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

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