PROJECT

Projects

Environmental & Social Review Summary

Project Number

27918

Company Name

TULLOW OIL PLC

Date ESRS Disclosed

Jan 16, 2009

Country

Ghana

Region

Africa

Last Updated Date

Jun 3, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Feb 19, 2009
Signed : May 29, 2009
Invested : Jun 12, 2009

Sector

Oil and Gas Production (Includes Development)

Industry

Metals and Mining

Department

Gbl Infrastructure & Natural Resources

Project Description

Tullow is an Africa-focused company with a large majority of its production as well as reserves in Africa. Its other operations include producing assets in the United Kingdom (North Sea), Bangladesh, and Pakistan. In 2007, Tullow and its partners discovered the Jubilee oil field offshore of Ghana. The Project involves the first phase of development of the Jubilee field. It involves the drilling of 17 wells (nine production wells, five water injection wells, and three gas injection wells), sub-sea production installations and leasing of a floating production, storage and offloading (“FPSO”) vessel for processing, storage and handling of crude. Initial estimated gross production capacity is 120,000 barrels of oil per day and will increase as the field is further developed and more reserves are proven. The total project cost of the Project is estimated at approximately $3.2 billion with Tullow’s share of costs estimated at $1.2 billion, with the remaining balance to be covered by Tullow’s other partners in the project. IFC proposes to provide loans of up to $115 million in parallel with a corporate debt facility provided by commercial banks. Tullow plans to secure additional funding through portfolio rationalization and/or from other corporate sources.

Overview of IFC's Scope of Review

IFC proposes to provide a debt facility (the “IFC Loans”) to Tullow Oil plc (“Tullow” or the “Company”) and a number of its subsidiaries. IFC Loans are primarily targeted toward the capital expenditures for the development of the Ghana Jubilee Field Phase 1 (the “Project”). The rest of the IFC Loans are expected to go to Tullow projects. The Project and any other projects financed by the IFC Loans are considered the “Applicable Projects” as IFC’s requirements will be applied to them. IFC’s review, therefore, consisted of two main components: - Tullow’s corporate-wide environmental, health and safety and social (EHSS) standards and practices, including a review of corporate-wide procedures and documents relevant to operated and non-operated assets to be financed by the IFC Loans, and - technical, environmental and social information submitted by the company on Ghana Jubilee Field Phase 1 Development. The review of Tullow’s corporate-wide EHSS standards and practices included discussions with the Company on its management system and the review of several documents and information, including, but not limited to, the following: - Environmental Review of Tullow Oil, November 2008, Rudall Blanchard Associates, prepared for another prospective lender; - Integrated Management System (IMS) and EHS organization structure (corporate and country levels); - Environmental Impact Assessment (EIA) Recommended Practice; - Environmental, Health and Safety (EHS) Policy; - Corporate Social Responsibility (CSR) Policy and CRS Reports; - EIA Scoping Tool; - Risk Management Guideline; - Occupational health and safety (OHS) data, accident and incident investigation and reporting procedures; - Human Resources (HR) Strategy and HR data; - Employee Handbooks and relevant Grievance Procedure; - EHS Contractor Evaluation Procedure; - Internal and external EHS audit documents; - ISO 14001 certification documents; and - Example EIAs and environmental management plans (EMPs) developed for projects in Africa and Asia. The review of Ghana Jubilee Field development project included discussions with the company, which is the Unit Operator for this field, its partner, Kosmos Energy Ghana HC (“Kosmos”), and Kosmos’s consultants, in addition to the review of the following Tullow’s documents: - Terms of Reference for Jubilee Field Environmental Impact Statement (‘EIS”); - Scope of Work for the Environmental Baseline Survey (“EBS”); - Offshore Drilling Waste Management Plan (“WMP”); - Permit to Work System; - Drilling Emergency Response Plan (“ERP”); - Oil Spill Contingency Plan (“OSCP”); - Tullow Oil and Dolphin Drilling EHS Bridging Document; - Draft Chemical Handling (COSHH) Procedure; - Change Management Procedure - Jubilee Phase 1 Project; and - Draft Public Consultation and Disclosure Plan (“PCDP”). It is noted that IFC’s due diligence also benefited from relevant information on the project that was obtained from Kosmos during the appraisal of IFC’s potential investment in the Jubilee field through that company. IFC’s Environmental and Social Review Summary (“ESRS”) related to the proposed investment in Kosmos included, among others, the review of Environmental and Social Evaluation Report for Lenders (“ESER”). The ESRS for the proposed investment in Kosmos and supporting documentation was publicly disclosed on December 22, 2008 and available at: http://www.ifc.org/ifcext/spiwebsite1.nsf/2bc34f011b50ff6e85256a550073ff1c/16d0ffb7aa697a28852575270065fed8?opendocument IFC’s review also included a review of other information relevant to the presence in the Project area of endangered marine species, such as http://seamap.env.duke.edu/species *** This ESRS is for IFC's lending purposes with respect to Tullow’s involvement in the project and does not replace/encompass Ghana’s Environmental Protection Agency local processes. A separate Environmental and Social Impact Assessment will be conducted and disclosed by Tullow for the Project. ***

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Client Documentation

File Name Actions
Link to Jubile Field EIS documents online.pdf
Tullow ESAP Revision 2.pdf