34Tullow Oil plc 2011/2012 Corporate Responsibility ReportMADAGASCARIn Madagascar, Tullow has had an exploration interest in the onshore Mandabe licence since 2005. Since then, Tullow has added the Berenty licence and together these two exploration licences cover 20,100 sq km. In 2011, the Group undertook over 450 km of 2D seismic data acquisition, which is in the final stages of processing. Based on encouraging data, further seismic is planned and the intention is to use this data to select exploration drilling locations. A farm-out process is also planned to reduce Tullow's equity participation to 50%.NAMIBIA In Namibia, Tullow is working towards the development of the Kudu gas field located 170 km offshore the south-west coast. Following the award of a new 25 year Production Licence in November 2011, design concepts for both offshore development and the Power Station have been agreed and Front End Engineering Design (FEED) tenders are ready to be issued upon finalisation of the commercial agreements. An investment decision is targeted for late 2012, which could mean the delivery of gas and power generation in 2016.TANZANIA In November 2011, Tullow farmed down half its 50% interest in the Lindi and Mtwara Blocks in Tanzania to its partners. Subsequently, Tullow has withdrawn from this licence.South & East Africa is an exciting region for Tullow. The successful farm-down of two-thirds of our acreage in Uganda positions us well to commence development and construction of one of the largest capital investment programmes in the region in the next five to seven years.The discovery of oil in the Kenya Rift Basin has opened up the opportunity for a multi-well campaign in Kenya and Ethiopia, across vast acreage.Our corporate responsibility activities in this region are developing quickly, particularly as we try to manage our social impacts in remote onshore areas with large and diverse communities.In focus countries in this section are Ethiopia, Kenya and Uganda.SIXCountries297 Employees18Licences151,677 SQ KMLicence acreage964 MMBOEReserves & resources$426 MILLION2012 forecast capital expenditure 2011 drilling activity Offshore OnshoreE ExplorationD Development Key officeSouth & East Africa BUILDING TRUST We have licences in six countries in South & East Africa. Our activities in the region centre on a major development project in Uganda and high-impact exploration in Kenya and Ethiopia. In March 2012, oil was discovered in the Kenya Rift Basin.KeyKey producing assetCompliance training and forums Community Liaison team in-countryEHS data reportedTullow employees (2011)Local content expenditure reported Tullow Group Scholarship SchemeETHIOPIA Tullow has a 50% operated interest in the South Omo Block in Ethiopia. A 1,000 km 2D seismic programme in this block was completed in 2012, and we plan to drill a well in the South Omo Block in the fourth quarter of 2012.KENYA Tullow has a 50% operated interest in seven onshore licences in the Kenya & Ethiopia Rift Basins covering in excess of 100,000 sq km. In 2012, the Group announced that oil had been discovered in the Kenya Rift Basin. The Ngamia structure is the first prospect to be drilled as part of a multi-well drilling campaign in Kenya, with three wells planned in 2012. The basin where the discovery has been made is one of seven basins mapped in Tullow's acreage and is similar in size to the Lake Albert Rift Basin in Uganda.For more detailed operations and major projects information www.tullowoil.com/ourbusinessThe latest operations news is available @ www.tullowoil.com/news
35www.tullowoil.comNamibia DSouth AfricaTanzaniaEEthiopiaEnyaEMadagascar EUganda EDKampalaCape TownnUGANDA The Group has had interests in Uganda since 2004, where over 1.1 billion barrels of oil have been discovered to date in the Lake Albert Rift Basin. In February 2012, Tullow successfully completed the farm-down of two-thirds of its Ugandan acreage to CNOOC and Total for $2.9 billion. The Group, together with its partners, is now preparing to embark upon the development of the country's oil industry. Development planning is progressing and major production from the Lake Albert Basin is expected to commence approximately 36 months after a final investment decision is taken. Concurrently, options are being considered that would allow for the sale of small volumes of crude from well testing as well as some potential small scale power projects. The partnership expects to submit options for development of the Lake Albert Basin to the Government later this year. These options are primarily premised on the development of a crude export pipeline. Capital investment in 2012 is expected to be $262 million.