slide 1 finding petroleum –november 2010strategic hr network –september 2010 20 th january 2009...

Finding Petroleum –November 2010Strategic HR Network –September 2010 20th January 2009 Slide 1

Gordon A Headley Chief HR Officer

November 2010

Our approachto building highly effective teams

Finding Petroleum –November 2010Strategic HR Network –September 2010

What will be covered……..

• Tullow Oil plc –some context for the presentation?

• Finding the right people

• Creating the “team”

• Driving team performance

• Conclusions


Tullow Oil plc –a brief context

• What does Tullow Oil do?

•How has the business developed

• Where do we operate

•How do we perform

-Our business footprint……….

Finding Petroleum –November 2010

A Tullow History - 1986

Tullow Market Cap -Minimal

Tullow Employees 9

Tullow Market Cap -Minimal

Tullow Employees 9

Key Events around the world

- Nuclear Disaster at Chernobyl

- Space Shuttle Challenger explodes in mid Air

- Argentina wins the world cup in Mexico


- Nuclear Disaster at Chernobyl

- Space Shuttle Challenger explodes in mid Air

- Argentina wins the world cup in Mexico

Key Tullow Events-Tullow formed in Ireland-Initial capital raised from family and friends of Aidan Heavey-1987 Rights issue raised £2.65m-1988 Placing (at 23p) raises £4.5m-1989 Placing (at 16p) raised £4.5m

Key Tullow Events-Tullow formed in Ireland-Initial capital raised from family and friends of Aidan Heavey-1987 Rights issue raised £2.65m-1988 Placing (at 23p) raises £4.5m-1989 Placing (at 16p) raised £4.5m


A Tullow History - 2000

Tullow Market Cap £233m

Tullow Employees 99

Tullow Market Cap £233m

Tullow Employees 99


- George W Bush becomes US president- North and South Korean Defence ministers meet for the first time since 1946


- George W Bush becomes US president- North and South Korean Defence ministers meet for the first time since 1946

Key Tullow Events-UKCS assets acquired from BP Amoco for £201m-Headquarters moves to the UK and Fully Listed Holding Company-Placing and Open Offer at (57.5p) raises £60m-First borrowing base facility

Key Tullow Events-UKCS assets acquired from BP Amoco for £201m-Headquarters moves to the UK and Fully Listed Holding Company-Placing and Open Offer at (57.5p) raises £60m-First borrowing base facility


Tullow Oil History – Present Day

Tullow Market Cap £11 bn

Tullow Employees 1250

Approx FTSE 30

Tullow Market Cap £11 bn

Tullow Employees 1250

Approx FTSE 30

Active in 22 Countries with85 Licences

Exploration success rate 87% in 2009

Active in 22 Countries with85 Licences

Exploration success rate 87% in 2009


Tullow share price performance vs FTSE 100 (5 year)

Source: Datastream as of 2 September 10

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

01-Sep-05 01-Mar-06 01-Sep-06 01-Mar-07 01-Sep-07 01-Mar-08 01-Sep-08 01-Mar-09 01-Sep-09 01-Mar-10 01-Sep-10

Sha

re P

rice

(GB

p)

Tullow Oil FTSE 100 (rebased to Tullow share price)

21 March: Positive Waraga-l drilling report

18 Jun: Significant oil discovery off shore Ghana

31 Jan: Sale of M’Bundi to Korea National oil Company for $435m

25 Feb: Oil discovery in Odum-l well

12 Mar: Strong final

results

1 Dec: Sale of 51.7% in Hewett/Bacton interests to Eni

15 Jul: Jubilee field approved

16 & 17 Sep: Venus & Ngassa Oil discoveries

8 Dec: Successful appraisal well drilled on Odum field and 25% farm out of Guyane Maritime Permit

16 Dec successful drill of Budffalo-1 well

27 Jun: Completion of $1.35bn acquisition from Heritage Oil & Gas

Tullow Oil share price performance over the past 5 years

6 May: Oil discovery in Mahogany well


Finding the right people

• The market

• Know what you are looking for !

• Capability or “Chemistry”

• Integrating the new blood

-Performance is all about the people……….


Where in the world……..

• Shrinking workforce

• Great “Crew Change” –use of the “silver surfers”

• How many has Tullow found –why have they left the “majors”

• Some “laws of attraction”

• Mobility and choice…. Its harder to fill positions in remote locations

• With the scarcity of resource –companies must show even more value and appreciation for the talent they have –and develop it even more.

• Localisation –the common right and a real contractual expectation


Where in the world……..some views…

• “By 2010, 20% of people in the Oil Industry will have less than 5 yrs experience”

Hay Consulting (2008)

• “The rapid growth of NOC’s has outstripped the supply in many parts of the world”

Maxwell Drummond /KPMG (2010)

• “Good talent is being very well retained with retention bonuses and share schemes that seriously tie people in”

Curzon Partnership (2010)

• “The average age of a technical professional in our industry is 50. It is expected that by 2020 about 80% of our people are not presently working in it”

University of Houston (2007)


What are you really looking for……..


What are you looking for……..

or….Perhaps some independent “thinking”……….. Or maturity…..

Yours – for $2,500 / day

Much cheaper than “rambo”Almost extinct but very grateful..


Chemistry or Capability ?

Both !

Initial interviews assess capability

The final selection is then based on chemistry

i.e. Who is the best fit with Tullow Values and style


Integrating the “new blood”

We call this the “sheep dip” or Induction


Creating the team

Getting the leadership in place

Why is this so important ?


Join the family……..


What is Culture?

• The way people talk around here

• What you say about your boss / company

• How people act and behave in their job

• The systems and processes in place

• Myths and Legends


Tullow Vision

Tullow aims to be the leading global independent exploration & production company

Together, we will:

•Build on our excellent track record by being the best in all that we do

•Continue to grow value over the long term as partner, operator and employer of choice

•Conduct our operations with respect for the people & environments in which we work


Living Our Values

Focus on ResultsStrong sense of focus on results, driving tasks and projects through to completion with the flexibility to adapt to changing situations

Focus on Results

Commitment to Tullow and Each Other

Integrity and Respect

Entrepreneurial

Spirit and Initiative

Commitment to Tullow and Each Other Work in a collaborative manner, empowering ourselves and others, whilst taking responsibility for our actions

Integrity and Respect Work with integrity and with respect for people, and for the environments in which we operate

Entrepreneurial Spirit and Initiative Maintain our entrepreneurial and creative spirit as we challenge ourselves to develop the business and ourselves

So "d

evelo

p a

nd

deliv

er" S

o "ta

ke re

sponsib

ility"

So "w

ork

tog

eth

er"

So "lo

ok fo

r op

portu

nitie

s"


Sources of information and their impact

7%

61%32%

MediaInfrastructureLeaders Source: Towers Watson


Communicating with your leaders

According to the “Edelman Trust Barometer” in 2010

•Employee’s credibility as ambassadors is rated above the CEO’s

•Employee focus, alignment and engagement are all driven by leadersCommunication.

Leaders are therefore most influential means of performance improvement-when they are “authentic” and culturally aware

It makes sense therefore to communicate with them highly effectively


• Coaching –Helping them communicate better –provide the intelligence and why

• Management Conferences

• Functional Specialist Conferences (Geoscientists / Engineers / Finance etc)

• Dinner / Lunch (for leaders and staff) with the plc Board

Fill the information gap !

Communicating with our leaders within Tullow


” The more elaborate our means of communication,the less we communicate."

Joseph Priestley


Driving Performance

• Why is “engagement” so vital to achieving a high Performing Team


What is engagement ?

• It is a combination of commitment to the organisation and its values, plus a willingness to help out colleagues. It’s more than job satisfaction and is something we choose to do. It is discretionary and cannot be ‘required’ as part of the job.

25


Why does it matter…… ?

• When we are engaged, we go above and beyond the normal and exert extra effort and initiative to contribute to business success.

• Engagement comes from being valued and involved, having opportunities to be heard, feeling well-informed about what’s happening in the organisation and believing that your manager is committed to you and your organisation.

26


Setting up the right environment


Sell them the dream….. Or….


A different reality…..?


F. My company: reputation


High engagement –the key to top performance

High levels

of Employee

Engagement

=

Higher profitability

Better EHS performance

Lower costs

More Innovations

Better creativity

Low staff turnover

Better place to work

FACT !


So What Engages People

• Include them• Share The Vision• Invite them to take an active part• Appreciate them (and show it!)• Listen to them• Learn from them (acting on the listening)• Be Authentic• Trust them


The Tullow “people” journey………

Organic Growth

Opportunities

Training

Experiences

Delivering

Build Strengths

Individual&

Team

UniqueEnvironment

SustainingEnvironment

GrowthEnvironment

DevelopRetainAttract

Employer Brand

Perceived Values

CSR records

Business Profile

Myth & Legend

Reputation

Employee Brand

Experienced Values

Social Groups

Package design

Feel Valued

Contribution

200 apply -1 position

Emp. T/over< 5%/annum

“LearningOrganisation”


" It is better to have one person working with you,than three people working for you."

Dwight D. Eisenhower


Understanding and respecting local values/needs

• Applying the group frameworks to local needs

• Listen to your staff and ask them about the benefit structures

• Understanding the local culture….what works and what doesn’t

• Understanding the community

• Hot cooked meals

• Funeral costs


Status…..


• Consistency

• Share Options Worldwide

Salary

Bonus

Pension

Life Assurance

Personal Accident Assurance

Long Term Disability Assurance

Private Healthcare

Gym Membership

Other Benefits**

Share Options*

Total Reward that works…..


Rewarding Performance

• Create a culture of recognition by creating tangible links between business and personal performance and reward

• Ensure that our packages are competitive in all the locations where we operate

• Ensure that our senior managers are competitively rewarded for the roles that they deliver

• Ensure that we are managing our contractor staff consistently and appropriately


•Most staff don’t understand what they have, so communicate what you give and then communicate again

•Engage people at all times –in all locations

•Use staff surveys, then listen and act

•Constantly review competition and benchmark what works for employees and the company

•Provide rewarding opportunities for growth.

It’s not just about money……

Rewarding Performance


People Development –the planting analogy


Abundant growth –healthy development


Conclusions

• Employ the best “fit” and mix for your organisation

•Provide good Leadership AND value the contributionOf all your employees

•Engagement is best achieved through effective and honest “communication”

•Ensure robust and effective mechanisms to drive, measure and reward performance

•Develop a strong cultural identity, with integrity, and ensure that the “values” are real

“Walk the Talk”


Thank you for your kind attention

Any Questions

???

slide 1 finding petroleum –november 2010strategic hr network –september 2010 20 th january 2009...

Documents

tullow history

tullow oil plc

tullow employees99 key

finding petroleum

mexico key events

borrowing base facility

world cup

world nuclear disaster