Jubilee field. development - the story so far. June 2010

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1 Jubilee field development - the story so far June 2010

2 Jubilee development project Contents Jubilee Development Project 1. Environment, health and safety 2. Sub-surface 3. Well engineering 4. Facilities delivery 5. Sub-sea system delivery 6. Operations readiness 7. Installations, Commissioning and Ready for Start-up Page No Jubilee Environmental and Social Impact Assessment (ESIA) 1. Project overview 2. ESIA process and objectives 3. Environmental and socio-economic baseline 4. Stakeholder engagement 5. The big issues 6. Approval process 7. Mitigation plans and monitoring programmes Front cover: Davidson Essel and Emmanuel Kwadjo-Dei, Trainee Production Operators on the FPSO in Singapore during the construction phase of the vessel. 01

3 Jubilee development project continued Tullow s EHS performance in Ghana is excellent with only two lost time incidents in 2.1 million hours worked and no major environmental incidents. Our EHS policy sets out the standards and expectations to manage key EHS risks in our operations and, as an example, a comprehensive Environmental and Social Impact Assessment (ESIA) was carried out during 2009 including wide public consultation of stakeholders. Key components of the ESIA include environmental monitoring, waste management, oil spill contingency planning and community engagement and investment. Tullow on behalf of the field partners has worked closely with the local people, government and interest groups throughout its time in Ghana. These relationships have been an important factor in our ability to achieve ESIA approval for the Jubilee development. 02 Tullow Oil plc 03

4 Jubilee development project continued By delivering first oil in the fourth quarter of 2010, the project will have realised production in just 3½ years from discovery. This achievement is a reflection of the confidence and commitment by all partners to invest based on discovery and appraisal well results alone. A highly experienced project team, comprised of personnel from the main partners including Tullow, Anadarko Petroleum and led by Technical Operator Kosmos Energy, has set out to deliver a quality outcome in record time. Proven contractors have used proven designs to meet functional rather than truly precise specifications. This has resulted in some quite dramatic schedule reductions when benchmarked to general industry performance. Key contractors involved in the facilities delivery include MODEC Inc. (Floating Production Storage and Offloading vessel (FPSO)), Technip (flowlines, risers and installation), FMC and Aker Solutions. 04 Tullow Oil plc 05

5 Jubilee development project continued S 06 Tullow Oil plc 07

6 Jubilee development project continued 08 Tullow Oil plc 09

7 Jubilee ESIA continued 10 Tullow Oil plc 11

8 Jubilee ESIA continued Routine discharges (such as waste water from the FPSO) and drilling wastes will be treated to accepted standards prior to discharge.non-routine discharges (such as chemically treated hydrotest water) will be collected in a closed system and treated to meet Ghanaian and international standards. The selection of fluids will take into account their potential environmental impacts. Impacts from emissions to air are unlikely to have a direct impact on local communities. Our operations will produce Greenhouse Gas (GHG) emissions but we are working to minimise these through the use of state-of-the-art equipment, application of EHS policy, Environmental Management Systems (EMS) and Tullow Oil Environmental Standards (toes). Flaring will be avoided wherever possible with the stated intention to flare only in specified situations. Water discharges from the FPSO and support vessels will all be treated prior to discharge to ensure that they meet both Ghanaian and industry standards. The scale and nature of waste produced will vary depending on operations that are being carried out. Some waste, such as macerated food waste, can be treated and disposed of at sea in accordance with MARPOL, the International Convention for the Prevention of Maritime Pollution from ships. Other non-hazardous waste will be brought ashore for treatment, recycling and disposal. Hazardous waste will be transported ashore for disposal at appropriate facilities. Results of the impact assessment carried out as part of the ESIA process show that the risk of an oil spill is very slight. We have however put in place a comprehensive Oil Spill Contingency Plan (OSCP) to ensure that in the event of a spill we are ready to take appropriate action. We have also helped to form the Ghana Offshore Emergency Leadership Forum (GOELF), which consists of Ghanaian agencies that would be involved in the event of an incident. We are working closely with the Ghanaian Fisheries Agency and fishing community to alleviate any concerns and issues around the presence of the FPSO. This includes both direct and indirect assistance ranging from compensation procedures, to assistance with locating alternative fishing grounds. Tullow Ghana is also working to educate the fishermen about potential safety issues caused by fishing close to our operations. The Jubilee ESIA discussions also helped us to understand the most pressing needs of the six coastal communities of the Western Region and to identify the most appropriate Social Enterprise and social investment projects for the area. The drilling of water wells in the region, and our support of a programme to eradicate river blindness, were the first direct outcomes of the process. The information gathered by the ESIA also allowed Tullow Ghana to develop a Social Enterprise strategy and management framework. 12 Tullow Oil plc 13

9 Jubilee ESIA continued Feedback from the public consultation meetings was drawn together into a draft ESIA which was submitted to the Ghana Environmental Protection Agency (EPA) for review in August In accordance with Ghana ESIA requirements, Ghana EPA disclosed the draft ESIA to the public for a 21 day review and comment period. Copies were also given to Metropolitan, Municipal and District Assemblies in the coastal areas of the Western Region, as well as to government departments. The consultation and review process culminated in a series of eight public hearings held between September and November 2009 in the Western Region and Accra. These hearings were conducted to ensure that people affected by our activities were given every opportunity to express their views and concerns. As the Jubilee Project was seen as a matter of national interest, we were required to include a national public hearing in Accra the first of its kind in Ghana. Comments from the EPA and comments raised during the public hearings were addressed in the final ESIA. The first part of a two stage approval process was received in early Tullow Oil plc 15

10 On 1 May 2010, the First Lady of Ghana, H.E. Mrs Naadu Mills, officially named the FPSO Kwame Nkrumah in honour of the first President of the Republic of Ghana. On completion of sea trials the FPSO set sail from Singapore to Ghana on 21 May and arrived in Ghana one month later. Following hook-up and commissioning of the FPSO in Ghana, production will commence in the fourth quarter of First Oil FPSO travels from Singapore to Ghana First Lady of Ghana, H.E. Mrs Naadu Mills at FPSO naming ceremony in Singapore Kwame Nkrumah FPSO leaving Singapore 16 Tullow Oil plc 17

11 Tullow Ghana Ltd Sherwood Park 10 Klotey Crescent Labone Osu Accra Ghana Tullow Ghana Ltd Plot No. 71 Off George Walker Bush Highway North Dzowulu Accra Ghana (from end July 2010) Tel. No.: +233 (0) Fax No.: +233 (0) infoghana@tullowoil.com Tullow Oil plc 3rd Floor, Building 11 Chiswick Park 566 Chiswick High Road London W4 5YS United Kingdom Tel. No.: +44 (0) Fax No.: +44 (0) info@tullowoil.com