We are committed to meeting the challenge of - Tullow Oil plc

A message from Aidan HeaveyMeeting the challengeof our responsibilitiesWe performed well against our key 2007 objectives,with the achievement of most of our goals for the year.Growing awarenessAs far back as 1987, when Tullowcommenced work in Senegal, we wereworking closely with local communitiesand using our skills and resources toaddress some of the challenges thesecommunities faced daily.In recent years the wider subject of‘Corporate Social Responsibility’ (CSR)has become increasingly important toshareholders, governments, employeesand communities. This is a welcometrend, and recognises both the tangibleand intangible impact that our businesscan have on the areas where we operate.“Being a responsible company, a safeoperator and a good neighbour hasalways been the way we do business.”Mixing old and newIn this year’s CSR report we have tried tocombine the old and the new. Firstly, wewant to give an insight into Tullow’s past,present and future commitment tosustainable development and long-termpartnerships wherever we work. However,we want to combine this with an objectiveanalysis and assessment of ourperformance – both good and not so good –in a number of key areas and so for thefirst time this year we are reporting inaccordance with the Global ReportingInitiative’s (GRI) G3 Guidelines.In our first attempt at compliance withthese standards, we have achieved acredible GRI ‘C+’ rating, indicating wehave reported on the required profiledisclosures and performance indicators.A more complex businessDuring 2007, Tullow staff conducted overfive million hours of operated activitiesspread across 11 countries. In 2008, thisfigure is expected to be approximatelyseven million hours with majorprogrammes planned in Uganda, Ghana,the UK, Madagascar, French Guiana,Bangladesh and Mauritania.2 Tullow Oil plc Corporate Social Responsibility Report 2007

A message from Aidan Heavey continuedDaily attention to communitiesCSR is integrated into our corporateand operational activities, and stronglyinfluences our success. We continueto focus our efforts on working withcommunities especially in the areasof education and healthcare andthis is closely reflected in our mainsponsorships and community investmentactivities. We work daily with the localcommunities where we operate andsupported over 120 projects in 19countries during the year. We have setourselves a clear goal of significantlyincreasing our discretionary socialand community expenditure to moreadequately reflect the growth, maturityand success of our business.Several positivesThere were lots of positives during theyear, big and small, and the attention andsupport given to CSR and EHS activitiesacross the Tullow business increasinglymade a positive impact in the key areaswe focus on.Highlights through the year include:• The excellent work being undertakenin the Lake Albert area in Uganda toensure that we properly understandand manage our operations in thisarea of unique beauty and biodiversity;• The opportunity for us to use ouroperational experience and technicalskills to work towards making carboncapture and storage, which willcontribute to a reduction in carbondioxide (CO 2) emissions, a reality inthe UK;• The exceptional health and safetyperformance in two parts of our business.Over 200 days of operation, the temporarylogistics base in Namibia handled over5,600 tonnes of supplies without incurringany LTIs. Our Bangora facility inBangladesh completed its first yearof production representing 280,000hours of work without incurring anLTI; and• Ranking as one of the ‘Best Companiesto work for’ in the UK.Independently assured performanceA mid-year review of environmental datawas undertaken in 2007, to set appropriatecorporate reporting requirements aspreviously reported data was mainlyfor UK operated assets only. Groupproduction, drilling and well test data hasbeen collated for the first time, offering agreater understanding of our contributionto emissions of greenhouse gases (GHGs).Throughout 2008 we will continue toexpand the scope of our data collationto develop an even more comprehensiveview of the Group’s environmentalperformance. We have also undertakena three year independent assuranceprogramme with Deloitte & Touche LLP(Deloitte). In the first year this hasfocused on the Group level compilationof selected EHS data in our CSR report.Their assurance statement is on page 32.Putting people firstTullow strives to uphold high standards inthe recruitment and retention of employeesand the development of individuals, byadopting initiatives in the workplace thatare intended to promote Tullow as asustainable employer of choice, including:Our businessWhat we doTullow is one of Europe’s leading independent explorationand production companies and operates a versatile andbalanced worldwide portfolio of quality oil and gasassets, managed by a team with excellent technical,commercial and financial skills.Alan Marshall, UK Operations Manager (Tullow Bacton)Performance and outlookOur producing assets performed strongly during 2007,and 2008 will be another busy year as we movetowards sanction of field development in Ghana,continue to appraise and develop the significantpotential of the Lake Albert Rift Basin in Ugandaand achieve targeted production for the year.Jonathan Leather and Madeleine Slatford, Geoscientists (Tullow Dublin)4 Tullow Oil plc Corporate Social Responsibility Report 2007

• A wide range of training anddevelopment initiatives;• Annual performance appraisals thatincorporate goal setting thereby givingemployees a clear sense of theircontribution to the Group’s success;• Flexible work practices that help peoplemaintain a work/life balance; and• Sponsorship for employees whoraise funds for charities and supportfor employee charitable volunteering.Confident and optimisticOperationally, Tullow attempted andachieved a lot during 2007 – our firstmajor deepwater discovery in Ghana, amajor appraisal programme in Ugandaand the integration of our largest everacquisition. Each represented both anopportunity and a challenge for thebusiness, and it is our ability to deal withsuch transformational events – largelythrough the dedication, skills andprofessionalism of our employees – thatdetermines whether or not we succeed.However, amongst all our planning forgrowth and operational expansion, wehave maintained a clear focus on ourcore principles of safety, partnership andresponsibility. No matter how large Tullowbecomes, this will not change.All of these factors give us the confidenceand optimism to meet the challenges thatlie ahead of us as Tullow moves into thenext phase of its growth and development.Aidan HeaveyChief Executive OfficerNominated Director withCSR and EHS ResponsibilityIn nearly all cases we do not drillfor oil or gas straight away. Usuallya significant amount of time,sometimes several years, isspent carrying out geological andgeophysical surveys to determinethe best location for drilling anexploration well.Our policy is to implement a CSRprogramme as soon as we enter acountry. This normally involves localtraining and the involvement of thecommunity in projects. As ouractivity level increases so doesour involvement in CSR initiatives.Kevin Quinn,Business Unit ManagerSouth Asia and South AmericaOur core areasAfricaAfrica is the Group’s largest core area and this region hastransformed the Group, driven by exceptional explorationsuccess in Ghana and Uganda and ongoing strong growthin production.EuropeTullow’s European production comes from gas assetsin the UK Southern North Sea. Recently acquiredexploration licences in Portugal and the Netherlandsprovide longer-term growth opportunities.South AsiaThe Group has gas production from Pakistan and Bangladeshand high impact exploration acreage in India.South AmericaTullow is focused on applying its West African geologicalexpertise to similar plays in this region.Working interest production 73,100 boepdReserves and resources 551 mmboeRevenue £639 millionAfrica 55%Europe 39%South Asia 6%Africa 84%Europe 12%South Asia 4%Africa 58%Europe 41%South Asia 1%Tullow Oil plc Corporate Social Responsibility Report 2007 5

Summary of performance and outlookWorking to ensure wemeet our targetsIn 2007, we worked hard to meet the challenges of managingEHS and CSR activities across our enlarged asset base.Increased focusIn 2007, we increased our resources tomeet growing EHS demands providinggood support for the environmentalchallenges we face in Uganda, andprominent health and safety supportfor our activities in Namibia, Uganda,Pakistan and Bangladesh. Our goal is tofacilitate strong EHS progress and assistbusiness units and line management todeliver their EHS targets.There was an increased focus on CSRactivities with improvements achieved inthe reporting and facilitation of the budgetand project approval process. CountryManagers have also increased theirawareness and involvement in localcommunity activities.An area for improvementWhile our overall performance was good,the one area where we did not achieveour target was the Lost Time IncidentFrequency Rate (LTIFR). Following ourannual review, the Board reconfirmed the2008 target to achieve the top quartileperformance, that we had previouslyenjoyed. Year to date there has beena concerted effort and strong EHSleadership across Tullow and wehave already seen a significantimprovement in 2008 with no LTIs in thefirst quarter, resulting in well over twomillion hours worked since the last LTI.However, we recorded one LTI in Ugandaduring April, 2008.Making a differenceOur CSR performance continues to makea significant difference in many parts ofthe world, especially in the localcommunities we work with. However,the US$870,000 (£500,000) we spent ondiscretionary social and communitysupport in 2007 was below our plannedbudget. We have improved themanagement of this process to ensure wedeliver the planned spend of US$2 million(£1 million) in 2008.2008 to 2010The 2007 annual review processcompleted at the end of the year createdlonger-term EHS targets for the Tullowteam to work towards. We set targets ofimproving our EHS and CSR leadershipthrough training and implementationof key initiatives such as the riskassessment process. We also recognisethat, as we grow, we have to preparemore formal positions on issues suchas climate change, human rights andbiodiversity. For CSR, we committedto continuing with external assuranceof the reporting and to improve ourstakeholder engagement.Graham BruntonHead of EHS2007 PerformanceWe achieved our target of having no significantenvironmental incidents during the year.However, we did not maintain our excellenthealth and safety record or meet our targetof a LTIFR of below 0.90. LTIFR measures thenumber of LTIs, per million hours worked.These incidents occur when an employeeor contractor is injured and unable to starttheir next shift. In 2007, our LTIFR was 1.95.2008 ObjectivesWe have clear objectives documented for 2008.Our short-term focus is on restoring a stronghealth and safety performance, building fullyrepresentative environmental data and achievingour budgeted social and community spending toreflect the growth and maturity of the business.US$2millionDiscretionary CSR budgetLong-term plansAt the end of 2007, a three-year EHS andCSR performance plan was developed withkey Business Unit Managers and SeniorGroup Management.2010Three year performance plan completed6 Tullow Oil plc Corporate Social Responsibility Report 2007

In 2007, external testing with our advisors shows that we currently have no human rights violations.Our operations work around the local infrastructure and we would never displace local communities.Where possible, we provide employment for our neighbours and do not discriminate. Our Teamsmanage the business sensitively and our ethical commitment means we work against corruptionincluding extortion and bribery. We are planning to formalise our human rights policy and make thisavailable on our website.Graham Martin,General Counsel and Company SecretaryEach year we also agree proactiveperformance goals with the Boardthat reflect our desire forcontinuous improvements in EHSand CSR across the business.These goals included operational,communication, training andreporting initiatives that the team’sperformance is assessed against atthe end of the year.In 2007, these goals included:• The successful transition of theHardman Resources assets.ACHIEVED;• Improving near miss reporting toensure that all incidents arerecorded properly and that wecontinue to reduce the number ofEHS risks. ACHIEVED;• Develop our CSR reporting, whichhas been ACHIEVED throughindependently assuredperformance and additionalenvironmental data; and• Two of our goals – an actiontracking system and an EHStraining matrix – are ONGOINGand are expected to beimplemented this year.Environment• No significant environmentalincidents;• ISO14001 certification of onefurther Tullow Asset; and• Clear environmentalmanagement plan for the EarlyProduction System (EPS)in Uganda.CSR• Develop monthly CSR reporting;• Deliver the 2008 CSR discretionarybudget for social and communityprogrammes; andHealth and safety• Restore our performance andachieve an LTIFR of below 1.0;• Achieve vehicle accident frequencyrate per million kilometres drivenof below 8.0; and• Continue to improve stakeholderengagement and the feedbackmechanisms for the CSR Report.• Develop the EHS case forthe EPS in Uganda.• Audit compliance of the Group’sDriving Policy in countries withJourney Management Plans(JMPs); and• EHS meetings to be held byBusiness Unit/Asset Managerson a quarterly basis.EHS leadership• Demonstrate EHS leadershipacross all levels of managementto support improvements inEHS performance; andEnvironment• Ensure all assets and countriesare certified to ISO14001;• Develop ESIAs for all activitiesusing standard guidelines; and• Establish a corporate position onkey industry issues such asclimate change and biodiversity.CSR• Align with UN Global Compact 10principles and Voluntary Principleson Security and Human Rights;Health and safety• All operated Tullow facilities tohave a documented EHS case;• Achieve top quartile health andsafety performance againstindustry benchmark; and• Develop a revised riskassessment process andimplement this across the Group.• Achieve Global ReportingInitiative (GRI) ‘B’ grading;• Publish formal positions on humanrights and HIV/AIDS; and• Effective Group-wide vehicle androad safety programme.• Achieve top quartile CSR reporting.Tullow Oil plc Corporate Social Responsibility Report 2007 7

Our approachOur approach to CSR andbusiness sustainabilityCSR is a core Tullow value and, as part of our businesscommitment and culture, we support and where possibleuplift the communities where we work.Environment• Assessing risk to minimise any negative impact ouroperations have on the environment;• Seeking ways to manage our carbon footprint acrossall Tullow activities; and• Ensuring efficient resource and energy use at alloperating sites.See page 12Health and safety• Strong leadership at Group, country, local andoperational level;• Consolidating Tullow’s good health and safety (H&S)culture across all our activities; and• Sustaining top quartile H&S performance againstrecognised industry benchmarks.See page 18Social and community• Proactive local engagement making sure we makea valuable, contribution;• Maintaining positive cooperative relationships withneighbouring communities and other stakeholders; and• Positive promotion of sustainable communitydevelopment initiatives and projects.See page 248 Tullow Oil plc Corporate Social Responsibility Report 2007

Our goals are to ensure that our operationscomply with all applicable laws and regulations,and to apply responsible standards wherelegislation is inadequate or non-existent.Our approachCSR and the integration of environmental,health and safety and communityconsiderations into our operations andactivities are critical to our ongoing abilityto conduct our business in a profitableand sustainable manner. Our approachto meeting the key challenges of ensuringenvironmental protection, healthy andsafe work conditions, and care for thecommunity is achieved through carefuland thorough attention to key aspectsof the management of the Group, whichare outlined in this section of the report.Tullow is committed to sustainabledevelopment of our business and ournon-financial reporting of environment,health and safety, and communityperformance is how we demonstratetransparency and accountability.A full explanation of the basis ofour reporting is available online at:www.tullowoil.com/tlw/csrFull complianceOur goals are to ensure that ouroperations comply with all applicablelaws and regulations, and applyresponsible standards where legislationis inadequate or non-existent. In orderto secure compliance and give assurancethat management systems areimplemented and effective at all Grouplocations, an EHS audit programme isconducted throughout the year. We havealso undertaken a three-year programmewith Deloitte to assure the data in ourCSR report. Their assurance statement ison page 32.Sustainable performanceThe challenges and opportunities facingcompanies today in the area of sustainabledevelopment are more complex andhave a greater potential impact than everbefore, making the management ofsustainability an ever more critical andintegral aspect of the business. Reportingon sustainability management andperformance leads to improvedoutcomes as it encourages organisationsto measure, track, and improve theirperformance on specific issues.The Global Reporting Initiative (GRI) is aworldwide multi-stakeholder organisationthat created and maintains the ReportingFramework, a global sustainabilityreporting standard. This year for the firsttime, we are reporting according to theGRI’s Sustainability Reporting Guidelines.Stakeholder engagementTullow aims to cultivate and maintainstrong, open and lasting relationshipswith all key stakeholders. We recognisethat all forms of engagement, whethercommunity participation, publicconsultation or direct dialogue, arecritical aspects of CSR and corporatesustainability. Engaging and involvingstakeholders from a wide variety ofdifferent groups is not merely a socialresponsibility, but is also clearly alignedto achieving long-term business benefits.Our strong investor relations andcorporate communications programmesdemonstrate all aspects of the Group’sperformance in a timely, uniformand transparent manner. We establishand maintain broad associations andpartnerships and by maintainingopen dialogues, Tullow secures directand transparent communicationswith stakeholders across all levelsof the business.The earth’s temperature is notconstant and over millions of yearshas changed through cycles ofgradual cooling and warming (iceages). These ice ages are relatedto the earth’s position to the sun,and the make up of gases inthe atmosphere.These gases play an important rolein the natural greenhouse gas effect,which is the trapping of the sun’senergy as it bounces back fromthe earth. One possible reasonfor unusual changes in weatheris that the amount of atmosphericgreenhouse gases has increaseddue to the burning of fossil fuels,used to power our cars and ourhomes through electricity generation,for example.This means more heat is trapped andthe temperature rises creating globalwarming. This warming is predictedby scientists to lead to extremes in theweather and potentially impact thetimings of the seasons.Paul Coward,Corporate Environmental AdvisorTullow Oil plc Corporate Social Responsibility Report 2007 9

Our approach continuedEffective risk management is criticalto achieving our strategic objectivesand protecting people, the environmentand our reputation.Tullow takes an active and responsiblerole in providing immediate support tothose stricken by natural calamities.When a severe earthquake struckPakistan in 2005, over a million peoplewere killed, injured, or becamehomeless. Our donation to arehabilitation programme alloweda great number of people to recoverfrom their injuries under the care ofexperienced doctors.In November 2007, Cyclone Sidr hitBangladesh, affecting thousands ofpeople, many living in communitiessurrounding our operations.Significant food shortages occurredand our support assisted in thechallenge of delivering food aid tothe affected areas.Dr Sajjad Ahmed GillEHS Manager and Tullow DoctorEffective governanceTullow’s Board and Senior Managementare fully committed to all aspects ofgood corporate behaviour, with corporateresponsibility and accountability beingguided by a clear governance framework,and reflected in our organisationalstructure, policies and processes.Details of how Tullow manages itscorporate governance, together withinformation on the Board Members andcommittees, are detailed extensively onpages 52 to 54 of the 2007 Annual Report.Strong risk managementAs an oil and gas exploration and productioncompany, Tullow’s operations are exposedto a range of technical, geological,operational, political, environmental,health and safety, and financial risks.The Board has ultimate responsibilityfor the effectiveness of the Group’s riskmanagement activities and internalcontrol processes, and the objectiveis to ensure Tullow has appropriatesystems in place for the identificationand management of risks.Environmental surveying prior to commencing seismic activities in Madagascar.Working with CommunitiesWe have developed a social initiative called‘Working with Communities’ to encapsulatewhat Tullow aims to achieve in its social andcommunity initiatives across the Group.10 Tullow Oil plc Corporate Social Responsibility Report 2007

Effective risk management is critical toachieving our strategic objectives andprotecting our people and reputation.Tullow manages and mitigates its risksby maintaining a balanced portfolio,through compliance with the terms ofits licences and application of policiesand procedures appropriate for aninternational oil and gas company ofits size and scale. Information on otherkey risks, their potential impact, andthe mitigation strategies we take areon pages 44 and 45 of the 2007Annual Report.CSR CommitteeOur CSR policy formalises our longstanding commitment to helping ourlocal communities, and is regularlyreviewed by the Board and signed offby Aidan Heavey. The policy, which ispromoted across Tullow and is publiclyavailable, documents our overallcommitment and sets the agendafor the CSR Committee to manage agrowing commitment to CSR activities.The Committee, which meets regularly,outlines the key elements of our CSRactivities. It also provides guidance tothose responsible for CSR activities,usually Business Unit Managers.During the year, three additional membersjoined the Committee, expanding its skillsand bringing a wider approach to dealingwith CSR activities.EHS TeamIn Tullow, overall management of CSRand EHS is the responsibility of GrahamBrunton as Head of EHS who reportsdirectly to the nominated Executive Directorwith responsibility for Health and Safety,Aidan Heavey, Tullow’s Chief ExecutiveOfficer. The EHS Team expanded furtherin 2007, with most resources beingdedicated to meeting the challenge ofembedding Tullow’s culture into newlyacquired operations. Team members havealso increased their hands-on knowledgeof our operations through secondments toother areas of the business, allowing usto build an adaptable, multi-disciplinedteam who are able to identify, share andbuild on best practice within the business.Tullow has an active CSR programmewhich is committed to supportingsocial and community developmentprojects in areas where we operate.Tullow’s first choice is to do the workdirectly, such as building schools anddrilling water wells, so we canmaximise the use of funding foreach project.However, we do partner up withcharities where this is the best avenueto make a contribution. One suchexample is the work Sightsaversdo in preventing the spread ofdetrimental eye conditions in localcommunities in Ghana. We alsowork with charities to provide fastand effective relief through ourEmergency Fund. For example,in Sudan we supported childrenaffected by conflicts in Darfur.Ahlem Gamri,Contracts AssistantLatibu Kyomuhendo and Nahya Nkinzi (Tullow Uganda) inspecting the results of the beekeeping and sunflower planting initiative in Kaiso-Tonya.Tullow Oil plc Corporate Social Responsibility Report 2007 11

EnvironmentMeeting the challengeof environmental riskWe have built and are actively maintaining systems and processesto manage environmental issues across the wide array oflandscapes and habitats we encounter in our global operations.How we’ve progressedGood performanceNo significant environmental incidents12%Reduction in EU ETS CO2 emissionsMitigationThrough proactive assessment37%Reduction in indirect emissions from BactonFor more information visit:www.tullowoil.comClear policy and standardsOur goal, as supported by our EHS policy,is to balance full consideration of ourimpacts on the surrounding communityand environment whilst meeting ourbusiness goals. As a minimum standardwe aim to comply with the regulatoryparameters in the countries where weoperate or, where the local legislationis less developed, we set appropriatestandards to work to.Our Integrated Management System (IMS)requires that the environmental impactsof our activities are assessed qualitativelyand quantitatively. We are able to satisfythis requirement through the preparationof Environmental and Social ImpactAssessments (ESIAs) which we setas a Tullow requirement for all drilling,seismic and production operations. TheESIA process ensures that we undertake athorough assessment of the environmentalissues we need to manage prior toundertaking any activity and thatenvironmental considerations are alignedwith our decision making processes.A guidance tool has been developed toassist Business Unit Managers in thepreparation of comprehensive ESIAs inorder to ensure consistency in the qualityof assessments throughout our operations.Environmental protection and socialcommitments made in our ESIAs aremanaged on a day-to-day basis toensure we deliver on these undertakings.Our focus on ESIAs has been extensiveduring 2007, particularly in Uganda wherewe carried out numerous assessments inthe Lake Albert area including re-workingan existing assessment where we felt thecore environmental issues had not beenadequately addressed. A core element ofour drive for continual improvement isthe capture of representative data.Expanded reportingHistorically, the UK has provided themajority of the data reported and, althoughstill the most significant contributor in2007, we have expanded the reach ofour environmental KPIs to reflect ourwidening operational base. We nowinclude atmospheric emissions data forour drilling operations, and atmosphericsand process water reporting for ourproduction operations in Pakistan andBangladesh. CO2 and methane (CH4)data for production, drilling and welltesting are also added to the 2007 data,the first step towards benchmarkingour environmental performance. Our2007 environmental data will be measuredas part of our reporting against theenvironmental reporting criteria ofthe GRI.Throughout 2008 we will continue to expandthe scope of our data gathering in orderto develop a comprehensive view ofgroup performance.GlossaryCO2 Carbon dioxideCH4 MethaneESIA Environmental and SocialImpact AssessmentEU ETS European Union EmissionsTrading SchemeGHG Greenhouse GasesIn 2007, we expanded our environmentalreporting to reflect the enlarged Groupand plan to build fully representativeenvironmental data in the short term.12 Tullow Oil plc Corporate Social Responsibility Report 2007

How are we meetingthe challenge ofenvironmentalconservationand biodiversity?Supporting biodiversityMany parts of our operational activitieshave the potential to impact upon sensitiveecosystems and it is our responsibility tominimise and mitigate our impact onbiodiversity and to strive to fully understandthe complex relationships as part of theESIA process prior to operations.During 2007 we utilised our BiodiversityAction Plan (BAP) to focus on key areasacross the Group. Biodiversity is includedin our EHS policy and forms a core part ofour ESIA process.Since 2003, Tullow has supported researchby the Programme for Conservation andRational Utilization of Forest Ecosystemsin Central Africa (ECOFAC) which helpsto minimise the spread of the Ebolavirus between humans and primatesand benefits the local communitiesthrough eco-tourism. In Cape Townwe part-funded a Southern AfricanFoundation for the Conservation of CoastalBirds (SANCCOB) project to assist in therehabilitation of oiled sea birds. AlthoughTullow has no operational activities in thisregion, we are well aware of the impactsoil spills can have on wildlife and felt itwas appropriate to support such aworthwhile cause.Further ISO14001 certificationThe continuing development of our IMShas resulted in two more locations beingadded to the Tullow corporate ISO14001certification over 2007. Both our Dublinoffice and Bangladesh operations weresuccessful in demonstrating that theyare operating within the environmentalmanagement system set out in the TullowIMS. ISO14001 certification provides Tullowoperations with a systematic approach toassessing the environment in which weoperate, allowing an appraisal of potentialimpacts and prioritisation of these inmanagement planning.13

Meeting the challengeAssessing environmental sensitivitiesin the Lake Albert areaThe Albertine Rift stretches from the northern end of LakeAlbert to the southern end of Lake Tanganyika and extendsthrough Uganda, Rwanda, Democratic Republic of Congo,Burundi and Tanzania. The area is one of Africa’s mostimportant sites for the conservation of biodiversity andhas been identified as ‘an important bird area’ by BirdlifeInternational, ‘an ecoregion’ by the World Wildlife Fund,and a ‘biodiversity hotspot’ by Conservation International.The shores of Lake Albert, one of the Great Lakes ofAfrica, are home to numerous fishing communities thatare directly dependant on it for subsistence fishing andwater for domestic use. To the northeast the Lake borderson the world famous Murchison Falls Wildlife Reserve.In recognition of the rich environmental, economic andsocial value of the Lake, Tullow has been conducting atwo-year programme to assess the key environmentalimpacts of our activities and to ensure that workprogrammes are properly managed. We started with aStrategic Environmental Overview Report and will concludewith rigorous ESIAs of onshore and offshore activities.Phase 1 included a comprehensive review of all existingenvironmental and socio-economic information on LakeAlbert to develop recommendations on specialist studiesand activities required to ensure a consistently highstandard of ESIA. A secondary objective was to makethe review widely available as an information resource.Key recommendations for Phase 2, arising from Phase 1,were related primarily to a lack of available informationand thereby understanding of aspects of the biophysicaland socio-economic environment. To overcome this duringPhase 2, we undertook:• Mapping of all ecological habitats and socio-economicsites that may be sensitive to oil spills. This together withthe oil spill modelling will allow for the development of arobust oil spill contingency plan;• Identification of critical lake habitat types and initialpre-activity studies to better understand fish distributionand its relation to these ecological habitats;• Capturing of socio-economic data for villages and otherpotentially affected communities on Lake Albert’s shoresand environs. The focus is on directly affected villagesand includes a detailed survey of the fishing sites; and• Water and sediment quality baseline data have beencaptured prior to offshore exploration activitiesto ensure we minimise our impact during operations.The above studies are all nearing completion, facilitating thestart of Phase 3. This will consist of ESIAs for both onshoreand offshore activities that are built upon a sound data baseand process. In tandem with the start of the ESIAs, Tullowwill commence work on the recommendations below whichrelate to promoting sustainable development in the LakeAlbert area, developing robust ‘Working with Community’programmes as part of our CSR initiatives, including:• Developing a strategic communications plan that allowsfor effective and coordinated communication with allstakeholders;• Working closely with these stakeholders to developcomprehensive CSR programmes; and• Supporting long-term research/monitoring programmes,through partnerships with government institutions, whichwill assist in better understanding the physical andecological functioning of Lake Albert, and help withsustainable management of natural resources.Pictured above: Shores of Lake Albert, Kaiso-Tonya, UgandaFor more information visit www.tullowoil.com14 Tullow Oil plc Corporate Social Responsibility Report 2007

Tullow and climate changeWe recognise that CO2 and CH4 emissionsfrom the use of hydrocarbons in ourexploration and production activitiescontribute to climate change. These aregenerated primarily through operatingcombustion engines, cold venting ofgas, electricity generation and welltest operations.In 2007, we expanded our recording ofGHG emissions beyond the UK and haveincorporated C02 and CH4 attributableto drilling, well testing and productionacross the Group. Capturing this dataallows the identification of major sourcesand contributing activities so that we cantarget and implement, where feasible,appropriate reduction strategies.In 2007, we are benchmarking these keymetrics against an industry acceptedposition of units per thousand tonnesof hydrocarbon produced. This figure iscalculated for operated production versusCO2 and CH4 emissions discharged. Thismethod allows a more balanced view ofour emissions and allows future growth tobe factored in. The 2007 data are comparedto the most recently published industryaverages across OGP members for 2006.In the UK we continue to participate inthe European Union Emissions TradingScheme (EU ETS) and, in 2007, achieveda further 12% reduction in CO2 emissionsover our 2006 figure. This was primarilylinked to the comingling of the Hewettfield and Lancelot Area Pipeline System(LAPS) field gas flows which continues todeliver marked improvements in emissionreductions. The Bacton terminal is nowself-sufficient and can maintainoperations without the need for gridelectricity, improving security of supply.In 2007 the Hewett to LAPS project wasawarded a Business in the CommunityBig Tick Award, in recognition of thepositive steps we have taken towardsreducing our environmental impact.In Bangladesh, at the Bangora facility,upgrading the diesel generator to runon either process gas or diesel,has resulted in improved emissionsperformance from gas combustionwhen compared to diesel. It also meansgreater resilience for site productiongiven the reduced requirement for diesel.The concept of climate change and themanner in which we work to reduce ourpotential contribution to the phenomenonare complex. We support a number ofinitiatives to reduce emissions and in2008 will consider what role we can playin the Clean Development Mechanism(CDM). The CDM is a mechanism thatallows countries with emission reductiontargets under the Kyoto Protocol to investin sustainable development projects,thereby allowing the offset of GHGs andgaining of credits to achieve targets.Carbon capture and storage (CCS)With increasing pressure on governments,industry and individuals to reduce theimpact of human activities on the climate,we are proud to be involved in a projectto assess opportunities to use our assetsin new ways to contribute to the reductionin CO2.CCS is a way of preventing significantvolumes of CO2 from escaping to theatmosphere by capturing it at the pointof release. This can then be transportedto a suitable location for injection deepunderground for long-term storage.As some of our UK Southern North Seagas reservoirs approach the end of theirproduction life, there may be anopportunity to use them to provide safelong-term repositories for CO2. Using ouroperational experience and technicalcompetencies within our existinginfrastructure we are working towardsmaking CCS a reality in the UK.Disposing of wasteEnsuring that our duty of care is fulfilledin disposing of our waste and by-productsis one of the biggest challenges we facein developing countries, primarily dueto a lack of infrastructure and feasibledisposal routes. As part of an ongoingprogramme, we are investigating ways ofworking with local community facilities toensure that our waste by-products arehandled in a responsible manner throughto final disposal. An example of this is thesanitary waste disposal systems weinstalled at our camp sites in Uganda.This system treats waste water andreturns it to a standard similar to drinkingwater and fully able to be discharged.Responsible water useMany activities associated with ouroperations require the use of fresh water.Some of our operations are in regionswhere access to fresh water for humanconsumption is limited by poverty,infrastructure or climatic conditionsand one of our priorities is maintainingor supplementing water supplies.In Uganda the preliminary designwork for the Early Production System(EPS) highlighted the potential forGroup CO2 emissions 2007(tonnes)Contributors to Group CO2 emmisionsby activity. Total emission of CO2 was234,462 tonnes.Production 85%Drilling 10%Well Test 5%Group CH4 emissions 2007(tonnes)Contributors to Group CH4 emissions byactivity type. Total emission of CH4 was318 tonnes.Production 52.5%Well Test 47.2%Drilling 0.3%UK EU ETS performance 2007(tonnes)Further improvements in operationalphilosophy realised a 12% reductionin CO2 emissions against 2006 figuresand compliance against our annualallowance of 426,666 tonnes.070605CO2190,464215,407258,750Annual allowance426,666426,666426,666Production emissions(per thousand tonne Hydrocarbon)In order to benchmark our performancewe have compared our data for 2007against OGP average data for 2006. Thisnew measure allows growth to be factoredinto our performance measurements.0707 0.17 0.17CO2 emissionsOGP CO2CH4 emissionsOGP CH4124.0142.0426,000 6.3 1.0Tullow Oil plc Corporate Social Responsibility Report 2007 15

Environment continuedIn line with our EHS policy we aimto minimise pollution, especially theaccidental release of oil, chemicalor other substances harmful tothe environment.UK Offshore installations totaloil in produced water (tonnes)Hewett 48/29A and 52/5A continued tomeet their produced water total oildischarge allocation.070706UK Offshore installationsaverage produced waterquality (mg/1)UK installations initially struggled to meetthe compliance limit, primarily due to achange in measurement methodology.070706060.190.0306 0.130.030.230.4952/5A DBERR allowance48/29A DBERR allowance14.2 30.026.8 30.0 1.9531.00.900.9742.052/5A DBERR 24.7 allowance 40.048/29A DBERR allowance26.9 40.0(1) DBERR compliance limit is 30mg/1Water utilised inproduction activities (m 3 )(1)1.02The graph highlights continued compliancein the UK against the Bacton terminal’sabstraction licence, and water utilised inproduction across all Tullow production sites.0707060531,89918,678 18,67829,20039,496Group water usageUK water usage31,89929,20039,49647,40047,40047,700EA consented limit(1)increased water usage both for reservoirmanagement and as part of the processfacilities. Detailed studies on impactsto the lake and the local communitywere undertaken and following theseassessments it was decided to useaquifer water pumped from a specificaquifer 50 m below ground level. Thestudies highlighted that pumping waterfrom this location will not impact on thelake due to its distance from the facilitynor the local community who rely onshallow wells.Produced water dischargesProduced water, a by-product of theproduction process, is brought to thesurface as reservoir water with the oilor gas and is separated out duringthe production process. This wateris discharged to the environment andalthough treated still contains smallamounts of residual hydrocarbonsrecorded as oil in water discharges. Theoil in water discharges from our two UKinstallations, Hewett 48/29A and 52/5A,are regulated under the Oil PollutionPrevention and Control permit regime.A change to the analytical methods forthe sampling of oil in water led to anumber of non-compliances with the30mg/l quality standard at the startof 2007, with each instance ofnon-compliance being reported to theUK regulatory authority. As we respondedto the change in methodology, ourperformance improved and we broughtthe installations back into compliance.Despite these early non-compliancesboth installations met the total oil inwater discharge criteria for the year.Across Tullow, we have improved ourreporting of oil in water, and the totalamount of produced water dischargedfor our Group operated assets was7,400m 3 equating to a Group-wide oildischarge of 0.22 tonnes.Oil and chemical spillsAll spills are reported regardless ofsize, and the significance of a spill isdefined utilising the Tullow accidentand incident investigation process. Thisprocess takes into account the type ofsubstance, quantity spilt and location inwhich the spill occurs. All Tullowoperational activities have spill responseplans which outline immediate action todeal with oil and chemical spills.Mature asset managementThe Bacton terminal was built andcommissioned in 1969 and has beenoperated by Tullow since 2003. We aremeeting the challenge of operating thisfacility to maintain safe and efficientproduction while also meeting the newrigorous environmental legislation.We have directed our attention to issuesthat make a material difference and,throughout 2007, asset integrity andenvironmental management in the formof our Integrated Pollution Preventionand Control (IPPC) application haveprovided this focus at Bacton.Asset integrity has long been a key issuewithin oil and gas operations. However,in 2007, with the publication of the BakerReport following the BP Texas CityRefinery Explosion and the completionof the UK’s Health and Safety ExecutiveKey Programme 3 (KP3), the issuessurrounding integrity have been givenheightened publicity.A review of the findings of the BakerReport ensured that, where applicable,lessons from the incident were appliedto our own operations. This has resultedin regular integrity workshops at theterminal involving site management andkey personnel. These aim to increaseawareness and tackle problems as theyarise, continually challenging the way inwhich we manage integrity to ensure arobust system that delivers assurance.16 Tullow Oil plc Corporate Social Responsibility Report 2007

Oil and chemical spillsIn 2007 1.4 tonnes of oil was spilt duringonshore well test operations in Uganda.The operation was halted and the affectedarea cleaned, mitigating any risk tothe environment.Bacton Terminal UK indirectCO2 emissions (tonnes)Emissions associated with the purchase ofelectricity are reported as indirect emissions.For 2007, utilisation of on-site generationhas allowed a reduction of 37% from thatrecorded in 2006.071.0 1.4062.06.3072,955052.0 0.07426,000064,724Number of oil andchemical spillsOil and chemical spills(tonnes)055,270Environmentally the site is controlled bothvoluntarily through the Tullow ISO14001certified management system andthrough the site’s IPPC permit, regulatedby the Environment Agency. Our IPPCpermit became live in June 2007 and thefirst stages required the development ofa site condition report outlining any keyareas of concern and the investigation of anypotential sources of land contamination.Our most recent improvement projectinvolved the retrofit of digital air/fuel ratiocontrols on one of our older compressorengines in Bacton to Best AvailableTechniques. This project has ensuredmore consistent air emissionsperformance and control as wellas improved energy efficiency.2008 to 2010Our short-term goal is to build fullyrepresentative environmental data andduring 2008, for example, we will look atenergy efficiency auditing and the carbonfootprinting of our operations and willinclude water consumption across ourdrilling operations. Our longer-termenvironmental goals are outlined onpage 7 of this report.Student experience: We provided an opportunity for a student, Jean Heavey, to work in the field in Uganda over the course of the summer.During this time she assisted with CSR activities in the field including helping to build a new school.Tullow Oil plc Corporate Social Responsibility Report 2007 17

Health and safetyMeeting the healthand safety challengeHealth and safety considerations are at the heart of everythingwe do at Tullow. If poorly managed, our operations have thepotential to adversely affect not only our staff and contractorsbut also third parties, including local communities.How we’ve progressedBetter securityImprovements made across the Group10LTIs in 2007Clear goalsSet out for 2008 to 2010ZeroLTIs in the first quarter of 2008For more information visit:www.tullowoil.comClear competencies and policyTo ensure that health and safety ismanaged correctly, EHS issues are animportant part of line managementcompetencies and they are supportedby a dedicated, qualified team of EHSpersonnel. We have developed acomprehensive suite of policies andprocedures to support our activities and,most importantly, everyone in Tullowis empowered to stop any activity ifthere is an unacceptable risk of accidentor environmental incident.Group level KPIs include specifichealth and safety metrics and, ata team level, we maintain a suite ofproactive and reactive KPIs to measureour performance. Following on fromour annual review process, we havedeveloped a set of longer-term KPIsto ensure consistent progress forthe business.Industry benchmarkingAs members of the InternationalAssociation of Oil and Gas Producers(OGP), we use their metrics to ensureour health and safety data is fully alignedwith recognised standards. This allowsfor effective benchmarking of ourperformance and ensures our publiclyreported data has the appropriatecontext for measurement.We aim to compare our current data withthat of the OGP but, due to availability ofthe relevant information, we can only usea best estimate of the 2007 data, suppliedby OGP, until their verified information ispublished some four weeks after our CSRreport. This means that in our 2006 reportwe quoted OGP figures of 1.09 for LTIFRand 3.07 for TRIFR but recognise that theOGP final figures, published in June 2007,were 0.99 and 2.92 respectively.Excellent operational safetyIn 2007, we had several examples ofexcellent health and safety performanceincluding operations at our temporarylogistics base in Namibia, and ourBangora facility in Bangladesh.The drilling programme for our Kuduwell, based some 200 km off the coast ofNamibia, was supported by a logisticsbase established in the port of Lüderitz.The base remained operational for theduration of the drilling programmeand during these 200 days the teamsuccessfully handled 80 ship movementsGlossaryLost time incidentfrequency rate (LTIFR)10 LTIs coupled with a 16% reduction inhours worked during the year led to anunacceptable increase in our LTIFR.Total recordable incidentfrequency rate (TRIFR)There was a reduction in total recordableincidents during the year and plannedimprovements will help us to bring ourTRIFR more in line with industry standards.EHSKPILTILTIFRHIPOIMSTRIFROGPEnvironment, Health and SafetyKey Performance IndicatorLost Time InjuryLost Time Injury Frequency RateHigh Potential IncidentIntegrated Management SystemTotal Recordable Incident Frequency RateInternational Association of Oil andGas Producers070605LTIFR0.810.820.980.97OGP LTIFR(1) 2007 OGP LTIFR estimate is 0.671.95(1)0706053.07 12.003.05TRIFR3.07OGP TRIFR(1) 2007 OGP TRIFR estimate is 2.7112.73(1)18 Tullow Oil plc Corporate Social Responsibility Report 2007

and almost 5,600 tonnes of supplieswithout incurring any LTIs. Thisachievement demonstrates strong EHSleadership and employee dedicationto a safe operation from the outsetof the programme.Our Bangora facility in Bangladeshcompleted its first year of gas productionin May 2007 with no LTIs. During thisperiod, the team worked over 280,000man hours, with up to 100 people onsiteat any given time. Continuing the positivetrend, Bangora remained LTI free for thewhole of 2007, despite being affected bysome of the worst monsoon flooding insix years. Overcoming many operationalchallenges, Bangora also produced over18bcf of gas, and continued productionduring simultaneous drilling, testingand well tie-in activities.How are we meetingthe challenge ofcombating thespread of malaria?Increased LTIsWe recorded 10 LTIs in 2007, which whencoupled with a 16% reduction in hoursworked across the group, raised ourLTIFR to 1.95. LTIFR is the number oflost time incidents per million hoursworked. The 2007 LTIFR is in contrastto the steady improvement in safetyperformance recorded in recent years andis unacceptable to us. During the annualEHS review with the Tullow Board, therewas a clear mandate for improvementand we have taken significant steps tomeet this challenge, which are alreadyachieving results. The first quarter of2008 was LTI free, with over two millionhours worked since the last LTI. Werecorded one LTI in Uganda, in April 2008.Recordable incidentsThere were no fatalities during theyear, and analysis of the 65 recordableincidents showed few distinctive trendsin the type of incident we were recording.There was a significant reduction in theoccurrence of malaria and insect bitecases among local personnel incomparison with 2006, reflectingpositive contributions from our MalariaManagement Programmes. While thenumber of recordable incidents fell in2007, a reduction in hours workedmeans that the Total Recordable IncidentFrequency Rate (TRIFR) increasedslightly. The improvements planned forreducing the number of LTIs shouldreflect a similar improvement for thismetric, and bring it more in line withindustry standards.19

Meeting the challengeHigh potential incidents(HIPO) (%)The potential impact of an incident ratherthan its actual impact is very important tomeasure and learn from.Manual handling 3%Vehicle safety 28%Human factors 17%Equipment failure 17%Slips, tripsand falls 11%Externalenvironment 7%Lifting and loadretention 7%Security 3%Other 7%Pakistan MalariaManagement ProgrammeIn our 2006 CSR report we described the early stages of a malariamanagement programme in Pakistan that was being run in associationwith the Federal Malaria Control Board of Pakistan (FMCB).This project developed further during 2007 and, working closely with theFMCB, we became closely involved with three different villages near ourChachar operations to ensure that the programme was both effective andworthwhile. We also implemented the same measures at the Chacharsite to reduce the risk among our team.A survey taken at the outset of the programme revealed that while allthree villages had experienced malaria none of the 2,000 inhabitantshad received any education about the risks of malaria.The key to success was to involve local communities to educate themabout the dangers of malaria and preventative measures and to involvethem in the three phases of spraying with a contact poison to killmosquitoes which occurred during the year.Indoor residual spraying took place between April and September, thepeak time for malaria. We followed World Health Organization (WHO)recommendations and used an approved chemical for all phases ofspraying. Those carrying out the spraying were trained in the use ofPersonal Protective Equipment (PPE), spraying techniques, use ofspraying units and the specific hazards of the chemical involved.The FMCB provided 300 good quality mosquito nets to WHO standardsfor distribution in the Chachar camp and the three villages. The nets weredistributed by Tullow along with a specially designed wall clock to providea longer-term reminder of the key important malaria advice thecommunity was given during a formal village meeting. Support for thisprogramme at Chachar will extend into 2008.A post-programme survey in September 2007 highlighted a reducednumber of malaria cases and no reported malaria deaths over the period.Pictured above:Malaria awareness presentation, Chachar, PakistanFor more information visit www.tullowoil.comReported incidentsOur review of the Accident and IncidentReporting System in 2006 generatedan improved process in early 2007. Thenew process places the focus of ourinvestigations on the potential ratherthan the actual severity of the incidentand releasing this revision was one ofour objectives for 2007. Paying specificattention to the potential severity of anincident is a way of identifying keylearnings and improvement opportunitiesbefore an actual incident occurs. However,the significant increase in High PotentialIncidents (HIPOs) from three in 2006 to29 in 2007 cannot wholly be explainedby this new procedure and must betaken in context with an increase inhigh risk activities. To put specificfocus on this issue, we have initiatedmonthly meetings to review the reportedincidents and ensure the learnings areshared appropriately.Analysis of the HIPOs shows that themain recurring operational themes arehuman factors, equipment failure, andvehicle safety which collectively accountfor 62% of the incidents.Vehicles and driving safetyVehicles and road journeys representone of the most recognised risks in theindustry, and at the end of 2006 we issueda corporate Driving Policy to set corestandards to help manage this criticalissue. In developing countries, wherethere are greater risks associated withdriving, the corporate policy is supportedby a JMP, detailing country specificrequirements. As part of the EHS auditprogramme, compliance with the DrivingPolicy will be audited during 2008 and wewill continue to raise internal bestpractice. In 2007, 2.5 million km weredriven across the Group, 19 motor vehiclecrashes (MVCs) per the OGP definition20 Tullow Oil plc Corporate Social Responsibility Report 2007

Hours worked (million)There was a 16% reduction in the numberof hours worked in Tullow during 2007,after a record year for activity in 2006.How are we meetingthe challenge ofimproving our securityarrangements?075.1066.1053.7were recorded, eight of which weredefined as HIPOs.Our Bangladesh operations maintain acomprehensive JMP for all land basedjourneys outside Dhaka and, in particular,the three hour trip to the Bangora field.This plan includes a requirement forTullow drivers to record any near missesthat occur to them during their journeysand the Bangladesh Team developed adefinition that is easy for the drivers tounderstand and apply. The definition ofa near miss involves ‘having to changedirection and/or speed in order to avoidhaving a near-certain collision withanother vehicle’ and is more detailed thanthe OGP definition in order to properlyquantify this specific risk and continuallyseek ways of reducing the risk.During 619 journeys undertaken inBangladesh in 2007, 952 near misseswere reported but only four actualincidents occurred, all of which weredefined as light by OGP. Bangladeshdrove 11% of the Group’s vehiclekilometres in 2007.Continuous learningContinuing improvements in technologyand equipment now mean thatbehavioural safety is a key factorin incidents and is often related toprocedures, training, communicationand personal responsibility for safety.One of the LTIs that happened duringthe year when an unauthorised and unsafemodification to scaffolding on one of ourproduction facilities allowed it to movewhen an employee leant on it. This was notreported and later when another employeeleant on the same section he jarred hisback. A full incident investigation wascarried out, the importance of near missreporting was reinforced and scaffoldingmodification procedures were reviewed.21

Meeting the challengeHours worked by activity (%)Hours worked across the Groupwere evenly spread across thevarious activities undertaken.Unspecified 32%Production 23%Exploration 21%Drilling 15%Construction 9%Key security initiativesacross the GroupManaging the security of our people and facilities is a fundamentalpart of our health and safety activities, and we face a number ofchallenges to successfully manage security in different countriesand minimise the potential impact of any disruption.Security arrangements for our UK operations have always had a highpriority and, during 2007, the terminal at Bacton implemented acomprehensive upgrade programme in collaboration with the UKGovernment. The integrated modifications incorporate state of theart technology to improve security and provide Tullow’s security staffand civil authorities with the necessary tools to respond swiftly andappropriately in the event of an incident.As with our UK assets, the security concerns in Pakistan are largelyasset specific, despite the local political instability. Our most effectivemethod of security is the close links we build with the local communityand this openness and transparency through our ‘Working withCommunities’ initiative fosters a positive relationship and the peoplesee us as part of their community. We provide local employment andour CSR activities support water wells and schools in the area. This isthe most effective form of natural security although we still maintainthe minimum requirements in terms of physical security such asfencing and security personnel.In Uganda, our community based approach to security remainsimportant especially as we are working with different cultures andcross border issues. Our approach is to work with all stakeholdersincluding the relevant government representatives to ensure everyoneunderstands our purpose on the Lake and the activities we areundertaking. We also employ appropriate consultants to carry outsecurity risk assessments for key tasks on the Lake and, over 2007,we modified some work programmes to minimise risks.For all people travelling on Tullow business, we provide travel securityadvice in pocket sized booklets and specific customised securityinformation prior to every business trip. With respect to the securityof Tullow assets and resources, our long-term objective is to alignour operations with both the UN Global Compact and the VoluntaryPrinciples on Security and Human Rights.Pictured above:Monique Beattie, Graham Brunton and Gordon Phillips, security review,Bangora, BangladeshFor more information visit www.tullowoil.comWe also had an incident in Uganda wherea digger driver was repeatedly stung bybees after he inadvertently disturbed ahive during line-clearing for seismicoperations. Swift responses by acolleague and the site medic ensured thatthe injured person was treated effectivelyand quickly thus avoiding furthercomplications. Specific improvementswere introduced to the risk assessmentprocesses to address such hazards.HIPOs are not limited to our fieldoperations and we also experiencedsuch events in our office facilities. Aspart of our security system in the Londonoffice, magnetic door locks are used tomanage access to our offices. In 2007,the attachment holding one of thesemagnets in place failed causing the2 kg block to fall from the top of a door,injuring an employee. Our investigationfound that the design of the attachmentpoint was flawed and we worked closelywith the providers to produce a newattachment mechanism which replacedall similar fittings in our office.EHS leadershipEHS leadership is a key behaviouramong the Tullow management teamand is a required competence duringthe recruitment process.We participate in the UK oil and gasindustry’s ‘Step Change for Safety’initiative, which drives health and safetyimprovements across the sector in the UK.Part of this initiative is the ‘Boots on forSafety’ campaign that involves site visits bybusiness unit managers in order to raisethe profile of safety and safety awareness.We took this concept and extended itacross Tullow including adopting it inNamibia for the Kudu drilling campaignin 2007. This involved a joint EHS visit tothe offshore drilling rig by a Tullow22 Tullow Oil plc Corporate Social Responsibility Report 2007

multifunctional management teamtogether with representation from thedrilling contractor, Pride, with the expresspurpose of reinforcing the commitmentto safety of both companies. This drillingproject lasted for 200 days and incurredjust two reportable injuries.EHS managementOur IMS provides the framework andguidance through which all our activitiesare managed, including managementreviews, KPI setting and the annual EHSaudit programme. The IMS sets theoverall standard and expectations forour operations and, where appropriate,corporate guidance supports the IMSand defines specific procedures to follow.This is relevant in areas such as accidentinvestigation and reporting as well asrisk management.Contractor EHS forumsEmbedding Tullow’s EHS culture intonewly acquired assets has been morechallenging than we initially anticipated.In order to meet this challenge in ourUganda operations we held twocontractor EHS forums during the secondhalf of 2007. These were one day eventswith meetings, trainings and interactivesessions designed to reinforce ourcultural values and encourage and helpcontractors to raise safety standardsacross the operation. Subsequent to theforums we saw a reduction in the numberof LTIs and an improvement in the qualityof incident investigation and reporting.The success of the forums hasencouraged us to repeat them during2008 and we are considering rollingthem out to other areas of operation.Crisis managementThe London office has dedicated crisismanagement facilities supported by a24/7 Crisis Management Team. Whilewe hope this team will never need to bemobilised, it is important we continueto build their resources, capability andcompetence. During 2007, we held tenexercises to train a number of newmembers joining the team whilst othermembers changed roles. Our exercisesare independently observed andsubsequent to each one we receive areport outlining areas for improvement.The team mobilised once in January 2007for an incident in the UK Southern NorthSea and this was discussed in detail inour 2006 CSR report.Annual reviewThe management review process hasbeen a successful mechanism to formallyevaluate our EHS position on an annualbasis and the thoroughness of thisprocess has continually improved sincethe first review in 2003. The currentreview is carried out across the Groupduring the fourth quarter of each yearand ensures that Tullow’s EHS policiesand IMS remain relevant and appropriate.We also use this process to highlight thekey risks and activities for the upcoming12 months. Both the EHS audit scheduleand KPI setting process follow on from thereview using the information gathered.2008 to 2010Our short-term focus is on restoringour health and safety performance andthis year, for the first time, we have setlonger-term goals to be achieved by 2010,including a requirement for all Tullowoperated facilities to have a documentedEHS Case by 2010. Full details are onpage 7 of this report and outline a clearpath for continuous improvement.Driving in Bangladesh can be very hazardous and our operations there maintain a comprehensive journey management plan for all land basedjourneys outside Dhaka.Tullow Oil plc Corporate Social Responsibility Report 2007 23

Social and communityMeeting the challengesof a growing businessTullow’s success and growth has been central to our abilityto attract top people, particularly in an industry where skillsshortages and difficult demographics are a major challenge.How we’ve progressed120 projectsSupported across 19 countries in 200748%Increase in staff during the yearBest companiesTullow achieved a three star ranking69%Discretionary CSR budget spent inAfrica in 2007For more information visit:www.tullowoil.comA growing teamOur aim is to employ the best and ouremployee base grew by 48% in 2007 withminimal staff turnover. We achievedthe milestone of 100 staff in London byDecember, while headcount in Cape Townalmost doubled during the year. We alsohave four more operational offices –Netherlands, Mauritania, Trinidad andUganda – and where activity warrants,we aim to have a Human Resources (HR)professional in each office. To properlymanage growth in the business, the HRteam increased by three people, with adedicated resource in Cape Town for thefirst time.Continuous improvementThe HR team reviewed its business systemsand invested in a new HR InformationSystem (HRIS) which provides enhancedreporting and modelling tools allowingline managers access to information ontheir own teams.We continue to develop new termsand conditions for employees to fit ourchanging business, with a secondmentpolicy in place to make the transfer ofstaff and skills between our officesattractive and thus enabling us to buildon our capabilities around the world.Currently we have 17 staff assigned tolocations away from their home office.In line with Tullow’s business principles,we are committed to creating a workingenvironment where everyone is respectedand there is mutual trust. Our policies onethics, anti-bribery, harassment,speaking up and equal opportunities areembedded in all the new areas where weoperate. These policies work – to date wehave had no reported violations in any ofthese areas.New facilities in UgandaOur team in Uganda has moved intoa purpose built office, large enough toaccommodate the anticipated growthof both in-country and expatriate staffas the business expands. This office willhave first class communications andfacilities in an open plan, collaborativeenvironment. We are forging strong linkswith local universities to attract top talentwhich we will train and develop intoE&P professionals to provide localcapability for this new industry in Uganda.A Ugandan HR professional will join themanagement team in Kampala inJune 2008.Diverse training and development2007 saw a large increase in our globalgeoscience team in line with our decisionto build up the skills and competencybase in this vital area of our business.GlossaryBiTCE&PHRRoSPABusiness in the CommunityExploration and ProductionHuman ResourcesThe Royal Society for thePrevention of AccidentsOur CSR policy formalises ourlong–standing commitment to helpingcommunities where we have activitiesand is regularly reviewed by the Board.24 Tullow Oil plc Corporate Social Responsibility Report 2007

We are members of the GeoscienceTraining Alliance (GTA), which providesa comprehensive modular trainingprogramme to approximately 5,000technical professionals from over 50member companies worldwide. Tullowgeoscientists from around the world –graduates to members of the GlobalExploration Leadership Team (GELT) –attended nearly 200 days of trainingin 2007.How are we meetingthe challenge ofhelping children in thepoorest countries?Our training and development activitiesin 2007 have been diverse, and highlightsinclude an EHS leadership workshopwith an external facilitator for the Board;an introduction to the E&P businessfor newcomers to the industry; legalworkshops and finance and tax seminars.Our development programme forthe executive team continues, withinvestment so far being in the regionof £150,000. The HR team plan to includeonline training modules on a varietyof HR issues on the new HRIS and areworking on a series of monthly ‘Did YouKnow’ bulletins for the Tullow intranet.Our training expenditure in 2007 wascirca £500,000, with a budget for 2008of £750,000.Successful GOCare launchLast year we launched a medical referraland health monitoring programme calledGOCare, which provides complete medicalsupport for our employees.During the year we conducted over 120medical assessments in areas such aspre-employment, international travel,remote location expatriation, wellnessprogrammes and offshore fitness. Theoutput from these medicals allows us totrack the general health of Tullow and,after the results are analysed, we willbuild the feedback into future reporting.No human rights violationsTullow recognises the importanceof human rights and, following theappointment of Graham Martin, Tullow’sGeneral Counsel, as the nominatedDirector with responsibility for humanrights, we tested our current positionusing external advisors. This reviewestablished that Tullow does not havehuman rights violation issues amongsteither our own staff or other personnelinvolved in our operations.However, we know that there are industryexamples where human rights issuesoccur in developing countries duringE&P activities and as a consequence weare working with our communities toensure that human rights are adequately25

Meeting the challenge2007 CSR expenditureby core area (%)Africa generates over 50% of Tullow’sproduction and represents over 80%of our reserves and resources.Africa 69%Europe 19%Asia 7%Emergencydonations 5%Giving hope to childrenin difficult circumstancesHome of Hope, a fledgling non-governmental organisation (NG0)operates two child protection centres from ‘safe houses’ in Cape Townregion. These safe houses offer a warm and caring environment forneglected and abused children and services include counselling,crafts training, life skills and maths literacy.Home of Hope had already identified the need for a safe house specificallyfor teenage girls and had commenced fundraising when Tullow learntof their activities. Tullow agreed to pay the outstanding building costsof R399,000 (approximately US$56,000) and made a commitment fortwo years to assist in maintaining the safe house. The safe house isnow built and is called Tullow House.With the intention of encouraging participation and to allow Tullow staffin the Cape Town office the opportunity to ‘connect’ with Home of Hopeand participate in Tullow’s CSR initiatives, staff members were askedto donate goodies which could be included in a welcome bag for theinhabitants of Tullow House. Tullow staff donated generously and giftsincluded toiletries, cosmetics and even a flute, while some included notesof encouragement. Tullow has a representative on the Home of HopeBoard and we have plans to invite staff members to volunteer at Homeof Hope on a rotational basis.Home of Hope also launched a 24-hour emergency free-call number,in conjunction with their Mr Safe-T concept, during 2007. To date over400 calls have been received and over 100 children removed fromabusive circumstances.The commitment and contribution to the community that Home of Hopemakes is recognised by the South African Department of Social Services,who refer to them as a ‘best practice’ model for other charities.Pictured above:Lynda Biribonwa, Richard Brook, Graham Brunton, Linda Joseph, Eleanor Brookand Monique Beattie. Home of Hope, Cape Town, South AfricaFor more information visit www.tullowoil.comand sensitively managed for all ouroperational developments.As Tullow continues to grow, there is aneed to have a clear position on humanrights issues both internally and externally,and we have set a target to have a positionon the United Nation’s Global Compactand the Voluntary Principles on Securityand Human Rights within three years.We safeguard the rights of our employeesthrough equal opportunity, nondiscriminatorytreatment and labourpractices, as set out in the EmployeeHandbook and the CSR Policy. The rightsof local communities surrounding ouroperations are considered throughactive engagement to identify theirmost material issues. Solutions areoften reached by supporting focusedcommunity development projects.Best Companies AwardIn 2007, we decided to see how our UKemployees perceive Tullow as a placeto work by entering the annual ‘SundayTimes Best Companies to Work For’competition. Based on staff feedbackthrough an on-line questionnaire,organisations receive a score whichdetermines their star rating comparedto a fixed standard. One Star is first class,two stars are outstanding and three starsare extraordinary.The Best Companies organisation was setup six years ago to identify the drivers ofsustainable business performance. Theirresearch shows that the key is ‘workplaceengagement’, and they set about developingan academically rigorous methodologyto measure the levels of workplaceengagement in companies.The resultant Best CompaniesAccreditation Scheme recognises thoseorganisations that have achieved highlevels in this area. While the ‘Best26 Tullow Oil plc Corporate Social Responsibility Report 2007

2007 CSR expenditureby classification (%)Our prioritisation of our ‘Working withCommunities’ programme is reflected in theexpenditure allocation by the CSR committee.WwC 43%Other 29%Education 14%Conservation 7%CommunityFacilities 6%Health 1%How are we meetingthe challenge ofproviding a safe andclean water supply?Companies To Work For’ competitionhas an instant impact at the time of thepublication of the results in March eachyear, accreditation is a constant, yearroundreminder of an organisation’sability to be an exceptional place to work.We gained the highest possible ranking,three stars, for our first attempt ataccreditation. This is an extraordinaryachievement and something we are allvery proud of, especially since 90% of ourscore came from employee responses.Only 14 other companies out of a total of868 achieved three star status at thefirst attempt. We have now establisheda standard in the UK and will be workinghard to maintain it.HIV and AIDS awarenessThe prevalence of HIV/AIDS across thedeveloping world, and Africa in particularis well documented, is one area where weneed to meet the challenge of managinglocal labour. Tullow’s existing policy onHIV/AIDS in Africa is being developed intoa Group wide position.Our ‘Working with Communities’programme has fostered several trainingand awareness sessions, predominantlyin Uganda where we are in partnershipwith two NGOs, to deliver initiativessuch as the distribution of condoms andvoluntary testing and counselling. We alsoprovide accommodation for an HIV/AIDSAdvisor and facilities for training sessionsfor the local community in Kaiso-Tonya.CSR is a core valueCSR is a core Tullow value and is partof our organisational culture. Theprogrammes we engage in not onlysupport the communities and protect theenvironment in which we work, but alsogive Tullow a competitive advantage andthe ability to develop a political andcommunity profile that supports our27

Meeting the challengeWater is lifeOne of the key elements of Tullow’s approach to CSR is to facilitate basichealth, hygiene and water needs of communities wherever possibleand, following the success of Tullow’s initiatives to provide clean, safedrinking water to local communities in Uganda and Pakistan, a similarproject was undertaken in the western region of Ghana in 2007.Tullow embarked on a three-month project to install 12 mechanisedand hand pumped water wells across the Jomoro District using localcontractors to drill the wells. These wells support over 13,000 peopleand, with the five mechanised wells each connected to a large storagetank, provides continuous access to fresh water.In November, an opening ceremony was held at Mangyea, a communityin the Jomoro District. The District Chief Executive was the main speakerand was supported by the Traditional Chief of the area, and all of thesub-chiefs. A representative from the Ghana National PetroleumCorporation (GNPC) was invited and staff of the Jomoro DistrictAssembly and community members were also present.The event allowed Tullow’s staff the opportunity to collect feedback fromthe attendees and, as a result of the open dialogue with a wide range ofstakeholders, Tullow has identified further demand for access to safedrinking water and now plans to expand this project with more wellsscheduled for 2008.In order to ensure that each of these water wells remains operationaland provides clean and safe water for the long term, Tullow has partneredwith the Department of Community and Water Sanitation to provide twocontractors for every five wells and these contractors are charged withkeeping the wells in good working order.Pictured above:Maree Early, water wells opening ceremony, Jomoro District, GhanaFor more information visit www.tullowoil.combusiness objectives. Our activities focuson the ‘right thing to do’ and we prioritiseour support from the provision of basicneeds such as clean water to helpingto improve future prospects througheducation initiatives and by setting upco-operatives and providing greateraccess to product markets.We operate in a number of countries whereaccess to basic requirements such as cleanwater and health care is limited and keyEHS standards are either not in place ornot adhered to. It is under thesecircumstances that we have to meet thechallenge of developing programmes tobring as much support as possible to aspecific area while also drivingimprovements in EHS awareness andactivities in order to minimise the EHSrisk to people and their community.In 2007, we were involved in 120 projectsacross 19 countries with a discretionaryspend of US$0.9 million (£0.5 million)on social and community developmentprojects, compared to US$0.5 million(£0.3 million) in 2006. We implementedsignificant improvements in thecompleteness of data collection andunderstanding of the budget process,both of which will assist in our planfor future external assurance.In addition to the discretionary CSR spendwe also contribute substantial funds as partof our licence commitments. Our improvedunderstanding of the discretionary spendprovided the opportunity to progressthe documented position of our licencecommitments, and we are activelygathering this data for operated andnon-operated licences with a view toreporting our full expenditure.Growing supportDespite almost doubling our discretionaryCSR spend in 2007, our total expenditure fellshort of the budgeted amount, a situationthat we certainly do not want to repeat in2008 where the discretionary budget isUS$2 million (£1 million). To facilitate therequired improvement, we have introduceda number of changes including:• refining our internal communicationto ensure regular monitoring andmanagement of expenditure;• improving communication and clarityaround the allocation of funding witha formal arrangement to assess andapprove projects; and• recruiting a CSR Advisor to facilitatethe approvals process, report monthlyto the CSR committee and assist withproject selection and analysis.28 Tullow Oil plc Corporate Social Responsibility Report 2007

Movember: Doug Lyons, Chris Pickford, Doug McClymont, Richard Taylor, John Caskie, Paul Coward, David Silvestro, Giles Clifton, Joel Corcoran,Simon Grewcock.Some of the new projects we wereinvolved in during 2007 included thedrilling of water wells in Ghana; donatingfunds to emergency relief efforts forchildren in Sudan; flood relief inBangladesh; and the construction of ashelter home for abused children in CapeTown. We also retained our commitmentto a number of long-term projectsincluding ECOFAC gorilla conservationin Congo/Gabon; Noluthandu School forthe Deaf in Cape Town; and assistanceto local schools in Bangladesh.Having fun for charityTullow staff continue to give generously oftheir time and efforts in support of a numberof charities. In 2007, Tullow supportedemployees participating in many events forcharitable causes including marathonsin London, Paris, Edinburgh and Kerry,cycling Hadrian’s Wall, the Schull Triathlon,Race for Life, and Movember, in whichseveral London staff members grewmoustaches in aid of The Prostate CancerCharity UK. Amongst the top fundraisersthey were recognised by the charity ashaving raised funds which ‘significantlycontribute to changing the face of men’shealth’. Tullow contributed overUS$14,000 in sponsorship for these events.Awards‘Best Companies to Work For’We achieved three star status in theSunday Times ‘Best Companies toWork For’ awards and were placed32nd in the Sunday Times ‘100 BestSmall Companies to Work For’ awards.RoSPA ‘Gold Award’We are delighted to announce thatfor the second year running Tullowwas awarded a Gold Award in theRoyal Society for the Prevention ofAccidents (RoSPA) safety awards.BiTC ‘Big Tick’ re-accreditationOur BitC ‘Big Tick’ award wasre-accredited for 2007. The awardwas given in 2006 and in order tobe re-accredited we had to be ableto prove that the project we hadundertaken continued to havea positive effect.Strategic Value inCorporate ReportingThese awards are conferred annuallyby the Strategic Planning Society tocompanies that demonstrate thehighest standards of strategydisclosure and commentary intheir annual reports. In 2008,Tullow won the award for the‘Most improved narrative’ and thisrefers to our 2006 annual report.The judges commented that...“the vastly improved narrativenow matches the aspirationsand culture of the Company. It willalso have assured shareholders ofthe Company’s capacity to realiseexpected future potential.”Tullow Oil plc Corporate Social Responsibility Report 2007 29

Supplementary informationEnvironmental performance – UK only 2007 2006 2005Atmospherics*EU ETS CO2 emissions (tonnes) Bacton + Hewett 190,464 1 215,407 258,750EU ETS Annual allowance – combined Bacton + Hewett (tonnes) 426,666 426,666 426,666(1) The UK EU ETS CO 2 emissions in our Annual Report and Accounts 2007 was shown as 190,508 tonnes. This was an estimate and has been revised to reflect theEU ETS verified data to 190,464 tonnes.Discharges*Produced water quantity (m 3 )Hewett 52/5A 6,439.7 8,774.7 6,634.9Hewett 48/29A 480.4 950.7 1,237.0Produced water quality (2) mg/l (monthly average)Hewett 52/5A 26.8 14.25 24.7Hewett 48/29A 42 31 26.89DBERR monthly permitted allowances (individually for both installations) 30 30 40Total oil in produced water (tonnes)Hewett 52/5A 0.18557 0.13215 0.16531Hewett 52/5A DBERR allowance (under OPPC regulations) 0.23 1.02 n/aHewett 48/29A 0.02691 0.03025 0.03409Hewett 48/29A DBERR allowance (under OPPC regulations) 0.493 0.09 n/a(2) In 2005, the quality standard changed from 40 mg/kg to 30 mg/l.Water usage*Water Abstraction usage (m 3 ) – Bacton only 31,899 18,678 29,200EA consented limit – Bacton only 47,400 47,400 47,7002007 Group – wide figures 2007 2006 2005Atmospherics*CO 2 emissions (tonnes) 234,462 – –CH 4 emissions (tonnes) 318 – –Tonnes CO 2 /thousand tonnes hydrocarbon produced 124 – –Tonnes CH 4 /thousand tonnes hydrocarbon produced 0.168 – –Production emissions*CO 2(3)199,198 – –CH 4 167 – –(3) The production emissions (CO 2 ) in our Annual Report and Accounts 2007 was shown as 204,961 tonnes. This has been revised as a result of the assurance process to199,198 tonnes.Drilling emissions*CO 2 23,597 – –CH 4 1 – –Well test emissions*CO 2 11,667 – –CH 4 150 – –Water usage*Water usage (m 3 ) – All production sites utilised in process(inc. only six months Bacton mains data) 39,496 – –Spills*Oil and chemical spills 1 2 2Oil and chemical spills (tonnes) 1.4 6.30937 0.07Activity data 2007 2006 20052D seismic (km) 545 2,108 1,5173D seismic (sq km) 1,883 2,608 1,016CSEM (km) 248 2,608 1,01630 Tullow Oil plc Corporate Social Responsibility Report 2007

Safety performance 2007 2006 2005Hours worked (million)* 5.1 6.1 3.7Lost Time Injuries (LTIs) (total number)* 10 5 3Lost Time Injury Frequency Rate (LTIFR)(Number LTIs per million manhours worked)* 1.95 0.81 0.82OGP LTIFR 0.67+ 0.99+ 0.97Total Recordable Incidents (TRI) (total number)* 65 74 11Total Recordable Incident Frequency Rate (TRIFR)(number TRI per million manhours worked)* 12.73 12.1 3.0OGP TRIFR 2.71+ 2.92+ 3.05High Potential Incidents (HIPO) (Total number)* 29 3 2+ OGP LTIFR and TRIFR figures for 2007 are estimates at time of publication. 2006 data have been updated with final figures supplied by OGP. See page 18 for details.2007 Social data Europe Asia Africa South America Australia TotalNumber of employees 143 124 103 1 0 371Number of expatriate employees 0 4 9 0 0 13Number of consultants 65 148 37 1 0 251Total workforce 208 276 149 2 0 635Total number of hours worked 1,020,000 1,545,000 2,510,000 2,000 50,000 5,127,000Number of employee fatalities 0 0 0 0 0 0Number of contractor fatalities 0 0 0 0 0 0Number of third party fatalities 0 0 0 0 0 0LTIs 3 2 5 0 0 10TRI 6 5 54 0 0 65Number of vehicle km 6,248 1,002,147 1,482,504 0 0 2,490,899Number of female employees 35 13 28 0 13 89Number of female managers 4 0 0 0 2 6* Indicates performance data reviewed by Deloitte as part of their CSR assurance work. See page 32 for details.GRI Report application levelsThe GRI content index for this report is available online at: www.tullowoil.comThe ‘C+’ GRI checked application level relates to the online version of the report.2002 inaccordanceC C+ B B+ A A+Optional MandatorySelfdeclaredThirdpartycheckedGRIcheckedReport externally assuredReport externally assuredReport externally assuredTullow Oil plc Corporate Social Responsibility Report 2007 31

Independent assurance reportIndependent assurance report to Tullow Group Services Limited on the Tullow Oil plc Corporate Social ResponsibilityReport 2007 (the report).Scope of assurance work• We have been engaged by the Board of Directors of Tullow Group Services Limited to perform limited assurance*procedures on Tullow Oil plc’s (“Tullow Oil”) Group level compilation of its 2007 environmental performance indicatorson page 30 and its 2007 safety performance indicators on page 31.Basis of our assurance work and our assurance procedures• We carried out limited assurance in accordance with the International Standards on Assurance Engagements 3000 (ISAE3000). To achieve limited assurance the ISAE 3000 requires that we review the processes and systems used to compile theareas on which we provide assurance. It does not include detailed testing of source data or the operating effectiveness ofprocesses and internal controls. This provides less assurance and is substantially less in scope than a reasonableassurance* engagement.• The evaluation criteria used for our assurance are Tullow Oil’s definitions and basis of reporting the indicators as describedon: www.tullowoil.com/tlw/csr• Considering the risk of material error, a multi-disciplinary team of corporate responsibility and assurance specialistsplanned and performed our work to obtain all the information and explanations we considered necessary to providesufficient evidence to support our assurance conclusion. Our work was planned to mirror Tullow Oil’s own Group levelcompilation processes, tracing how data for each indicator within our assurance scope was collected, collated and validatedby Group head office and included in the report.• Our assurance did not include the activity data on page 30 nor the 2007 social data on page 31. Our work was based at Grouplevel only and did not include visiting and reviewing data collection, collation and validation of other Tullow Oil operations.Our assurance conclusion• Based on the assurance work performed, nothing has come to our attention causing us to believe that the 2007environmental performance indicators on page 30 and the 2007 safety performance indicators on page 31 are not in allmaterial respects compiled at Group level as described on: www.tullowoil.com/tlw/csr regarding Tullow Oil’s definitionsand basis of reporting the indicators.Responsibilities of Directors and independent assurance provider• The Directors are responsible for the preparation of the Corporate Social Responsibility Report and statement containedwithin it. They are responsible for determining Tullow Oil’s objectives in respect of environmental and safety performanceand for establishing and maintaining appropriate performance management and internal control systems from which thereported information is derived.• Our responsibility is to independently express conclusions on reliability of management’s assertions on the selectedsubject matters as defined within the scope of work above.• We performed the engagement in accordance with Deloitte’s independence policies, which cover all of the requirementsof the International Federation of Accountants (IFAC) Code of Ethics and in some areas are more restrictive. We confirmto Tullow Group Services Limited that we have maintained our independence and objectivity throughout the year, includingthe fact that there were no events or prohibited services provided which could impair that independence and objectivity inthe provision of this engagement.• This report is made solely to Tullow Group Services Limited in accordance with our letter of engagement for the purposeof the Directors’ governance and stewardship. Our work has been undertaken so that we might state to the Companythose matters we are required to state to them in this report and for no other purpose. To the fullest extent permitted bylaw, we do not accept or assume responsibility to anyone other than Tullow Group Services Limited for our work, for thisreport, or for the conclusions we have formed.Deloitte & Touche LLPLondon, 6 th May 2008* The levels of assurance engagement are defined in ISAE 3000. A reasonable level of assurance is similar to the audit of financial statements;a limited level of assurance is similar to the review of a six-monthly interim financial report.32 Tullow Oil plc Corporate Social Responsibility Report 2007

Basis of reportingThe Tullow CSR Report 2007 (‘the Report’)provides data and information for theperiod 1 st January 2007 to 31 st December2007 and covers all exploration andproduction activities in the Tullow Groupexcept where specifically noted as relatedto one part of the business. Any such data,for example carbon dioxide (CO2) emissionsunder the European Union EmissionsTrading Scheme (EU ETS) which onlyrelates to the UK Assets, is specificallyidentified in the text of the Report.For all health and safety data and mostof the environmental data, we use thedefinitions set by the Association of Oiland Gas Producers (OGP) to guide ourreporting requirements and this ensuresan accurate benchmark against credibleindustry data. OGP defines all the incidentcriteria and operations or contracts whichshould be included.EnvironmentThe reported environmental data comesfrom all Tullow production operationswhere Tullow is the operator of the facilityor asset during the year, full details ofoperated and non-operated facilitiesis available on pages 110 to 115 of theAnnual Report and Accounts 2007. Themain focus in previous reporting yearswas our Southern North Sea activities inthe UK including the offshore facilities atHewett, 48/29A and 52/5A, and the BactonGas Terminal in Norfolk. During 2007, weadded data from all operated production,namely the Chachar and Suri facilities inPakistan and the Bangora productionfacility in Bangladesh to provide a TullowGroup wide environmental position. Inaddition, we have included environmentaldata for drilling and well testing across alloperated wells in 2007.The main focus of this data is atmosphericemissions. The methodologies utilised incalculations are approved by UK Oil andGas atmospheric emissions workgroupand are based upon American PetroleumInstitute and US Environmental ProtectionAgency practices. These methodologiesare combined in one tool known as EEMS(Environmental Emissions MonitoringSystem). CO2 emissions data for facilitiesparty to the EU ETS is externally verifiedon an annual basis, in line with emissionstrading registry guidelines. Comparabilityof data from year to year may be affectedby changes in the methodology, number offacilities, and planned vs unplannedoperations. Where year on yearcomparability has been materiallyimpacted by one or more of these factors,this is made clear in the Report. Thereis also potential for local interpretationof reporting guidelines to influenceuncertainty of data although this isminimised through providing guidelinesand definitions as well as thoroughcommunication with the businessunits concerned.Health and safetyThe reported health and safety data isgathered from all sites where Tullowoperates and includes production, drilling,seismic and construction activities as wellas the office environment. All contractorssuch as drilling and seismic companiesand the associated sub contractors arealso included in our data as they operateunder our management system. OGP setsa standard regarding the categorisationof all safety incidents and occupationalhealth conditions and we adhere tothis position.In one area, we have set a higher internalstandard where we go beyond the OGPrequirement to record 3 rd party fatalitiesand require inclusion of 3 rd party injuries.However, as per the OGP standard,any manhours and incidents occurringoutside our direct management controlis not recorded.A summary of the criteria and definitions used to record our environment, health and safety data is listed below:IndicatorDescriptionBasis of calculationUnit of measureEnvironmentCarbon dioxide (CO2)Gas that contributes to thephenomenon known as thegreenhouse gas effect.As required under the EU ETS forHewett 48/29A, 52/5A and BactonGroup wide emissions are estimatedusing EEMS (Emissions Estimation andMonitoring System), which allows thecalculation of emissions where directmonitoring is not undertaken. Itinvolves the use of an activity factor i.e.fuel consumption, flow rate to ventor flare, and an emissions factor,which can be based on direct gascompositional analysis or industrystandards. In the case of UK emissionsdirect compositional analysis is used.Other operated sites currently utilisethe EEMS default emission factor.TonnesMethane (CH 4 )Gas that contributes to thephenomenon known as thegreenhouse gas effect.Emissions are again calculated usingEEMS in the same manner as CO2.TonnesOil in produced waterA by-product of the oil and gasextraction process, oil in producedwater is the total amount of oil in theproduced water discharged to theenvironment from an installation.Department for Business, Enterpriseand Regulatory Reform (DBERR)methodology.TonnesTullow Oil plc Corporate Social Responsibility Report 2007 33

Basis of reporting continuedIndicatorDescriptionBasis of calculationUnit of measureProduced waterquantityThe amount of oil in a sampleof produced water dischargedto the environment.DBERR methodologymg/lProduced waterqualityTotal amount of water brought to thesurface with the oil or gas during theproduction process.DBERR methodologytonnesHealth & SafetyFatalityDeath of a company or contractemployee due a work related incidentor illness. “Delayed” deaths that occurafter the incident are included if thedeaths were a direct result of theincident e.g. if a fire killed one personoutright, and a second died threeweeks later from lung damage causedby the fire, both are reported.OGP definitions and methodologyAbsolute number offatalitiesFirst Aid Case (FAC)Cases that are not sufficiently seriousto be reported as medical treatment ormore serious cases but neverthelessrequire minor first aid treatment.OGP definitions and methodologyAbsolute number ofinjuriesHigh Potential Incident(HIPO)An incident where the potential severityis deemed to be either High or VeryHigh. The actual severity of the incidentmay be lower than the potential severityproviding a powerful learning tool.Tullow Oil Accident and IncidentReporting System incident potentialmatrix.Potential severity ofincidentLost Time Injury (LTI),Lost Time InjuryFrequency Rate(LTIFR)Any work related injury or illness,other than a fatal injury, which resultsin a person being unfit for work on anyday after the day of occurrence of theoccupational injury. “Any day” includesrest days, weekend days, leave days,public holidays or days after ceasingemployment.OGP definitions and methodologyLTI: absolute numberof injuriesLTIFR: number of LTIsper million man hoursworked.Man hoursHours worked by employees andcontractors.OGP definitions and methodologyHoursMedical TreatmentCase (MTC)A work-related injury or illness thatresults in medical treatment beyondfirst aid, but that did not involve death(fatality), one or more days away fromwork (LTI), or one or more days ofrestricted work (RWDC) i.e. remainedat work and was not transferredor restricted.OGP definitions and methodologyAbsolute number ofinjuriesNear Miss (NM)An incident which occurs throughfailure of the management system orequipment that in other circumstanceswould or could have caused a fatality,LTI, or other such injury. Includesenvironmental near miss or otherincident that could have causeddamage to assets or companyreputation.OGP definitions and methodologyAbsolute number ofincidents34 Tullow Oil plc Corporate Social Responsibility Report 2007

IndicatorDescriptionBasis of calculationUnit of measureRestricted Work DayCase (RWDC)Any work-related injury other than afatality or lost work day case whichresults in a person being unfit for fullperformance of the regular job on anyday after the occurrence of theoccupational injury.Work performed might be:• an assignment to a temporary job;• part-time work at the regular job;• continuation full-time in the regularjob but not performing all the usualduties of the jobWhere no meaningful restricted workis being performed, the incident isrecorded as a Lost Time Incident.OGP definitions and methodologyAbsolute number ofinjuriesThird Party Incidentexcluding FatalityIncidents involving 3 rd parties,individuals not employed by Tullow Oilor a Tullow Oil contractor, will also berecorded as part of our stats. Externally,we will report according to the OGPstandards, i.e. only 3 rd party fatalities.The seriousness of the incident shouldbe estimated and compared to how wewould have categorised a staff orcontractor issue.OGP definitions and methodologyAbsolute number ofincidentsTotal RecordableIncidents (TRI), TotalRecordable IncidentFrequency Rate(TRIFR)The sum of all fatalities, LTIs, RWDCs,MTCs and FACs.OGP definitions and methodologyTRI: Absolute numberof injuriesTRIFR: number ofTRIs per million manhours worked.Vehicle TravelDistanceThe monthly total vehicle kilometrestravelled during work related activitieswhilst being driven by a company orcontractor employee.Readings from Tullow Oil and TullowOil contractor vehicle odometersKilometresFurther definitions used in the Report are:BiodiversityVariety of organisms found within a specified geographic region.HydrocarbonA compound containing only the elements hydrogen and carbon. May exist as a solid, a liquid or a gas. The term is mainly used ina catch-all sense for oil, gas and condensate.Social and CommunityThe Social and Community metrics relate to all parts of our business. We report our CSR spend in US$.Non Operated ActivityIn line with the OGP definitions, Tullow only reports the environmental, health and safety data where Tullow is the operator of theexploration or production facility. Non operated EHS data is not included in the report.Independent AssuranceDeloitte & Touche LLP (Deloitte) has provided limited assurance on the group compilation process of selected environmental,health and safety data as set out by them in their assurance statement, which is reproduced in the Report.Tullow Oil plc Corporate Social Responsibility Report 2007 35

GRI Content indexStandard Disclosures Part I: Profile disclosures1. Strategy and analysisProfileExtent ofdisclosure Description Reference reporting1.1 Statement from the most senior decision-maker of the organisation. 2,3,4,5 Full2. Organisational profile2.1 Name of the organisation. FC Full2.2 Primary brands, products, and/or services. 4 Full2.3 Operational structure of the organisation, including main divisions, operating companies,subsidiaries, and joint ventures. 5 Full2.4 Location of organisation's headquarters. 4 Full2.5 Number of countries where the organisation operates, and names of countries witheither major operations or that are specifically relevant to the sustainabilityissues covered in the report. 2,5 Full2.6 Nature of ownership and legal form. 4 Full2.7 Markets served (including geographic breakdown, sectors served, and types ofcustomers/beneficiaries). 5 Full2.8 Scale of the reporting organisation. 4, 5, 30, 31 Full2.9 Significant changes during the reporting period regarding size, structure, or ownership. 2 Full2.10 Awards received in the reporting period. 29 Full3. Report parameters3.1 Reporting period (e.g., fiscal/calendar year) for information provided. FC, IFC, 3 Full3.2 Date of most recent previous report (if any). IBC Full3.3 Reporting cycle (annual, biennial, etc.) FC, 3, 6 Full3.4 Contact point for questions regarding the report or its contents. 1 Full3.5 Process for defining report content. 10 Full3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities,joint ventures, suppliers). See GRI Boundary Protocol for further guidance. 5, 30, 31 Full3.7 State any specific limitations on the scope or boundary of the report (see completenessprinciple for explanation of scope). 2 Full3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations,and other entities that can significantly affect comparability from period to period and/orbetween organisations. 1 Full3.10 Explanation of the effect of any re-statements of information provided in earlier reports,and the reasons for such re-statement (e.g.,mergers/acquisitions, change ofbase years/periods, nature of business, measurement methods). 18 Full3.11 Significant changes from previous reporting periods in the scope, boundary,or measurement methods applied in the report. 4, 12, 13 Full3.12 Table identifying the location of the Standard Disclosures in the report. 31 (referenceto website) Full4. Governance, commitments, and engagement4.1 Governance structure of the organisation, including committees under the highestgovernance body responsible for specific tasks, such as setting strategy ororganisational oversight. 9, 10 Full4.2 Indicate whether the Chair of the highest governance body is also an executive officer. 9 Full4.3 For organisations that have a unitary board structure, state the number of membersof the highest governance body that are independent and/or non-executive members. 9 Full4.4 Mechanisms for shareholders and employees to provide recommendations or directionto the highest governance body. 9 Full4.14 List of stakeholder groups engaged by the organisation. 9 Full4.15 Basis for identification and selection of stakeholders with whom to engage. 9 Full36 Tullow Oil plc Corporate Social Responsibility Report 2007

Standard Disclosures Part III: Performance indicatorsEconomicPerformanceExtent ofindicator Description Reference reportingEC8 Development and impact of infrastructure investments and services provided primarilyfor public benefit through commercial, in-kind, or pro bono engagement. 27,28 FullEnvironmentalEN8 Total water withdrawal by source. 16,17, 30 FullEN14 Strategies, current actions, and future plans for managing impacts on biodiversity. 4, 12,13, 14 FullEN16 Total direct and indirect greenhouse gas emissions by weight. 15, 16, 30 FullEN17 Other relevant indirect greenhouse gas emissions by weight. 15 FullEN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. 3, 12, 30 FullEN21 Total water discharge by quality and destination. 14, 16, 17, 30 FullEN23 Total number and volume of significant spills. 3, 17, 30 FullSocial: Labor practices and decent workLA1 Total workforce by employment type, employment contract, and region. 24, 31 FullLA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of 18, 19, 20,work-related fatalities by region. 21, 31 FullSocial: Human rightsHR4 Total number of incidents of discrimination and actions taken. 24 FullHR9 Total number of incidents of violations involving rights of indigenous peopleand actions taken. 24, 26 FullTullow Oil plc Corporate Social Responsibility Report 2007 37

GlossaryBAPBiodiversity Action PlanHRISHuman Resources Information SystembcfBillion cubic feetHSEHealth and Safety ExecutiveBitCBusiness in the CommunityIFACInternational Federation of AccountantsboepdBarrels of oil equivalent per dayIMSIntegrated Management SystemCCSCarbon Capture and StorageIPPCIntegrated Pollution Prevention and ControlCDMCH4CO2CSEMCSRDBERRE&PEAECOFACEHSEPSESIAEU ETSFMCBGHGClean Development MechanismMethaneCarbon dioxideControlled Source ElectromagneticCorporate Social ResponsibilityDepartment for Business Enterpriseand Regulatory ReformExploration and productionEnvironment AgencyProgramme for Conservation and Rational Utilizationof Forest Ecosystems in Central AfricaEnvironment, Health and SafetyEarly Production SystemEnvironmental and Social Impact AssessmentEuropean Union Emissions Trading SchemeFederal Malaria Control Board, PakistanGreenhouse GasesISAEJMPKPILAPSLTILTIFRm 3mg/kgmg/lmmboeMVCNGOOGPOPPCPPERoSPAInternational Standards Assurance EngagementsJourney Management PlanKey Performance IndicatorLancelot Area Pipeline SystemLost Time IncidentLost Time Incident Frequency RateCubic metresMilligrammes per kilogramMilligrammes per litreMillions of barrels of oil equivalentMotor Vehicle CrashNon-Governmental OrganisationInternational Association of Oil and Gas ProducersOffshore Pollution Prevention ControlPersonal Protective EquipmentThe Royal Society for the Prevention of AccidentsGNPCGhana National Petroleum CorporationSNSSouthern North SeaGRIGlobal Reporting InitiativeTRITotal Recordable IncidentsH&SHealth and SafetyTRIFRTotal Recordable Incident Frequency RateHIPOHigh Potential IncidentUNUnited NationsHRHuman ResourcesWHOWorld Health OrganizationPublications and other corporate informationGet more up to date information on our website,including the following:• 2007 Annual Report• 2008 Fact Book• Further CSR details• Presentations• News and much morewww.tullowoil.comThis report is produced on material which contains50% recycled and de-inked pulp from post consumerwaste. The remaining pulp contains FSC creditedmaterial from well-managed forests.Designed by Black Sun plcPrinted by St Ives Westerham Press38 Tullow Oil plc Corporate and Social Responsibility Report 2007

Contact details:Tullow Oil plc11 Chiswick Park566 Chiswick High RoadLondon W4 5YSTel: +44 20 8996 1000Fax: +44 20 8994 5332Email: information@tullowoil.comWebsite: www.tullowoil.com