Focus on sustainability Tullow Oil plc Sustainability Report 2020 Contents

About this report 3 Tullow’s suite of Sustainability Reporting 4 About Tullow Oil 5 Message from our CEO 6 Our sustainability framework 7 Our governance framework 8 Aligning our goals 9 2020 Sustainability highlights 12 Safe operations 13 Occupational health and safety 14 Process safety 16 Shared prosperity 17 Stakeholder engagement 18 17 Optimising local content 19 Skills and enterprise development 20 Skills development and preparing Shared prosperity people for jobs 23 Environmental stewardship 24 Discover more 17 Climate resilience 25 Waste management 28 Energy efficiency 29 Equality and transparency 30 Governance, compliance & ethical conduct 31 Human Rights 32 2020 total socio-economic contribution 32 Our people 33 Localisation 37 13 Policies & Data 39 Safe operations

Discover more 30 13 Equality and transparency

Discover more 30 2 Tullow Oil plc Sustainability Report 2020 Front cover: Akosua Gyan Bandoh, TEN Operations Engineer for Tullow About this report

Tullow’s 2020 Sustainability Report Risk and Resilience report. complements our 2020 Annual Report Quantitative data in this report relates to disclosure and provides further details of the 2020 calendar year and covers our global our environmental and social performance operations unless otherwise stated. Tullow’s over the past year. This Sustainability Report Greenhouse Gas emissions data from its was prepared in accordance with the Global operated assets has been externally assured Reporting Initiative (GRI) Standards (2016) core and this year, we have also published Tullow option. GRI Standards represent the most Oil’s ‘GHG Emissions scope & calculation widely used sustainability reporting framework methodology’. You can find a link to the in the world today. GRI principles have assurance statement here. Our basis for informed our reporting approach: materiality reporting (all data collection methodologies) (the issues relevant to our most significant are noted in a separate document available impacts and which are of most importance for download here. We welcome your to stakeholders), stakeholder inclusiveness feedback and invite you to send comments (responding to stakeholder expectations and to: [email protected] interests), sustainability context (presenting our performance in the wider context of sustainability issues) and completeness (inclusion of all the information which reflects significant economic impacts to enable stakeholders to assess our performance). Our disclosure was also informed by the International Petroleum Industry Environmental Conservation Association (IPIECA) Oil and Gas Industry Guidance on Tullow supports the following Voluntary Sustainability Reporting and the standards and partnerships: Sustainable Accounting Standards Board. Tullow’s key findings in response to the recommendations of the Task Force on Climate-related Financial Disclosures are covered in the Annual Report and this Sustainability Report and additionally are covered in full in a separate report: Climate

3 Tullow Oil plc Sustainability Report 2020 Tullow’s suite of Sustainability Reporting

2020 Sustainability Report 2020 Annual Report Climate Risk & Code of Ethical Conduct 2020 Payments to Resilience Report 2020 Government Report

4 Tullow Oil plc Sustainability Report 2020 About Tullow Oil

Tullow is a well-established, recognised oil and gas explorer and producer

Our focus is on producing low cost oil and gas in a safe, efficient and environmentally and socially responsible way. Our key activities include generating material value for host countries, creating local business opportunities and building Jamaica Mauritania a compelling proposition for investors and Ghana Guyana a great place for employees to work. Côte d’Ivoire Uganda Our portfolio of over 50 licences spans Suriname Equatorial Guinea Kenya 11 countries. We are headquartered in Gabon London and our shares are listed on the Peru The Comoros London, Irish and Ghana Stock Exchanges.

Tullow’s portfolio evolved in 2020 with Namibia the farm down of our equity in Uganda and our exit from country, as well as the demobilisation of operations in Kenya. Argentina Therefore, although the ESG data published here includes both Uganda and Kenya, our disclosure on both countries is limited. Exiting countries

5 Tullow Oil plc Sustainability Report 2020 Message from our CEO

Despite the challenges of dealing with the pandemic and this disappointing performance, we achieved Refreshed purpose the significant reduction in staff numbers, Tullow worked zero recordable injuries at our Ghana offshore Towards the end of the year, I worked with TEN and Jubilee FPSOs and Zero recordable my colleagues on the Senior Leadership hard to prioritise the health and wellbeing of its staff, injuries in our Kenya facilities. Despite those Team to re-evaluate and refresh our purpose, maintain our social investment commitments to host achievements, our overall number of TRIs which has been defined as: ‘building a better communities and plan for an improved carbon emissions highlights the further progress we must make future through responsible oil and gas to ensure that safety is a priority for everyone, development.’ This purpose is based on the performance for our operated assets. everywhere across the Group. belief that oil and gas will continue to play an essential role in the global energy mix for With a COVID-19 emergency committee Net Zero the long-term, and that host governments established in February 2020, our people In 2020 we set out to define a decarbonisation around the world will continue to greatly rose to the challenge, swiftly adapting to plan and determine a timeframe for our Net value the capability, connectivity and capital working from home and maintaining Zero commitment.This work culminated in that companies like Tullow can provide. operational performance to meet our Tullow committing to become a Net Zero At Tullow's Capital Markets Day in commitments to host governments and our Company by 2030. Significant work has been November, we set out our 10-year plan investors, lending banks and bond holders. undertaken to review every option possible outlining our intent to invest billions of As the global pandemic spread, protecting for our producing assets, however, the single dollars, which will generate significant the health and safety of our people and the largest opportunity to decarbonise the revenues for our host countries, create communities in which we work in became business is the elimination of routine flaring. local business opportunities, and ensure an urgent priority. I am proud of the way in Over the next five years, this will be achieved our business is run in a responsible and which our teams worked collaboratively and by managing the business’ current low carbon way, whilst building a compelling resolutely to meet our production targets dependencies on the need for routine proposition for investors and a great place whilst managing the health of our staff and flaring, namely: debottle-necking of gas Dear Reader to work for employees. contractors. As the year progressed we had systems on Jubilee and TEN; ensuring the 2020 was a year when the resilience of to manage, as many businesses had to, a continued offtake of current volumes to our people and our business was tested in number of cases of the virus on our FPSOs the Government of Ghana; and securing a full. In addition to the operational challenges and in our offices, but were thankful that commercial agreement with the Government presented by the COVID-19 pandemic, and all our people and contractors could return of Ghana on future gas offtake volumes, the unprecedented volatility in the oil safely home to their families. which in turn is dependent on the growth of Rahul Dhir, Chief Executive Officer markets, Tullow also underwent significant gas demand in Ghana. These decarbonisation organisational restructuring to reduce our Safety Performance efforts will set Tullow on a path to reduce cost base and make us a more efficient Tullow had a disappointing 2020 safety emissions on a net equity basis by 40 per organisation. Notwithstanding these performance, where we recorded more cent relative to a 2020 baseline. Further challenges, the company remained steadfast Lost Time Injuries (LTIs) and Total Recordable identified emissions can reduce emissions to its sustainability commitments, honouring Injuries (TRIs) in 2020 than 2019. Although by a further 5 per cent. Carbon offsetting will our financial commitments to social investment this result is unacceptable, none of the also be required to achieve a carbon neutral partners and progressing our Net Zero strategy. events at our controlled activities were life or Net Zero status, and work is underway to changing. We remain committed to preventing determine the right carbon offset strategy the injury of all people associated with our for Tullow. operations all of the time. Notwithstanding

6 Tullow Oil plc Sustainability Report 2020 Our sustainability framework

Our approach to sustainability is driven by our purpose to build a better future by responsible oil and gas development. Sustainability is operationalised across the business through the implementation of our strategy, management standards, governance and audits.

Our approach also considers the expectations of our key stakeholder Safe Shared Environmental Equality and groups our banks and investors; our host Strategic operations prosperity stewardship transparency governments and communities; and our pillar employees as well as the material issues for the sector, reflected in the work of IPIECA, Key Safety & Wellness Local content and Climate resilience Good governance the Sustainability and Accounting Standards capacity Board (SASB) and the UN Sustainable themes Responsible production Protecting ecosystems Promoting equality Development Goals (SDG). Our sustainability Developing local skills framework, set out opposite, has four pillars Social investment which combine all these inputs and expectations. The only update to the Employee health Local content Climate change Compliance framework in 2020 was to consolidate Material & safety and capacity the focus on the SDGs which we can topics Biodiversity Anti-corruption meaningfully aim to contribute towards. Process safety Community Spills Human rights development Emergency response Waste Inclusion & Diversity Social investment Tax transparency SDG alignment

7 Tullow Oil plc Sustainability Report 2020 Governance Framework

Tullow delivers on its Sustainability plans through the following Governance Framework which sets out the Board and Senior Leadership Team oversight, the Policies and Standards that describe our commitments and the Principal Risks that we seek to mitigate and the KPIs which target our areas for improvement. For more information on our Board Governance, Principal Risks and Group Scorecard go to the Annual Report & Accounts and Climate Risk and Resilience Report. Safe operations Shared prosperity Environmental Equality and stewardship transparency

Board of Directors

Remuneration Nominations Safety & Sustainability Audit Committee Committee Committee Committee

Senior Leadership Team

Safe & Sustainable Operations Policy Climate Policy Code of Ethical Conduct

Non-technical Risk Standard Human Rights Policy

Principal Risks EHS or Security risk Stakeholder risk Climate change risk Organisation risk Conduct risk

Key Performance Indicators

Level 0 KPIs: Group Total Recordable Level 0 KPIs: Embed Sustainability Level 0 KPIs: Embed Sustainability Level 0 KPIs: Embed Sustainability Injury Rate, Group Tier 1 & 2 Loss of across the organisation across the organisation across the organisation Primary Containment Level 1 KPIs: Delivery 2021 Social Level 1 KPIs: Progress Net Zero Plan Level 1 KPIs: Make significant progress Level 1 KPIs: Tullow Ghana Recordable investment plan & develop long-term in embedding performance management Injuries, High Potential Incidents, Loss of shared prosperity strategy, implement and employee engagement Primary Containment 1 & 2, EHS assurance revised Local Content

Level 0 KPIs are tracked by the Board. Level 1 KPIs are tracked by the Senior Leadership Team.

8 Tullow Oil plc Sustainability Report 2020 Aligning our goals

Aligning and supporting the UN Sustainable Development Goals (SDGs) The areas in which we can make the most significant contribution through our work are the following SDGs.

Safe operations Shared prosperity Environmental stewardship Equality and transparency

Supporting health and Investing in safety Contributing to Upholding responsible Since 2015, Tullow Conducting risk Improving the wellness programmes and process safety vocational education business practices, has supplied at no assessments in line diversity of our in Kenya and Ghana, in our operating in Kenya and Ghana human rights and charge to Ghana 200 with the Task Force workforce and the and also advancing locations and through Field Ready localisation for African bcf of wet gas from on Climate-related inclusiveness of wellbeing programmes managing our initiatives, among nationals throughout the Jubilee field (the Financial Disclosures our culture while for our Tullow operations others. our business. “Jubilee Foundation (TCFD) guidelines and upholding high employees around transparently, Volume Gas”) to the taking action to reduce standards of the world. in dialogue with Ghana National Gas carbon emissions from transparent disclosure Discover more Discover more stakeholders, 21 23 Company, which has our operations. and ESG reporting. reporting on our fuelled approximately Discover more performance. 25 per cent of Ghana’s 14 Discover more Discover more domestic gas power 25 33 generation, providing Discover more 16 more than 6.5 million people with access to electricity over the last five years.

Discover more 29

9 Tullow Oil plc Sustainability Report 2020 Primary stakeholders of Tullow Oil Host communities Host government Local Suppliers We use a range of ways to engage with our primary stakeholders so that we understand their concerns and expectations. The next two pages sets out our stakeholder engagement overview in 2020:

Primary means of engagement Primary means of engagement Primary means of engagement Our local social performance teams adopted Our Senior Leadership Team supported Our head of Supply Chain and Local Content a digital stakeholder engagement plan due to by our local public affairs team engage with Manager moved Tullow’s usual physical Local COVID-19, which included phone calls, virtual governments at the local and national level, Content Forums to virtual events in 2020. meetings and radio. via direct meetings, roundtable discussions, Tullow’s contract holders engaged with Key expectations stakeholder surveys, advocacy work and suppliers through procurement tenders industry collaborations. In 2020 most of and business reviews. Providing project development these engagements were virtual. and operational updates. Key expectations Managing project related grievances. Key expectations Information regarding business opportunities Updates on business performance and issues, within Tullow’s supply chain and how to apply Providing updates on socio-economic and gain insights which inform the development for those, participation in capacity building investments and local content opportunities. of our interventions. The development of local initiatives to help local suppliers reach the Progress in 2020 content and capacity is of prime importance. international standards required by the oil Through our digital engagement channels, Progress in 2020 and gas sector. we reached about 300 coastal communities to Despite COVID-19 related travel restrictions, Progress in 2020 educate fishermen on offshore safety. Rahul Dhir had the opportunity to meet Two of the key engagements with suppliers Fishermen, fishmongers, canoe owners, virtually with many of our key stakeholders in 2020 included 185 indigenous suppliers chiefs and local government officials were across Kenya, Gabon, Cote d’Ivoire, Suriname taking part in virtual training on Tullow’s kept updated on all ongoing community and Equatorial Guinea. In October, Rahul was new procurement and contract management development initiatives in the Western Region. able to visit Ghana where he had the privilege system and 57 SMEs benefitting from See also the other sections in the Shared of meeting His Excellency The President of Tullow and Invest in Africa supplier virtual prosperity chapter, covering socio-economic Ghana, the Minister of Finance, the Minister workshop focusing on Business Recovery investment and local initiatives. for Energy and other senior officials. and Effective Tendering.

10 Tullow Oil plc Sustainability Report 2020 Colleagues Lending banks and investors Non-governmental organisations

Primary means of engagement Primary means of engagement Primary means of engagement The Senior Leadership Team communicated The CFO, Chief Petroleum Engineer and Business leaders and our sustainability team via detailed written and virtual townhall business leaders host technical reviews as members engage with NGOs via ad hoc virtual communications and initiated Coffee Sessions part of the 6-monthly redetermination of our and written communications. – small group discussions and sessions where Reserves Based Lend facility. The CFO also Key expectations any question could be posed to the Senior meets with bondholders regularly. The Board Proactive and transparent disclosure Leadership. and leadership team host virtual presentations regarding our stakeholder management and meetings and correspond with investors Key expectations processes, governance, and environmental in writing. Timely and transparent communications and social impact in our communities of about the business, and to understand what Key expectations operation. organisational changes are being implemented Understanding of the company’s new 10-year Progress in 2020 and how they would affect staff. Additionally, plan and refinancing plans. Reliable financial Continuous engagement with Oxfam the opportunity to advance professionally for and production forecasts, strong governance on stakeholder engagement, FPIC and African nationals in their country. and ethical conduct. transparency in Kenya and Ghana. Progress in 2020 Progress in 2020 Engagement and cooperation with the office As well as regular, open communications about Presentation of the company’s new 10-year of the Compliance Advisor Ombudsman, organisational changes, Tullow relaunched its plan at the Capital Markets Day. Completion the independent accountability mechanism purpose, strategy, values and Employee Value of the January and September RBL for the International Finance Corporation Proposition to articulate the benefits of working redetermination. (IFC), following complaints made related for Tullow and how individuals could contribute to exploration activities in Kenya Block 12A. to the company’s goals.

11 Tullow Oil plc Sustainability Report 2020 2020 Sustainability highlights

Safe operations Shared prosperity Environmental Equality and stewardship transparency - Zero recordable injuries - $1.9bn spent with local on Jubilee & TEN suppliers over the last - 2030 timeframe for Tullow’s - Total socio-economic - Zero recordable injuries seven years Net Zero ambition set contribution of $542 million in Kenya facilities - $3.2m financing for local - Established commitment - New I&D statement written, - Zero Tier 1 process businesses through Invest to eliminate routine flaring highlighting Tullow’s safety incidents in Africa by 2025 renewed commitment - New cumulative risk model - $162 million invested with - Decarbonisation options - 100 per cent of employees rolled out local suppliers in 2020 to reduce emissions* by completed Code of Ethical - Construction of dormitory 40-45 per cent identified Conduct e-learning and - Over 900 instances certification process of participation across accommodation at three - Increased transparency of 14 virtual wellness events secondary schools Scope 3 emissions through - 46 per cent of finance across the UK and Ghana - 320 pupils in four reporting Non-operated managers are female, kindergarten schools emissions beating our 2020 target of instructed using the active - Increased understanding 40 per cent play-based pedagogy of composition of emissions - Launched new Employee helping them acquire 21st from vented gas reduced Value Proposition century skills methane emissions by 98.8 per cent - Power savings of 35-40 per cent generated by solar panels on Takoradi office roof

*on a Net Equity basis 12 Tullow Oil plc Sustainability Report 2020 Safe operations Safe Operations is a core pillar of our sustainability framework and provides a commitment to safe working, safe processes and effective emergency response.

“Protecting the safety of our employees, suppliers, contractors and collaborators, and the communities within which we operate, is of the utmost importance. Leadership and accountability are vital to a strong safety culture and while we have focused hard to create this in 2020, we have more work to do in order to achieve a better safety performance which Tullow’s leadership is committed to.”

Wissam Al-Monthiry, Managing Director, Tullow Ghana

13 Tullow Oil plc Sustainability Report 2020 Occupational health and safety

Tullow is committed to the highest standards of health and safety and we strive every day to maintain a positive safety culture across our business. We have a culture of working hand in hand with our contractors as one team, working to keep everyone safe and healthy. We adhere to all laws and regulations governing safe working and, in many cases, our internal standards go above the requirements of the law.

Assuring occupational health We continue to monitor key health risks related to our operations and take preventive action where possible. A known risk, for example, is malaria and we recorded no COVID-19 and Tullow Ghana Wellness Programme cases among staff and contractors that Getting critical rotational staff from abroad into our main In 2020, Tullow ran a wellness programme to encourage and have no immunity to Malaria in 2020. country of operation, Ghana, became especially complex support employees to prioritise their physical and mental between March and September, after Ghana imposed border wellbeing, against a backdrop of increased virtual working and Managing Tullow’s response to the COVID-19 restrictions resulting in the suspension of scheduled flights. significant organisational change. A programme of activities pandemic dominated much of the year. Tullow chartered 15 flights in that period and the company is was supported by expert speakers and instructors including: Thorough risk assessments and plans were grateful to the Government of Ghana for allowing these flights CardioPulmonary Resuscitation (CPR) training, wellbeing put in place across our operations, both on to operate. All team members were quarantined before going and nutrition talks, meditation, a walking for fitness talk and the FPSOs and in the office to protect the offshore, making for some lengthy periods away from home. challenge, online workouts, yoga, presentation on the ‘myths’ health of our staff and contractors, whilst This has placed a strain on the teams and measures were of weight training and mindfulness drawing. Finally, there maintaining safe COVID-19-free production identified to help improve the conditions of quarantine, including was a Cooking challenge, where employees cooked a favourite operations and work environments. better exercise arrangements and faster testing processes. dish representing their culture, which created a sense of We have evolved our working ways to minimise the health and togetherness and an appreciation of each other’s cultures. well-being impact on all personnel and to ensure that our In addition, staff were given a Tullow Wellness Time Out overall safety performance is not impacted. Despite all of the afternoon and a Tullow Appreciation Day, time off work in measures implemented some of our team did test positive for addition to their statutory holiday. COVID-19, including 84 at our offshore facilities. Fortunately, the number of COVID-19 cases were contained without escalation and all those impacted have fully recovered.

14 Tullow Oil plc Sustainability Report 2020 Tullow’s safety performance in 2020 for lost In 2020 we have spent time analysing similar time injury rate (LTIR) and Total recordable High potential incidents (HiPos) are or repeated incidents that have occurred injury rate (TRIR) indicate that we injured defined as any incident or near miss over the years at our Ghana operations. more people in our operations compared to that could, in other circumstances, These reviews have informed where our 2019. Fortunately, none of the events were have realistically resulted in one or assurance activities are to be focused and life changing, but never-the-less, we strive more fatalities. We focus on learning are leading to improvements to our incident to eliminate injuring people associated with from these events to prevent actual investigation processes. Part of these our operations. significant incidents from occurring. improvements included the company wide implementation of a new incident reporting, Notable occupational safety achievements Despite these positive aspects of our safety investigation and action tracking software tool. in 2020 performance, during 2020, we experienced The highlight of 2020 was Tullow Ghana’s - Zero total recordable injuries at our Ghana a similar number of HiPos compared to IOGP lifesaving rule awareness raising offshore TEN and Jubilee floating 2019. Although we work to avoid HiPos, campaign. It spanned a three month production storage and offloading facilities transparent reporting of them is vitally period, involved senior leadership and all “Tullow’s 2020 IOGP lifesaving rule (FPSOs) important and actively supported at Tullow, contractors involved in our operations, awareness campaign was the most so that we can continually learn and make - Zero total recordable injuries in our promoting each rule and involved inspiring and engaging I’ve ever improvements. Following a number of HiPo Kenya facilities presentations, experience sharing, participated in and I am confident events associated with our Tullow Ghana quizzes and more. operations, the Tullow Ghana leadership will translate to a better safety held a series of safety stand-downs across performance in 2021.” all parts of the business. The discussions were rich, the passion to improve safety Rowland Wright, Environment, Health, performance evident and a clear Safety and Asset Protection Manager, improvement plan developed. Tullow Ghana Sadly, we recorded a third-party fatality in Ghana, when one of our contracted trucks was involved in a road traffic accident. We continuously work with our road freight contractors to ensure that all appropriate measures are implemented to reduce such events.

15 Tullow Oil plc Sustainability Report 2020 Process safety

Process safety relates to the prevention of In 2020 we have developed a new cumulative Asset protection and emergency response major accident hazards, such as explosions, risk model (CRM) which is being run in A Tier 1 PSE is a LOPC with the greatest We operate in an industry with significant consequence. This involves an unplanned fires, and toxic releases associated with the parallel with existing processes. The CRM potential threats to life and the environment, or uncontrolled release of any material, use of chemicals and petroleum products. has a significant number of inputs, including including non-toxic and non-flammable and we continue to be able to rapidly adapt Tullow addresses process safety through maintenance status, cases to operates materials, that results in serious injury and respond to unforeseen events in order to policies, standards and risk management (deviations where performance standards or fatality, community evacuation, fire or maintain business continuity and minimise activities covering all our operations from cannot be archived), safety critical training explosion causing significant financial negative impacts on people, the environment, planning to decommissioning. completion, defined life repairs, inspection impact etc. our physical and intellectual assets, and anomalies, LOPCs. our reputation. We do this through asset During 2020, operations in Ghana continued A Tier 2 PSE is an LOPC with lesser consequence. This involves an unplanned protection policies, standards and plans to close identified gaps against the Tullow There have also been some significant or uncontrolled release of any material incorporating corporate security, business process safety management standard. changes to our Jubilee operations, including that results in a recordable injury, fire or continuity, and crisis and emergency Building on the findings of previous audits the finalising of the permanent spread explosion causing lower financial impact management (CEM), to maintain and self-assessments, the Process Safety / mooring and commissioning of the oil etc. preparedness to respond to any emergency. Asset Integrity Improvement Plan was offloading system. These have resulted in A full definition of Tier 1 and 2 PSE can be implemented in 2020. Significant significant risk changes and therefore the found online at the IOGP website. We regularly train our colleagues and improvements were made around the formal safety assessments and safety case contractors using credible emergency management of safety and environmental have been updated. Workforce engagement scenarios in CEM preparedness exercises critical elements (SECEs), including a during Safety Case updates is vital and has contain and minimise damage should across the business. In 2020 our focus has rebuild of the computer maintenance been an important part of the process. uncontrolled releases of any material occur. been on COVID-19 response and oil spill management system (CMMS). response preparedness. IOGP Process Safety Fundamentals Process safety events Process safety performance in 2020. (PSE) 2018 2019 2020 As active members of the International Overall, our process safety performance Association of Oil and Gas Producers (IOGP), in 2020 improved with zero Tier 1 process Tier 1 0 1 0 we were very excited when the process safety events (PSE) related to Loss of Tier 2 2 3 4 safety fundamentals (PSF) were formally Primary Containment (LOPC) releases. Total 2 4 4 issued in November 2020. These aim to However, we experienced four Tier 2 process influence the behaviours of the front line safety LOPCs, three on the Jubilee FPSO and workforce so they follow safe systems of one of the TEN FPSO. These events were Managing spills and releases work and good practices and recognise and controlled and mitigated by the on-board We take every precaution to minimise the report hazards and to reduce the risk of safety systems and resulted in no harm risk of spills at our facilities or in transit process safety events. We are adopting the or injury to any individual, and no and operate in accordance with the highest IOGP process safety fundamentals and are environmental damage. process safety standards. We maintain oil spill planning to formally launch them with a response plans and on-site spill response significant campaign in Q2 2021. capabilities, enabling us to act quickly to

16 Tullow Oil plc Sustainability Report 2020 Shared prosperity

Shared prosperity remains central to our to virtual education and supported approach to sustainability. In 2020 Tullow entrepreneurs in building their resilience updated its purpose and business strategy during the pandemic. This has been alongside with the aim of building a better future donations of PPE for the pandemic. through responsible oil and gas development Together with our JV Partners we continue and partnering with governments and, to work towards mitigating our social and communities to support economic development environmental impacts and are now focussed in the counties where we operate. on working with local communities to develop Optimise local The impact of the COVID-19 pandemic and and implement projects that not only help content and build our engagements with governments have led mitigate climate impacts but also support supplier capacity us to continue to prioritise local content and livelihoods. social investment into education and skills development to enhance employability, and enterprise development including Align with host agricultural livelihoods to increase local country’s development entrepreneurship. In 2020 we maintained goals and shareholder our support to our partners and have helped expectations address some of the inequalities in access Focus socio-economic Build local skills investment and develop and enhance local people economies Manage project impacts

17 Tullow Oil plc Sustainability Report 2020 Stakeholder engagement

Shared prosperity delivery requires installation were conducted on community understanding the political, social, radio stations across coastal communities in environmental and economic context and Ghana. how our operations impact neighbouring These coast-to-coast engagements communities. Our local teams ensure that reached over 320 fishing communities we not only understand the context and across the shores of Ghana and were impacts but also the benefits that can arise successfully executed in collaboration from our activities. with agencies and organisations including 2020 has meant that local engagement the Petroleum Commission of Ghana, the team members have had to adapt their Ghana Environmental Protection Agency, engagement approach with less face to face the Ghana Maritime Authority, the Fisheries Stakeholder engagement – Suriname “We take our environmental engagements and more reliance on other Commission, and the Ghana National Canoe We conducted an Environmental and Social responsibilities seriously and make sure digital channels. Fishermen Council. Impact Assessment (ESIA) ahead of plans to that we have consultations with a wide drill an exploration well in 2021 in Suriname. With the scale-back of operations in Kenya range of stakeholders and communities Community and county government In 2020, we held a public consultation to and our exit from Uganda our local in Suriname during our ESIA process. engagement – Kenya present the findings of the Draft ESIA engagement teams have ensured that our We have open door presentations and There were minimal community, county Report, and answer any questions raised scale-back or exit has been professionally and national engagements in 2020 due during the course of the meeting. discussions with the general public and managed and local communities have been to COVID-19 restrictions and the reduction in diverse stakeholder groups to ensure engaged. Outstanding commitments made by Some of the questions raised and operations. Tullow supported the messaging they understand what we are doing, how the Company have been captured and work is addressed included waste management, and raising public awareness on COVID-19 we plan to do it and what safeguards we underway to ensure that these are closed. lessons learned from similar drilling through support provided to Turkana South are putting in place to prevent damage operations taking place in Guyana and how Emergency Response Committee. Community consultation – Ghana local content would be implemented during to the environment. The key to our The Social Performance team developed a The Early Oil Pilot Scheme ended in the exploration activities and afterwards if success is ensuring we operate in a safe digital stakeholder engagement plan as a June 2020, following the end of the two-year oil is found. The predicted social impacts manner and sustainable way that takes response to COVID-19 restrictions. The team contract period and achievement of set of non-routine events during the drilling everyone’s concerns into account and employed phone calls, radio jingles and objectives. Engagements in the field were operations and further details on the delivers real value for Suriname through adverts as part of community sensitisation around management of expectations and mitigation measures proposed to protect work, training and development on offshore operations and incursions. ensuring existing commitments made to marine mammals and sea turtles were also opportunities open to everyone” Communal engagements were done via local the community were fulfilled and a plan discussed. The engagement reinforced the radio stations across the four coastal in place to close them out. This included importance of not only mitigating impacts Richard Donnellan regions of Ghana. Engagements to ensure completion of the Lokori health centre that but also ensuring that we help create Country Representative, Suriname the fishermen’s sasfety around our offshore was subsequently used by Turkana county conditions where local suppliers can as a COVID-19 isolation centre. also participate in our supply chain.

18 Tullow Oil plc Sustainability Report 2020 Optimising local content

We continue to work to support long-term capacity and growth and expand the Orsam Oil & Gas participation of local suppliers in the our Since the industry’s inception in Ghana, Tullow has invested in capacity business and the local economy. The development to ensure Ghanaians can achieve the international standards following case study shows how this has required by the industry in order to win business. In 2010, Tullow awarded happened over the years, and this requires the fabrication of its well jumpers to Orsam Oil & Gas and the company a concerted partnering approach between continues to deliver services to Tullow today, providing over 80 well government and private sector to achieve jumpers for both Jubilee and TEN fields to date, and is now one of the success in optimising local content. leading industrial, energy and environmental service companies in Ghana. In 2020, Tullow’s spend with all categories Orsam has since grown its list of services as it identified new opportunities of suppliers in all areas of operations and now offers steel construction, piping works and installations onshore reduced by ~30 per cent due to a and offshore, mechanical and equipment erection, engineering curtailment in activities as a result of procurement and construction management, tank construction, electrical significantly lower oil prices. Ghana’s and instrumentation design, installation services and industrial cleaning. overall local supplier spend was ~50 per cent less in 2020 than in 2019 as key Currently Orsam employs ~50 highly skilled artisans to deliver the Tullow activities such as drilling were suspended, contract. To maintain its competitive edge, Orsam invests in staff training and other work programmes deferred or and it has so far spent over >$500,000 on equipping employees with cancelled. In Kenya, Tullow’s 2020 spend world-class training. Over the years, Orsam has been able to train with local suppliers was also ~ 50 per cent thousands of local staff in the areas of welding, fabrication, coating, project lower than in 2019, again as a result of a management, human resource management, health, safety and significant reduction in activity. Despite environment and quality assurance/control to name a few. such reductions in spend Tullow continued “There are many levels of logistics and coordination that go to support and champion local suppliers, with notable successes in the Ghana into making our service to Tullow a success. To avoid delays to logistics and marine sectors. schedules, we put in place contingency plans to mobilise back-up service in the shortest amount of time.” Mr. Kofi Nyame-Mensah Business Development Manager - Orsam Oil & Gas Ltd

19 Tullow Oil plc Sustainability Report 2020 Skills and enterprise development

Continued investment in education from kindergarten to vocational level and entrepreneurship

We support socio-economic investment initiatives focused on STEM education and in 2020 continued working with our partners to support education during the COVID-19 pandemic.

Continued investment in early childhood education with Sabre Trust - lessons from the existing school syllabus and curriculum, including science lessons COVID-19 disrupted the education of over The broader impact of our partnership supported by practical home experiments; 1million kindergarten children in Ghana. with Sabre Trust will continue in Ghana as We continued to support the construction Sabre Trust has signed an MoU with the - mentoring sessions where tertiary students of two new kindergarten schools. This project Ministry of Education, for the co-design of mentored students at secondary and impacts many stakeholders including: a National Kindergarten Blueprint which basic level on all three radio stations; has the potential of being scaled across - 320 pupils in four kindergarten schools - assignments given to students which the country. It is expected that, Sabre previously built by Tullow who have been were then submitted through direct Trust’s work in the area of improving the taught using the active play-based calling on air or through dedicated learning environment will be captured pedagogy to help them acquire 21st hotlines after the sessions;and in this piece of work. century skills i.e. communication, - inclusion of students – ardent listeners/ collaboration, curiosity, concentration Tullow STEM Radio Schools regular callers to be part of in-studio and confidence from an early age; educating during the pandemic classes and promote peer-to-peer learning. - 5 Ghana Education Service officers with Youth Bridge Foundation Acknowledgments on the local radio stations trained on active play-based pedagogy Tullow and Youth Bridge Foundation in Ghana of students, parents and some teachers on in two districts; and adapted the ongoing Educate to Innovate initiative following the closure of schools air with live mentions were also key in - 2 headteachers from two schools trained due to the COVID-19 pandemic, helping to getting the support and engagement of the on the active play-based approach to bridge the digital learning divide for rural parents who played a critical role in kindergarten instruction and are now students, and inspiring and sustaining facilitating home learning and allowing better placed to supervise teachers in interest through Tullow STEM Radio students to use their mobile phones. their various schools. School. The Radio Schools complemented With over 2500 beneficiaries (regular the Government’s efforts in ensuring that callers and listeners), the initiative has and learning continued during the pandemic. continues to impact various key Teaching and learning were done through stakeholders; Students, Parents and three community radio stations with wide Teachers - Ghana Education Service. coverage in the Western Region. Teachers Tullow STEM Radio School has provided from Ghana Education Services (GES) and students with uninterrupted learning when local community teachers were trained schools closed and youth have also gained on radio teaching. Tullow STEM radio opportunities for growth and development shows for junior and senior high school bridging the digital learning divide. students included:

20 Tullow Oil plc Sustainability Report 2020 Skills and enterprise development

Continued investment in education from kindergarten to vocational level and entrepreneurship

Supporting access to top tertiary level institutions with African Science Academy We have continued to partner with African Gifted Foundation to support the provision of world-class STEM education by the African Science Academy to brilliant, academically gifted young women from disadvantaged backgrounds from across Africa.

Supporting secondary education Senior High School We made good progress in delivering our commitment to the Government of Ghana’s free Senior High School programme. Construction of the first three sets of dormitories at Nsein, Sankor and Nsutaman schools are substantially complete.

21 Tullow Oil plc Sustainability Report 2020 Skills and enterprise development

Continued investment in education from kindergarten to vocational level and entrepreneurship

Youth Bridge Foundation Science, African Science Academy (ASA) STEM STEM scholarships: Kwame Nkrumah Technology, Engineering and centre of excellence University of Science and Technology and Mathematics (STEM) Clubs Supporting a world class centre of excellence in STEM University of Ghana Legon Improving performance of students in Science and for African Women. - STEM scholarships: Kwame Nkrumah University of Mathematics at Primary school – Basic Education - 10 African countries represented at ASA Science and Technology and University of Ghana Certificate Examination and West African Secondar Legon Certificate Examination. - 100 gifted women educated at ASA - 1st cohort in 2018/19 awarded 50 full and - 20,000 schoolchildren beneficiaries of ASA’s Teacher partial scholarships Maths Master Class across Ghana - An estimated125 students to benefit over the next 4 - £4.5million value of university scholarships unlocked years for ASA Students - 100 per cent of students had A* – C results in Ashesi University; Engineering Cambridge Mathematics and Physics (2020) scholarships & internships Educating ethical entrepreneurial African leaders.

Foundational skills literacy and numeracy with Sabre Trust Provision of 12 Kindergarten facilities, teaching resources and teacher training. - Safe learning environments for children. - Students more agile in class at primary level

22 Tullow Oil plc Sustainability Report 2020 Skills and Enterprise Development

Continued investment in education from kindergarten to vocational level and entrepreneurship

Invest in Africa (IIA) creating access to markets, skills and finance for Africa SMEs (Ghana and STEM Graduate Employability (Ghana) Enterprise development (Kenya) - Field Ready, Jubilee Technical Training College, Kenya) - 2017-2019 TechnoServe provided capacity University of Ghana and UMAT hosting training building to MSMEs in Turkana of STEM graduates. - 336 micro SMEs completed business skills training - 2019: 30 graduated trained and placed Enterprise development - 2020: 20 Graduates Invest in Africa - 100 employable Ghanaian STEM technicians 2020 was a critical year for our partnership with IIA. Our and operators by 2021 grant investments into Invest in Africa since 2012 ended at the end of 2020. Invest In Africa will transition from being grantee to a Tullow service provider in Ghana in 2021. 2020 was also a successful year for IIA as they pivoted their offering during the pandemic to provide disaster risk resilience training for SMEs.

IIA fast facts 2020 Competency Based Education Training Basic Employability Skills Training - 45,000 jobs supported. (Kenya) (Kenya) - $252M worth of tenders won by SMEs on the APP. - Tullow with KCB Foundation sponsored 385 students - 2018/2019 Tullow, GIZ, CAP-YEI 2 year program in technical crafts training – masonry, welding, on Work Readiness, Basic Employability and - 1,550 new suppliers joined the APP. plumbing, electrical. Functional Literacy. - $10M in funding made available to Ghanaian SMEs - Cohort 2019: Trained at Kenya Water Institute (KEWI), (cumulative) East Africa Welding Institute, Eastlands College of - 1,224 women and youth-led Businesses Technology and St. Kizito Vocational Training Institute. - 6,500 SMEs accessed the COVID-19 survival toolkit. - 2020/2021: Starter kit distribution and business development support for trained graduates.

23 Tullow Oil plc Sustainability Report 2020 Environmental stewardship

Tullow is committed to acting as a responsible steward of the environment and ensuring robust systems are in place for assessing and managing environmental risk.

We subscribe to the precautionary principle the countries in which we operate. As an oil established in the Rio Declaration on and gas company, our major impacts are Environment and Development in 1992 and the greenhouse gas (GHG) emissions we promote sustainable development through emit that contribute to global warming and our operations. Our Ghana operations are the direct impact in our areas of operations. certified to ISO 14001 Environmental We regularly disclose our actions and Management System, ensuring that the performance in these areas. Additionally, systems and processes which we apply to we aim to minimise our impacts relating to our key operating asset are consistently water and waste as well as any unplanned maintained. We aim to comply with all releases or spills to the environment. environmental laws and regulations in all

24 Tullow Oil plc Sustainability Report 2020 Climate resilience

view closer in line with that of the Sustainable Task Force on Climate- Development Scenario. All our current projects and assets have a positive economic value, including under the related Financial Sustainable Development Scenario. This demonstrates a Disclosures resilient portfolio that we expect will continue to provide Tullow is reporting for a second consecutive year in profitable barrels through to at least 2040. Farming down alignment with TCFD, reflecting the Company’s recognition our Uganda asset and reducing our exposure to frontier oil of the threat posed by climate change and the need to exploration assets has further strengthened our portfolio reduce global greenhouse gas (GHG) emissions. As stated since this analysis was last undertaken in 2019. in its Climate Policy, Tullow supports the goals of Article 2 Oil and gas continue to both underpin much of how our of the Paris Agreement, “holding the increase in the global world runs today and continue to bring significant wealth average temperature to well below 2°C and pursuing and social and economic development to oil exporting efforts to limit the temperature increase to 1.5°C above countries. At Tullow we believe that oil and gas will play pre-industrial levels”. We also recognise that meeting the an essential role in the global energy mix for the long- goals of Article 2 of the Paris Agreement requires global term, even if oil demand peaks in the coming decades. carbon emissions to peak as soon as possible and then While recognising the energy transition is underway and to decline to reach net zero in the next 30–50 years. that a number of companies have started their journey to This section discloses our asset-level climate change move away from hydrocarbons, at Tullow, we believe that scenario analysis, conducted to assess the resilience host governments around the world will continue to greatly of our portfolio against future climate change scenarios. value the capability, connectivity and capital that IOCs Tullow uses the two scenarios published by the provide. Therefore, our focus for the foreseeable future will International Energy Agency (IEA) – the Stated Policy be oil and gas. Tullow plans to invest billions of dollars over Scenario, which assumes the climate policies and targets the next 10 years, generating significant revenues for our announced by governments (prior to 2018) are enacted, host countries, creating local business opportunities, consistent with a temperature rise of at least 2.7°C and helping to reduce our carbon footprint and build a the Sustainable Development Scenario, in which the world compelling proposition for investors and a great place to succeeds in the internationally recognized goal of meeting work for employees. Nevertheless, the decarbonisation of the Paris agreement to limit global warming to below 2˚C. the global economy presents oil exploration and production companies with fundamental new challenges, which our Our current portfolio is resilient under both scenarios. TCFD disclosure addresses. The COVID-19 pandemic impacted the demand for oil and hence oil prices, forcing all oil companies to lower their For more information on our TCFD disclosures, go to our corporate price decks in 2020, bringing Tullow’s long-term Climate Risk & Resilience Report.

25 Tullow Oil plc Sustainability Report 2020 Carbon emissions performance In 2020, Tullow formed a Net Zero Taskforce to Insights from TCFD scenario analysis Tullow supports the goals of Article 2 of define an energy transition strategy for Tullow Tullow tests the resilience of its portfolio against two IEA scenarios: the Stated Policies the Paris Agreement, “holding the increase to achieve net zero emissions (scope 1 and Scenario and the Sustainable Development Scenario. These include both the projected oil in the global average temperature to well 2). The Net Zero Taskforce in conjunction and carbon price. Tullow’s uses the long-term oil price of $60/bbl real but also tests the below 2°C and pursuing efforts to limit the with an external expert consultant, evaluated robustness of our portfolio against $55/bbl nominal. The Sustainable Development temperature increase to 1.5°C above several options to decarbonize our Ghana Scenario (SDS) – aligned to the Paris goals - projects a modest decline in prices to $57/ pre-industrial levels” and formalised this operations. Full details on the approach and bbl real by 2025 and to $53/bbl real by 2040, hence the limited negative impact on the Net support in our Climate Policy published in methodology taken can be found in our Present Value in this scenario. While the majority of prospects in Tullow’s portfolio April 2020. We also recognise that meeting Sustainability Report. Given Tullow’s most remain commercially robust at $55/bbl, the further the presumed First Oil dates are into the goals of Article 2 of the Paris Agreement material source of Scope 1 emissions is the future, the more the NPV is impacted. In the Stated Policies scenario, Tullow’s requires global carbon emissions to peak flaring produced gas to sustain oil production, portfolio is positively impacted. Tullow intends to mature its scenario analysis in 2021 to as soon as possible and then to decline to the elimination of routine flaring is a key account for additional transition risks. reach net zero in the next 30–50 years. objective of the Net Zero plan and Ghana To underline this commitment, Tullow has business. Over the next five years, this will Sustainable commitment to achieving Net Zero by 2030 be achieved by managing the business’ Stated Policies Development NPV of portfolio* Scenario(SPS) 1 Scenario (SDS)2 (Scope 1 & 2), with an interim target to current dependency on the need for routine eliminate routine flaring by 2025. flaring, namely, debottle-necking of gas Ghana   systems on Jubilee and TEN and achieving Despite this long-term commitment, Tullow’s Non-op increased gas offtake from the Government   operational carbon emissions increased of Ghana. Investments are being made over Kenya   significantly in 2020. Tullow’s Scope 1 the next three years to increase the gas emissions in 2020 were 2.03 million tonnes Exploration   handling capacity on Jubilee and enable of CO e (2019: 1.26 million tonnes CO e) a ² ² process modifications on TEN. * Tullow uses the long term oil price of $60/bbl real but also tests our investments and Business Plan at 61 per cent increase on 2019 due to elevated $55/bbl nominal. levels of flaring, required for better reservoir Key to eliminating the need for routine flaring 1. SPS projected 2040 oil price is $85/bbl – real. Impact on NPV management and sustained production is maintaining the consistency of gas supply from 2. SDS projected 2040 oil price is $53/bbl – real.  +10 to 20% levels. For a full explanation and the history Jubilee and TEN fields and the corresponding  0 to -9% behind our elevated flaring levels, go to our offtake from the Government of Ghana . Climate Risk & Resilience report. As a result At the end of 2020, Tullow was exporting of increased flaring, emissions intensity ~135 mmscf/d to shore, consistent with the relative to production grew from 134 tonnes Government of Ghana offtake nomination.

of CO2 / thousand tonnes of hydrocarbon This will need to be maintained to utilise the

produced in 2019 to 220 tonnes of CO2 per gas being produced from the higher number thousand tonnes of hydrocarbon produced of producer wells as part of Tullow’s 10-year in 2020. The carbon intensity expressed as plan. For 2021, our target is achieve an

kg CO² e/boe is 17 kg CO² e/boe in 2019 and offtake level between 100-135 mmscf/d as 29 kg CO e/boe in 2020. an optimum level to support oil production. 26 Tullow Oil plc Sustainability Report 2020 ² There is strong alignment and a robust Total Gross operated CO₂e emissions commercial foundation between the JV and carbon intensity for Scope 1 & 2 Targeting Net Zero by 2030 (Scope 1 & 2) Thousand tonnes of CO Partners and the Government of Ghana 2,500 250 to achieve the targeted levels. Pathway to carbon neutrality of hydrocarbon produced 2,000 200 e Tullow and its JV partners are actively 2

1,500 150 2025

discussing a long-term firm gas supply 2 e per thousand tonnes and offtake agreement with the Government of Ghana which is anticipated to create 1,000 100 2030 material value to all parties involved and Thousand tonnes of CO 500 50 which underpins the projected outlook for the 10-year business plan. 0 0 2016 2017 2018 2019 2020 Scope 1 Co e Scope 2 Co e Carbon intensity These decarbonisation efforts will set Tullow 2 2 on a path to reduce emissions on a net equity basis by ~40 per cent by 2025 relative Jubilee gas to 2020 levels. Further identified emissions Carbon accounting de-bottlenecking

to eliminate Carbon reduction initiatives reductions initiatives can reduce emissions Tullow has begun reporting for the first 2020 emissions baseline routine flaring NPV+ projects by an additional 5 per cent. time emissions from our Non-operated TEN process portfolio across our assets in Gabon, modifications To offset its residual hard to abate carbon to eliminate Nature based Equatorial Guinea and Cote d’Ivoire. routine flaring emissions, work is underway to identify The equity share of emissions from these carbon removal nature based carbon removal projects, assets in 2020 was 318,271 CO e. This is ² offsetting such as, reforestation, afforestation and separate and in addition to the Scope 1 and hard to abate conservation that Tullow will invest in to 2 emissions described earlier. As a result, emissions achieve its Net Zero ambition by 2030. Tullow’s indirect emissions associated with We will also seek to align our carbon our value chain, or Scope 3 GHG emissions, offset strategy with government priorities, increased significantly. However, given our emerging regulation on Article 6 of the Paris primary area of control and influence is Agreement as well as our Shared Prosperity our operated emissions, this is where our JV partner collaboration | Alignment with government priorities | Governance and executive incentives strategy, focused on creating socioeconomic decarbonisation efforts will continue to opportunities for our host communities. focus, in collaboration with our Joint * net equity emissions Venture Partners.

27 Tullow Oil plc Sustainability Report 2020 Waste Management

“Tullow’s Plastic Waste Action wasn’t just a typical environmental campaign. It was a shift from thinking about environment as a compliance issue to ensuring sustainability is at the heart of what we do. We delved deeper into innovative and creative solutions towards giving plastic a new sense of value - not just throwing it away after single use. While we recognise that recycling is not enough and we can’t recycle our way out of plastic pollution it is a good place to start. Beyond this we will intentionally do more to reduce our plastic consumption across our sites. Every bit makes a difference to clean up the environment.” Laureen Darku Environment and Asset Protection Manager

Fugitive emissions Reducing and recycling plastic waste Fugitive emissions are accidental, Additionally, we evaluated fugitive Tullow Ghana generates ~30 tonnes of office taken by McKingtorch Creatives, diffusive or unproductive emissions emission from vent gas from tank plastic a year from its offshore platforms which uses the recycled plastic for covering a vast number of sources tops on the FPSOs which are filled and onshore support base and offices. manufacturing slippers and sanitizer including leaking pipework, valves and with hydrocarbons in the transportation In recognition that plastic pollution, containers, among other creative uses. flanges. In 2020, Tullow worked to mature process. We evaluated the composition alongside climate change and biodiversity Further efforts were made in 2020 to its understanding of fugitive emissions of gases within the vent gas to determine loss, is one of the biggest global manage and account for single-use from leaks, seeps and weeps from piping the best approach to mitigating them. environmental challenges of our time, plastic waste generated from Tullow and valves and venting from tank tops on Previously, the company assumed that Tullow Ghana has worked to find ways to sites, with a particular focus on our our FPSOs. 100per cent of vent gas was composed of reduce its use of single use plastic and methane, but on closer inspection the gas FPSOs. However, this proved challenging Tullow has been using infra-red cameras increase the amount of plastic recycling. was made up of propane, butane, nitrogen due to operational constraints and to detect and fix (with wraps) fugitive and other gases which have an indirect Over the past three years Tullow Ghana employee health and hygiene concerns emissions leaks from piping and valves and uncertain effect on global warming, has eliminated use of plastic water during the pandemic. in line with the Best Available Techniques due to their short lifetimes and the bottles, disposable plastic cups and (BAT). Going forward, we intend to procure nonlinear chemistry involved in ozone plastic spoons in its Accra and Takoradi instruments to measure the concentration and OH chemistry. offices. This resulted in an over 50per of and gas composition in the immediate cent reduction in plastic waste generated vicinity of the leak and then apply the Following an analysis of the gas from these facilities. Tullow Ghana is appropriate emission factors to each composition, the methane composition working with waste contractor Zoil Ltd, leak found. was found to be only 1.2per cent. Tullow which grinds plastic waste from offshore will be restating its methane emissions platforms and Takoradi offices into pellets from 2015-2020 based on these findings. and transports to a third-party for use in the manufacture of pavement blocks. Plastic Waste from Tullow’s Accra

28 Tullow Oil plc Sustainability Report 2020 Energy efficiency Waste Management in Suriname In preparation for the drilling of the GVN-1 (MARPOL) guidance. During our exploration well in Block 47 offshore stakeholder engagement, questions Suriname, Tullow’s waste management that were raised and addressed included plan has been developed and issued to waste management, lessons learned from meet the commitments and mitigation similar drilling operations taking place measures proposed in the Environmental in Guyana and how local content would and Social Impact Assessment (ESIA) and be implemented during the exploration associated Environmental and Social activities and afterwards if oil is found. Management Plan (ESMP), approved by The predicted social impacts of non- the National Institute for Environment and routine events during the drilling Development in Suriname (NIMOS)*, and operations and further details on the Solar Panels on the new follows the principal of Best Practicable mitigation measures proposed to protect Environmental Option (BPEO). marine mammals and sea turtles were Takoradi office also discussed. The engagement Tullow’s most material source of carbon emissions is flared gas from The plan provides waste management reinforced the importance in not only its FPSO operations. Notwithstanding this fact, Tullow is continually strategies for the safe and environmentally mitigating impacts but also ensuring evaluating all opportunities to save costs, make our energy supply more sound management and treatment of that we help create conditions where efficient and reduce our carbon footprint. With this in mind, solar panels wastes generated during the project. local suppliers can also participate in were installed on the roof of the new office in the Takoradi Shore base in The different types of waste that may be our supply chain. 2020. Power savings of 35-40 per cent have been generated since their generated will be identified, categorised installation. The Office Services team will continue to assess opportunities and reported before being disposed of or As a result of executing the waste to expand solar generated power for the remaining Takoradi and Accra treated in an environmentally sound way. management plan, any hazardous waste offices in order to achieve further energy and carbon savings. will be sent for treatment to a licenced, Activities ranging from the Mobile Offshore approved Waste Management Contractor Drilling Unit based operations, logistics in Suriname. No hazardous waste will be “Power savings of 35-40 per cent and transport activities, and the supply exported from Suriname. Non-hazardous have been generated since their bases in Suriname and Trinidad are waste will be treated or disposed of in installation. The Office Services covered by the waste management plan. Suriname, or in Trinidad via the logistics team will continue to assess Hazardous and non-hazardous wastes, contractor. Opportunities for waste opportunities to expand solar including liquid and solids generated from minimisation, re-use and recycling will these activities will be managed, with the generated power for the remaining be identified and assessed. The appointed exception of treated black, grey and bilge Takoradi and Accra offices in order Waste Management Contractor has been water, macerated food waste and treated to achieve further energy and audited by Tullow to ensure conformance drill cuttings which are discharged to sea carbon savings.“ with its own Management Systems and in line with the International Convention local legislative requirements. Saviour Kwaku Adzika for the Prevention of Pollution from Ships Facilities & Admin Supervisor (Takoradi)

29 Tullow Oil plc Sustainability Report 2020 Equality and transparency

Equality and transparency are central to the way we operate and to helping us to earn the trust of all those with whom we interact. We have strong corporate governance practices and disclose our payments transparently. We are committed to comply with laws and regulations and, wherever we do business, maintain ethical conduct, uphold human rights and maintain strong community relationships.

30 Tullow Oil plc Sustainability Report 2020 Governance, compliance and ethical conduct

Ethical behaviour This process improvement further ensures Transparency and disclosure of Our Code of Ethical Conduct governs the way that due diligence is performed effectively payments: we work and coveys a clear message to all and efficiently. Tullow believes that public disclosure staff and stakeholders about how we commit about our business and actions serves a During 2020, we relaunched the annual to compliance with laws and regulations, as broader agenda of openness to dialogue eLearning on the Code to all staff. This well as our ethical standards. The code of and builds accountability, credibility and focused on raising awareness of key issues conduct is clear on our zero tolerance for trust. Transparency regarding payments such as anti-bribery and corruption, anti-tax bribery, corruption and other forms of to governments is an important way evasion, due diligence, human rights, financial crime and this position is strongly to promote honesty in our industry, diversity and inclusion, and the importance reinforced by Tullow’s Management and mitigate corruption and support of employee wellbeing. In addition, all staff Board. The Code also covers our position inclusive development. are required to submit an annual Code and controls with regards to human rights, Certification which is a disclosure on how Supporting transparency in the lobbying and advocacy, prevention of the they have complied with the code of conduct extractives industry Tullow has been facilitation of tax evasion, anti-slavery in the preceding period. We achieved over a corporate supporter of the Extractive and GDPR. 99per cent completion of this process in Industries Transparency Initiative (EITI) We require those who deliver services to 2020 and the remaining followed up in since 2011, and we play an active role us, or who act on our behalf, to abide by the January 2021. in the development of new programmes Code and meet the requirements of specific and initiatives. We support national EITI In 2020, we recorded 52 speaking up cases, business ethics and compliance clauses in membership in the regions in which including four submitted via our confidential their contracts. This ensures that third parties we operate and are keen to take an speaking up line, Safecall. We investigated do not cause us to breach our own Code. active role in supporting the national all reported possible or actual breaches of Prior to awarding contracts, we conduct application process, which can take the Code and, in 2020, two people left the risk-based third-party due diligence to two years or more to complete. Tullow Group or had their contracts terminated. assess risks related to ownership structure, continues to publish Production Sharing anti-bribery and corruption, sanctions, trade Speaking up cases 2020 Agreements (PSAs), with the agreement restrictions, human rights and labour of our government partners. In 2020, conditions. In 2020, we digitized our due Third party 4 proactive activity was limited by the diligence processes and implemented a Corruption global Coronavirus pandemic however workflow management process to allow for 4 Tullow was able to contribute to third parties to be screened automatically 52 speaking up discussions with EITI around transparency against sanctions and trade restrictions cases in supply chains and how to manage lists, and for red flags to be escalated in conflicts of interest. Tullow also engaged real time for review by our internal Ethics Fraud 17 with Oxfam on reports into oil & gas & Compliance resource. Workplace taxation in East Africa. compliance 27 31 Tullow Oil plc Sustainability Report 2020 52+O+33+8+7 2020 total socio-economic contribution their work in a manner consistent Transparency and disclosure of payments Human Rights with the Code and their performance Tullow believes that public disclosure about - Tullow’s Human Rights policy sets is subject to ad-hoc audit. our business and actions serves a broader out our intent to manage human rights agenda of openness to dialogue and builds risks through implementation of both - Safe and Sustainable Operations Policy: we commit to designing, accountability, credibility and trust. the UN Guiding Principles on Business Transparency regarding payments to and Human Rights and the Voluntary building and maintaining safe working conditions and take responsibility for governments is an important way to promote Principles on Security and Human honesty in our industry, mitigate corruption Rights (VPSHR), and to respect the health and wellbeing at work of our staff and contractors. and support inclusive development. Tullow fundamental labour rights and has been a corporate supporter of the international labour standards, as - Contracts & Procurement Standard: Extractive Industries Transparency Initiative set out in the Universal Declaration of sets out minimum requirements for (EITI) since 2011, and we remain committed Human Rights and the ILO Declaration contracts for goods, works and services. to promoting transparent disclosure of on Fundamental Principles and Rights payments to government. at Work. - Group Supplier Due Diligence procedure: sets out due diligence Our payments to governments, including - To achieve these goals, we commit to requirements in respect of human payments in kind, amounted to $375 million identifying and addressing human rights rights and labour conditions. In 2018, in 2020 (2019: $413 million). Total payments risks upon entering a new country or Tullow updated its standard form to all major stakeholder groups including region, and on an ongoing basis, and procurement contract templates suppliers and communities, as well as conduct human rights due diligence to include specific references to governments, brought our total socio- before significant investments. compliance with applicable anti- economic contribution to $542 million - The commitments set forth in the slavery and human trafficking laws. (2019: $719 million). In addition to payments Policy are operationalised through - Non-Technical Risk Standard, which to governments, this included $162 million the following policies, standards includes mandatory requirements spent with local suppliers, and $4.7 million and procedures: for the identification, assessment, in discretionary spend on social projects. Our total payments made to the Ghanaian - Code of Ethical Conduct: prohibits mitigation and management of social impacts and risks, including the rights Government in 2020 amounted to $180 million the use of underage, forced or bonded (2019: $270 million). labour and sets out our expectations of impacted groups. on respect for fundamental labour For more information on how Tullow rights and freedom from harassment. upholds Human Rights within our The Code also sets out our business and Supply Chain, please go commitment to conducting due to our ESG page online. diligence on our suppliers with respect to risks related to human rights and labour conditions. All suppliers are required to perform

32 Tullow Oil plc Sustainability Report 2020 As required, we also made available internal Our people Occupational Health services. During this Resetting our business and making Tullow reorganisation, we have redeployed staff to a compelling place to work other roles where possible in order to 2020 was a year of change for Tullow avoid redundancy. and its people. We fundamentally reset and downsized our business and directed Compensation Total workforce by age Salary our focus to managing those impacted Bonus 1,200 Share Schemes Benefits respectfully and fairly. In parallel, we Healthcare designed and implemented changes to our 1,000 Pensions Holiday Employee Value proposition to make Tullow Allowances & 800 Benefits a compelling place to work and to empower Culture Our values / beliefs 600 and incentivise employees to focus on the Our reputation regeneration of our business. 400 Leadership Communication Employee Value 200 Recognition Our People Proposition Supporting our people through change 0 Professional 2016 2017 2018 2019 2020 development Tullow undertook significant restructuring Career development of its organisation in 2020, with a reduction Performance Under 30 30 to 45 46 to 60 Over 60 Work environment management of 53 per cent in employee headcount and Challenge the closure of the Cape Town and Dublin Performance Standards offices. Tullow ensured that throughout this Employee Value Proposition (EVP) process people were treated fairly and with In Q4 of 2020, Tullow refreshed its EVP respect and that the changes were well to ensure the company has a compelling communicated. In all locations, local proposition for its staff and to make clear legislative requirements were followed to what Tullow expects from its employees by ensure the legal notification requirements way of upholding the company values and were met. Where appropriate, suitable notice work ethic. Tullow’s EVP is comprised of an periods were provided, and representative offering described in the graphic above. and rewarded, will be underpinned by bodies were consulted. The process used These include; the ability for employees a continuous feedback process between objective and appropriate selection criteria Compensation to buy and sell up to five days annual employee and managers and supported for redundancies and ensured no Tullow continues to pay its staff at competitive leave; enhanced paternity leave by a 5 scale performance rating system. discrimination via the selection process on market rates. From 2021, the calculation available across all locations. of our staff bonuses will be based on the the basis of gender, race, age or the raising Benefits All employees receive private medical company performance with the individual of past concerns. In all markets, Tullow’s Additional benefits have been introduced to insurance for themselves and their contribution recognised to reward our top severance payments exceeded statutory provide staff with more work/life flexibility, dependents. minimums and in all locations employees performers. Shares will also be awarded to recognition that is in the moment and to were provided with access to support and retain and incentivise high performers. support a work environment, which is counselling via employee assistance and Our drive to create a performance culture, inclusive and diverse. career transition programmes. whereby top performers are recognised

33 Tullow Oil plc Sustainability Report 2020 Culture Tullow is making changes to its ways of Tullow work to become more performance focused, We are stronger as one team Tullow’s refreshed empowering our people to deliver and be valued for their contribution. Our staff values Smart are encouraged to strive for continuous Do the right thing Collaborate Working & working improvement and our Senior Leadership set - Keep each other, stakeholders, - Listen to, support and trust an open, transparent and inclusive culture. the public and the environment safe each other environment Professional Development - Be honest, respectful & transparent - Constructively challenge As the Company adapted to remote Tullow’s professional development working through the pandemic, Tullow - Comply with all relevant rules, - Share knowledge & best practices was able to leverage its Smart Working focuses on ‘on the job’ performance and regulations and policies development and is supported by broader approach ensuring that throughout the roles that many within the organisation have pandemic our people have remained taken on since the restructuring, as well productive and through our Wellness as lateral moves. People’s professional Take responsibility Make it count initiatives ensured our people were development is further supported by the - ‘Can do’ attitude and - Focus on what’s important supported. As a Company, through this accountable for actions continuous performance management - Take pride in what you do period we have seen the value of a process, where live feedback is encouraged - Be considered and effective workplace that has embraced flexibility, - Have fun continuously. A Development Focus Group in decision making placed value on work/life balance and promoted employee wellness. Going will leverage existing internal resources and - Continuously improve skills that can be harnessed to develop our forward, even beyond pandemic people and address skills gaps and a restrictions, our Smart Working approach mentorship programme will also be will continue and employees will be given available to those wishing to benefit. flexibility with few parameters to manage their work to meet their own work/life balance requirements.

34 Tullow Oil plc Sustainability Report 2020 Inclusion & Diversity In 2020, Tullow held a companywide “Female representation in Tullow’s Finance Inclusion and Diversity (I&D) are key discussion in the wake of George Floyd’s organisation at senior management levels (46 components of Tullow’s DNA. We maintain a death and momentum around the per cent) is well over the average female senior culture where everyone is valued and treated BlackLivesMatter movement to discuss management representation in Tullow overall racism inside and outside of the company with dignity and respect. We do this by: (20 per cent). That achievement is thanks to strong and what could be done to stamp it out. - Developing and retaining diverse talent Rahul Dhir also hosted Tom Ilube, CBE, leadership on gender diversity by Tullow’s CFO, at all levels within our organisation Tech entrepreneur and Britain’s most Group Financial Controller and Group Treasurer. - Challenging incorrect behaviour, removing influential black person at a separate The Finance leadership are now working to ensure barriers and creating equal opportunities employee townhall to talk about black we have succession plans that include a good for our employees, and seeking to learn leadership and Tullow’s partnership with his representation of the female talent we have and understand complex I&D issues non-profit venture African Science Academy. across the finance organisation“ Events to aim at raising awareness of - Maintaining zero-tolerance to all forms of Dionne DeGovia, Inclusion & Diversity issues are continuing prejudice and discrimination and actively Group Financial Reporting Manager through 2021. In January, Tullow Board fostering an environment where Speaking members Dorothy Thompson, Genevieve Up is encouraged Sangudi, Sheila Khama and Rahul Dhir, - Working together to embrace all aspects shared their experiences of discrimination Women in Finance Charter of diversity, recognising that collectively and how they have overcome discrimination Tullow is a signatory to the Women in Finance Charter which demonstrates our ongoing leveraging our individually diverse and bias during their careers. In March, commitment to improving the diversity of our workforce, particularly improving women’s backgrounds and experiences will make a law firm and partner of Tullow will host representation at senior levels within our Finance function. Our target was to achieve us a more successful organisation. a companywide conversation on 40 per cent female representation in senior management roles within Finance by 2021. unconscious bias. In 2020, Tullow’s female representation in the finance team was 46 per cent within senior management roles. We achieved early completion of the target through: 1. Reviewing our data to identify key talent and progression opportunities/succession plans and review team development plans in line with required progression to target 2. Updated our approach to recruitment to encourage diversity, first by identifying key competencies for roles to determine assessment criteria for candidate selection and secondly by ensuring we have diverse long and short lists 3. Changing behaviour and Culture within the team by promoting flexible working and demonstrating evidence of Tullow gender neutral HR policies. In the context of a smaller organisation, Tullow will review appropriate gender targets within the Finance team.

35 Tullow Oil plc Sustainability Report 2020 Dependent care and special leave Gender diversity 2018 2017 2020 In the UK Tullow runs the Childcare Voucher Scheme and promotes the Tax Free Board diversity 13% 37.5% 33% Childcare scheme. In Ghana, we provide (1/8) (3/8) (3/9) education support to all levels of employee. Leadership diversity 25% 25% 20% Additionally, we have sabbatical leave (2/8) (1/4) (1/5) procedures and other leave procedures to support our employees in spending time Senior Management diversity 21% 20% 18% of with dependents. In many locations (14/68) (12/61) (4/22) enhanced maternity pay allows for more paid Workforce diversity 31% 32% 27% time off for new mothers More recently, as (303/990) (305/951) (129/473) part of our new EVP, we have committed to provide enhanced paid paternity leave to all 2020 pay and bonus gaps new fathers in all locations. Women’s hourly rate Women’s bonus pay

Gender pay 2019 2020 2019 2020 We continue to report on the gender pay gap in the UK as required by law, showing Lower (mean) 35% 38% 44% 37% a gap of 43 per cent at median rates in 2019, Lower (median) 43% 43% 46% 43% which is an improvement of 3 per cent on our result in 2018. We face an ongoing 2020 pay quartiles challenge to recruit and promote qualified Men Women and experienced women in technical roles in the oil and gas sector, and this has 2019 2020 2019 2020 resulted in a higher proportion of men Top quartile 89% 88% 11% 12% in senior roles. For our full 2019 Gender Pay Upper middle quartile 83% 88% 17% 12% Gap Report, go to our website. Lower middle quartile 62% 59% 38% 41% Lower quartile 52% 45% 48% 55%

Percentage received bonus pay

Men Women

2019 2020 2019 2020 95% 94% 96% 96% 36 Tullow Oil plc Sustainability Report 2020 Localisation

As an oil company based largely in Africa, localisation is fundamental to the way we Eugene was chosen to be part of do business in our host countries, and to the team to determine how production helping to build local skills and contribute operations would be maintained through to improving local livelihoods. Our approach this critical period for the company. includes: - Hiring local people as a preference Further competency assessment wherever possible, while adapting recruitment followed allowing Eugene to rise up the qualification thresholds to ensure a broad, ranks offshore on TEN, with exposure to inclusive pool of potential candidates, production operations, maintenance and development of local staff by expatriates. - marine and logistics, offtake , EHS Our expatriates are required to support the functions including incident development of locals to transition into roles investigations as well as assurance and verification activities. More recently, previously held by expatriates so that over an Eugene Lanquaye-Mills agreed period of time we can strive to create during COVID-19, with a reduced crew on TEN, Eugene had the opportunity to a workforce, which is predominantly local. Eugene, but Eugene proved he was up to stand in as OFM for full rotation, and To achieve this we identify and implement TEN Offshore the task. After working on the exploration based on his performance was development plans for local colleagues drilling programme in Kenya, Eugene recommended for promotion to Offshore and expatriates support their training Team Lead, Ghana moved back to Ghana, in a Performance Team Lead, which he started last August. requirements, in addition to this we provide Eugene joined Tullow in 2013 after a Engineer role evaluating the performance opportunities for secondments to other year of National Service with Kosmos, management of rig costs and schedules. “To have the opportunity to work in Tullow locations or business areas to gain Tullow’s JV Partner. Prior to joining Tullow, Eugene was then invited to join an three countries in my first few years skills and work experience. Eugene also did a master’s in petroleum assessment day for an Offshore Field at Tullow was amazing. It was also a production engineering at Robert Gordon Manager (OFM) Development opportunity, privilege to attend relevant and % of Local Nationals employed University in Aberdeen. Eugene then joined following this he joined an internal industry standard courses in Paris, % of Local Nationals employed our Well Engineering100 Development programme within the Operations team, Houston and Aberdeen which 84 Programme, as part of this programme he which focussed on developing Ghanaian augmented my practical on the job went on International80 Rotator assignments, 82 nationals to succeed expat OFM and experience. I owe a lot of my career first in Ethiopia and then in Uganda before Offshore Installation Managers.. Moving progression and my localisation of an 80 60 moving to Kenya and then Ghana. Uganda into operations after two years in Well expatriate role to great sponsorship 78 was where Eugene got his first significant 40 Engineering took Eugene out of his and mentorship from managers and 76 career opportunity, when his line manager comfort zone and he was quickly seconded colleagues who I learned a lot from 74 suggested he worked for a few months 20 to the Jubilee Operations team as Well and who were helping identify 72 as night drilling supervisor for plug and Integrity Engineer as well as providing opportunities for me to grow.” 70 abandonment well.0 This assignment would operations support, reporting directly to 2016 2017 2018 2019 2019 normally have gone 2016to a well engineer2017 2018 the Ops2019 Manager. The Jubilee turret with many more years of experienceGhana than Kenya failure quickly followed in 2016, and 37 Tullow Oil plc Sustainability Report 2020 Employee engagement support of the senior reservoir engineer completed around the water injection The significant organisation restructuring Bismark built his first reservoir model. He system which saw the start of reliability changes implemented in 2020 and increased then returned to Ghana in 2015 and not long improvement of the water injection motors levels of remote working imposed by COVID-19, after the company went through a major and overall system uptime. Last year he meant that Tullow significantly increased the restructuring and Bismark was selected to also got the experience of working on level of internal communications throughout be retained by the company but was unblocking the gas export pipeline. Over the year. This included detailed written and transitioned to topside engineering team. the last year, Bismark has also been townhall communications from the Senior This was an alien and challenging moment technical lead on the Net Zero project, Leadership Team helping staff understand for Bismark, but he soon got into his stride defining the decarbonisation pathway what changes were being implemented, the in the new department. Bismark has also in support of its ambition to be carbon rationale and timings of those changes and had the experience of being an offshore neutral by 2030. how they would impact individual teams. engineer on rotation for one year, which “It’s really never a dull moment in Senior Leadership also initiated a series of Bismark Osei Bimpong gave him great insight into topside Tullow. In the years to come, while I Coffee Mornings – small group discussions operations. On his return to shore base, still have a lot to learn, I’m targeting to ensure staff had ample opportunity to Bismark augmented his knowledge of Senior Facilities either a project management role in the raise concerns or questions, helping them to topsides that he had gained with some company and engineering management adapt to the organisational change and stay technical courses. He then started working Engineer, Ghana role and I’m optimistic about career connected. Tullow also organised a Health on engineering projects and in 2017 was Bismark Osei Bimpong, Senior Facilities growth opportunities within the & Wellbeing Fortnight, which you can read seconded to MODEC in Houston to get Engineer, has been with Tullow for now business.” more about in our on page 14 of this report, almost ten years. Bismark joined after projects ready for the Jubilee shut down providing a series of events and completing a Master’s degree in petroleum in 2018. There, he gained a lot of brownfield opportunities for staff to prioritise their engineering in Nigeria. He joined as a modification know how and project mental and physical wellbeing. This will be trainee reservoir engineer in the subsurface management skills. He received great extended into 2021 in a more regular and team and after one and a half years was support from his line manager at the time phased programme, so that staff can help promoted to junior reservoir engineer. and was sponsored to undertake a project maintain their health and wellbeing. In total, Bismark spent three years in management professional qualification subsurface. One of the big challenges in and time off work each week to complete the those early years was to perform reservoir course. This broadened his knowledge in the modelling on his own, which he did for a project engineering field. Back in Ghana in period of six months in London, to support 2018 he supported the shutdown brownfield the technical demonstration of the reserves reliability work while the Turret Remediation and resources that underpin our assets for Project work was ongoing. A big achievement our lending banks at the time. With the during the shutdown was the scopes

38 Tullow Oil plc Sustainability Report 2020 Policies & Data

Policies: Climate Policy Human Rights Policy Safe & Sustainable Operations Policy Code of Ethical Conduct Information about our reporting: Sustainability Data Basis of Reporting GHG Emissions Scope & Calculation Methodology GRI Index EY Independent Assurance Statement Further reports: Climate Risk & Resilience Report 2020 Payment to government Report

Discover more about Tullow's approach to sustainability tullowoil.com/sustainability/

39 Tullow Oil plc Sustainability Report 2020