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

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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
Page 1 and 2: Tullow Oil plc 2011/2012 Corporate
Page 3 and 4: ABOUT THIS REPORTEach year, we soli
Page 5 and 6: 4Chairman’s statementFor companie
Page 7 and 8: More informationPageSpecial feature
Page 9 and 10: More informationPageCode of Busines
Page 11 and 12: 1OVERVIEWCOMMERCIAL QUANTITIESOF OI
Page 13: More informationPageGovernance 56Lo
Page 17 and 18: More informationPageGhana baseline
Page 19 and 20: 18Stakeholder engagementBuilding a
Page 21 and 22: Area for improvementTullow’s cont
Page 23 and 24: 2STAKEHOLDER PRIORITIESACCESS ANDIN
Page 25 and 26: RESPONSIBLEBUSINESSCreating shared
Page 27 and 28: 25www.tullowoil.com
Page 29 and 30: MauritaniaEDPSenegalESierra Leone E
Page 31 and 32: Côte d’IvoireGhanaLEGENDOil Fiel
Page 33 and 34: LISTENING AND RESPONDING TOOUR STAK
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Page 37 and 38: Ethiopia EUganda EDKampalanya ETanz
Page 39 and 40: UgandaLEGENDOil FieldCongo(DRC)Oil
Page 41 and 42: THE ENVIRONMENTOur activities in So
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More informationPageEHS performance
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More informationPageAssurance 803Wa
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EHS risk management and asset prote
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3“I am very proud of our highenga
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LocalisationWe see localisation as
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“Tullow’s commitment to creatin
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“Our entrepreneurial culturelends
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3MEASURING OUR PERFORMANCEMichael A
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80Independent Assurance ReportIn 20
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Supplementary informationTULLOW DAT
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4COMMUNITY SOCIAL ENTERPRISE INVEST
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Glossary4AAA1000SES AccountAbility
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Contacts and feedbackComprehensive
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