Strong local content operating modelOur local content operating model is focused on identifying opportunities for local content at the earliest possible stage in our activities. Local content is mandated as part of our procurement strategies and is a critical element of our contracts with international suppliers. We also seek to engage with in-country stakeholders to develop country-specific plans for local content development. This helps us to manage expectations of the opportunities that will become available, and to gain support and form collaborative relationships to deliver our plans. Local content country plans include the appraisal, development and registration of local suppliers and the identification of potential partners and enterprise initiatives. In particular, we look for early commencement projects that we can start with, as well as longer term capacity building projects. We also establish in-country local content teams to build our own capacity in this critical area. In line with Tullow's commitment to localisation and sustainability, we seek overtime to develop a completely national local content team. Where appropriate we gradually shift organisational responsibility for local content projects to national organisations and/or international-national partnerships. Transparency, governance and ethics in local contentTransparency about the way we award contracts and about how to win business with Tullow is very important to building an open and competitive market. We support this by working with governments, trade bodies and NGOs in the design of contract strategies. We also host supplier forums, seminars and training. In 2011, we launched an online supplier centre to provide open access to supplier registration, expressions of interest and key Tullow policies and standards. All suppliers are subject to Tullow's five supplier criteria, which also address the 10 principles of the UN Global Compact for sustainable supply chains. Local content initiatives are governed at three levels including Executive, senior management and a working group comprised of External Affairs, HR and Supply Chain. We recognise that our industry can only support economic development and industrialisation for a defined period of time. We are therefore sensitive to the need to work with governments to ensure that local content is maximised and economic diversification is prioritised for the future of a country, so that economic and social development can be sustained.Through a number of different initiatives, Tullow helps local businesses to grow and develop:Supplier centre onlineTullow has a dedicated supplier centre to provide all suppliers, but particularly local suppliers, with the opportunity to register their interest in becoming a Tullow supplier. Phase 2 of this initiative is being launched mid-year. Visit: www.tullowoil.com/supplier_centreForums and seminarsWe organise and host a number of supplier forums that bring together local and international businesses to discuss the challenges and opportunities in their sectors and to encourage partnerships and joint ventures. In 2011/2012 these include forums in Uganda, Ghana, Mauritania and Bangladesh on topics such as logistics, safety and compliance, for example. Training and skills transferClosing the Gap workshops identify local suppliers requiring training and development facilitated by the Local Content team. We are engaging with Ugandan Government ministries and departments and key stakeholders to establish a Train the Trainer Centre to develop apprenticeship schemes and to build capacity in nominated Uganda Vocational Colleges to deliver European competency based qualifications for selected trades.Enterprise CentresEconomic development is built on a diverse and sustainable supplier network. We are supporting this by opening Enterprise Centres that will enhance business capability, facilitate access to finance and strengthen local standards. LOCAL CONTENT INITIATIVESMore information PageLocal content in Ghana 28Local content in Uganda 37MEASURING OUR PERFORMANCE" Our entrepreneurial culture lends itself well to fostering local businesses and helping them to develop new enterprises which can become part of economic development in their country."Jim Walsh Group Local Content ManagerVisit: www.tullowoil.com/supplier_centre75www.tullowoil.com3

MAKING A POSITIVE CONTRIBUTIONTullow invests in social enterprise (SE) projects to manage our social footprint and contribute towards host country and community development.Tullow's community-level initiatives are designed to help address the socio-economic impacts of our operations and to contribute towards meeting community development aspirations, thereby facilitating positive business-community relations. At the national level, we are focusing on programmes that help build capacity for the oil and gas industry and other sectors that promote economic growth and support the development of local businesses to enter the oil and gas industry supply chain.We have also started to support initiatives that promote inward investment into Africa, and in 2011 held the first Ghana-Ireland Trade and Investment Forum, an event focused on business opportunities in Ghana for Irish companies in agriculture, food processing, construction and engineering. This initiative aimed to stimulate foreign direct investment into Ghana in sectors beyond our own.Enhanced processes and alignmentIn 2011, we established a working group that reviews and approves strategic national-level projects focused on education, supporting local content development and promoting economic diversification in host countries. It includes representatives from Supply Chain, HR, Finance, EHS, External Affairs and Investor Relations functions within Tullow to ensure that the initiatives supported align with the Group's business objectives.Going forward our SE programme will place considerable emphasis on sustainable, relevant and business-linked community development projects in our areas of operation. We are undertaking a detailed review of our main SE programmes conducted by external experts to document achievements, challenges and lessons learnt to date. We are also improving our Environmental and Social Impact Assessments (ESIAs) so that we have a better understanding of the socio-economic impacts of our operations. Both processes are designed to feed into future SE project planning so that our investments are much more aligned to managing social impacts and leveraging positive benefits associated with our business.STRATEGIC IMPORTANCESocial enterprise is an important tool that helps us to manage the socio-economic impacts of our activities and provide tangible benefits for local stakeholders, which in turn helps support delivery of our business plans.HIGHLIGHTS FOR THE YEAR$11.6 MILLIONDiscretionary SE investment increased 346% (2010: $2.6 million).24Masters Scholarships awarded in pilot phase of Tullow Group Scholarship Scheme to study oil and gas related degrees at UK universities. Scheme launched in full early 2012. STRONG PARTNERSHIPSFurther strong partnerships developed with third-party organisations such as the British Council, TTE Technical Training Group and Jhpiego, a US not-for-profit health organisation affiliated to Johns Hopkins University.DETAILED PERFORMANCE INFORMATIONPage 55 provides detailed information on our performance against key objectives and our aims for 2012/2013. More social enterprise case studies can be found online at www.tullowoil.com/casestudiesInterview with SE Projects Manager www.tullowoil.com/crr2011/seinterviewSocial enterprise76Tullow Oil plc 2011/2012 Corporate Responsibility Report