Regional CSR Report, 2011 PDF - Tullow Oil plc

Creating shared prosperity
Central and West Africa
Corporate Responsibility Report 2011

Foreword
Tullow is Africa’s leading independent oil and gas
company. In 2011, we achieved record financial
results following continued production, development
and exploration success, especially in Africa. The
heart of our company is in Africa where we began
business in Senegal back in 1986. We want our
success to bring growth for local people and local
economies too. We are committed to Africa for the
long term and believe that by investing in local
communities, their health, education, businesses
and environment, we will ensure ‘Creating Shared
Prosperity’, Tullow’s key value, becomes a reality.
Tullow’s Central and West Africa Business Unit
accounts for over 40% of our production and there
are exciting projects unfolding in the region in 2012.
Our Corporate Social Responsibility projects over
the last year have responded to real needs in the
areas in which we have operations, which reflect
government strategies to develop national and local
economies. Tullow’s innovative local teams have
secured our reputation as a trusted partner within
the oil and gas sector and we look forward to
growing these relationships over the coming years.
Aidan Heavey
Chief Executive Officer, Tullow Oil plc
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Tullow Oil Central and West Africa Corporate Responsibility Report 2011
Introduction
Tullow Oil has interests in 15 countries across the African continent. We helped to
establish Ghana, Kenya and Uganda as new oil countries and 75% of our group working
interest production is from Africa.
The oil and gas industry is by its nature long term.
Tullow is a company that works to the highest
standards of ethical and environmental behaviour.
With 26 years of history in Africa, we are fully
committed to the continent. More than 80% of our
budget is invested here and we recently listed on the
Ghana Stock Exchange.
Tullow’s concept of ‘Creating Shared Prosperity’
underpins our pledge to ensure that the success of
our sector brings real benefits to local people and
local and national economies. We have an impressive
record of working with communities living in the
vicinity of our operations, and this remains a core
element of our social enterprise commitment.
Tullow works in partnership with the countries in
which it operates, and understands the importance
of providing excellent support and service in the
development of oil producing nations. We aim to
make a significant contribution to real progress in
economic and social development in those
countries, and, above all, to deliver on our
responsibilities.
Our Corporate Responsibility Projects focus on
investing in four areas:
• Health
• Education
• Environment
• Social Enterprise
Central and West Africa
We have been in the Central and West Africa region
since 1997. Tullow has both operated and nonoperated
assets in Côte d’Ivoire, Equatorial Guinea,
Gabon, Liberia, Republic of Congo (Brazzaville) and
Sierra Leone. In all, this part of the African continent
represents just over 40% of Tullow Group’s
total production.
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Gabon
To date, Tullow holds one exploration permit and is
a partner in various production licenses in Gabon.
However, since we became active here nine years
ago, we have invested 450 billion FCFA (900 million
USD) in the exploration and development of the
country’s oil fields. Tullow has interests in 21
licences in Gabon, with production from our 13 fields
accounting for 16% of the Group’s total in 2011.
Gabon’s oil and gas industry is undergoing significant
change as reforms are implemented in line with
President Ali Bongo Ondimba’s Emerging Gabon
strategy. As a trusted industry partner to the
Gabonese state, Tullow’s approach to Corporate
Responsibility reflects the development aspirations
of Emerging Gabon, focusing on its Industrial Gabon
and Green Gabon components.
“We seek responsible and strategic investment
partners to support us in developing our country
because we understand the value of the opportunities
we offer and most importantly, because the Gabonese
people depend on us to manage our national
resources transparently and responsibly.”
His Excellency Ali Bongo Ondimba
President of the Gabonese Republic
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Tullow Oil Central and West Africa Corporate Responsibility Report 2011
Tullow invests in people. In 2011 we concentrated on
empowering communities, with a special emphasis
on the needs of Gabon’s young people. We have
already financed infrastructure and communitybased
education projects mainly in the Estuaire
province of Gabon, where Tullow has the majority of
its interests. During the last fiscal year, our
community investments totalled over 600 million
FCFA (1.25 million USD).
“We engaged in a number of bricks and mortar
projects in 2011 and the impact was immediate.
It has been very exciting to help create positive
environments for young people to learn and gain the
life skills they need to make informed decisions for
their futures.”
Carle Mistoul
Corporate Social Responsibility, Tullow Oil Gabon S.A.
Improving Education Standards
Damas Primary School and Kindergarten is located
in a disadvantaged neighbourhood in southern
Libreville, Gabon’s capital. For years, many of the
school’s 800 students and their teachers battled the
elements as the school fell into disrepair. Tullow
was approached for help, and subsequently financed
the school’s renovation, including structural repairs
of buildings and classroom furniture.
“Before, there was no joy in these classrooms.
Everything was old, the ceilings were damaged and
water used to pour in when it rained. Classes would
have to be stopped and all the students would stand
in a corner of the room to avoid getting wet. They
missed a lot of school days as a result. Tullow’s help
renovating the school has made a huge difference.
The children are working much better; they can
concentrate on lessons and our exam results have
already improved.”
Louis Moulandza Mangouala
Headmaster, Damas Primary School
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Sexual & Reproductive Health Education
While young people in Gabon speak relatively
freely among their peers about sexual health,
communication with older generations - particularly
parents - is still difficult. A lack of sexual health
education is one of the reasons that explain the
country’s HIV/AIDS prevalence rate. In 2009 this
officially stood at an estimated 5.2% among adults
aged 15-49 according to the United Nations’ AIDS
program. However, prevalence rates for pregnant
women aged 15-24 were on the increase, jumping
from an estimated 3.6% in 2007 to 4.8% two years
later.
Raising awareness about HIV/AIDS, sexually
transmitted diseases and contraception is
recognized globally as being key to changing
perceptions and behaviour. But until recently, young
people in Gabon had little access to reliable
information.
In partnership with UNICEF, Tullow helped to
establish and equip two Youth Friendly Centres in
Libreville and its neighbouring town, Owendo. Over
60% of Gabon’s population lives in this area, and
over 50% are under the age of 18. Following Tullow’s
investment, these centres now provide accurate
information, education sessions, peer training and
counselling. In 2011, a publicity campaign
advertising the centres and the services they offer
targeted 31,000 young people and on average, the
centres received around 200 visitors a month.
“The centres are not just for young people who are in
school, but almost more importantly, for those who
have dropped out. Tullow’s help means that the
youths who are most vulnerable have somewhere to
go to get the information and help they need.”
Sophie Dibadi
Manager, Youth Friendly Centres
IT Skills Development
Ntoum is located 38 kilometres east of Libreville and
has a population of just over 11,000 people. But the
town will increasingly become an important
employment pool for the new Nkok economic zone,
17 kilometres away. Furthermore, the arrival of the
Africa Coast to Europe fibre-optic communications
cable means that IT skills will become increasingly
important for jobseekers.
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Tullow Oil Central and West Africa Corporate Responsibility Report 2011
In response to this need, and implementing the core
values of Tullow’s Social Enterprise Policy, we
financed the creation of a fully equipped Information
Technology Centre.
“Having access to these computers, and the internet
especially has been very helpful for my studies. Today
for example, I am researching additional exercises to
do for my maths class. I am studying for my
Baccalaureate in Sciences and this helps me get
better marks because you know, the more you
practice, the better you get.”
Valolia Matsanga
Student at Ntoum Secondary School
“Education and training are major components to the
Emerging Gabon strategy led by the Head of State,
His Excellency Ali Bongo Ondimba. It is only through
training and education that the youth of today will be
able to meet the challenges of Gabon tomorrow.
The ability to use new information technology is now
an essential skill in this globalized world. The multimedia
centre at Ntoum High School, financed by
Tullow, responds to a fundamental need in this
community and confirms the company as a committed
and active corporate citizen as well as a partner
engaged with government initiatives.”
The Honourable Julien Nkoghe Bekalé
Minister of Agriculture, Farming and Fisheries and
the Development of Rural Areas
Parliamentary Minister for Ntoum
Renovation of Mayumba Airport
Mayumba is an isolated coastal town in southern
Gabon. Its geographic location on a peninsula, with
a lagoon on one side and the Atlantic Ocean on the
other, together with a lack of transport
infrastructure, all but cut off Mayumba’s residents
from development opportunities in the past.
Diversifying the economy is a key element to the
Emerging Gabon strategy and there are plans to
build a deep-water port facility to help boost
Mayumba’s economy. But before this project can be
achieved, renovation of the local airport was seen as
a priority.
Tullow, along with a handful of other corporations,
partnered with the Ministry of Transport to see the
airport’s runway extended and resurfaced so that it
had the capacity to take larger planes. The upgraded
airport will come into its own with the development
of forest management and wood processing
industries as well as the construction of luxury ecotourism
lodges in the area.
2012 Initiatives
We will be diversifying our investments in Gabon
over the next 12 months. We will continue to
support projects in health, education, environment
and social enterprise, but this year, we will partner
with local and international organizations to
increase both our investment scope and
effectiveness.
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Côte d’Ivoire
Commercially, Tullow has had interests in Côte
d’Ivoire since 1997 and we have worked in the
country consistently ever since. In 2012 we will be
trying to repeat the success we have had in
neighbouring Ghana by drilling in the deep water
exploration blocks CI-103 and CI-105.
In 2011, the four-month post-electoral, internal
conflict which took place in Côte d’Ivoire left
thousands dead and many more displaced. With the
return to peace, President Alassane Ouattara has
focused on reconciliation and reconstruction to lead
his country back to economic and social recovery.
“Reconciliation will be helped by our efforts in
reconstruction, because if we are able to provide the
majority of people with a decent life, in terms of
housing, and schooling for their kids, this will
reassure them and things will improve.”
His Excellency Alassane Ouattara
President of Côte d’Ivoire
During 2011, Tullow’s planned investments in
community projects had to be suspended because of
the unrest. In the interim, the company released an
emergency fund to tackle some of the issues
affecting the neighbourhoods and villages in and
around Côte d’Ivoire’s commercial capital, Abidjan.
As a result, reconstruction projects dominated our
2011 Corporate Social Responsibility, with an
emphasis on education, healthcare and Social
Enterprise Investment.
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Tullow Oil Central and West Africa Corporate Responsibility Report 2011
Restoring healthcare
On the outskirts of Abidjan, a local hospital was
vandalised during the conflict and all the wards and
medical facilities were destroyed. Prior to the
fighting, the Sisters of Providence and the medical
staff working with them, cared for an average of 400
people a day. The hospital had been a specialist
centre for malaria and HIV treatment.
“We were devastated having seen 20 years of work
destroyed in just a few hours. Thanks to Tullow, the
Congregation had the courage to return to work and
we were able to renovate the pharmacy.”
Sister Joséphine
Hospital Director
Social Enterprise Investment
People displaced during the fighting are gradually
returning to their homes, but following their
absence, there is no guarantee that their livelihoods
and businesses are still in an operational condition.
Tullow has now refurbished the hospital’s
dispensary and maternity units, financing the
replacement of medical equipment as well as
repairs to plumbing, electricity and basic furniture.
One association made up of 400 women living in a
suburb of Abidjan, had supported their families by
making and selling attiéké, a staple dish eaten in
Côte d’Ivoire in which the main ingredient is ground
cassava. Their grinders had been destroyed. Tullow
however provided two electric mills and training on
how to use them, thereby helping to get the group
back in business.
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and the rewiring of electrical circuits. This first
phase of work was completed in November 2011.
Previously, the children were obliged to try and
study in the overcrowded classrooms that were still
safe to use. In total, 6,000 students were able to
return to their own classrooms as a result of the
renovation.
“After our mills were vandalised we had to pay
someone else to grind our manioc. Now we have
somewhere to put our own electric grinders and we
save money by managing the equipment ourselves.
Thanks Tullow.”
Fortune Akroman
President of the Women’s Association
Primary Schools Renovation
During 2008, Tullow partnered with a local NGO,
‘Ivoire DD’, to teach primary school children about
ways in which they could become eco-citizens. The
project was due to continue throughout 2011, but
was delayed because classrooms had been severely
damaged during the fighting or left in disrepair.
The 20 schools which took part in the Eco-citizen
project, were based in Abidjan. With the return of
peace, we financed the repair of roofs and ceilings
Additionally we financed the construction of a new
primary school in the country’s Western Province: a
project which is still ongoing.
Education-Healthcare-Environment
In November 2011 we were able to carry out Phase II
of our extremely successful education program for
primary school children. The project, which began in
October 2008 in partnership with the Ministry of
Education, the Ministry of the Environment,
SODEFOR (the national agency in charge of forestry
development) and Ivoire DD, teaches children about
eco-citizenship, focusing on 5 key themes:
• protection of biodiversity
• conservation of water and energy
• hygiene
• keeping your surroundings clean
• recycling
To date 6,000 pupils and 90 teachers have taken part
in the project. Activities for the children included
planting and maintaining a green area in each
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Tullow Oil Central and West Africa Corporate Responsibility Report 2011
school. Equipment for gardening and recycling was
distributed, along with teaching materials, including
a video, also financed by Tullow, which was
shortlisted at the 2011 FESPACO, Africa’s most
prestigious film festival.
2012 Initiatives
Our investments at Tullow are in synergy with the
vision for Côte d’Ivoire held by President Alassane
Ouattara. This year, we will continue to focus our
attention on reconstruction and development. Once
again, we are planning to work with the network of
primary schools involved in the Eco-citizen project.
We will also be expanding our efforts in the areas of
health, education, environment and Social
Enterprise Investment.
This project has been so successful that Tullow is
considering offering the program and its support
materials to other countries, both Francophone and
Anglophone, where the company has operations.
“For us here at Tullow, Corporate Social
Responsibility is about investing in the future of the
people and places where we work. We are going to be
here for the long term, so it is essential that we
progress and develop together.”
Franco Uliana
Country Manager
Tullow Oil Côte d’Ivoire Exploration Ltd
“Thanks to this project we have noticed a real shift in
attitude towards the respect and conservation of
biodiversity, not just by the pupils but their teachers
and parents too.”
Kouassi Léone
Headmistress of Paillet 2 Secondary School
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Financial Summary
Gabon - total Tullow investment
Total XAF (billion)
68 38 52 28 41 70 53 80 93
2004 2005 2006 2007 2008 2009 2010 2011 2012
Côte d’Ivoire - total Tullow investment
Total XOF (billion) 8 27 19 29 20 19 19 13 46
2004 2005 2006 2007 2008 2009 2010 2011 2012
Regional CSR Investment - Gabon 2011
Discretionary:
• Primary School Renovation XAF 37,000,000
USD 77,000
• Youth Friendly Centres XAF 49,000,000
USD 100,000
• Multimedia Centre XAF 26,000,000
USD 53,000
• Okala Youth Centre XAF 6,000,000
USD 12,000
Regional CSR Investment - Côte d’Ivoire 2011
Discretionary:
• Primary School renovation XOF 104,000,000
USD 220,000
• Hospital renovation XOF 47,000,000
USD 100,000
• Community Enterprise XOF 11,000,000
USD 25,000
• Eco-Citizen Education XOF 35,000,000
USD 71,000
• Literacy Program (Port Gentil) XAF 4,000,000
USD 8,000
Mandatory:
• Renovation Mayumba Airport XAF 500,000,000
USD 1,000,000
TOTALS
Discretionary XAF 122,000,000
USD 250,000
Mandatory XAF 500,000,000
USD 1,000,000
GRAND TOTAL XAF 622,000,000
USD 1,250,000
Mandatory:
• Primary School construction XOF 13,000,000
Western Province, Phase II USD 27,000
TOTALS
Discretionary XOF 197,000,000
USD 416,000
Mandatory XOF 13,000,000
USD 27,000
GRAND TOTAL XOF 210,000,000
USD 443,000
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Tullow Oil Central and West Africa Corporate Responsibility Report 2011
Regional Plans for 2012
Tullow’s Corporate Social Responsibility program will continue to grow in 2012, with an expected overall
increase of more than 30%. Additionally, we are launching a scholarship program awarding 15 fully paid
grants for Masters or Vocational training at leading French or English-speaking universities.
“We see 2012 as a year of growth in the region, not
just for us, but also for the countries in which we work.
Our Corporate Social Responsibility investments will
increase. We will continue our projects in Côte
d’Ivoire and we also have plans to include an
ambitious cross-border environment project taking in
Equatorial Guinea, Gabon and the Republic of Congo.
Our new scholarship scheme investing in local people
who want to participate in the oil and gas industry as
well as other sectors that promote economic
diversification, will bring exciting rewards and we are
optimistic about the future. As trusted partners from
the oil and gas industry, we at Tullow want to make
sure we continue our contribution to long-term,
sustainable development at both a local and national
level. We believe in the countries where we invest and
we are fully committed to being a part of their
successful futures.”
David Roux
Business Unit Manager
Central and West Africa, Tullow Oil
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Find out more
Further information about Tullow Oil and its
activities is available from our website.
www.tullowoil.com
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our business, investors, media, Corporate
Responsibility and our people. There is also
information on our major projects and links to our
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preferences and information needs.
www.tullowoil.com/reports
We have a central hub for financial calendar events
and for our corporate reports. Factbooks,
presentations and results webcasts are also
available here.
2011 Annual Report and Accounts
Visit: www.tullowoil.com/ara2011
2011 Corporate Responsibility Report
Our 2011 Corporate Responsibility Report will be
published in June 2012. This will also be available
online. Visit: www.tullowoil.com/reports
Photographs taken by: Xavier Bourgois in Gabon and Thierry Gueognon in Côte d’Ivoire
Printed by: Multipress Gabon
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Tullow Oil Gabon SA
Rue Louise Charron-Fortin
BP 9773
Libreville, Gabon
Tel.: +241 73 27 34
Fax: +241 73 26 41
Tullow Oil Côte d’Ivoire Exploration Ltd
Immeuble le Bélier, 2ème étage
Avenue Abdoulaye Fadiga
Abidjan
01BP 11857 Abidjan 01
Côte d’Ivoire
Tel.: +225 20 21 94 82
Fax: +225 20 21 94 89
www.tullowoil.com