A Message from the CEO

Throughout Tullow’s 21-year existence, we have always maintained a long-term perspective on our operations and our responsibilities. We seek to establish partnerships with governments, other oil and gas companies, shareholders and the communities where we work. We rely heavily on the dedication, skills and professionalism of our employees to ensure that our reputation, or their safety, is not compromised by the actions of ourselves or others.

The Group now employs over 250 people spread across 22 countries and during 2006 worked 6.1 million hours. Our growth has resulted in higher levels of day-to-day activity, a more widespread portfolio of operated and non-operated licence interests and substantial investment in our assets, our systems and our staff. I am happy to report that 2006 was another year of successful progress in the ongoing development of our Environment, Health and Safety (EHS) practises and Corporate Social Responsibility (CSR), which we manage through our community and social programmes.

In recent years, the oil and gas industry has come under increasing scrutiny in respect of its environmental performance and safety culture. Our performance is not only measured by hard statistics like a lower Lost Time Incident Frequency Rate (LTIFR), better water management or carbon emissions, but also by the endorsement of agencies such as Royal Society for the Prevention of Accidents (RoSPA) in the UK and the achievement of International Standards Organisation (ISO) 14001 certification for our corporate environmental management system. We have clear management standards and policies for CSR and EHS and these are implemented and communicated across the Group. On the ground, Tullow’s flat structure and open culture ensures that any issues are disclosed and employees feel comfortable in offering suggestions. We actively support continuous improvement in our performance in these areas through strong leadership and ongoing training at all levels in the business. The value of our social programmes is demonstrated by the positive community relations Tullow has established in each of its core areas and the tangible improvements in living standards, health and education that result from our programmes.

For example, at the 2005 Ernst & Young Entrepreneur Awards in Ireland, John O’Shea, who founded GOAL, challenged the awardwinners and audience to visit developing countries and see if they could make a difference by focusing their skills on helping communities to help themselves. He emphasised the need to develop new commercial initiatives in addition to health and educational support projects. Tullow undertook this challenge and chose the Kaiso-Tonya area in Uganda on the shore of Lake Albert, where we have a 100% operating interest in Block 2 in the Lake Albert Rift Basin. Full details of this project are in our 2006 CSR report on pages 4 and 5 and throughout the CSR section of the website.

Through our CSR Committee, which includes both senior executives and non-executive Directors of the Group, we ensure that our community and social funding, which in 2007 will be US$2.5 million, is allocated to countries and projects where our contribution can make a real difference.

At Tullow, we are committed to comprehensive disclosure and openness in everything we do. This is our second annual CSR Report and we have taken on board much of the valuable feedback we received last year. We apply and expect the highest standards every day in our work, and our performance is closely monitored by Tullow’s Board and has a direct influence on appraisal and reward systems throughout the Group.

Ultimately, as Chief Executive, I am responsible for ensuring that Tullow is seen as a responsible and safe operator, a partner of choice and a good neighbour wherever we work. I am proud of Tullow and the work we do in the countries where we have operations and hope this website will help you to understand why.

Aidan Heavey
Chief Executive Officer
Nominated Director with CSR and EHS Responsibility