Advancing Shared Prosperity
Tullow believes the energy sector can drive businesses that create jobs, and can underpin access to better health, education, and water. Energy makes it possible for households and communities to improve their quality of life.
Delivering our purpose by partnering with our host nations to develop Africa’s natural energy resources in a low-cost and environmentally and socially responsible manner will add a critical boost to local economies, elevating the quality of life and overall prosperity for generations to come.
Tullow is committed to social investment in education and skills development to enhance
employability and enterprise development, including supporting agricultural livelihoods to increase local entrepreneurship. Tullow provides not only financial resources but the critical building blocks of long-term self sufficiency and growth. We call this Shared Prosperity, and it is a core pillar of our Sustainability framework.
Our Shared Prosperity initiatives directly support UN SDGs 4, Quality Education and 8, Decent Work and Economic Growth.
Stakeholder engagement: understanding the context, impacts and benefits, risks and opportunities associated with the impacts; and, establishing and maintaining effective interaction and credibility with stakeholders through local partnerships and relationships.
Education and skills development: supporting access to education and preparing people for jobs in the economy thereby enhancing employability.
Enterprise development including agricultural livelihoods: supporting local entrepreneurship and expanding economic growth through local economic activity.
Optimising local content: creating the conditions for local companies to participate in our supply chain.
Managing project impacts: mitigating environmental and social impacts associated with our business.
Our ability to deliver our Shared Prosperity ambitions rests on a deep understanding of the political, economic, social and environmental conditions that influence the quality of life for our stakeholders in our host countries.
We engage thoughtfully and consistently to understand how our operations contribute to broader national development goals and impact local communities. In certain cases, such engagement is also mandated by local governments. At Tullow, we have always invested in dedicated colleagues in our host countries who are charged with leading local stakeholder engagement as a critical strategic activity and enabler of our social license to operate and business success.
In Ghana, through the Petroleum Commission and Environmental Protection Agency, it is a legal requirement for oil and gas producers to maintain a programme of participatory consultations in the local communities affected by their operations. For Tullow, this means 115 communities around our Jubilee and TEN operations. We strive to maintain ongoing dialogue with these communities to build trustworthy relationships in which any and all concerns can be constructively discussed to find a solution. In 2021, our Ghana team met with key stakeholders including; the Ghana National Canoe Fishermen Council whose activities are impacted by offshore installations and operations; the Maritime and Fisheries Enforcement Unit; Ghana Navy, Ghana Maritime Authority; Marine Police and the Fisheries Commission of Ghana. Major topics discussed in our meetings included adherence to the safety and security zones around Jubilee and TEN fields, as we implemented our drilling programme.
The team also engaged over 5,000 project beneficiaries on various livelihood and impact mitigation initiatives and social investments. Tullow’s Community Liaison Officers also worked closely with more than 155 Chief Fishermen and the leadership of the Fishmongers Association to deepen our understanding of the needs and concerns of the fishing community in Ghana. A range of engagement channels including virtual meetings, phone conferences, community radio platforms and banners posted at strategic locations within the communities, expanding our reach to 2,000 canoe owners and 40,000 fisherfolks. Consequently we were able to provide updates on our activities and obtain input from stakeholders.
Our engagement at the governmental level included introductory meetings with newly appointed Local Government Authorities across the seven coastal districts of the Western Region.
Despite the ongoing COVID-19 pandemic restrictions, we maintained the pace of engagement with all primary local stakeholders and feel confident that their insights will help Tullow continue to conduct our business responsibly, respectfully and in consideration of local needs.
Our activities in 2021 continued to focus on maintaining positive relationships with the local communities and delivering on outstanding commitments including ongoing management of community water boreholes which supply over 219 million litres of water to local communities in and around the project area.
We engaged with the National Environmental Management Authority (NEMA) to reach an agreement on waste management and consolidation of waste at the licenced waste transfer site. This agreement provides for consolidation of waste that was generated during the exploration and appraisal phase, and was still being stored at ten sites, to be consolidated into licenced waste holding sites and managed responsibly. The agreement also included remediation of closed sites. Some drilling waste is classified as hazardous, so formalising NEMA-approved waste handling processes was a priority for our host communities.
In 2021, we held project disclosure and consultation meetings on the Midstream, Upstream and Water Pipeline Environmental and Social Impact Assessment (ESIA) for the potential development of the project. Engagements were held with representatives from the local communities in the project area, the Ministry of Petroleum and with the general public through various public meetings. The main topics addressed included:
- land acquisition and compensation for local communities for loss of land or assets
- local benefits from the project such as employment, capacity building and local enterprise
- environmental and social impacts associated with the project and respective mitigation measures.
Midstream and Upstream ESIA reports have been submitted to NEMA for approval and the Midstream ESIA has subsequently been approved.
The initiatives we advance in our host countries are designed to encourage more young
people to gain a Science Technology Engineering and Mathematics (STEM) education
and broaden opportunities for employment.
According to the African Development Bank¹, less than 25% of students in Africa opt to study STEM subjects – a fact which significantly limits the employability rates amongst young people and hinders the economic development potential of the continent. In 2021, Tullow advanced several continuing and new initiatives, including:
- Supporting Ghana’s free Senior High School programme
- Advancing STEM Education in Western Ghana
- Advancing women in science in Africa
- Collaborating with STEM Guyana
- Scholarships for marine professions in Guyana
- Supporting agricultural livelihoods and education in Côte d’Ivoire
- Advancing tech learning in Suriname for women and girls.
1 http://education.africapolicyreview.com/ education-youth-development/stem-education -and-african-development/
Enterprise development is fundamental to supporting the ability of populations in our host countries to maintain sustainable livelihoods. At Tullow, we have two core areas of focus: (1) to assist local enterprises to gain the skills and opportunities to develop and grow their income, and (2) to enhance their access to finance. These aims are aligned with our Shared Prosperity objectives and an essential element of our positive impact in our host countries.
We leverage our supply chain to benefit local businesses and increase their contribution towards regional and national economies.
We contribute to improving industry standards overall, through the strict technical, quality and service standards we ask Tullow suppliers to meet in order to participate in our business. Suppliers to Tullow can also expand their businesses beyond country borders. By working with and welcoming new local suppliers, we support their growth, economic contribution and contribute towards stronger and resilient local livelihoods. This initiative is an integral part of our Shared Prosperity strategy.
This year, as part of our business transition and reshaping of our operations, we engaged extensively with internal and external stakeholders to establish the needs and expectations of Tullow in optimising local content in Ghana, where we have our largest operations. We realigned our strategy with the principal goal of increasing contract awards and spend on indigenous Ghanaian companies and improving reporting and communication of local content achievements.
New local content strategy for Tullow Ghana
- Consistently increase Tullow’s spend with indigenous companies, either via direct contracts or sub-contracts with strategic suppliers
- Within strategic joint ventures, monitor and increase the percentage of scopes of work delivered by the indigenous partner
- Significantly increase alignment and cooperation with the Petroleum Commission’s local content programme
- Continue to develop the Ghanaian supplier community’s awareness of and ability to meet
Tullow’s requirements through an active communication and training programme
- Communicate Tullow’s local content successes to a wide variety of stakeholders
In April 2021, the Petroleum Commission (PC) partnered with Tullow Ghana (TGL) to launch the PC/TGL Business Academy Partnership to help to meet the training and development needs of local suppliers. During 2021, the Academy delivered five training workshops to over 700 local supplier participants and over 60 participants from financial institutions, insurance companies and consulting firms. The training content included business ethics, compliance, due diligence, environment, health and safety, insurance and industry best practice in procurement. Additionally, the workshops covered Tullow's procurement, invoicing and payment processes and provided participants with a deeper understanding of key procurement activities and supplier registration.
This partnership is the first time that Tullow has engaged in such a programme with the PC, in which Tullow provides our industry expertise as part of the PC’s curriculum. Senior leaders from Tullow Ghana have been personally engaged in the initiative and were well represented amongst the speakers and facilitators throughout the programme.
View recordings of the online workshops here: Local content | Tullow Oil plc (LSE: TLW)
To improve the capabilities of indigenous companies and enhance their readiness to
compete for Tullow’s business, we advanced two initiatives: (1) Access to Finance and (2) Finance training and mentoring.
(1) Access to Finance: In partnership with Invest in Africa, we launched a new programme to run over an eight-month period. The programme provides business and financial advisory support to suppliers adversely impacted by the COVID-19 pandemic. In the first stage, 150 local suppliers participated in training on funding sources and loan terms and management. In the second stage, continuing into 2022, approximately 30 suppliers will receive customised business and financial advice to help them to improve their liquidity and enhance their financial resilience.
(2) Finance training and mentoring: Tullow Ghana engaged with Accenture in Ghana in an agreement to jointly finance training and mentoring programmes for 200 local suppliers in Ghana’s upstream oil and gas sector. 100 indigenous suppliers will receive 50 hours of access to the Accenture Supply Chain Academy’s i-Cloud learning platform over a period of one year. Available training topics include finance, supply chain, digitization, cyber security, analytics and several others. In addition, Accenture will lead a tailored mentorship and coaching programme and provide business support to an additional 100 suppliers.
In November 2021, Tullow Ghana took delivery of the Flat Confidence vessel, the first Ghanaian-owned, Ghanaian-flagged and Ghanaian-crewed marine vessel to support offshore activities in the oil and gas industry in Ghana. The Flat Confidence was acquired by Flat C Marine Offshore Limited following a long-term contract awarded by Tullow Ghana that enabled the company to raise finances to procure the vessel. The 71-meter long and 19-meter-wide vessel, manned by a crew of 15, is designed to support Tullow Ghana’s two Floating Production Storage Offloading (FPSO) units, Kwame Nkrumah and John Evans Atta Mills, and is now active in the Jubilee and TEN fields.
The delivery of the Flat Confidence was the culmination of two years’ work with all the relevant partners, made all the more challenging by COVID-19 restrictions which caused delays that led to financing issues for our supplier. Following Tullow’s intervention, financing was received, and we continue to work in close collaboration with the supplier to provide the necessary support to give the Flat Confidence the best chance of success. The completion of the Flat Confidence vessel reflects Tullow’s commitment to investing in capability growth to international standards in the Ghanaian marine sector. In late 2021, Tullow Ghana awarded a second contract to another Ghanaian supplier to deliver a similar vessel in the coming 12–18 months.