Ghana-Ireland trade and investment forumIn October 2011, over 150 delegates attended the first
Ghana-Ireland Trade and Investment Forum in Dublin.
The event, which was sponsored and organised by Tullow and The Ghanaian Embassy, brought together Irish and Ghanaian business leaders to discuss opportunities for trade between the two countries. Representatives from 22 Ghanaian companies took part in the delegation visiting Ireland. Foreign Direct Investment in Ghana has grown by over 70% in the last year and building international trade relationships is a key priority for the country, as the Government of Ghana is keen to diversify investment beyond the oil and gas industry. For this reason, the forum focused on business opportunities for Irish companies in four sectors: agriculture, food processing, construction and engineering. To date seven Irish companies who attended are either developing business opportunities with the Ghanaian contacts they made or intend to do so within the next two years.Ireland has a small but developing trade relationship with Ghana. In 2010, Irish exports to Ghana are estimated to have been in excess of $60 million, an increase of over 20% on the prior year. In 2010, Ghana exported approximately $16 million of goods to Ireland. Ghana is one of the fastest growing economies in the world, with double digit economic growth forecast for 2012. "Tullow has been developing business
relationships in Ghana since the 1980s,
long before we discovered oil there in 2007. We believe opportunities for Irish and other businesses are vast, so we are happy to support this event." Rosalind Kainyah,
Vice President of External Affairs, Tullow Oil65www.tullowoil.comCORPORATE RESPONSIBILITY3Social performance standardsWe are progressing the development of Group social performance standards, which will guide the way in which we understand and manage our social impacts across our portfolio. Once finalised, Regional External Affairs Managers will have responsibility for executing regional work programmes in accordance with those standards. In conjunction with this we are continuing to develop our social competencies in each region. In Uganda, for example, Tullow has introduced International Finance Corporation (IFC) Social Performance Standards training for the local team, to include the development of effective IFC compliant grievance management systems for local communities. This year the team will also implement a centralised social information system for stakeholder engagement, baseline data management and land access issues for Tullow's Uganda operations. The focus of this will be the management and reporting of social responsibility in an operational context, and the management of social risk and reputation management from a corporate viewpoint. A wide engagement programmeIn 2011, the Group External Affairs engagement programme included new initiatives such as a European road show for Socially Responsible Investors and an event in Dublin to encourage Irish investment in Ghana. We have also continued with introductory oil and gas industry courses in Ghana and Uganda, in conjunction with Robert Gordon University, and have extended this during the year to stakeholders in French Guiana and Kenya. In addition, we ran our first course for UK stakeholders, including government departments, NGOs
and foreign diplomats based in London.Our Group Compliance Manager has led engagement with our industry peers, regulatory bodies and NGOs/CSOs in the area of transparency and anti-corruption. Industry partner forums on compliance and ethics have been held in Bangladesh and Kenya to date. The IR team has a highly active IR programme in the UK, Europe and North America. This is supported by the Executive and Senior Management and amounted to almost
50 investor days in 2011, covering 22 cities in 13 countries.
HR has been increasing our engagement with diaspora groups as part of our localisation efforts, and Internal Communications at Group and country level have run a variety of initiatives
for employees, which are discussed in the our people section
of this report, on pages 68 to 69. In Ghana and Uganda, Community Liaison Officers (CLOs) undertake an ongoing outreach programme, including face-to-face meetings, consultations and radio question and answer sessions. Where we have new operations, such as in Kenya,
we have held sensitisation meetings with local stakeholders
to begin to develop relationships and help ensure our
presence is welcomed. Hon. Dr Joseph Annan MP, Deputy Minister of Trade and Industry,
Ghana speaking at the Ghana-Ireland Investment Forum in Ireland.
66Tullow Oil plc 2011 Annual Report and Accounts ENVIRONMENT, HEALTH & SAFETY (EHS)Keeping our people safe and minimising our
environmental footprint2011 highlights. Achieved the lowest Lost Time Injury Frequency Rate (LTIFR) in the Group's history. Reorganised the EHS function to reflect Tullow's new regional business structure, including the recruitment
of three senior Regional EHS Managers. Introduced Tullow Safety Rules. Undertook a detailed review of EHS KPIs and made some significant changes for 2012 to reflect the changing nature of Tullow's activities and EHS risksEHS is a priority in all that we do, based on our desire to ensure we do no harm to our colleagues, our neighbours or the diverse environments in which we work. In 2011, we delivered
an excellent EHS performance with our lowest Lost Time Injury Frequency Rate (LTIFR) despite the increasing scale and diversity of our assets and activities. To ensure we can consistently deliver this superior performance we have continued to enhance our EHS capability through improvements to our EHS resources and reporting structures and with the introduction of new standards. We have reorganised our EHS function to reflect our new regional business structure with the recruitment of three senior Regional EHS Managers. These EHS managers and their Regional Business Managers provide EHS leadership in their area and are the conduit for EHS reporting to the Executive. We have also implemented a number of new standards and procedures across the business, the most important being the introduction of the Tullow Safety Rules. In addition, in 2011
we set up a strategic EHS Strategy Forum, which includes both Executive Directors and Senior Management, to ensure that we continue to look for new ways of thinking about how to improve EHS performance. The EHS Strategy Forum team has already generated some innovative thinking and ideas of how we can ensure that we maintain a dynamic and fresh approach to EHS.EHS Key Performance IndicatorsWe manage our EHS performance through a combination
of leading and lagging KPIs. Leading indicators are qualitative and focus on achieving improvements in performance in targeted areas. Lagging indicators show how we have performed based on quantitative data and preset targets.2011 lagging indicatorsIn 2011, over 13 million hours were worked across Tullow including a significant number of higher risk activities such as deepwater drilling offshore French Guiana and the ramp-up of production and delivery of oil to tankers from the FPSO in Ghana. During 2010, we held a Group-wide safety stand-down to raise the profile of our performance targets and reaffirm the Group's commitment to making the safety of people paramount in our operations. We reinforced this in 2011 with the introduction of Tullow Safety Rules. These are a set of requirements designed to manage high-risk activities that have the potential to adversely affect our personnel, surrounding communities and the environment. They were established using industry practices, guidelines and standards and are intended to reinforce Tullow standards and applicable host country regulatory requirements. In 2011, we had an excellent safety performance and achieved our stretch target for LTIFR.
We achieved our baseline target for Total Recordable Injury Frequency Rate (TRIFR) and our stretch target for High Potential Incident Frequency Rate (HiPoFR). Full details are outlined in the lagging indicator table on page 67.Vehicle accidentsIn 2011, we did not achieve our Vehicle Accident Frequency Rate (VAFR) which at 1.46, exceeded our target of 1.0. There were 12 recordable vehicle incidents during the year, all in Africa. There were no fatalities, although three were high potential incidents and three caused minor injury. Unfortunately since year-end there has been one third party fatality in Ghana and another third party fatality in Kenya. Full investigations of all incidents have been carried out and a series of key actions are being undertaken as a matter of urgency. In the first instance, an external review of Tullow's journey management plans and driving policy will be conducted and further driver training
will be provided.Uncontrolled releasesWe did not achieve our Uncontrolled Releases targets, which was a KPI we introduced in 2011. This KPI reflects the fact that Tullow's operations are mainly based in sensitive environmental areas and it is important to demonstrate good practice and the integrity of our equipment. In adopting this KPI we have significantly improved our reporting of environmental incidents and as a result we have collected valuable data which will help us improve our processes. Corporate responsibility continuedEHS operators carrying out safety checks on facilities at the
Bangora field in Bangladesh.