Our approach to shared prosperity concentrates on three core areas: optimising local content and developing supplier capacity; building local skills and developing people; and making socio-economic investments that deliver shared infrastructure and support local communities. This is underpinned by stakeholder engagement to ensure that we are aligned with national and regional priorities and that we establish a two-way dialogue with our stakeholders. We also focus on building capacity through educating and training local employees and suppliers, and supporting local communities to make their own choices about development.
LOCAL CONTENT AND CAPACITY
We aim to create meaningful and enriching business opportunities in our countries of operation, improving livelihoods and community welfare by building the skills that will increase local business participation in the supply chain.
In Ghana, in 2018, Tullow’s overall supplier spend was 14 per cent more than in 2017 due to increased capital expenditure related to Jubilee Full Field Development. Absolute spend with local suppliers in Ghana is 29 per cent of the total spend. Absolute spend as a proportion of total spend has continued to increase from 26 per cent in 2017 and 16 per cent in 2016. Meanwhile, our spend with international suppliers fell from 19 per cent in 2017 to 14 per cent in 2018. This partly reflects our continued efforts to direct spending towards local firms.
In Kenya, in 2018, 37 per cent of Tullow’s overall supplier spend was with Kenyan businesses, up from 29 per cent in 2017, but with a lower absolute value due to reduced expenditure following the end of the drilling campaign in 2017 and the lull in activities ahead of the start of the Early Oil Pilot trucking activities.
As the Kenya project is in the development phase we have continued to focus on capacity building in local companies. A total of 300 contractor personnel have received training, including in defensive driving and transportation of dangerous goods by road as part of the Early Oil Pilot Scheme.
DEVELOPING LOCAL SKILLS
We support better education and skills development for our colleagues and communities, specifically in STEM to enhance employability. We also have programmes supporting women’s development in education and vocational training. One such example is the LVTC Scholarships, outlined in the case study below.
We invest in shared infrastructure and logistics such as water, energy or waste, by adapting and leveraging existing infrastructure plans and projects to benefit local communities.
One example in Turkana, Kenya, is that Tullow, in collaboration with the National and County Government, has supported the setting up of local Water Resource Users Associations (WRUAs) around the Amosing and Ngamia fields in Turkana. We have also supported capacity building of the WRUAs to effectively manage sustainable community water projects. Our support in providing water in Turkana has increased access to water for over 67,000 people which has helped reduce the risk of waterborne diseases and supported increased economic activity as less time is spent looking for water.