Tullow Uganda, with its new partners Total and CNOOC, held dedicated sessions for stakeholders in key districts of the Albertine Basin. The aim was to provide accurate updates on the oil and gas sector in the region, to introduce the partners and to share plans on how new operatorship in Blocks 1, 2 and 3A will work. The meetings also generated stakeholder feedback on the oil and gas developments generally.Developing our approachIn 2011 we focused on building more robust internal processes and capacity for stakeholder engagement. The External Affairs function completed a full skills audit, including key competencies for effective stakeholder engagement, to drive resourcing and training across the global team. Professional training can be hard to come by in many of our countries of operation and we are identifying appropriate courses and placements to build capacity of External Affairs professionals in line with the changing needs of the business. We have established a set of Stakeholder Engagement Guidelines and tools for the Group to both govern and support stakeholder engagement and stakeholder issues management at all levels.Three regional external affairs managers have been recruited to new roles designed to support each Regional Business Unit team in London and individual Business Units in-country, ensuring that the right resources are in place for the successful execution of external stakeholder engagement programmes and social impact management strategies throughout our regions.Understanding our impacts and opportunitiesWe have commissioned socio-economic baseline studies in Uganda and Kenya to identify both our key impacts and opportunities for development, as well as an independent report aimed at providing an account of the past, current and likely future impact of Tullow's activities on Ghana's economy, society and environment. We are also putting in place more effective methods for identifying, assessing and managing social and political risk - a potential long-term performance risk for Tullow. This includes recruitment of a country risk analyst who will input to work to improve Board reporting on evolving risks.We have continued to run Introduction to Oil and Gas courses for external stakeholders in our countries of operation, taught by Robert Gordon University (RGU). The courses cover the basics of oil and gas exploration and production, some of the key decisions and risks taken by oil companies opening up new basins and challenges faced by national governments in developing a sustainable oil industry. Attendees are also given a presentation by Tullow on our activities in their country followed by a full and frank Q&A session.This year we repeated the courses in Ghana and Uganda and also ran a course in London for UK stakeholders including national government, international NGOs and overseas diplomats from our African countries of operation. We also ran our first French language course in French Guiana, delivered through the Institut français du pétrole. In 2012 we have run one course in Kenya and will hold a second course to be run by RGU, with a view to a local provider being able to take on future teaching requirements. We have also run an introductory course for government stakeholders in Ethiopia.INTRODUCTION TO OIL & GAS COURSESMore information PageGlobal Perceptions Survey 18Uganda community engagement 36Susan Busingye, EHS technical assistant, and Sidney Tindyebwa, Supply Chain planner, attending an Oil & Gas course in Kampala, Uganda.61www.tullowoil.comMEASURING OUR PERFORMANCE3"We are increasingly working in remote onshore areas with large indigenous communities. This has major implications for how we manage the social impacts of our activities and places clear strategic importance on the policies, standards and processes we are putting in place in this area."Rosalind KainyahVice President External Affairs & CSR

THINKING FORWARDWe want to build an EHS culture based on confident interventions, where people proactively think about the EHS risks they are responsible for. This will influence EHS behaviours and enable us to manage EHS in a much more responsive and tailored way. We delivered a strong EHS performance overall in 2011. We achieved an excellent safety performance. We had zero high potential environmental incidents, despite a significant number of higher risk activities across Tullow during the year. In total over 13 million hours were worked, representing an increase of 57% compared with 2010. This is a new scale of activity driven by exceptional exploration success and an exciting and growing portfolio of development and production assets in both Africa and South America. We have identified clear areas where improvements are required - driving safety, spills and underlying trends in environmental data - and these are being targeted in 2012.Enhancing our approach to EHSWe strengthened our EHS organisation in 2011 as part of a move to a new regional business structure. We created a new EHS Strategy Forum, comprising of both Executive Directors and senior management, to ensure we have a dynamic and innovative approach to EHS. We appointed regional EHS Managers who act as a strong link between operations and corporate EHS and are a working group for sharing best practice, common issues and experience. We are also focused on consistently delivering high-level performance and have continued to enhance our EHS resources and standards by investing a lot more rigour into all our EHS processes, meetings and reporting. This year we have rolled out a new EHS vision and an updated EHS policy. New Tullow Oil Environmental Standards (toes) have been launched as outlined in the case study opposite. We have also introduced Tullow Safety Rules, which are a set of safety requirements designed to manage high-risk activities. 2012 KPIsEach year the EHS team sets out a number of leading and lagging KPIs, which are approved by the Executive and Board. We select five leading and five lagging KPIs to prioritise these activities for the year, although across the business 30 or more EHS indicators are monitored. Leading indicators are qualitative and focus on key activities during the year that will deliver improved performance in targeted areas. Lagging indicators show how we have performed based on quantitative data and targets. STRATEGIC IMPORTANCEOur number one priority is to keep people safe. It is the cornerstone of our approach to operating responsibly and is reflected in our goals to minimise our environmental footprint and achieve top quartile industry performance.HIGHLIGHTS FOR THE YEAR0.38 LTIFRWe achieved the lowest LTIFR in our history, giving us our best ever safety performance.0.90 HIPOFRIn 2011, we achieved our stretch target of less than 1.0 high potential incidents per million hours worked.FIRSTEnvironment focused multi-stakeholder forum held in April 2012, where we brought together experts from civil society, the policy community and our business.93%Of respondents to Talkback believe that Tullow actively seeks to keep people safe and 90% believe that Tullow has a responsible attitude to the environment.DETAILED PERFORMANCE INFORMATIONWe manage our EHS performance through a combination of leading and lagging KPIs. Pages 52 and 53 provide detailed information on 2011 performance and the new 2012 EHS KPIs.Interview with Group EHS Manager www.tullowoil.com/crr2011/ehsinterview62Tullow Oil plc 2011/2012 Corporate Responsibility ReportEnvironment, Health & Safety