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

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