paul coward, tullow oil, on eisa in ghana and uganda

8/12/2019 Paul Coward, Tullow Oil, On EISA in Ghana and Uganda

1/18

Slide 1ESIA Tullow Oil November 2010

Tullow Oil ESIA Experience in Ghana / UgandaNovember 2010


2/18


The Tullow footprint

Africa Rest of the World

Europe

1 Netherlands E

2 United Kingdom EDP

1

2

3

4

5

6

7

8

9

Angola E

Congo (Brazzaville) DP

Congo (DRC) E

Cte d'Ivoire EDP

Equatorial Guinea DP

Ethiopia* E

Gabon EDP

Ghana ED

Kenya* E

South America

1 French Guiana E

2 Guyana E3 Suriname E

South Asia

1 Bangladesh EDP

2 Pakistan EDP

Liberia E

Madagascar E

Mauritania EDP

Namibia D

Senegal E

Sierra Leone E

Tanzania E

Uganda ED

10

11

12

13

14

15

16

17

Group highlights

South America

3 countries

4 licences

Europe

12,700 boepd 2 countries 28 licences 16 producing fields

Africa

37,500 boepd

17 countries*

56 licences*

18 producing fields

South Asia

5,600 boepd

2 countries 8 licences

2 producing fields

1

22

1

23 1

Key: E Exploration D Development P Production

4

10

12

14

1

23

5

7

8

1113

16

1715

6

9

* - subject to completion of farm-in deals.


3/18


83% global exploration success rate in 2010 YTD

French Guiana

94 of 2,494

sqkm 3D

171 km 2D

2,494 sqkm3D PSDM

171 km 2D PSDM

2,424 sqkm

3D PSDM

NetherlandsGabon 2 wells

1,512 sqkm 3D PSDM

678 km 2D PSDM

OMOC-N-1

Onal-1004

OMOC-N301

OMOC-N201

OMOC-N302

Noix de Coco-1

3,600 sqkm3D PSDM

Sierra Leone

2,307 sqkm 3D

2,307 sqkm 3D PSDM

Cte dIvoire

Guyana

1,889 sqkm

3D PSDM

Tweneboa-2

Ghana 5 wells

Dahoma-1

Mahogany-5

Owo-1

1600 sqkm 3D PSDM

600 sqkm 3D PSTM

87% success rate in 2009

77% success rate in 2008

Seismic Drilling

Acquisition

Processing

Offshore

Onshore

48 km of 2D PSDM

Pakistan 1 well

Shekhan-1

Tanzania -1 well

973 km 2D PSTM

Likonde-1

Madagascar

720 km2D PSTM

Uganda 9 wells

Kasamene-2

Kasamene-3

Kasamene-3A

Nizizi-3

Nsoga-5

124 km 2D AWD

97 of 145 km 2D

Low frequency passiveproject

221 km 2D PSTM

50 sqkm 3D PSTM

Ngiri-2

Mpyo-1

Kigogole-2

Kigogole-4

Kigogole-5

Owo-1 ST Onyina-1
http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?


4/18


Tullow EHS

Environmental, Health and Safety Policy- Strong EHS leadership by senior

management

- Approved by Board and signed by CEO

Clear policy statement on- Protecting people

- Environmental protection- Continual improvement

- Working with Communities

Tullow understands key EHS principlesin planning and undertaking ouroperations


5/18


Environmental Management

ISO 14001 certification for Environmental

Management System (EMS)

EMS is a core part of our Integrated ManagementSystem

Aligned with IFC Performance Standards and

Equator Principles

ESIA for all operations- ESIA Recommended Practice Guidelines

- Risk Management Procedure

Standards for environmental management alignedto EMS Tullow Oil Environmental Standards


6/18


Ghana & Uganda


7/18


Ghana

JUBILEE FIELD LAYOUT

J1-DInstalledTree

J2-CInstalledTree

J10-A

J14-B

J13-D

J12-DInstalled

J15-C

J11-B J8-BInstalledTree

J6-D

J7-C

InstalledTree

J4-BInstalledTree

J9-C

J5-DInstalledTree

J17-A

InstalledTree

J3-BInstalledTree

J16-B

InstalledTree

Installed 2x 12

W Prod.Flow

lines

Installed Umbilicals

(Mar2010)

Installed

10 EGIF

Rev. 5 to End of April 2010


8/18


Uganda


9/18


Uganda Development

Nzizi Gas Field development (IPP)

50 MW Power Plant planned for Hoima Region

Nzizi-3 well confirmed expected gas volumes

Kasamene Field Development

Successful Kasamene-2 & 3 appraisal wells

Results support development concept and volumes

FEED studies optimised to minimise environmental footprint

First oil end 2011

Development focused on local and regional needs

Kasamene

Nzizi

Road

IntegratedPower Project(IPP) -Nzizi

Gravel roadupgrade toHoima fortrucking

KasameneCentral

ProcessingFacility


10/18


Context

Both Uganda and Ghana frontier oil and gas regions- Limited exposure to development of this scale

- Emerging areas of resource conflict and access due to population growth and arearesettlement

Politically stable

High expectations of what the oil and gas industry will do for all areas ofdevelopment, not only in relation to oil and gas production

Two completely different operational areas but with very similar underlyingchallenges..


11/18


Regulatory Elements

The regulatory frameworks in both regions is not oil and gas specific- ESIA regulations are in place and applied however they do not cater for specific oil

and gas issues, mainly mining sector influence- Wider pollution control standards, i.e. effluent standards, air emissions etc are not

clearly defined nor applicable to industry in many cases

Regulatory bodies are still developing their understanding of industry issues- To date a lot of misconception or misunderstanding- Ranges from no mechanism to manage to world class without supporting

infrastructure to allow the later to be realistic- Oil and Gas Policy under review in Uganda current draft prohibits venting /flaring

Challenge is to present way forward without impeding the autonomy ofregulator i.e. IFC Performance Standards

Lack of clarity over key institutions roles in decision making

Development and Exploration timelines are aggressive and this may lead topressure on regulators who are usually underfunded and under resourced tocope with the additional load


12/18


Sound Base for ESIA

Baseline information- Although not such an issue in exploration process as development matures so

does the required for continual and robust baseline information

- Requires early recognition of requirements in order to allow information to bemeaningful. Lessons from Ghana implemented in Uganda

- In areas with no baseline how much is required to make truly informed decisions

- Clarity on roles within an SEA framework - in Uganda this has focused mainly onoil and gas sector but not broader resource conflict issues, i.e. tourism, fisheries

- Information may exist but will be held under different institutions who are notalways aligned

The SEA concept is sound however clarity is required on how thisinformation will be utilised and fed into regional development planning

Often perceived as a govt role to undertake SEA but industry have big partto play as potential information and study donors


13/18


Capacity

Oil and gas is dynamic and the development process is iterative

ESIA practitioners are challenged to build capacity (with support) to be ableto provide the service required

- Building the understanding of industry is crucial

- Capacity in relation to manpower requirements

- Limited supply of local specialist usually leads to delays

Infrastructure development- Key area that requires significant investment and lead time in developing regions,

particularly in the area of waste management, and oil spill response.

- This area is of key concern and needs to be at the forefront when discussing policy/ standard implementation

Regulatory capacity - large potential for single point failure, if keyindividuals are not available then no decision will be made.


14/18


Further Challenges

Oil and Gas development is emotive and therefore external factors lead toregulatory decisions being made with a political bias or based onperceptions.

Land and frameworks for acquisition, access, compensation andresettlement

Recognition of the role of NGO / CSO both by GOU and Industry

Managing expectations both internal and external

Learning from experience- Clearly define plans

- Recognise the need to resource teams early in order to provide internal supportbut more importantly to build capacity

- Dont tell show..


15/18


Summary

Not all negative, these challenges make it an area with huge potential

Communication between interested parties is crucial

Standards need to be developed which are realistic for the country ofoperation

Infrastructure development through partnerships is essential to success

Local Capacity Development crucial


16/18


Extras


17/18


Local Content delivers a Sustainable Supply Chain

Local Content is the Term given to Tullows commitment to create in country

capability in the oil industry.

It represents the opportunity to build a local oil infrastructure and supplybase to help Tullow control and reduce costs.

It also benefits local business and communities through:

- Local business development (goods and services)- Local employment (re-skilling, job development, redeployment)

- Sustainable local economic development

Tullow Local Content


18/18


Success to date

Uganda Ghana

48%

52% 62%

38%

Local SpendInternational Spend

Fuel

Emergency Services

Waste Management

Security

Medical

Crane

Hire

Personnel

Transport

Freight Forwarding

Custom

Clearance

Facilities

Management

IT

Services

Telecoms

Hotel/Accom.

Office

Supplies

HR

Unskilled

Labour

Training

General

Trades

Catering

Communications

Camps/Accom.

FPSO/Wellhead

Tangibles

Rig

Hire

Feed

Seismic

Services

Well

Services

Environmental Services

Int. Freight Services

Site Prep.

Field Construction

Specialist

Trades

InspectionsInfield

Transport

Spare

Parts

Infield

Services

Civil

Mechanical

Electricals

Mud/

Cuttings

ConstructionMaterials

SPECIALISTS

SERVICES

DIRECT

SERVICES

INDIRECT

SERVICES

Tullow has had great success in achieving high levels of spend with Local Companies

even though these early phases of field development usually include a large element of

specialist services or one-off constructions such Seismic surveys or Vessel construction.

We are focusing our efforts on improving

the local skill base through programs

such as Closing the Gap, which is

delivering training programmes to localcompanies to improve skills and

standards

paul coward, tullow oil, on eisa in ghana and uganda

Documents