Tullow Oil Case Study: Developing a social investment strategy that contributes to core business objectives
Tullow Oil plc is an independent oil and gas exploration and production company focused on Africa and South America. The company has interests in over 70 exploration and production licences across 15 countries.
Tullow is committed to delivering sustainability in all the communities where it operates. The company continually wants to ensure that its existing and future social investment portfolio were closely aligned and contributed to its core business objectives.
Kina was engaged to develop criteria and create a robust process that would allow Tullow Oil to:
- Select worthwhile social investment initiatives that had both sustainable social impact and contributed in a meaningful way to its core business objectives, and
- Define and measure the business value of those social investment initiatives using quantifiable metrics.
Kina worked with Tullow Oil’s social investment team to:
- Develop a process for determining the company’s core business value drivers, internal and external risks and opportunities that impact those drivers, and the business outcomes from using social investment to manage those risks and opportunities, and
- Based on the above, develop a set of SMART criteria to measure both the societal benefits of Tullow Oil’s initiatives and their contribution to core business objectives.
Tullow now has a social investment strategy focused on STEM (science, technology, engineering and mathematics), education, local business development and shared infrastructure and logistics. Kina created a robust selection methodology that Tullow Oil uses to select appropriate social investment projects within these areas, as well as monitor and audit those projects for their effectiveness and business value.
“Tullow Oil reviewed its overall approach to social investment and Kina Advisory played a pivotal role in helping us define the value drivers for each of our businesses and the risks to success. They brought a much-needed business-focused approach to the exercise and we were extremely impressed by the quality and comprehensiveness of their work. We now have a short list of criteria which have been endorsed by our senior management and will be considered for all future social investment.
As a result of the work by Kina Advisory, Tullow Oil aims to transition its social investment portfolio to more business aligned projects focused on local education and training, shared infrastructure and logistics, and enhancing the strength of the local economies in our host countries.”
Sandy Stash, Non-Executive Director, Diversified Gas and Oil Co and Former Executive Vice President – Safety, Operations, Engineering and External Affairs
Tullow Oil plc