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

“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