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

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