Businessexcellence ACHIEVING
O N L I N E
TULLOWOIL UGANDA
www.tullowoil.com
C O R P O R AT E B R O C H U R E
Unpreceden
achieve
Alan Swaby looks at a FTSE 100 oil compan oil to its name 25 years ago—but now has
nted
Tullow Oil Uganda
ements
ny that didn’t have a barrel of billions
Tullow Oil Uganda
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ullow Oil is sitting on vast reserves of oil, so much so that the share price has gone from 400p in 2006 to 1400p today. Its biggest find to date—the Jubilee offshore field in Ghana—came on stream in 2010, just three years after the discovery was made. Other global sites saw an average of 58,100 boepd in 2010 from fields as far apart as the North Sea and Pakistan.
Tullow Oil Uganda
Globe Trotters Ltd Globe Trotters Ltd (GTL) is 100 per cent owned by Ugandans and run by a team of youthful experts, dynamic and professional staff, primarily handling movement of cargo in the East African region. GTL has been given an opportunity to offer transport services to Tullow’s Uganda operations, which is largely as a result of the management of Tullow putting an emphasis on enhancing locally-owned Ugandan companies’ opportunities to grow with the newly found oil in Uganda. We hope Dr Brain Glover attains Tullow’s expectations and continue the willingness to support Ugandan owned companies and communities. For God and my country—Harold Ssemalwadde, Managing Director.
But it was a different story 25 years ago: the company didn’t have a single barrel of oil to its name. Nor, for that matter, did the experts ever think it would, looking as Tullow was in the abandoned fields of Senegal. But Irishman Aiden Heavey, who founded the business, has proved them all wrong and a created a lasting bond with Africa in the process. “There’s no doubt that Aiden is an inspirational leader,” says general manager of Tullow Oil Uganda, Dr Brian Glover. “There was a time when Tullow found it difficult to attract good people; now, we have become something akin to a popular club that the best in the business want to join.” Glover puts this attractiveness down to the Tullow way of working. “We support and encourage entrepreneurial spirit,” he says, “but always by working within strict ethical guidelines.” Social responsibility isn’t something universally linked with the oil exploration business— especially when working with autocratic governments in developing countries. But it’s the way Glover says that Tullow works, and he has just spent the last year doing exactly that
Tullow Oil Uganda
with the company’s latest find and possibly greatest challenge to date. “The industry was astounded that we were able to bring the deepwater Jubilee field in Ghana on stream in just three years: an unprecedented achievement. Now we have to do something even more challenging—develop the Lake Albert deposits without damaging some of the world’s most ecologically sensitive lands.” In case your African geography is rusty, Lake Albert is a 160 kilometre long inland sea separating the Democratic Republic of Congo from Uganda. It’s been known that there was oil in the region for years, thanks to the telltale seepage of oil. But just how much was never clear. In 2004, Tullow acquired an interest by buying
Pearl Engineering Company Limited Pearl Engineering Company Limited was established in 1994 in Uganda and renders services in the civil and building, mechanical and electrical engineering fields. It also provides technical service audits and procurement of project materials. Over the last 18 years we have provided construction services to many clients including Tullow Uganda Operations Pty Ltd. The work with Tullow includes construction of access roads, oil drilling pads and other civil engineering associated works. We wish to join hands with foreign companies in joint venture arrangements to increase our participation in the oil sector. Contact us at info@pearl-engineering.com
Tullow Oil Uganda Energy Africa. It then went into high gear drilling 40 exploratory wells, with all but one encountering hydrocarbons. To date, reserves of one billion barrels have been identified and it is believed that a further 1.5 billion barrels of prospective resources remain. Over the intervening years Tullow has acquired additional equity in that locality by purchasing Hardman Resources in 2007 and Heritage Oil and Gas in 2010, leaving it as the sole rights holder in a 160 kilometre by 60 kilometre area that has made 17 workable discoveries. Developing the Lake Albert reserves, though, will
Engen Engen is a multinational petroleum company with a 125,000 barrels-per-day refinery. It is a key supplier of fuels and lubes for mines and is the second largest oil marketing company by volume in Sub-Saharan Africa. Engen’s downstream activities in Uganda involve marketing of fuels, lubricants and other petroleum products. Engen has supplied Tullow Oil with fuels and lubricants for its exploration activities since 2007.
Tullow Oil Uganda
Threeways Shipping Services Threeways Shipping Services is a Uganda founded company operating in the Great Lakes region which covers Eastern Africa, DRC and Sudan. The past 15 years have seen us evolve from customs brokers to fully fledged freight forwarders, of both general and project cargo. Threeways today dominates the provision of various oil and gas logistical support to Tullow both in- and into field with professional, safe and high quality standards. Our relationship with Tullow has seen us develop core competences in QHSE and now operating our own fleet of 180+ trucks, cranes and specialized heavy lift equipment with Tullow and other projects regionally.
be no easy task. Uganda is a landlocked country roughly the size of England but over 1,000 kilometres from the sea; and outside a handful of urban centres, it has precious little infrastructure of any kind, with no road or rail network to speak of (certainly nothing robust enough to transport the thousands of tons of equipment needed to extract oil). “We estimate that the project will cost US$10 billion,” says Glover, “and clearly, it is far too big for us to want to tackle it all alone.” Consequently, Tullow has decided to invite two heavyweight partners to help develop Lake Albert. Agreement has been reached with Total and CNOOC, China’s largest producer of offshore oil and
gas. For a cash consideration of US$2.9 billion, the two partners will each receive one third of the project, with Tullow retaining the final third. The precise details of how best the three partners will work together are currently being worked out but one thing is known for certain. Until now, Uganda has had to import every drop of oil it needed, so a priority component of the plan will be to build a small scale refinery—at least big enough to satisfy the country’s energy needs. Whereas once it was thought that only a small quantity of oil was involved, it is now known that there are much larger reserves, opening up another development option of having a pipeline to the Indian Ocean. In the meantime, Tullow is taking its social responsibilities very seriously. “It is important to us,” says Glover, “that all Ugandans benefit from the finds that have been made. As well as providing direct employment opportunities, we are trying to encourage local entrepreneurs to become suppliers to the project. By creating a multiplier effect, oil revenue can develop skills and a more profound economic base for the country.” Tullow already employs 85 per cent local
The industry was astounded that we were able to bring the deepwater Jubilee field in Ghana on stream in just three years: an unprecedented achievement
workers; but filling the vast numbers that will eventually be needed isn’t going to be easy. The local population comprises fishermen who live much the same simple lifestyle as they have for centuries. The only difference is that overfishing has made a huge dent in fish stocks that is going to take some time to recover. But before fishermen can become roughnecks, they need a certain level of training, which Tullow is committed to providing. In a similar scenario, outside the
Tullow Oil Uganda
Murchison Falls National Park, parts of what ought to be equatorial forest are looking decidedly threadbare. “With no electricity or gas on hand,” says Glover, “wood accounts for the energy needs of 93 per cent of the population. We are working with local groups to replant trees—not just for bio-fuel, but as commercial crops.” Health also has its challenges—particularly from cholera, a water-bo rne disease that calls for better provision of drinking water. The one bright spot is the low incidence of HIV/Aids, thanks to the government recognising very early the potential damage of ignoring the problem. With a wish list as long as Tullow’s, everyone from the government to the local population
Kagga and Partners (KAGGA) KAGGA has 37 years’ experience in the provision of
consultancy
services
in
engineering
and
management in sectors including transportation, water, sanitation, hydropower, structures, solid waste, and urban & rural development. KAGGA has offices in Uganda, South Africa and South Sudan and has operated in more than 10 African countries. Currently, KAGGA is providing Tullow Oil with engineering consultancy services.
will be looking forward to the day when revenue starts flowing from the expected 200,000 barrels of oil per day the basin will produce. www.tullowoil.com BE
TULLOWOIL UGANDA
www.tullowoil.com