TULLOW OIL PLC SRI ROADSHOW Sandy Stash, Vice President, Safety Sustainability & External Affairs James Arnold, Head of Investor Relations April 2015 SRI Road Show
Agenda Section Page Our sustainability approach 4 Material issues 7 Shared Prosperity 8 Organisation & Culture 12 Governance & Risk Management 16 Responsible Operations 19 Business Overview 25 SRI Road Show Slide 3
OUR APPROACH SRI Road Show
A responsible approach to managing our business Approach to Corporate Responsibility How we run our business comprised of key components to Corporate Responsibility Shared Prosperity Organisation & Culture Governance & Risk…
Integrated Risk and Governance Framework Risk Management BOARD OF DIRECTORS EXECUTIVE COMMITTEE REGIONAL & BUSINESS UNITS 12 Members Includes the Executive Directors and Five Executive Directors regional business and corporate…
Non-Technical risk map: Tullows material Issues Contract Immature Border Land access National sanctity regulatory disputes Major /FPIC/ Grievance Content Low -- Importance to Tullow Business --High frameworks accident/…
SHARED PROSPERITY SRI Road Show
Shared Prosperity Transparency 2014 is the third year we have reported payments to governments Payments to governments were lower in 2014 due to a reduction in payments in kind caused by lower production entitlements per barrel in…
Shared Prosperity Local participation 225 million - Tullow spend with local suppliers 2,240 local suppliers working directly for Tullow in Ghana, Kenya and Uganda 83% of staff are nationals in the African countries where we operate…
Shared Prosperity Social investment 10.6 million in discretionary investments Tullow Group Scholarship Scheme remains flagship project - 340+ students sponsored from Ghana, Uganda, Kenya, Mauritania, Cte dIvoire, Gabon, Suriname and…
ORGANISATION & CULTURE SRI Road Show
Organisation & Culture Major simplification project 500 million of cost savings over 3 years Less activity leading to redeployment and reduced resourcing levels involving redundancies Review includes our organisational approach,…
Organisation & Culture Nationals in Country Succession planning Leadership Teams 90% of all senior roles have named succession 10 7 9 12 options 45% of 2014 job vacancies were filled internally 10 Diversity 7 5 In 2014, women…
Organisation & Culture Training and development 8 million invested in our employee training and development Long-term development assignments to talented employees to facilitate career growth and international experience SRI Road…
GOVERNANCE & RISK MANAGEMENT SRI Road Show
Governance & Risk Management Anti-bribery & corruption 100% transparency as assessed by Transparency International in reporting on our anti-corruption programme 94% of workforce attended Code of Business Conduct awareness sessions…
Governance & Risk Management Political risk Cote dIvoire and Ghana maritime boundary dispute Feb 2015, Cte dIvoire applied to ITLOS for provisional measures to order Ghana to suspend ongoing operations in the disputed area Full…
RESPONSIBLE OPERATIONS SRI Road Show
Responsible Operations Lost Time Injury Frequency (LTIF) Rates EHS score card In 2014, we fully achieved 13/16 indicators 0.9 0.85 0.38 0.70 0.81 0.58 0.42 0.43 0.48 0.45 which translates to a score of 41/48 0.8 Occupational…
Responsible Operations Emergency preparedness Risk-based exercises conducted, including a major subsea containment blowout scenario, testing our response capability at all levels in the organisation Revised Oil Spill Preparedness…
Responsible Operations Security and human rights Security plans align with Voluntary Principles on Security and Human Rights Progress on security and human rights management plans: - Input from the Government of Kenya, Institute for…
Responsible Operations Water use 98% of Group water usage is seawater used for reservoir injection in Ghana (2014: 9,872,189 m) Fresh and brackish water usage represents 2% of our total water usage Strategic water source for…
BUSINESS OVERVIEW SRI Road Show
Business reset for current market conditions Strong production and development business Reduced exploration budget focusing on low cost plays and long term options Reducing costs and dividend suspension provides increased…
Strong production and development business Strong production and development business robust to low oil prices Production: significant near-term production growth of high margin oil Operating costs: low opex cost per barrel with…
Low-cost high-value E&A investment options Caribbean-Guyanas Norway Atlantic Margin Plays Atlantic Margin Plays 1. Licence activity 1. Licence activity - Prospecting & - Johan Sverdrup charge farming down fairway (APA 2014) 2.…
Taking action to operate in a low oil price environment Allocating capital to high-margin cash generating West Africa assets Prioritising future production and development activities in West Africa; low break-even prices Significant…
2015 Capex guidance 2015 capex of 1.9bn Ghana: Jubilee & TEN developments - 1,300m 2015 200m 1,700m 1,900m Other Africa: maintaining mature production and near field drilling activities - 200m Uganda and Kenya: Pre-development…
Debt Capital Structure - Strong liquidity through TEN Debt maturity profile Key metrics m Commitment size Maturity m 31 Dec 2014 28 Feb 2015 RBL 3,700 Oct 2019 Cash and cash equivalents 319 407 Corporate Facility 1,000 Apr 2017 Debt…
Oil Hedging Hedge strategy Hedge strategy is approved by the Board and reviewed quarterly Hedges are executed rateably on a three year forward rolling basis Hedge by purchasing a mix of Dated Brent options (puts, collars, 3-way…
Group production significant growth potential West Africa oil production KENYA South Lokichar Basin 2014 actual: 65,300 bopd* Development studies underway Single basin has potential to FY 2015 guidance: 63-68,000 bopd produce up to…
World-class Jubilee field continues to perform strongly Strong 2014 production and cost performance Jubilee exceeded production guidance at 102,000 bopd High FPSO operating efficiency underpinned 2014 performance Low operating cost…
TEN development to deliver significant cash flow in 2016 Base case development 300 mmboe reserves being developed 80% oil 24 well development - 10 wells on-stream at start up Gross development capex of 4.9 billion Leased FPSO,…
Progressing East Africa regional development East Africa upstream developments Good progress on development studies & resource base - Uganda and South Lokichar gross oil resources total c.2.3 billion barrels - Kenya appraisal…
East Africa: Establishing a new Oil Province E&A campaign delivery parallel approach South Lokichar Basin drill-out, appraisal & testing Discovered over 600 mmbo Pmean gross resources Twiga-2: natural flow at 3,270 bopd with no…
Norway Atlantic Margin: cost-effective upside Tullow Oil JV Johan Sverdrup JV Prospects in Oil Fairway Giant Oil Field Barents Sea - Frontier Major oil finds at Wisting & Hanssen. Hassel & Bjaaland target cluster potential up…
Caribbean-Guyanas Atlantic Margin: shift to shelf Three major basins with proven oil systems Shelf edge plays lower cost to develop Spari (non-op) drilling Q3 2015 Seismic evaluation ongoing to high-grade prospects for future…
Outlook remains strong during period of low oil price High margin production Stable Jubilee performance, with further upside delivers significant cash flow TEN production due on-stream mid-2016 ramping up through year end Assets…
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