Suppliers are critical to our success as a business. We rely on suppliers to deliver key components of our operations, from building and managing our Floating Production Storage and Offloading (FPSO) facilities to providing the catering on our camps. Last year, the majority of our $2 billion capital expenditure was spent with suppliers.
The goods and services we buy fall into three categories:
- Specialist oil and gas, e.g. seismic and well services;
- Specialist, e.g. construction materials and international freight services;
- Non-specialist, e.g. hotels and fuel supplies.
Types of goods and services
We look to source the majority of non-specialist goods and services from local businesses in our countries of operation. Our contracting strategy requires our international suppliers to develop opportunities for local businesses as part of their contract agreement with us. We also work with local suppliers to build capability and meet the international standards required by the oil and gas industry.
Goods and services we source from local suppliers include:
- Transportation, supply and disposal services
- Health, safety and environmental services
- Information Technology and Communications
- General trades, plant hire and security
- Office supplies
Meeting international standards
Our goal is to achieve safe and sustainable operations, minimise our environmental and social impacts, and achieve the highest standards of health,security, human rights and safety.
To achieve this we ensure all our suppliers are operating to agreed standards prior to contract award and during the contract delivery.
Tullow operates to the highest standards of corporate governance and upholds our Code of Ethical Conduct across our operations. Our Code defines our commitment to: Corporate Responsibility; high EHS standards; treating employees, partners and communities fairly and with respect;and our zero tolerance of bribery and corruption.
We expect suppliers to be compliant with national and international legislation and to uphold strong business ethics. Prior to contract award we carry out a risk based due diligence assessment on suppliers and raise awareness of our Tullow Oil Code of Ethical Conduct.