• Print
  • Share

    Close

    Share

    Share this page

    Share to…

  • Notes

    Close

    Notes for this page

    Notes

    Max characters: 1000

     
  • Downloads
  • Glossary

    Close

    Glossary

    A

    AGM

    Annual General Meeting

    AFS

    Available for sale

    B

    bll

    Barrel

    bcf

    Billion cubic feet

    boe

    Barrels of oil equivalent

    boepd

    Barrels of oil equivalent per day

    bopd

    Barrels of oil per day

    C

    CMS

    Caister Murdoch System

    CMS III

    A group development of five satellite fields linked to CMS

    CR

    Corporate Responsibility

    CSO

    Civil Society Organisation

    CNOOC

    China National Offshore Oil Corporation

    D

    DLT

    Development Leadership Team

    DoA

    Delegation of Authority

    DRC

    Democratic Republic of Congo

    DSBP

    Deferred Share Bonus Plan

    E

    EA

    Exploration Area

    E&E

    Exploration and evaluation

    E&A

    Exploration and Appraisal

    E&P

    Exploration and Production

    EBITDA

    Earnings Before Interest, Tax, Depreciation and Amortisation

    EHS

    Environment, Health and Safety

    EMS

    Environmental Management System

    ERC

    Energy Resource Consultants

    ESOS

    Executive Share Option Scheme

    F

    FEED

    Front End Engineering and Design

    FPSO

    Floating Production Storage and Offloading vessel

    FRC

    Financial Reporting Council

    FRS

    Financial Reporting Standard

    FTG

    Full Tensor Gravity Gradiometry

    FTSE 100

    Equity index whose constituents are the 100 largest UK listed companies by market capitalisation

    FVTPL

    Fair Value Through Profit or Loss

    G

    GELT

    Global Exploration Leadership Team

    GNPC

    Ghana National Petroleum Corporation

    GoU

    Government of Uganda

    Group

    Company and its subsidiary undertakings

    H

    H&S

    Health and Safety

    HIPO

    High Potential Incident

    HNBS

    Hewitt New Bridge Street

    HR

    Human Resources

    I

    IAS

    International Accounting Standard

    IASB

    International Accounting Standards Board

    IFRIC

    International Financial Reporting Interpretations Committee

    IFRS

    International Financial Reporting Standards

    IMS

    Information Management System

    ISO

    International Organization for Standardization

    K

    km

    kilometres

    KPI

    Key Performance Indicator

    L

    LIBOR

    London Interbank Offered Rate

    LTI

    Lost Time Incident

    LTIFR

    LTI Frequency Rate measured in LTIs per million hours worked

    M

    mmbbl

    Million barrels

    mmbo

    Million barrels of oil

    mmboe

    Million barrels of oil equivalent

    mmscfd

    Million standard cubic feet per day

    MoU

    Memorandum of Understanding

    MTM

    Mark To Market

    N

    NGO

    Non-Governmental Organisation

    O

    OR&A

    Operational Readiness and Assurance

    P

    p

    pence

    P10

    Reserves and/or resources estimates that have a 10 per cent probability of being met or exceeded

    P50

    Reserves and/or resources estimates that have a 50 per cent probability of being met or exceeded

    P&D

    Production and Development

    PAYE

    Pay As You Earn

    PRT

    Petroleum Revenue Tax

    PSC

    Production Sharing Contract

    PSP

    Performance Share Plan

    S

    SCT

    Supplementary Corporation Tax

    SIP

    Share Incentive Plan

    SMC

    Senior Management Committee

    SPA

    Sale and Purchase Agreement

    sq km

    Square kilometres

    SRI

    Socially Responsible Investment

    T

    toes

    Tullow Oil Environmental Standards

    TSR

    Total Shareholder Return

    U

    UK GAAP

    UK Generally Accepted Accounting Principles

    V

    VAT

    Value Added Tax

    W

    WAEP

    Weighted Average Exercise Price

    WCTP

    West Cape Three Points

    Search glossary

  • Open My Report

    Close

    My Report

    You do not have any pages or notes saved.

    You can create your own list of important report pages and accompanying notes here. You can then print your selected pages and notes, download them as a PDF, or email a list of the pages you've saved.

    To save a page, click the "Add+" button at the top of any report page.

    To add a note to a page, click on the 'Notes' tab and fill out the form. If you want to add another note to the page, simply add it to the same form.

    Your list of saved pages and notes will appear in this window.

 

Superior operating capability

"As part of this journey we are building a superior operating capability by employing the best people and adopting best industry practices."

Paul McDade, Chief Operating Officer

SOC Business Model

Our first ever deepwater project set a new industry benchmark for development.

Jubilee sets a new industry benchmark

Delivering First Oil from our first ever deepwater project on schedule and within 5% of the original budget is a great achievement in its own right. To do so in 40 months since the field was discovered made it an outstanding result by global industry standards. The critical elements to delivering success were high quality people working as part of a team; strong relationships with partners, contractors and governments; and a clear vision of what had to be delivered. These elements differentiate our approach and are fundamental to continued growth beyond Jubilee.

Building superior operating capability

Jubilee also represented a further step in our journey to becoming one of the most efficient and entrepreneurial operators globally. We are building a superior operating capability by employing the best people and adopting industry best practices. A challenge for us is to ensure that best practice is adopted in a manner that empowers our operating teams but does not burden them with unnecessary or ineffective processes and procedures. As a management team, we need to achieve strong corporate governance but in a way that does not dampen our entrepreneurial culture.

The Jubilee deepwater project is a great example of what can be achieved when these principles are applied. The approach on this project was to fully utilise the skills, ideas and leadership of all parties involved and to empower the teams delivering the project. As a learning organisation, we welcome everyone's input and involvement as this approach delivers world-class results.

Broad portfolio that continues to perform

The performance of our global assets in 2010 was very strong with production exceeding our budget forecasts. This was due to an excellent performance across our African assets and our UK assets significantly outperforming expectations. While the Jubilee field will considerably increase production in 2011, we also have a pipeline of development projects that will continue to build our production profile in the medium term. This pipeline is replenished by our exploration programmes and development opportunities across our portfolio:

  • In Ghana, we have further phases of Jubilee to deliver as well as our second deepwater project Enyenra-Tweneboa, which we hope to sanction in 2012;
  • In Uganda, we expect to accelerate delivery of this major onshore project with our potential new partners, Total and CNOOC;
  • In Namibia, we continue to make progress on the Kudu gas-to-power project;
  • In the UK and Gabon, we have multiple small projects which will continue to replace production and reserves in these mature areas; and
  • Elsewhere in West Africa we have numerous infill drilling and facility upgrade projects in hand.

On an ongoing basis we continue to review our investment in development projects to determine whether shareholder value is best served by development, dilution or divestment of these assets.

Developing best global standards

Our response to the Macondo deepwater blowout in the Gulf of Mexico has been to review all of our well engineering practices and procedures even though the technical challenges of the Macondo well far exceeded those of the wells being drilled by Tullow anywhere in the world. These reviews, as anticipated, indicated that we were following best practice although some minor improvements were identified. We also need to be sure that all the learnings from extensive industry reviews of this incident are incorporated and, to support this, we have been actively involved in industry workgroups on how to improve operational practice and emergency response. In Ghana, we had already introduced a safety case regime for the Jubilee FPSO based on the North Sea standard which post-Macondo is acknowledged as one of the most robust processes for managing risk on large projects. This is a strong example of our desire to apply best global and industry practices wherever we work and in setting these standards, we then work in partnership with local governments to mature local regulations as appropriate.

Ensuring safety is given a high priority

We continually look for ways to involve all our staff and improve awareness of their personal responsibility for safety and the people they work with. In 2010, we have continued to develop our in-house safety management training for all employees. To date 269 employees and contractors have attended our three-week modular EHS course.

We constantly monitor our performance and respond promptly if any issues are identified. In October 2010, the Tullow global workforce of approximately 1,200 people stopped working for a one hour safety stand-down following a rise in safety incidents.

This stand-down allowed us to reinforce a clear message to all staff about the importance of our safety performance and underline their support to active management of safety across Tullow. With a 40% increase in our total workforce this year, it is a challenge for us to ensure that everyone is empowered and aware of our safety standards. Our role is to continue training and developing our people to ensure they continuously make the right decisions when managing safety.

Total reserves and resources*

1,388 mmboe
Bar graph showing toal reserves and resources; 1,388mmboe; 2006-2010
  •  Africa
  •  ROW

Working interest production

58,100 boepd
Bar graph showing working interest production; 58,100boepd;  2006 - 2010
  •  Africa
  •  ROW

* Post completion of the farm-down transaction with CNOOC and Total in Uganda, total reserves and resources are expected to reduce to 869 mmboe.

Reorganising Tullow for further growth

In 2011, we implemented a reorganisation of the business to ensure that we can continue to manage growth. We are now organised into three business regions: Europe, North Africa & Asia, Equatorial Atlantic and South & East Africa. These Regional Business Units will be led by Regional Business Managers who will each have their own specific targets and dedicated teams to meet those targets. This will ensure that management and specialist functional skills remain close to business delivery.

Corporate responsibility

We are working to create and share prosperity so that countries and communities where we operate can participate in the benefits of our success.

Jubilee special feature

On 15 December 2010, celebrations were held to mark First Oil from the Jubilee field offshore Ghana.

What we do

We create value in two ways. Through successful exploration and strategic acquisitions we grow our resource base.