, each presentinga different operating and security risk profile. The introductionof this standard reinforces our requirement to safeguard peopleand property against potential security threats and ensures acommon base level of security is maintained wherever weoperate. To complement this, Tullow has requested admissionto the Voluntary Principles on Security and Human Rights.These are a set of principles to guide companies in maintainingthe safety and security of their operations, within a clearoperating structure that promotes respect for human rights.More informationPageCorporate risk framework 14toes 63Think Forward in 2012 and beyondIt is a real challenge to consistently deliver top quartile EHSperformance, in the context of our increased scale of activitiesand the rapid growth in our employees, contractors and areasof operation. As Tullow grows there is potential for moreincidents but there is also a danger of falling into the positionthat more procedures are needed to prevent these. In adynamic operating environment people need to be empoweredto think beyond systems and checkboxes. They need to be ableto adapt to change, sometimes very rapidly, and be ready tointervene, respond and act. The whole purpose of ‘ThinkForward’, which is our new EHS framework, is to get peopleto look ahead and be proactive in preventing an incident byactively thinking about the risks that they are managing.With good collaboration, strong leadership and up-to-datecompetencies our aim is to build a culture of confidentinterventions. ‘Think Forward’ will help us create the rightbehaviours which will enable us to manage EHS in a muchmore responsive and tailored way. It is about improving our EHSperformance but, more importantly, it is about enabling people.3MEASURING OUR PERFORMANCESETTING EMISSIONS TARGETSTullow’s operational footprint has grown extensivelyin the last five years. The Group has discovered fournew oil basins, three in Africa and one offshoreFrench Guiana in South America. We becameoperator of a major new production facility offshoreGhana, which is expected to achieve plateauproduction in 2013. We also have a number of majordevelopment projects underway in Ghana andUganda. In the meantime, we continue to review ourportfolio of assets and have disposed of gasproduction facilities in the UK, with plans to disposeof our Asian portfolio in the near future. In addition,we have sought to significantly improve ourenvironmental data monitoring and reporting andthis year we adopted industry standards.Indicative of the scale and pace of change is thegrowth in the number of hours worked acrossTullow activities. In 2011, over 13 million hours wereworked across Tullow, including a 35% increase inproduction, 35 E&A wells and 60 development wells.This compares with 5.6 million hours worked justfive years ago. Our 2011 activities included asignificant number of higher risk operations such asdeepwater drilling in South America and productionramp-up in Ghana with 33 oil liftings to date.This level of change across our activities makes itvery difficult to set emission reduction targets forthe Group. However, we believe our 2011environmental performance is the penultimate stepbefore a predicted improvement across a range ofenvironmental indicators including greenhouse gasemissions, water use, waste and spills. Thisimproved performance should be achieved boththrough the launch of toes in March 2012 coupledwith the changes made to Group-wide 2012environmental KPIs.In 2012, a toes self-assessment tool has beendeveloped and is expected to be completed foroperated and ownership controlled assets this year.Environmental and Social Management Plan (ESMP)closure reports are required for each Environmentaland Social Impact Assessment (ESIA). These,together with implementation of the TullowChemical Management Plan, Drilling Fluids andCuttings Disposal Standard and Greenhouse GasStandard, underpin the expected improvement inour environmental performance. These activities willalso provide us with clear identification of the gapswe need to work on in 2013 and 2014.67www.tullowoil.com

Our peopleBEING THE BESTWE CAN BE, TOGETHERAt Tullow we’re committed to providing our people with a diverse and open workingenvironment that encourages everyone to make a difference.STRATEGIC IMPORTANCEHaving the freedom to innovate and contributeto finding the best solutions to opportunities andchallenges provides a compelling attraction andretention proposition. Harnessing this creativeenergy and motivation into building high-performingteams drives our vision of ‘being the best wecan be, together’.HIGHLIGHTS FOR THE YEAR26%Our total workforce increased by 26% in 2011 to1,548 people by year-end. Employee numbers grew29% to 1,207 people.371371 new people were recruited by Tullow in 2011,37% of which joined our African operations.3.2%Staff turnover in 2011 was 3.2%, which was withinour baseline target.81%Our overall Talkback engagement score was 81%favourable, significantly above the energy benchmark.A rewarding, challenging and great place to workThe industry looks on Tullow very differently now to how itdid a few years ago, and that’s a credit to all of our people.In 2011, our employee numbers grew by a further 29% withour workforce now totalling 1,548 worldwide. As we continueto build our organisational capacity, we remain absolutelycommitted to maintaining our entrepreneurial character andliving our core values. This year we updated our business modelwhich is outlined on pages 12 and 13 of this report to reflectour strategic priorities. Our organisation and culture underpinsthe delivery of our vision through building strong, effective andintegrated teams with excellent commercial, technical andfinancial skills and entrepreneurial flair. To do this, we continueto attract the best talent, invest in the development of ourpeople and ensure high engagement and collaborationamongst our teams.CULTURE & ENGAGEMENTTalentmanagementOperationaleffectivenessReward &recognitionDETAILED PERFORMANCE INFORMATIONOn page 54 of this report you will find more detailedinformation on 2011/2012 performance againstobjectives as well as 2012/2013 objectives.Tullow people diarieswww.tullowoil.com/peoplediariesOur people strategyMuch of our success has been based on the adaptive andentrepreneurial nature of our culture, which is also reflected inour core values. Our culture is part of our competitive advantage.It strongly influences why people join Tullow and why they chooseto remain with Tullow. Our people strategy is fully aligned withachieving our vision by ensuring that all our employees contributethe best they can in all that they do and conduct themselves withrespect for each other and for the people and the environments wework within. Our HR strategic objective is very clear. It is to growvalue over the long-term for the business as the ‘employer ofchoice’ within the industry.68Tullow Oil plc 2011/2012 Corporate Responsibility Report

3“I am very proud of our highengagement score. It’s whatmost companies forever striveto achieve – our challenge isto sustain it.”Gordon HeadleyChief HR OfficerMEASURING OUR PERFORMANCEIn 2011, we were focused on building the foundations of ourpeople and talent strategy, and our focus in 2012 has expandedto include the introduction of career development planning forall employees and continuing our investment in localisation andsuccession planning. 2012 will also see us roll out career andcompetency frameworks across a number of functions toensure our people can properly plan their careers and havemeaningful development conversations. We will also beintroducing a range of HR systems to better support andenable our talent, reward, learning and recruitment processes.We remain committed to our ‘T for Talent’ programme whichincludes in-house training for employees and managers,vocational technical training, professional training and on-thejoblearning.At the end of 2011, we introduced a new Group RecruitmentTeam to support our increasing skills requirements. This teamwill support local HR and Business Managers across the Groupto deliver an innovative and effective approach to recruitment,advice on talent markets and options for candidate sourcing.The Recruitment Team will work closely with our HR BusinessPartners in balancing internal career progression routes withexternal recruitment needs. In 2012, our focus is on getting theright people with the right skills into the right place.Our reward offerings and recognition programmes are underconstant review to ensure we balance the ever changingrequirements and keep ourselves attractive to our employeebase and new talent streams. We remain committed toensuring that all our employees globally benefit from our highlycompetitive Share Options Scheme. Comments from ourTalkback 2011 survey indicated that people value the range ofbenefits available to them. We are a performance drivenorganisation and our performance ratings process allows usto recognise those who have significantly and consistentlycontributed to the Group’s continued success.TALKBACKWhat our people really thinkIn 2011, we launched our second ‘Talkback’survey, providing a voice to both employees andcontractors globally. We invite everyone tofeedback and contribute to the future direction ofTullow in different areas of staff engagement. Thesurvey received an 84% response rate comparedwith 83% in 2009. Our overall engagement scorewas 81% favourable, significantly above theenergy benchmark defined by the surveyintelligence provider, Sirota. Our engagementscore was consistent at 81% for both our femaleand male demographic.Our people feel our strengths are in the areas ofsafety, responsibility, innovation, empowermentand teamwork. We also scored significantly abovebenchmark responses in areas such ascommunicating matters that affect people,learning from our mistakes, cooperating wellacross the Group and people’s trust in themanagement teams.The main areas for improvement are theobstacles we face as a growing company inachieving more efficiency and effective changemanagement, and in the increasing challengeswe have in our workforce growing at a rate of20-40% year after year. We have now begun toinvolve management teams and employees inworkshops to understand and reinforce what wedo well and address areas for improvement. Weare already communicating progress made.69www.tullowoil.com

Our people continuedLeadership at TullowEffective succession planning remains a Board level goal.Development of our managers and business leaders to preparefor their next role is critical to people’s engagement and ourfuture success. Our performance is also dependent on ourleaders having the right skills and experience to support thecareer development of others. Facilitating people’s desires tomove around business units and functions allows us to makebest use of the talent pool we have and encourages individualsto develop their careers within Tullow.In 2011, the Tullow Leadership Development Programme waslaunched with Ashridge Business School. 123 managers withinTullow have attended the first module of this training: afour-day session on what leadership is and means at Tullow.The second module, launched in 2012, will build on this withan emphasis on the application of strategic thinking andchange leadership.A subset of this group attended the first Leadership Forumin early 2012 to discuss our Vision, Strategy, Leadershipand Teamwork and the collective challenges we need toovercome to continue our success and growth as a Group.The Forum, which was held in the UK, was a highly interactiveevent with key presentations from members of the leadershipteam and the Executive. This will become a yearly event.Our managers and leaders continue to receive support from ourInternal Communications team. Staying connected, informedand engaged as a group, in all locations and at all levels iscritical to our continued success. Our intranet, ‘TullowNet’ isaccessed by over 1,000 people per day and provides employeesand contractors with regular updates on our business, peoplestories and corporate responsibility news.As our organisation grows, we are introducing new initiativesto ensure the Executive and senior management stay visible foremployees. Informal ‘Meet the Exec’ sessions and Executivevisits to our locations globally have received very positivefeedback. In 2012, we will be introducing new ways to involveand connect employees including market data and mediaupdates to managers, hard copy news to those in remotelocations and new technologies to allow people to bettershare and collaborate.LocalisationGender profileAge profile800765640480430320278160Local employees and contractors 79%Expatriates 21%Male 73%Female 27%06260Our localisation vision is to run each ofour country-operated assets with amajority of local leaders, managers andstaff. In 2011, 85% of our employees inGhana were local, and 84% of ouremployees in Uganda were local.At the end of 2011, 27% of our workforcewas female, up 2% on 2010. 17% of ourmanagers are female, including one ofthe three Regional Business Managers,one of the most senior positions inthe Group.In 2011 our objectives continued to befocused on career planning, careerdevelopment and succession. Thisreflects the 30-45 year age profile of over50% of our workforce.(These figures exclude 13 people forwhom we did not have age data for 2011.)70Tullow Oil plc 2011/2012 Corporate Responsibility Report

LocalisationWe see localisation as a critical part of our ability to deliver on ourgrowth ambitions. Localisation therefore remains a key strategicpillar as it aligns our strategic interests with those of our nationalpartners, and in the long-term provides us with a pool ofcompetent, capable and motivated staff for our successionpipeline. The primary localisation challenge for Tullow remainsour ability to find and attract suitably qualified nationals in thecore petroleum engineering technical and commercial disciplinesboth in-country and in the Diaspora. Initiatives such asmentoring, focused talent searches and competencydevelopment are being deployed with the intention of bridgingthis gap and developing the long-term capability of national staff.In 2011, we further clarified our approach to localisation – settinga platform for the consistent implementation and communicationof our localisation aims. We also recruited a Group LocalisationManager to lead the development and implementation of ourGroup Localisation strategy, working with our Business Unitmanagement teams to ensure that our localisation agenda isexecuted efficiently.More informationPageSupplementary people data 82In order to attract the best prospective graduate staff from ourkey countries to the industry, we are continually engaged withlocal institutions including Makerere University in Uganda andKwame Nkrumah University of Science and Technology in Ghana,through sponsorship of career fairs, offering internshipopportunities and direct engagement with students.The optimal localisation rate varies by country dependent on localand external factors including the pre-existence of an oil and gasindustry prior to our arrival and the need to have the right mix ofexpertise to run our business effectively. We currently have 85%local employees in our Ghana locations and 84% local employeesin our Uganda locations.“Our vision is to run each of our countryassets with a majority of local leaders,managers and staff.”Edward MungatanaGroup Localisation Manager3MEASURING OUR PERFORMANCEInterview with Group Localisation Managerwww.tullowoil.com/crr2011/localisationinterviewTTE PROGRAMMEInnocent Osuna at the TTE training college, Middlesbrough, UK.Innocent Osuna joined TullowUganda operations two yearsago with a vision to developconsiderable expertise that wouldadd value to Tullow Oil andUganda as a country. He joinedthe Technician Trainingprogramme in November witha passionate desire to attainpracticable competency andaccredited qualifications inhydrocarbon process operationsand safety management.Since 2009, nine Ugandans and10 Ghanaians have attendedthe Technician Training courseat TTE in Middlesbrough,United Kingdom.“The programme was absolutelybespoke to my career. Themodules have imparted theappropriate knowledge andexperience I need, covering keytopics including process safety,process operations andinstrumentation which are highlycherished skills in the industry,especially in Uganda. During theprogramme we completed ateam-building exercise in the LakeDistrict. The outdoor sessionsincluded activities like mountainclimbing and bridge buildingwhich underpinned our core skillsin teamwork, work planning,leadership, accountability andresponsibility. My current role isTrainee Production Supervisor.I will focus on deliveringmy training targets, whilstsimultaneously implementingthe skills acquired to growthe business throughexemplified leadership.”71www.tullowoil.com

Sustainable supply chainADDING VALUE,PROTECTINGTHE BUSINESSThe objectives of Tullow’s supply chain strategy are to add value and protectthe business. Building a sustainable supply chain is integral to this goal and itis also closely aligned with our values and the way we do business in Tullow.STRATEGIC IMPORTANCEThe activities in our supply chain impact every aspectof our business model, including how we create valueas a company and how we run our business in pursuitof prudent risk management, strong governance,entrepreneurial flair and shared prosperity.HIGHLIGHTS FOR THE YEARNEWA new supplier centre was launched to promotetransparency in how to do business with Tullow and whatopportunities are available in our areas of operation.FIVETullow has five key supplier evaluation criteria whichaddress the 10 principles of the UN Global Compactto develop more sustainable supply chain practices.UPDATEDIn 2011, supplier contractual terms were updatedto take account of Tullow’s new Code of BusinessConduct. Supplier workshops have been held inBangladesh and Kenya and for the TEN Project in Ghana.REVISEDMaster contract agreements were revised in 2011to embed EHS standards and mandate local contentrequirements.DETAILED PERFORMANCE INFORMATIONSustainable supply chain and related local contentperformance information against objectives for2011/2012 and key plans for 2012/2013 are set out onpage 54 and 55 of this report.Building a sustainable supply chainOur supply chain is embedded in all our activities. It is thestarting point for an exploration campaign in-country, underpinsthe successful delivery of major development projects and helpsto run our day-to-day business. Many of our areas of operation,but particularly those in East Africa, present some of our biggestchallenges in technical and non-technical risks and sustainablepractices. Distance, remoteness, geography, topography andinfrastructure are often set within a complex operational context.They are frequently environmentally sensitive areas with multipleand overlapping interest groups and pastoral local communitieswith low EHS awareness. Delivering logistics in and bringingwaste out, building camps in the right way and running trucks tothe correct environmental and safety standards, for example, allrequire a long lead time and strong support to optimisesustainable practices all along the supply chain.As a consequence, we evaluate our suppliers against five keycriteria – EHS standards, technical requirements, local contentopportunities, ethics and compliance, and the best technicallyacceptable commercial offer. These five criteria address the 10principles of the UN Global Compact to develop more sustainablesupply chain practices. They also underpin the three keyprinciples at the heart of building a sustainable supply chain forTullow. These are to protect the environment as much aspossible; support the creation of long-term social benefits in hostcountries; and achieve the right balance between environmentaland social considerations, the commercial needs of our businessplans and Tullow’s commitment to creating shared prosperity.Developing robust contract strategiesAlongside the five criteria for supplier evaluation, supply chainworks closely with specialist functions and experts in Tullowto identify all the risks in relation to the provision of goods andservices. We also work with external stakeholders to aid ourdiscussion on the design of contract strategies. This enablesus to identify the custom elements that are needed in a contractto ensure we meet or exceed sustainable supply chain criteriaand address all identified risks. We directly monitor supplierbehaviour and practices on location and mandated supplierreporting gives us added assurance of high standardsof performance.72Tullow Oil plc 2011/2012 Corporate Responsibility Report

“Tullow’s commitment to creating sharedprosperity for our host countries, as wellas our business, is underpinned byethical and responsible businesspractices focused on creating asustainable supply chain.”More informationPageCompliance 57Local supplier expenditure 833MEASURING OUR PERFORMANCEDavid MooneyHead of Supply ChainWe recognise that local suppliers need additional support toachieve supplier pre-qualification, in addition to assistance postcontract award to make sure they consistently meet thestandards required. Most importantly we plan for success in ourcontract strategies so that we can meet peak supply chainrequirements in a sustainable way and move to a fast trackonce oil is found. Our supplier development programme is setout in the local content section on pages 74 to 75 of this report.Fostering a wider opportunityLocal content plays an important role in risk assessment andmarket intelligence for our contract strategies. We are alsodeveloping stakeholder engagement skills within the localcontent team to work with all aspects of local and nationalgovernment in support of robust legislation and stronggovernment initiatives to build capacity. In 2012/2013, we areextending enterprise development and capacity building to awider range of services and goods. We are also looking atcreating greater linkages across our supply chain throughvocational skills training and agri-supply. Agriculture is asignificant part of host country development goals as it enhancesfood security and is a major source of revenue and employment.While there is a finite opportunity for suppliers within our supplychain, developing capacity to serve the emerging oil industrycan be a passport to opportunity and growth in new businessfor local suppliers. The multiplier effect of higher standards,entrepreneurial networks and business-to-businessrelationships can evolve into economic and social developmentbeyond the oil sector. Lasting improvements in quality,productivity and governance can serve as a magnet to attractother goods and services and foreign direct investment.Growing a country’s private sector is the only long-term wayto build a dynamic economy and benefit the lives of localpeople. In partnership with a wide range of stakeholders,Tullow can, through its supply chain, assist in building the rightenvironment to facilitate local and international investment,thereby creating jobs and building a more diversified economy.SUPPLIER ETHICS AND COMPLIANCETullow’s Compliance team, along with Supply Chain,hosted the first Industry Partner ComplianceWorkshop in Bangladesh this year. This wasfollowed by a similar event in Kenya. The forumsfeatured an overview of anti-bribery legislation,including the UK Bribery Act 2010, and outlinedTullow’s compliance expectations of IndustryPartners. The forums also covered the importance ofdue diligence, the effects of non-compliant behaviourand details of Tullow’s confidential reporting line.In addition, the Industry Partners were given anoverview of Tullow’s Code of Business Conduct,introducing key supplier related elements suchas our gifts and hospitality policy and facilitationpayments guidance. The issue of facilitationpayments was an area of particular interest whenTullow and the Industry Partners discussed thechallenges of working in developing countries.We can already demonstrate that transferable skills and servicescan lead to new business opportunities and partnerships withinternational companies. Visit www.tullowoil.com/casestudiesMichael Mawuli Ahorlu, Supplier Development Specialist, Tullow Ghana73www.tullowoil.com

Local contentBUILDING FUTURESThe capacity and capability of local people and businesses to participate inthe nascent oil and gas industry can be substantially increased through astrong commitment to local content in Tullow’s supply chain.STRATEGIC IMPORTANCEWe believe that Tullow will achieve a competitiveadvantage through building a vibrant and securelocal supplier base. This is both cost efficient andlowers commercial, operational and project risk inthe long run.HIGHLIGHTS FOR THE YEAR$146.6 MILLIONWe spent $146.6 million with local suppliers in 2011.There was a significant increase in Uganda andKenya local supplier expenditure during the year,reflecting the increased level of operational activityin these countries.NEWEnterprise Centre opened in Hoima in Uganda toassist SMEs in business development and to buildcapacity for the oil industry, with the objective ofgenerating growth and employment. An EnterpriseCentre is also planned in Ghana.TWOTullow won two awards in 2011/2012 for its localcontent activities. The Group received an award forthe most responsible investor in Uganda and at theGhana Summit on oil and gas, Tullow received alocal content award.DETAILED PERFORMANCE INFORMATIONOn page 55 of this report you will find moredetailed information on 2011/2012 performanceagainst objectives as well as local content2012/2013 objectives.A key role in creating shared prosperityTullow is committed to creating a strong external operatingenvironment to successfully deliver its business plans andcontinue with its growth strategy. To do this, we must contributeto social and economic development where we operate. Withapproximately $2 billion capital expenditure planned in 2012,our supply chain has a key role to play. Its activities can assistin the industrialisation of an economy and act as a catalystfor improvements in infrastructure, skills and technologytransfer, higher quality standards, increased productivity andthe development of entrepreneurship. These, in turn, helpto stimulate further investment and more diversifiedeconomic growth.In 2011/2012 Tullow has developed a robust local content policyand strategy which is committed to involving local individualsand businesses in our activities. This ensures that they have anopportunity to participate in developing their country’s oil andgas industry and the wider economy. The goal of our localcontent strategy is to build local capacity and to developsuccessful suppliers who can deliver a wide range of goods,services and skills to international standards. The mainmotivation behind our local content strategy is businesssustainability and long-term project cost considerations. Thedecision to invest in local content development programmesinvolves a delicate balance between higher short-term costsand the benefit of a dynamic, cost-competitive host countrymarket environment. The objective is to mitigate commercial,operational and non-technical risks.Joined-up thinking and activityCreating real opportunities for local people and local enterprisedevelopment is done in three interconnected ways by Tullow;supply chain, localisation and social enterprise investment. Wehave built linkages across the Group to align our businessactivities in these areas and to ensure we leverage and/oroptimise opportunities for local businesses and individuals. Wewant to make sure that all areas of our business work together inpursuit of our commitment to fostering local entrepreneurs andlocal enterprises. We also want to make sure that local contentdevelopment is integral to our business and is managed as such.74Tullow Oil plc 2011/2012 Corporate Responsibility Report

“Our entrepreneurial culturelends itself well to fostering localbusinesses and helping them todevelop new enterprises whichcan become part of economicdevelopment in their country.”More informationPageLocal content in Ghana 28Local content in Uganda 373MEASURING OUR PERFORMANCEJim WalshGroup Local Content ManagerVisit: www.tullowoil.com/supplier_centreStrong local content operating modelOur local content operating model is focused on identifyingopportunities for local content at the earliest possible stage inour activities. Local content is mandated as part of ourprocurement strategies and is a critical element of our contractswith international suppliers. We also seek to engage within-country stakeholders to develop country-specific plans forlocal content development. This helps us to manage expectationsof the opportunities that will become available, and to gainsupport and form collaborative relationships to deliver our plans.Local content country plans include the appraisal, developmentand registration of local suppliers and the identification ofpotential partners and enterprise initiatives. In particular, we lookfor early commencement projects that we can start with, as wellas longer term capacity building projects. We also establishin-country local content teams to build our own capacity in thiscritical area. In line with Tullow’s commitment to localisation andsustainability, we seek overtime to develop a completely nationallocal content team. Where appropriate we gradually shiftorganisational responsibility for local content projects to nationalorganisations and/or international-national partnerships.Transparency, governance and ethics in local contentTransparency about the way we award contracts and about howto win business with Tullow is very important to building anopen and competitive market. We support this by working withgovernments, trade bodies and NGOs in the design of contractstrategies. We also host supplier forums, seminars andtraining. In 2011, we launched an online supplier centre toprovide open access to supplier registration, expressions ofinterest and key Tullow policies and standards. All suppliers aresubject to Tullow’s five supplier criteria, which also address the10 principles of the UN Global Compact for sustainable supplychains. Local content initiatives are governed at three levelsincluding Executive, senior management and a working groupcomprised of External Affairs, HR and Supply Chain. Werecognise that our industry can only support economicdevelopment and industrialisation for a defined period of time.We are therefore sensitive to the need to work withgovernments to ensure that local content is maximised andeconomic diversification is prioritised for the future of a country,so that economic and social development can be sustained.LOCAL CONTENT INITIATIVESThrough a number of different initiatives, Tullowhelps local businesses to grow and develop:Supplier centre onlineTullow has a dedicated supplier centre to provideall suppliers, but particularly local suppliers,with the opportunity to register their interest inbecoming a Tullow supplier. Phase 2 of thisinitiative is being launched mid-year.Visit: www.tullowoil.com/supplier_centreForums and seminarsWe organise and host a number of supplierforums that bring together local and internationalbusinesses to discuss the challenges andopportunities in their sectors and to encouragepartnerships and joint ventures. In 2011/2012these include forums in Uganda, Ghana,Mauritania and Bangladesh on topics such aslogistics, safety and compliance, for example.Training and skills transferClosing the Gap workshops identify localsuppliers requiring training and developmentfacilitated by the Local Content team. We areengaging with Ugandan Government ministriesand departments and key stakeholders toestablish a Train the Trainer Centre to developapprenticeship schemes and to build capacity innominated Uganda Vocational Colleges to deliverEuropean competency based qualifications forselected trades.Enterprise CentresEconomic development is built on a diverse andsustainable supplier network. We are supportingthis by opening Enterprise Centres that willenhance business capability, facilitate access tofinance and strengthen local standards.75www.tullowoil.com

Social enterpriseMAKING A POSITIVECONTRIBUTIONTullow invests in social enterprise (SE) projects to manage our socialfootprint and contribute towards host country and community development.STRATEGIC IMPORTANCESocial enterprise is an important tool that helpsus to manage the socio-economic impacts of ouractivities and provide tangible benefits for localstakeholders, which in turn helps support deliveryof our business plans.HIGHLIGHTS FOR THE YEAR$11.6 MILLIONDiscretionary SE investment increased 346%(2010: $2.6 million).24Masters Scholarships awarded in pilot phase ofTullow Group Scholarship Scheme to study oil andgas related degrees at UK universities. Schemelaunched in full early 2012.STRONG PARTNERSHIPSFurther strong partnerships developed withthird-party organisations such as the BritishCouncil, TTE Technical Training Group and Jhpiego,a US not-for-profit health organisation affiliated toJohns Hopkins University.DETAILED PERFORMANCE INFORMATIONPage 55 provides detailed information on ourperformance against key objectives and our aims for2012/2013. More social enterprise case studies canbe found online at www.tullowoil.com/casestudiesTullow’s community-level initiatives are designed to helpaddress the socio-economic impacts of our operations andto contribute towards meeting community developmentaspirations, thereby facilitating positive business-communityrelations. At the national level, we are focusing on programmesthat help build capacity for the oil and gas industry and othersectors that promote economic growth and support thedevelopment of local businesses to enter the oil and gasindustry supply chain.We have also started to support initiatives that promote inwardinvestment into Africa, and in 2011 held the first Ghana-IrelandTrade and Investment Forum, an event focused on businessopportunities in Ghana for Irish companies in agriculture, foodprocessing, construction and engineering. This initiative aimedto stimulate foreign direct investment into Ghana in sectorsbeyond our own.Enhanced processes and alignmentIn 2011, we established a working group that reviews andapproves strategic national-level projects focused on education,supporting local content development and promoting economicdiversification in host countries. It includes representativesfrom Supply Chain, HR, Finance, EHS, External Affairs andInvestor Relations functions within Tullow to ensure that theinitiatives supported align with the Group’s business objectives.Going forward our SE programme will place considerableemphasis on sustainable, relevant and business-linkedcommunity development projects in our areas of operation. Weare undertaking a detailed review of our main SE programmesconducted by external experts to document achievements,challenges and lessons learnt to date. We are also improvingour Environmental and Social Impact Assessments (ESIAs) sothat we have a better understanding of the socio-economicimpacts of our operations. Both processes are designed to feedinto future SE project planning so that our investments aremuch more aligned to managing social impacts and leveragingpositive benefits associated with our business.Interview with SE Projects Managerwww.tullowoil.com/crr2011/seinterview76Tullow Oil plc 2011/2012 Corporate Responsibility Report

3MEASURING OUR PERFORMANCEMichael Akonnor, Tullow Group Scholar, Dundee, UKAgro Enterprise Programme, Masindi District, Uganda.KEY SOCIAL ENTERPRISE PROJECTSTullow Group Scholarship SchemeThe Scheme is fundingpostgraduate, technical trainingand vocational studies and is run inpartnership with the British Council,an internationally recognisedservice provider in scholarshipmanagement and partnershipdevelopment in higher education.A pilot phase was launched in 2011and provided 24 Ghanaians with fullscholarships to study oil and gasand business-related MastersDegrees at several UK universities.The Scheme has been expandedto accept applications from Côted’Ivoire, Ethiopia, Gabon, Ghana,Kenya, Mauritania and Uganda.For more informationwww.tullowgroupscholarscheme.orgTakoradi PolytechnicTullow and our joint venturepartners for the Jubilee field haveinvested $3.5 million to develop atechnical training centre atTakoradi Polytechnic in Ghana’sWestern Region. The centre isbeing developed in partnershipwith TTE, a UK-based specialisttechnical training provider. Theobjective is to create internationalstandardtraining opportunities anddevelop a pool of graduates to meetthe demands of Ghana’s oil and gasindustry as it grows. Building workcommenced in November 2011 andthe facility is expected to be up andrunning in December 2012.COMMUNITY ENTERPRISE PROJECTSEconomic development andsocial improvement inMauritaniaIn 2011, Tullow began aneight-month project to supporta fish processing centre inNouakchott, the capital cityof Mauritania. The goal is toteach hygienic and efficientfish processing techniquesand provide training in basicmanagement and financeskills to enable local women,who frequently have soleresponsibility for providingfor their families, to starttheir own businesses.We have partnered withMauritanie 2000, an NGO withover 15 years’ experience ofimproving living conditions forwomen working in fish-relatedactivities. This investment isaligned with our objective ofdeveloping local businesses sothat they can become either partof our supply chain or suppliersto hotels or restaurants. Over 180women and their families havebenefited from the scheme so far.Helping families to get backinto business in Côte d’IvoireTullow provided emergencyfunding to local communitiesaffected by the internal conflictin Côte d’Ivoire during 2011.Following the lifting of ForceMajeure from Tullow’sexploration activities, Tullowhas recommenced investment incommunity projects, focused onhelping local enterprises to getback to business. One recipientof funding has been a women’sassociation involved in foodproduction and selling. Tullowpurchased two electric millsand provided training for the400 women who make and sellattiéké, a staple dish of whichthe main ingredient is groundcassava, after their grinderswere destroyed during theinternal fighting.Agro-Enterprise Programme,UgandaIn 2010, Tullow began a threeyearCommunity Agro-EnterpriseDevelopment Programme inpartnership with TRIAS, aninternational developmentorganisation. The programme’saim is to empower farmers withimproved agricultural techniquesand better access to markets,and to provide them with accessto loans and savings schemes. Itforms a part of our longer-termaim of creating opportunities forlocal stakeholders to becomepart of our industry’s supplychain. We saw very promisingresults from the programmeduring 2011, such as 65 farmergroups reporting profitableenterprises in 2011, from a2010 baseline of 45.77www.tullowoil.com

School children attending the Damas School, Libreville, Gabon.

80Independent Assurance ReportIn 2011, Deloitte LLP performed assuranceas defined in ISAE 3000 on Group-levelcompilation of environment, safety andsocial performance indicators.81Supplementary DataIn addition to this supplementary information,the basis of reporting is published online atwww.tullowoil.com/crr2011/bor84Key Corporate ResponsibilityPolicies and Systems85Glossary86Index87Contacts and feedback88Other resourcesSUPPLEMENTARYINFORMATIONCOMMITMENT TO TULLOW& EACH OTHERWe work in a collaborative manner,empowering ourselves and otherswhilst taking responsibility for ourown actions.4

Independent assurance report to Tullow Group Services Limited on the Tullow Oil plc 2011/2012Corporate Responsibility Report (“the Report”).Scope of assurance workWe have been engaged by the Board of Directors of TullowGroup Services Limited to perform limited assurance 1procedures on Tullow Oil plc’s (“Tullow Oil”) Group levelcompilation on the following environmental, safety, socialand social enterprise performance indicators on pages 81,82 and 83 for the financial year ending 31 December 2011:Environment CO 2and CH 4emissions (tonnes) Tonnes CO 2and CH 4/thousand tonnes hydrocarbonproduced Production emissions: CO 2and CH 4(tonnes) Drilling emissions: CO 2and CH 4(tonnes) Well test emissions: CO 2and CH 4(tonnes) Water usage (m 3 ) Oil and chemical spills (number) Oil and chemical spills (tonnes) Total waste (tonnes) Percentage of waste recycled/reused/treatedSafety Hours worked (total hours) Number of employee fatalities Number of contractor fatalities Number of third party fatalities Lost time injuries (LTIs) (total number) Lost time injury frequency rate (LTIFR) Total recordable injuries (TRI) (total number) Total recordable injury frequency rate (TRIFR) High Potential Incidents (HiPo) (total number)Social (total and by region) Number of employees Number of contractors Number of expatriates Number of locals Total workforce Number of female employees Number of female managers Number of managersSocial Enterprise Discretionary expenditure ($ ‘000)Basis of our assurance work and our assurance proceduresWe carried out limited assurance in accordance with theInternational Standards on Assurance Engagements 3000 (ISAE3000). To achieve limited assurance the ISAE 3000 requires thatwe review the processes and systems used to compile theindicators on which we provide assurance. It does not includedetailed testing of source data or the operating effectiveness ofprocesses and internal controls. This provides less assuranceand is substantially less in scope than a reasonableassurance 1 engagement.80Tullow Oil plc 2011/2012 Corporate Responsibility ReportThe evaluation criteria used for our assurance are Tullow Oil’sdefinitions and basis of reporting the indicators as describedon www.tullowoil.com/crr2011/borConsidering the risk of material error, a multi-disciplinary teamof corporate responsibility and assurance specialists plannedand performed our work to obtain all the information andexplanations we considered necessary to provide sufficientevidence to support our assurance conclusion. Our work wasplanned to mirror Tullow Oil’s own Group level compilationprocesses, tracing how data for each indicator within ourassurance scope was collected, collated and validated byGroup head office and included in the Report.Our work was based at head office and involved reviewingdata collection, collation and validation at Group level only.Our assurance conclusionBased on the scope of our work and assurance procedures weperformed, nothing has come to our attention that causes us tobelieve that the indicators compiled as described in Tullow Oil’sbasis of reporting for environmental, safety, social and socialenterprise performance indicators as above and as on pages 81,82 and 83, are materially misstated.Responsibilities of Directors and independentassurance providerThe Directors are responsible for the preparation of the Reportand statement contained within it. They are responsible fordetermining Tullow Oil’s objectives in respect of environmental,safety and social performance and for establishing andmaintaining appropriate performance management and internalcontrol systems from which the reported information is derived.Our responsibility is to independently express conclusions onreliability of management’s assertions on the selected subjectmatters as defined within the scope of work above.We performed the engagement in accordance with Deloitte’sindependence policies, which cover all of the requirements ofthe International Federation of Accountants (IFAC) Code ofEthics and in some areas are more restrictive. We confirm toTullow Group Services Limited that we have maintained ourindependence and objectivity throughout the year, including thefact that there were no events or prohibited services providedwhich could impair that independence and objectivity in theprovision of this engagement.This Report is made solely to Tullow Group Services Limited inaccordance with our letter of engagement for the purpose ofthe directors’ governance and stewardship. Our work has beenundertaken so that we might state to the Company thosematters we are required to state to them in this report and forno other purpose. To the fullest extent permitted by law, we donot accept or assume responsibility to anyone other than TullowGroup Services Limited for our work, for this report, or for theconclusions we have formed.Deloitte LLPLondon, 26 June 20121The levels of assurance engagement are defined in ISAE 3000. A reasonablelevel of assurance is similar to the audit of financial statements; a limitedlevel of assurance is similar to the review of a half year financial report.

Supplementary informationTULLOW DATA IN DETAILThese pages provide the reader with the base data found in this report and information on keycorporate policies and systems. In addition to this, the basis of reporting and GRI Content Index arepublished online at www.tullowoil.com/crr2011/bor and www.tullowoil.com/crr2011/gri respectively.4SUPPLEMENTARY INFORMATIONENVIRONMENTAL PERFORMANCEAtmospherics2011 2010 2009 2008 2007CO 2emissions (tonnes) * 1,223,983 265,437 86,543 193,109 234,462CH 4emissions (tonnes) * 7,267 1,395 24 + 214 314Tonnes CO 2/thousand tonnes hydrocarbon produced * 232 178 89 88 124Tonnes CH 4/thousand tonnes hydrocarbon produced * 1.38 0.93 0.02 + 0.10 0.17Production emissionsCO 2(tonnes) * 1,069,890 125,928 ++ 7,829 179,143 199,198CH 4(tonnes) * 7,090 1,242 14 + 171 167Drilling emissionsCO 2(tonnes) * 130,732 115,194 ++ 78,019 11,334 23,597CH 4(tonnes) * 7.35 0.09 7 + 0.80 1Well test emissionsCO 2(tonnes) * 23,362 24,315 695 2,632 11,667CH 4(tonnes) * 169 152 3 + 42 150Water usageWater usage (m 3 ) – all operational sites * 10,408,240 107,423 71,683 62,380 39,496WasteTotal waste (tonnes) * 32,707 – – – –Recycled/Reused/Treated (%) * 84.29 – – – –SpillsOil and chemical spills * 14 4 5 6 1Oil and chemical spills (tonnes) * 311 4.59 +++ 0.94 trace 1.4*Indicates data reviewed by Deloitte as part their assurance work. See page 80 for the independent assurance report.+This 2009 data has been restated using an updated conversion factor.++The 2010 figure for production and drilling CO 2emissions (tonnes) includes an estimated split in total emissions for Ghana. A new system is in placeto avoid these assumptions for 2011.+++The 2010 figure for oil and chemical spills (tonnes) excludes an unknown quantity of black and grey water spilled in Bangladesh.81www.tullowoil.com

Supplementary information continuedSAFETY PERFORMANCE2011stretch target2011base target 2011 2010 2009 2008 2007Hours worked (million) * – – 13.3 8.3 6.6 5.6 5.1Number of employee fatalities * – – 0 0 0 0 0Number of contractor fatalities * – – 1 + 0 1 0 0Number of third party fatalities * – – 0 0 1 1 0Lost Time Injuries (LTIs) * n/a n/a 5 7 5 3 10Lost Time Injury Frequency Rate(LTIFR) 1*

4COMMUNITY SOCIAL ENTERPRISE INVESTMENT ($’000)2011 2010 2009 2008 2007Discretionary expenditure* 11,569 2,578 2,054 1,846 946SUPPLEMENTARY INFORMATION* Indicates data reviewed by Deloitte as part of their assurance work. See page 80 for the independent assurance report.2011 LOCAL CONTENT EXPENDITURE ($’MILLION)Total Ghana Uganda Kenya BangladeshLocal supplier expenditure 146.6 46.9 73.1 23.6 3.0MATERIAL PAYMENTS MADE BY TULLOW TO THE GOVERNMENT OF GHANA, 2011This table does not include the Ghanaian Government/State Oil Company’s share in production derived directly under the DeepwaterTano and West Cape Three Points Petroleum Agreements. This table represents payments or payments in kind made by Tullow tothe Government of Ghana and the Ghanaian State Oil Company (GNPC) in 2011. It does not include payments made by Tullow’sjoint venture partners.NationalLocalType of paymentGovernment GovernmentTotalRoyalties 1 428,353 Barrels of Oil – 428,353 Barrels of OilValue of State/State Oil Company Production 2 – – –Profits/Income Tax 3 – – –Licence Payments, Fees or Rental (otherthan routine, nominal administrative fees) 4 55,702 – 55,702Profits/Dividends Paid to Government – – –Training Contributions 4 168,247 168,247Other fiscal benefits to Government – –TOTAL 223,949 – 223,949 USD plus 428,353 Barrels of OilNote: Figures are net to Tullow and denominated in US Dollars or Barrels of Oil. (unless otherwise shown).1 Royalties are calculated as 5% of Tullow net production in Barrels of Oil (BBLs) under the Deepwater Tano and West Cape Three Points Petroleum Agreements.For illustrative purposes only, the average price of a Barrel of BRENT CRUDE (as per Platts Oilgram) in 2011 was $113/barrel, but this does not indicate,and should not be used to calculate, the actual value of Barrels of Oil received by the Government of Ghana for its sale of Royalty Oil.2 In 2011 Tullow did not make any additional payment or delivery of barrels to the State (Ghana) or State Oil Company (GNPC). State production interests are deriveddirectly under the applicable Petroleum Agreements.3 Income tax calculated at 35% of taxable income is zero for 2011. This takes account of Tullow’s share of $4 billion initial investment which must be recovered fromprofits before payment of tax, thereby resulting in zero taxable income and nil company tax for 2011.4 Represents Tullow net equity share for Deepwater Tano and West Cape Three Points under Petroleum Agreement obligations.83www.tullowoil.com

Key corporate responsibility policies and systemsGOVERNANCE Code of Business Conduct– Gifts & hospitality policyand online register– Guidance on avoidingfacilitation payments– Guidance on expenditureon foreign public officials– Conflicts of interestdeclaration form– Awareness training programme Compliance online portal Compliance Committee Independent system for‘speaking up/whistle blowing’STAKEHOLDER ENGAGEMENT Employee stakeholder engagementguidelines (2012) Global online stakeholdermanagement tool (2012)ENVIRONMENT, HEALTH & SAFETY EHS Strategy Forum EHS policy (revised in 2012) Tullow Safety Rules Tullow Oil Environmental Standards(toes) IS0 14001 accreditation forEnvironmental Management System Crisis management and emergencyresponse facilities and plans HIV/AIDS policy Participant membership of theVoluntary Principles on Securityand Human Rights (2012)OUR PEOPLE Tullow values Group HR policies Employee handbooks / induction /local legislation requirements Equal opportunities policy Harassment policy Localisation policySUSTAINABLE SUPPLY CHAIN Supplier centre online Group Local Content policy (2012) Master contract reflects Code ofBusiness Conduct, UK Bribery Act Tullow five contract criteriaassessment, which incorporatesthe United Nations Global CompactSustainable Supply Chain principlesSOCIAL ENTERPRISE SE guidelines SE working group responsible forreviewing and approving nationallevelprojects Local and community SE projectsmanaged by in-country teams84Tullow Oil plc 2011/2012 Corporate Responsibility Report

Glossary4AAA1000SES AccountAbility AA1000 StakeholderEngagement StandardBboepd Barrels of oil equivalent per daybopd Barrels of oil per dayLLTILTIFRMm 3Lost Time InjuryLTI Frequency Rate measured in LTIsper million hours workedCubic metresSUPPLEMENTARY INFORMATIONCCH 4CLOCNOOCMethaneCommunity Liaison OfficerChina National Offshore Oil CompanyMAFRMmboeNNGOMalaria case Frequency RateMillion barrels of oil equivalentNon-governmental OrganisationCO 2CO 2eCRCSOCSREE&AEHSEITIESIAESMPFFPSOGGDPGHGGISGRIHHiPoHiPoFRHRIIFACIFCIPIECAISAE 3000ISOJJhpiegoKkmKPICarbon DioxideCO 2equivalentCorporate ResponsibilityCivil Society OrganisationCorporate Social ResponsibilityExploration and AppraisalEnvironment, Health and SafetyExtractive Industries Transparency InitiativeEnvironmental and Social Impact AssessmentEnvironmental and Social Management PlanFloating Production Storage and Offloading vesselGross Domestic ProductGreenhouse GasesGeographic Information SystemGlobal Reporting InitiativeHigh Potential IncidentHiPo Frequency Rate measured inHiPos per million hours workedHuman ResourcesInternational Federation of AccountantsInternational Finance CorporationInternational Petroleum Industry EnvironmentalConservation AssociationInternational Standards on Assurance EngagementsInternational Organization for StandardizationAmerican not-for-profit health organisationaffiliated to Johns Hopkins UniversityKilometresKey Performance IndicatorOOECDOGPPPESIAQQ&ARRGUSSafecallSESMESRIsq kmTTalkbackTENtoesTRITRIFRTRIASTTEUUN GlobalCompactVVAFRVPSHROrganisation for Economic Cooperationand DevelopmentInternational Association of Oil and Gas Producers(The)Preliminary Environmental and SocialImpact AssessmentQuestions and AnswersRobert Gordon UniversityIndependent company operating Tullow’sconfidential reporting lineSocial EnterpriseSmall and medium-sized enterprisesSocially Responsible InvestmentSquare kilometresTullow global employeeand contractor surveyTweneboa-Enyenra-NtommeTullow Oil Environmental StandardsTotal Recordable InjuriesTRI Frequency Rate measure in TRIsper million hours workedAn international development organisationworking with Tullow in UgandaA specialist technical training providerA platform for business and non-businessentities to proactively network and engage inareas of human rights, labour, environmentand anti-corruptionVehicle Accident Frequency RateVoluntary Principles on Security andHuman Rights85www.tullowoil.com

IndexAAbout this report 1, 19About Tullow 6-9Assurance 80BBangladesh 44, 46, 75Bribery & corruption 11, 21, 51, 57Business model 12, 13CChairman’s statement 4CEO’s review 10Code of Business Conduct 7, 11, 51, 58Compliance 57-59Congo (Brazzaville) 26Contact details 86Corporate governance 14, 56-59Côte d’Ivoire 26, 77Creating shared prosperity 5, 14DDevelopment and production 9EEnvironment, Health & Safety 12, 62-67, 81-82Environmental performance 52-53Equatorial Guinea 26Ethiopia 34, 38, 60Europe 8, 44Exploration and appraisal 8-9FFinancial performance 6,10French Guiana 44, 46, 79GGabon 26, 60Ghana 26, 30-31, 58Global Perceptions Survey 18, 60Glossary 85Governance 14, 56Greenhouse Gas Emissions 63, 64, 67GRI 20, 81Guyana 44IInvest in Africa 13KKenya 34, 38, 60LLiberia 27Localisation 37, 69-71Local Content 16, 19, 22, 37-38, 73, 74,-75MMateriality 18-21Mauritania 27, 75, 77Madagascar 34, 66NNamibia 34Netherlands 44PPakistan 45-46Payments to government 83People 68-71Performance 6, 50-55, 81-83RRisk management 14-15, 21, 57 ,67SSafety performance 29, 64, 82Scholarships 7, 15, 77Senegal 27Stakeholder engagement 18-20, 51, 60-61Sierra Leone 27Social data 82Social enterprise 7, 14-15, 55, 74-77, 83Suriname 45, 46Supplier Centre 7, 19, 20, 75Supplementary data 81-83Sustainable supply chain 52, 74-75Strategic priorities 13TTalkback 7, 20, 54, 69Tanzania 34toes 12, 53, 63, 67Transparency 11, 19, 20-22, 75UUganda 6, 13-14, 19, 35-37, 60, 77United Kingdom 45UK Bribery Act 57, 58VValues 12Vision 12WWaste 64-65Where we operate 23-4786Tullow Oil plc 2011/2012 Corporate Responsibility Report

Contacts and feedbackComprehensive Group, key corporate and key regional office contact information is availableon our website at www.tullowoil.com/contactsEHSThe EHS team at Group head officewill deal with or redirect your EHS queryas appropriate.Email: ehs@tullowoil.comOur peopleContact Tullow Group HR using thisaddress. There are also severalin-country contacts available online.Email: hr@tullowoil.comSocial EnterpriseContact our Social Enterprise teamat this address.Email: csr@tullowoil.com4SUPPLEMENTARY INFORMATIONGroupTullow Oil plc9 Chiswick Park566 Chiswick High RoadLondon W4 5XTTel: +44 (0)20 3249 9000Fax: +44 (0)20 3249 8801Email: info@tullowoil.comWebsite: www.tullowoil.com87www.tullowoil.com

Other resourcesFOR ALL THE LATESTINFORMATION AND MOREwww.tullowoil.comOur main corporate websitewww.tullowoil.com/mytullowCustomise our site to suit yourpreferences and information needswww.tullowoil.com/videoLatest videos, including people diariesand corporate responsibility contentwww.tullowoil.com/reportsA central hub for financial calendarevents and for our corporate reportswww.tullowoil.com/ara2011Online 2011 Annual Reportwww.tullowoil.com/crUpdated corporate responsibility sectionto complement this reportwww.tullowoil.com/supplier_centreLearn more about doing businesswith Tullow and register to becomea potential supplier88Tullow Oil plc 2011/2012 Corporate Responsibility Report

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Tullow Oil plc9 Chiswick Park566 Chiswick High RoadLondon W4 5XTUnited KingdomTel: +44 (0)20 3249 9000Fax: +44 (0)20 3249 8801Email: info@tullowoil.comWebsite: www.tullowoil.com