FUTURE OF WORK: TULLOW OIL’SJOURNEY

Benard Ambasa

16 Oct. 2019

CONTENTS

3

Introduction to Upstream O&G life cycle

Current situation of the industry

Tullow’s anticipation of the Future of Work

Tullow’s Strategy in addressing Future of

work

Conclusion

EARLY OIL PILOT SCHEME

INTRODUCTION

Kenya started exploration in 1951

Tullow started operations in Kenya in 2011

O&G value chain: - Exploration; Development;

Production

Midstream: Gathering crude & pipeline

Downstream: crude storage, transport & retail

Oil & Gas production lasts between 20 – 30 years

COLLAPSE OF OIL PRICES

Oil prices collapsed in 2015 and have been low

since then. Tullow started operations in Kenya

when crude was circa $100pb. In 2015 crude

came down to circa $41pb, 2016 it even dropped

further down to $36pb. Many O&G companies

stopped major projects and almost closed shop.

That notwithstanding, O&G companies are a

perfect example of VUCA (Volatile; Uncertain;

Complex; Ambiguous)

FUTURE OF OIL & GAS INDUSTRY

Mckinsey & Ban predict a peak of oil demand

near 2030 and then a rapid decline in demand for

oil

With strong push towards cleaner fuel, the state

of natural gas in the primary energy mix will be

significant at least for the next 3-4 decades

The future of O&G is definitely good for the next

3 decades

WHAT THE FUTURE OF WORK MEANS TO

TULLOW: POTENTIAL DISRUPTIONS

Profound technological advances, automation; a

lot of human-machine interaction

Exponential data generation requiring advanced

analytics & machine learning tools

Data driven decision making

Contigent workforce & Global mindset

Digital revolution: digitizing both technical and

nontechnical work, automating 60 to 90 percent

of routine manual activity.

Agility, dynamism & flexibility in employment

structures

TULLOW’S PREPARATION

Tullow has embarked on an Agile

Transformation Journey (holistic change that

creates value for the enterprise and prepares us

for future work dynamics

1. Reset of the organization; Structure; Vison –

2030; Strategy; Values review

2. MSP – Major Simplification Project

3. Creation of ACT: Agility; Capability Technology

Team to lead our transformation projects

4. Smart working program & Resilience training

5. Creating a digital organization: TeD

TULLOW’S PREPARATION

Reset of the Tullow’s philosophical architecture

Vison – 2030 & Tullow Strategy to achieve it

Structure Reset: flatter and more devolved

organization for ease of decision making.

ORGANIZATION AGILITY AGENDA

Organizational agility - the ability to adapt

quickly to changing conditions.

Two distinct concepts: dynamic capabilities, such

as the ability to rapidly form cross-functional

teams and reprioritize tasks to adapt quickly,

and a stable backbone of core value-adding

processes and cultural norms that provide

resilience, reliability, and relentless efficiency.

Adoption of Agile Way of Working & Creating a

more agile workplace

FlexibilityUsing skills and

experience more flexibly

to tackle business issues,

and to broaden access to

development opportunities

AGILEWORKINGCONCEPT &

IMPLEMENTATION

WHAT IS IT ?

Movement Facilitating

movement across the

organisation to utilise

skills more effectively as

well as to broaden skills

Balance Ensuring a

balance between

business

delivery and individual

skills growth and

development

HOW ARE WE DOING IT?

WHAT CAN I DO ? ARE THER E SOME EXAMPLES?

Project Leap – Agile Working

What is

Agile

about?

How do

I apply

this?I get that

now, so how

can I

address the

skills gaps

Projects:

• LeapProject

• Araku & NamibiaWells

• Pulse Survey - FocusGroups

• SCM StrategyProjects

VolunteerOpportunities

People Forum for

cross functional

moves

SpecialProjects

Using Role Agreements at

the start of a time bound

role to define both business

and development objectives

Bringing Agile Working to life

through a number of Agile Pilots to

help teams deliver Business Goals

more efficiently by working more

agilely

People Forum

It’s about how you

organise work to

make the best use

of the skills in the

organisation?

Look at the

tasks/ problems

your team is

trying to

address

Then define skills

sets that you need

then assess the

skills you already

have and where to

source the skills you

are missing

Try using

volunteering,

special projects

and the people

forum to upskill

your team

You can also use

external

assignments.

Also consider

offering up

opportunities to

upskill

individuals from

other teams

TULLOW’S PREPARATION CONTD To be a preferred employer offering all staff

opportunities to upskill in the latest oil & gas digital

technologies & enable smart working

Smart working program (Flexi working)

Smart location

Smart Time out

Smart hours

Creation of a new working environment & culture: usage of

Yammer on Realtime communication across Tullow Group

TULLOW VALUE’S REVIEW

Values that are aligned to the achievement of our

Vision 2030

STRATEGY REVIEW

TED INTRODUCTION: VISION OF

TULLOW’S DITIGTAL FUTURE

To be recognised as a leader in digital adoption within oil &

gas targeting the following outcomes:

1. Improvement of shareholder return via adoption of leading

edge digital tools for business systems efficiency

2. Improvement of JV partner returns through lower-cost, lower-

risk operations in Africa, for example predictive

maintenance analytics & use of digital twin models

3. To lead in the use of digital technology in pursuit of carbon

footprint reduction

AGILITY, CAPABILITY &

TECHNOLOGY - ACT

Creation of ACT: Agility; Capability Technology

Team to lead our transformation projects

Focus of this team is on agile ways of working,

application of advanced analytics & machine

learning to Tullow business & what the future of

O&G looks like in Tullow

Collate agile transformation ideas from all parts

of the business

ACT is staffed by agile teams

EMPLOYEE RESILIENCE TRAINING

• Recognition of importance of wellbeing &

resilience and taking necessary preventative

action.

• The wellbeing and resilience of employees is

central to ensuring that any organisation change

(ie implementation of new processes) is done

mindfully as research shows it can often be

overlooked in the management of change.

CONTIGENT WORKFORCE

Redefinition of what is core: what we need control

of inhouse vs what to mange via partnerships &

supply chain relationships

To digitize this Fieldglass system has been rolled

out to manage expected contingent workforce

Head of People & Organization role; core focus

will be to fast-track ideas and thinking in support

of our aspiration to be a more progressive and

agile organisation, helping Tullow to deliver

innovative approaches to people development and

organisation strategies. Vast experience in AI.

CONCLUSION

To effectively compete in the future, Tullow will

need to fully transform into a fully digital that

increasingly compete on talent. This requires not

only radically extending both brain and brawn

through new digital work practices, but also just as

importantly, it demands a very different workforce,

as well as a complete rethink of the work

experience itself. That is the journey we have

deliberately started though we are not there yet

QUESTION AND ANSWER

SESSION