Notes for this page
Billion cubic feet
Barrels of oil equivalent
Barrels of oil equivalent per day
Barrels of oil per day
Caister Murdoch System
- CMS III
A group development of five satellite fields linked to CMS
Civil Society Organisation
China National Offshore Oil Corporation
Development Leadership Team
Delegation of Authority
Democratic Republic of Congo
Deferred Share Bonus Plan
Exploration and evaluation
Exploration and Appraisal
Exploration and Production
Earnings Before Interest, Tax, Depreciation and Amortisation
Environment, Health and Safety
Environmental Management System
Energy Resource Consultants
Executive Share Option Scheme
Front End Engineering and Design
Floating Production Storage and Offloading vessel
Financial Reporting Council
Financial Reporting Standard
Full Tensor Gravity Gradiometry
- FTSE 100
Equity index whose constituents are the 100 largest UK listed companies by market capitalisation
Fair Value Through Profit or Loss
Global Exploration Leadership Team
Ghana National Petroleum Corporation
Government of Uganda
Company and its subsidiary undertakings
International Accounting Standard
International Accounting Standards Board
International Financial Reporting Interpretations Committee
International Financial Reporting Standards
Information Management System
International Organization for Standardization
London Interbank Offered Rate
Lost Time Incident
LTI Frequency Rate measured in LTIs per million hours worked
Million barrels of oil
Million barrels of oil equivalent
Million standard cubic feet per day
Memorandum of Understanding
Mark To Market
Operational Readiness and Assurance
Reserves and/or resources estimates that have a 10 per cent probability of being met or exceeded
Reserves and/or resources estimates that have a 50 per cent probability of being met or exceeded
Production and Development
Pay As You Earn
Petroleum Revenue Tax
Production Sharing Contract
Performance Share Plan
Supplementary Corporation Tax
Share Incentive Plan
Senior Management Committee
Sale and Purchase Agreement
- sq km
Socially Responsible Investment
- UK GAAP
UK Generally Accepted Accounting Principles
Value Added Tax
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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
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*
Working interest production
* 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.
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.