LOCAL CONTENT2011/2012 key objectives2011/2012 performanceStatusContinue our 'Closing the Gap' programme, which is aimed at helping local people and businesses to enter the oil and gas industry supply chain.Over 100 Ghanaian businesses took part in our 'Closing the Gap' workshops during 2011. We are continuing to run this programme.Track, record and report local content.Further work is required to assure local content data, and to track, record and report it in an appropriate way.Develop a business incubation centre pilot in Uganda, in conjunction with local communities and organisations.A centre for small and medium enterprises (SMEs) has been developed in Hoima in partnership with Traidlinks. More information can be found on p37 of this report.2012/2013 objectivesStatusTrack, record and report local content. Achieve assured data for 2012.Same as 2011 Open enterprise centres in Uganda and Ghana.NEWLaunch pilot of vocational skills training.NEWSOCIAL ENTERPRISE2011/2012 key objectives2011/2012 performanceStatusRoll out the new social enterprise (SE) guidelines and support effective implementation.SE guidelines were published and we have run workshops on implementation at various locations. We are supporting this roll-out with more user-friendly guidance material and further workshops.Ensure that effective systems and processes are in place so that SE data is assured in 2011.Completed, will continue to assure data going forwards.Develop a process and working group so that Local Content, HR and country offices input into the development of our strategic SE investment strategy and projects.SE working group established in 2011.2012/2013 objectivesStatusCommit $20 million to SE projects for 2012.NEWAward up to 110 scholarships to students from selected countries during 2012 under the Tullow Group Scholarship Scheme.NEWDevelop and publish a three-year SE strategy to better embed our long-term approach to doing business in our discretionary investments.NEWMore information PageOur people 68Sustainable supply chain 72Local content 74Social enterprise 7655www.tullowoil.comMEASURING OUR PERFORMANCE3

MAINTAINING HIGH STANDARDSMaintaining high standards of corporate governance is about managing the business in order to create long-term sustainable value for the benefit of all our stakeholders.The value of governanceGood governance and being a responsible company is defined by our values and upheld by the standards we apply in how we deal with people and how we manage our business. The Tullow Board is committed to maintaining high standards of corporate governance and has overall responsibility for the strategic leadership and stewardship of Tullow. As the Group continues to grow in size and complexity, the Board seeks to ensure that we maintain and enhance the culture and values of the entire Group and that we have the right people and processes in place to achieve the correct balance between entrepreneurial risk taking and prudent risk management. Governance and values are embedded in our business model and one of our key strategic priorities is to achieve strong governance across all Tullow activities and continue to build trust and reputation with all stakeholders. Our aim is to be open and transparent and to demonstrate accountability and strong ethics.Board performance and objectivesAs part of Simon Thompson's induction for his role as the new Chairman of Tullow, he undertook the Board evaluation in 2011. In summary, the Board is functioning well and all the Directors feel proud to be part of the Tullow team. In 2011, the Board set objectives in six key areas and the successful launch of the new Tullow Code of Business Conduct was particularly important. The Board evaluation showed that the Board is building from a strong base and there is a high degree of alignment on the principal challenges facing Tullow and the areas of focus for 2012. These include enhanced political and risk analysis, industry benchmarking and information on the competitive landscape. In order to meet the needs of Tullow's growth ambitions, talent management, succession planning, portfolio management and medium-term cash flow forecasting also form part of the Board's 2012 objectives. Some 2011 objectives relating to training of Directors and Board administration have also been carried over into this year.New UK Corporate Governance CodeDuring the year, the Board reviewed the new UK Corporate Governance Code. The Chairman's introduction to corporate governance and the detailed corporate governance section in our 2011 Annual Report set out how the specific principles are applied and implemented in practice at Tullow. It is the Board's view that the Group has fully complied with the Code provisions during 2011. Visit: www.tullowoil.com/ara2011STRATEGIC IMPORTANCEGood governance and regulatory compliance make good business sense. They guide correct actions, protect value and maintain our good reputation. It is also vital to demonstrate that our decisions and actions have integrity and are based on sound process.HIGHLIGHTS FOR THE YEARNEWTullow Code of Business Conduct launched in 2011 together with an ongoing compliance and awareness programme.89Companies have participated in our first two industry partner forums on compliance and ethics, which were held in Bangladesh and Kenya in 2012.35%Of employees, approximately 500 people, have received dedicated compliance training to date, including those in key or higher risk posts.NEWMember of Transparency International's Corporate Supporters Forum and became a supporter of the Extractive Industries Transparency Initiative.DETAILED PERFORMANCE INFORMATIONGo to page 51 for further information on 2011/2012 performance and 2012/2013 objectives. For detailed information on our Board and governance go online to www.tullowoil.com/aboutus56Tullow Oil plc 2011/2012 Corporate Responsibility ReportGovernance