EMBRACING INNOVATION

KOSMOS ENERGY 2017 CORPORATE  RESPONSIBILITY REPORT 2 Letter to Stakeholders 19 Project Lifecycle and 36 Morocco Operations Map 4  Company Overview/ 38 São Tomé and Príncipe Financial Highlights 20 Côte d’Ivoire 42 Senegal 5 Business Principles 22 Equatorial Guinea in Action 46 Suriname - Responsibilities to Stakeholders 24 Ghana - Ethical Conduct 50 Western Sahara - Our Workplaces 29 Special Feature - Kosmos and the Environment Kosmos Innovation Center 54 IPIECA/API/IOGP - Kosmos in Society Content Index - Commercial Responsibilities 32 Mauritania 57 2017 Performance Data

ABOUT KOSMOS ENERGY

Kosmos is a well-capitalized, pure play deepwater oil and gas company with growing production, a pipeline of development opportunities and a balanced exploration portfolio along the Atlantic Margins. Our assets include growing production offshore Ghana and Equatorial Guinea, a competitively positioned Tortue gas project in Mauritania and Senegal and a sustainable exploration program balanced between proven basins (Equatorial Guinea), emerging basins (Mauritania, Senegal and Suriname) and frontier basins (Côte d’Ivoire and São Tomé and Príncipe).

As an ethical and transparent company, Kosmos is committed to doing things the right way. Our Business Principles articulate the company’s commitment to transparency, ethics, human rights, safety, and the environment. Kosmos Energy is listed on the New York Stock Exchange and London Stock Exchange, traded under the ticker symbol KOS. For additional information, visit our website www.kosmosenergy.com. Whether it’s through incremental improvement or fundamentally challenging conventional wisdom, Kosmos Energy embraces creativity and maintains an open, responsive, and entrepreneurial spirit.

For host countries, our relentless pursuit of innovation focuses on being a long-term partner that aims to help them build a brighter future. We seek to work with our host nations to create healthy and diverse economies. 2

FELLOW STAKEHOLDERS, At Kosmos Energy, we are tourism. We work from a shared agenda with our partners in government and the wider restless to improve. community. In order to continue to grow and reach our In Ghana, the KIC targets innovation in potential as a company, we continuously seek agriculture, the country’s most important new ideas and innovative solutions that will sector and largest employer. Kosmos runs improve our business and how we engage the KIC program itself using local employees with our host countries. Whether it’s through and experts. The result is a distinctive focus incremental improvement or fundamentally on commercial solutions informed by local challenging conventional wisdom, Kosmos knowledge. embraces creativity and maintains an open, Since its inception in 2016, the Kosmos responsive and entrepreneurial spirit. Innovation Center in Ghana has: The success of this approach can be seen • Trained and mentored 270 young quite clearly in our “below ground” technical entrepreneurs work. Our geologists and geophysicists have opened basins in Ghana, Mauritania and • Helped form and fund 8 start-up businesses Senegal – places where it took new ideas to who have gone on to access $850,000 in find commercial hydrocarbons when others additional capital had failed. It can also be seen in the way our • Accelerated the growth of 9 existing engineers devised the innovative nearshore small businesses concept we are using to develop the Tortue • Stimulated the national dialogue on the gas resource and accelerate the delivery of importance of agriculture, and economic benefits to Mauritania and Senegal. • Enhanced the sector’s appeal to In our “above ground” engagement, our pursuit young people. of better ways of working centers on being a long-term partner that is aiming to help host countries build a brighter future. We know our The KIC has proved future success is fully connected to theirs. As so successful in a result, we seek to work with our host nations Ghana that we have to create healthy and diverse economies. plans to adapt the This differentiated approach is demonstrated model and expand its through the success of the Kosmos Innovation footprint into some Center (KIC) in Ghana, which is our way of of our other host countries. investing in the country’s future beyond Kosmos has been a oil and gas. formal supporter of the LEADING ON United Nations Global TRANSPARENCY KOSMOS INNOVATION CENTER Compact since 2013. The KIC invests in young entrepreneurs and The UN Global Compact Our embrace of is a voluntary initiative small businesses who have big ideas and innovation has also for businesses that are want to see their country grow. By marrying helped to shape committed to aligning our approach to entrepreneurship, innovation, and technology, their operations and transparency. Over we are empowering people to turn their strategies with universal the years, we have ideas into viable, self-sustaining businesses. principles in the areas The KIC offers a customized mix of business of human rights, labor, set a standard for training, mentorship, and seed funding. A environment, and anti- transparent behavior sector focus is chosen based on a country’s corruption, and take by publishing our actions that advance needs, and challenges are looked at through host government societal goals. a business lens. The goal of the KIC is to drive contracts, along with innovation where it is needed most — whether our payments to in agriculture or healthcare, education or governments. 3

Although this practice separates us from challenge of making some oil and gas companies, we continue sure development to see demand from stakeholders who want proceeds in a to better understand how the oil and gas sustainable manner industry works. The transparency challenge that benefits local includes not just providing access to data, people. In Mauritania but also improving understanding of it, and and Senegal, Kosmos ensuring stakeholders have the knowledge and its partner are needed to use it constructively, and hold working hard to governments and industry to account. In maximize the use response, we have stepped up our efforts of local companies to engage civil society and the media, and suppliers in the hosting workshops across our portfolio of construction of the countries – in Ghana, Mauritania, Morocco, ANDREW (ANDY) G. INGLIS project’s nearshore Chairman and Senegal, and Suriname. This has proved Chief Executive Officer infrastructure. effective in promoting transparency, building relationships, and deepening trust. Staying True to Our Business Principles As we enter more countries and work with EMBRACING INNOVATION new partners, we will need to manage our With new production assets in our portfolio, above ground activities with the same level of several new countries of operation, and an diligence. Our Business Principles remain an active exploration program underway, we important touchstone. will need to channel our innovative and entrepreneurial spirit to meet both new and FOCUSED ON THE FUTURE familiar challenges: We achieved a great deal in 2017, but there is Continuous Improvement in Safety much more for us to do. Every member of the Kosmos team recognizes that we can never be In 2017, we met our safety target with a total satisfied. We must always strive to find new and recordable injury rate of 0.64 and marked our better ways of working that deliver benefits to fifth straight year without a lost time incident. our host communities. We are proud of this record and will continue to stay focused on protecting our people and contractors while driving toward an incident and injury free workplace. Protecting the Environment Andrew G. Inglis We have been successful at working with local and international stakeholders to conduct our Chairman and Chief Executive Officer seismic operations in a manner that protects marine life, most recently whales and sea turtles offshore São Tomé and Príncipe. As we acquire more seismic data in new areas, and mature prospects for potential drilling, we will need to ensure that we continue working collaboratively to safeguard marine biodiversity. Delivering Economic Benefit We believe that hydrocarbon development can be an engine of economic opportunity. With the Tortue LNG gas project moving toward a final investment decision, the partnership faces the 4

COMPANY OVERVIEW

FINANCIAL HIGHLIGHTS

Year Ended (in thousands, except volume data) 2017 2016 2015

Revenues and other income $636,836 $385,355 $471,556

Net income (loss) (222,792) (283,780) (69,836)

Net cash provided by operating activities 236,617 52,077 440,779

EBITDAX 540,117 405,300 500,064

Capital expenditures 57,432 644,510 777,204

Total Assets 3,192,603 3,341,465 3,203,050

Total long-term debt 1,282,797 1,321,874 860,878

Total shareholders’ equity 897,112 1,081,199 1,325,513

Production (thousand barrels of oil per day) 29.6 19.21 23.4

Sales volumes (million barrels)2 11.2 6.8 8.5

Total proved reserves (million barrels of oil equivalent) 3 110 77 76

Crude oil (million barrels) 3 100 74 74

Natural gas (billion cubic feet) 3 61 15 14

1 1.3 million barrels of lost production due to mechanical issues with the Jubilee FPSO turret bearing were paid to the company under its Loss of Production Insurance policy in 2016.

2 Includes our share of sales volumes from our Equatorial Guinea equity method investment. 3 Includes our share of reserves from our Equatorial Guinea equity method investment.

0 50 100 150 200 250 300

TOTAL EMPLOYEES EMPLOYEE DISTRIBUTION

282 United States: 70%

2017 199 Ghana: 15% Mauritania: 6% 267 São Tomé and Príncipe: 3% Senegal: 3%

2016 192 Morocco: 2% Total Employees Suriname: 1% U.S. Employees 5

THE KOSMOS Kosmos Energy was founded with the goal of creating value for all of our stakeholders: investors, ENERGY employees, and the governments and citizens of BUSINESS our host countries. We recognize that creating steady, long-term returns can only be achieved by PRINCIPLES advancing the societies in which we work.

In 2013, we adopted the Kosmos Energy Business Principles to formalize this commitment by articulating the values that have always guided our actions. The Business Principles are also informed by what our stakeholders have told us about their expectations of a responsible company.

We define how we conduct our business and the standards to which we hold ourselves accountable through the Business Principles. The Business Principles are supported by more detailed policies, procedures, and management systems which are referenced in this report and on our website.

The Business Principles reflect our values across six areas: Responsibilities to Stakeholders, Ethical Conduct, Our Workplaces, the Environment, Society, and Commercial Relationships. Although the Business Principles are our standard, the actions we take to adhere to them change as we evolve as a company. For each Principle, we have included a case study to demonstrate how we translated the words into action in 2017.

BUSINESS 6 PRINCIPLE

respects human rights. Investing in community relationships ahead 1 of drilling operations is a key part Responsibilities to of our approach. Our Stakeholder Engagement and Community Stakeholders Development Policy explains the standards to which we hold ourselves accountable when interacting with communities. We Strong and supportive partnerships promotes entrepreneurial thinking, have published this policy on our underpin our business and create facilitates teamwork, and embraces website at: www.kosmosenergy. value. Our stakeholders are ethical behavior. Directors, officers, com/responsibility. Two years interested or potentially affected and employees are required to ago, we reviewed our global social parties, including shareholders, comply with all aspects of the investment programs to better employees, governments, Business Principles and our Code of understand their impacts and communities, business partners Conduct in their work activities and align their focus areas with our and suppliers, and civil society. in representing the company. business. As a result of the review, We believe we have unique we enhanced program design and Host Governments We seek to corporate responsibilities with project selection criteria to ensure collaborate with host governments respect to each of these groups: our efforts are sustainable and and contribute to national complementary with local and Shareholders We aim to create development. Our goal with host national development priorities. attractive returns and manage our governments is to develop a shared Our new approach targets the business risks. Kosmos Energy’s agenda based on mutual trust and following areas: board of directors focuses on respect. We begin engaging with building a successful, long-term host governments at the time of Entrepreneurship and Innovation future for the company and ensures licensing to ensure alignment with Linking to the entrepreneurial spirit we maintain good corporate national priorities and industry and can-do attitude that is at the governance. In 2017, the board was needs. Kosmos aims to become a heart of Kosmos’ culture, the same comprised of 10 members, including partner of choice. We are open about spirit that led to the company’s eight independent directors. The our business dealings with host founding. board of directors had six standing governments because transparency Oceans and Coasts Linking to committees: audit; nominating and builds trust and accountability. The where Kosmos conducts its corporate governance; compensation; “Performance Data” on page 59 of operations and where relations exploration assurance; external affairs this report lists the payments we with fishing communities are vital and political risk; and health, safety made to governments in 2017. to protection of our license to and environment. Communities We believe in operate. Employees We aim to provide a engaging local communities in Science, Technology, Engineering stimulating and rewarding work a manner that creates economic and Math (STEM) Education environment through a culture that and social opportunity and Linking to the deep expertise of our geologists, geophysicists, and engineers who give Kosmos its technical and operational edge. By investing in STEM education, we will help to create the next generation of technical experts.

Business Partners and Suppliers We allocate contracts through a fair and transparent process, and adhere to our Business Principles in our operations. We aim to work with suppliers, both local and multi-national, who share our values and standards. We are committed to maintaining effective systems and procedures to prevent inhumane treatment and forced labor from taking place within A start-up team discusses strategy as part of the business incubator program of the Kosmos our operations or our supply chain. Innovation Center in Ghana. Our employees and contractors are 7

prohibited from engaging in improper dialogue with civil society about Kosmos also engages in public policy payments, misusing confidential the challenges inherent in exploring discussions occurring globally on information to indulge in, or assist for oil and gas. Sometimes we will energy and corporate responsibility. others to participate in, insider disagree, but we believe listening Kosmos has been a formal supporter trading. We expect our employees and and engaging in debate deepens our of the United Nations Global contractors to respect confidential understanding of the issues. We seek Compact since 2013. The UN Global and proprietary information and non-governmental organizations Compact is a voluntary initiative we similarly work to protect the (NGOs) as valued partners in our for businesses that are committed intellectual property of others. social investment programs. Our to aligning their operations and relationships with civil society in the strategies with universal principles Civil Society We will engage countries and communities where in the areas of human rights, labor, with and listen to civil society, we work create mutual value and are environment, and anti-corruption, recognizing the role civil society central to our success. and take actions that advance plays in holding governments and societal goals. companies accountable. We are always open to having meaningful

BUSINESS PRINCIPLE 1 Science to face this challenge head-on by helping Dallas school teachers develop their ability to train and inspire IN ACTION: young people in the STEM disciplines. CAPACITY BUILDING IN The Kosmos Energy STEM Teacher Institute is an STEM EDUCATION AND innovative program offered through the Perot Museum to improve the quality of formal science instruction for SCIENTIFIC INNOVATION participating kindergarten through 12th grade teachers, and increase interest and engagement among their Each day at Kosmos, we use the fundamentals of science, students in STEM subjects. Through this program, teachers technology, engineering, and math (STEM) to do our jobs. enjoy professional development opportunities and access We interpret seismic data to identify potential oil and gas to the Perot Museum’s network of educators and vast deposits. We plan deepwater drilling operations targeting resources. prospects located more than three miles below the ocean The program, which is now in its third year, involves a floor. We study the rocks we bring to the surface to better formal application process for teachers to ensure they are understand where oil and gas might be found. Being at invested and committed. Chosen teachers from across the forefront of science and technology is how we play our the Dallas-Fort Worth area attend a week-long Summer part in helping to meet the world’s energy needs and how Academy, where they are grouped according to their we create value for our shareholders. level of comfort and expertise in sciences – pre-service The shortage of people with training in the STEM teachers, novice teachers, advanced teachers, and mentor disciplines poses a potential long-term threat to many teachers – rather than by grade level. businesses, including our own. In 2015, Kosmos announced Instruction continues through the academic year with a partnership with the Perot Museum of Nature and five professional development sessions held on weekends twice a month, for which they receive continuing education credits required for teachers by the Texas Education Agency. The teachers are also mentored throughout the academic year. Kosmos employees – engineers, geologists, and geophysicists – have served as guest speakers on science- related topics, including the practical application of scientific principles in business. This has been a successful way to simultaneously build capacity of local educators while providing a way for our employees to engage in their community. The program reached about 4,800 students during the 2016-2017 school year, with participating teachers reporting increased confidence and creativity in teaching the STEM disciplines. BUSINESS 8 PRINCIPLE

industry accountable for managing 2 oil and gas revenues appropriately. In 2014, we made a policy Ethical Conduct decision to disclose payments to governments at the project level, as laid out in the European Union Accounting Directive, which is designed to improve corporate accounting practices and The Business Principles are to a Whistleblower Hotline as a transparency. We believe this type of supported by robust compliance vehicle for employees, third parties disclosure is beneficial to investors, policies and methodology, including and others to report, without risk of civil society, and local communities, our Anti-Corruption Compliance retaliation, potential violations of any and reflects evolving international Policy and Procedures, which Kosmos policy. expectations. Kosmos was the align with the U.S. Foreign Corrupt Leading in Transparency first U.S. oil and gas company to Practices Act (FCPA) of 1977, the and Engagement disclose project-level payments U.K. Bribery Act of 2010, as well as to governments despite not being best practices in anti-corruption As part of its commitment to legally obligated to do so. compliance. Kosmos regularly transparency, Kosmos aspires to go evaluates its anti-corruption beyond a box-checking exercise by We believe our approach to measures and performance. making information publicly available transparency helps us better and increasing our engagement with manage social and political issues, All Kosmos employees and key stakeholders at every level to ensure establishing Kosmos as a partner contractors are required to attend they have the depth of knowledge of choice and mitigating yearly anti-corruption training, needed to hold governments and barriers to growth. and certify that they have read, understood, and will comply with our Anti-Corruption Compliance Policy. To further ensure comprehension, all employees are required to pass a test on the substance of the policy. We exercise care in the selection of vendors, suppliers, and contractors, and we impose the same high standards of conduct that we observe in our own company. We use a risk-based process to evaluate third parties who will work on our behalf. We conduct background due diligence when appropriate to make sure we have obtained full disclosure. In addition to providing third parties with copies of our Business Principles and Anti-Corruption Compliance Policy, we routinely conduct in-country training for key contractors and suppliers on compliance and supplement in-person training with online training modules. Kosmos conducts an annual internal audit of the company’s compliance with its business ethics policies and periodically conducts audits on third parties. We maintain and respond

Two workers on the Ensco DS-12 drillship offshore Mauritania carefully review the day’s drilling plans. 9

BUSINESS PRINCIPLE 2 The EITI requires participating governments to establish a multi-stakeholder steering group comprised IN ACTION: of representatives of governments, business, and civil TRANSPARENCY AND society to oversee a process in which companies declare material payments to government, and DISCLOSURES IN AN the government declares all material receipts from EVOLVING REGULATORY extractive companies. These figures are reconciled, ENVIRONMENT and any discrepancies are identified and investigated by an independent expert. We have been a Supporting Company of the EITI since Kosmos aspires to be a leader in transparency and anti- 2012. Kosmos has operations in six countries that have corruption. We have set a high standard for transparent implemented or are in the process of implementing the behavior by disclosing the terms of our petroleum EITI: Côte d’Ivoire, Ghana, Mauritania, São Tomé and agreements and reporting payments made to our Príncipe, Senegal, and Suriname. In these countries, host governments – including specific entities – at the we engage with the EITI through feedback and dialogue project level and in aggregate. We are open about in the multi-stakeholder groups. Kosmos is a member our business dealings with host governments because of the EITI steering committee in Ghana, Suriname, transparency builds trust and accountability. All our and as of 2018, in São Tomé and Príncipe as well. petroleum agreements with host governments are We play an active role in the EITI process in available on our website at www.kosmosenergy.com. Mauritania and Senegal. The “Performance Data” on page 59 of this report lists the payments we made to governments in 2017. We advocate for the adoption of EITI by our host governments. When we operate in countries that are Kosmos has met with stakeholders around the world not yet members of the EITI, we actively promote who want to better understand how the oil and gas the EITI and the transparent management of any industry works. To that end, we have organized and revenues from natural resources. For example, Kosmos facilitated workshops in nearly every country where encouraged and assisted the Government of Suriname we operate to deepen the knowledge of various in the process of joining EITI, and we were pleased government agencies, parliamentarians, civil society when Suriname formally applied to become an organizations, and media outlets working to promote EITI candidate country in May 2017. good governance and transparency in the oil and gas sector. We strongly support the work of the Extractive Industries Transparency Initiative (EITI), a leading global standard that strengthens governance by promoting transparency and accountability in the oil, gas, and mining sectors. BUSINESS 10 PRINCIPLE

development opportunities have enabled them to assume greater 3 responsibility and handle the Our Workplaces increasingly complex work that we are moving to local offices. We augment our internal programs with external development opportunities through our Education Reimbursement Policy. Kosmos aims to be a world-class harassment, or intimidation of any We recognize fundamental labor pure play, deepwater oil and gas kind. Employees are respected and rights and require contractors company known for delivering encouraged to contribute their to adhere to international labor excellent results and being a ideas. We base all work-related standards and local laws. We do workplace of choice for some of decisions, including recruitment not permit child, forced, or bonded the best people in the industry. and advancement, on qualifications, labor at our operations or among We want our employees to have merit and performance. our suppliers. For more information, careers that are professionally We seek to hire and develop local please see Kosmos’ statement in challenging, personally rewarding, employees for our international compliance with the UK Modern and focused on delivering value to operations. We are proud that in Slavery Act 2015 located on the our stakeholders. In 2017, we hired Ghana and Mauritania, 100 percent homepage of our website. 33 new employees to bring our total of our employees are citizens of number of employees at year end Kosmos is a relatively small company those countries. This level of local to 282 worldwide. We incorporate with a fast-paced, collaborative employment is a long-term target for the ideas and experiences new work environment and a high level Kosmos in all the countries where we employees bring while retaining our of employee engagement. We have operations. distinctive culture and upholding have instituted programs to ensure our Business Principles. We are also committed to investing employees remain engaged as the in the development of our company evolves. These programs Kosmos focuses on recruiting, employees. For example, employees include town hall meetings, during retaining, and developing a diverse hired in Ghana, Mauritania, Morocco, which senior management provides and capable workforce that São Tomé and Príncipe, Senegal, an operational update and holds an embraces our Business Principles and Suriname have rotated through open forum, as well as employee- and entrepreneurial culture. We our U.S. headquarters on special led committees on Wellness and are an equal opportunity employer assignments or for training. These Community Philanthropy. and do not tolerate discrimination,

As our portfolio grows, Kosmos continues to build a team comprised of capable and diverse individuals, each with entrepreneurial spirit and a commitment to open, honest communications. Here, employees meet in our office in Dallas, Texas. 11

BUSINESS PRINCIPLE 3 Dallas-based employees and direct-hire contractors were required to attend a course on distracted driving, IN ACTION: defined by the National Highway Traffic and Safety DRIVING DISTRACTION AWAY Administration (NHTSA) as “any activity that diverts attention from driving, including talking or texting on your phone, eating and drinking, talking to people in At Kosmos, keeping our employees and contractors your vehicle, fiddling with the stereo, entertainment or safe, both at work and at home, remains our navigation system—anything that takes your attention highest priority. away from the task of safe driving.” This interactive course educated our employees and contractors As part of our annual behavioral safety training on their personal risks associated with driving and initiative, every employee and key contractor must gave them tools to avoid behavior that could lead to complete a mandatory behavioral safety course. collisions in the future. Participants learn to recognize the state-to-error patterns that cause the majority of injuries in the To provide practical driving skills for our employees, workplace, on the road, and at home. and to complement the classroom training, we installed an interactive driving simulator called Virtual Hazard In mid-2017, Texas passed a new law prohibiting texting Detection (Virtual HD®) for our U.S.-based employees, while driving. This was important legislation: in 2016 their families, and our direct-hire contractors. We alone, the state of Texas had 109,658 traffic crashes provided incentives for those who completed the that involved distracted driving, leading to over 3,000 full simulation. Virtual HD® is an advanced training serious injuries and at least 455 fatalities. Driving a car program that covers the safest driving techniques that is one of the riskiest activities anyone can undertake. are lacking in many of today’s drivers. The training To raise awareness of the issue among our employees, program covered topics such as hazard recognition, and to emphasize the importance of driving with scanning, following distance, distracted driving and caution, Kosmos implemented additional safety space management. training in our Dallas office around the theme of In 2018, we will continue to provide the Distracted safety while driving. This decision was made by our Driving course as a refresher through our Learning HSE Management Committee, which is our Senior Management System, as well as the Virtual HD® Management-level oversight body. simulator. We also plan to assess the need for driving safety courses as a supplement to the regular safety training in our international offices. BUSINESS 12 PRINCIPLE

the Biodiversity Oil and Gas Program, to improve understanding 4 and protection of the ecosystems Kosmos and the offshore Mauritania. This research project is being carried out by Environment the Mauritanian Institute for Oceanographic and Fisheries Research in collaboration with the Royal Netherlands Institute for Sea Kosmos values the natural areas • Impact identification, prediction, Research based in the Netherlands. where it does business, both land and analysis More information about this program and sea, and strives to prevent or is available on page 34. • Generation of mitigation or minimize potential adverse impacts management measures and We plan for an effective and timely on the environment. Our Health, actions response to emergencies that could Safety, and Environmental (HSE) impact personnel, the environment, management system, known as The • Significance of impacts and local communities, or our assets. Standard, is reviewed and, if needed, evaluation of residual impacts In 2017, we continued our regular updated annually. The Standard sets • Documentation of the assessment program of conducting crisis clear expectations and performance process simulation drills with internal and measures that we use to plan and external stakeholders to help us monitor our corporate, country, and Kosmos’ ESIAs may also include improve our ability to respond in project-level activities. The Standard records of public consultation and the unlikely event of an emergency. is available on our website. supporting technical documentation. These simulations are created and After signing a contract for a new Conducted offshore, our seismic adapted to reflect the evolving license area, the first stage of acquisition activities also provide nature of our business activities. the upstream oil and gas project unique insight into the presence Our local leadership teams and lifecycle is the acquisition of seismic of marine life, including marine HSE advisors are mentored through data. In 2017, Kosmos completed mammals, sea turtles, and sea birds. these exercises to develop their or began seismic surveys offshore Where possible, we share this data ability to lead on the ground Suriname, São Tomé and Príncipe, with scientists and local marine during an incident. Morocco, and Western Sahara. Our research institutes. In recent years, In addition to training personnel, geologists and geophysicists use the we have contributed data for papers Kosmos carefully considers the geophysical data acquired in these on Clymene dolphins in the Eastern technology and drilling equipment surveys to create detailed images Tropical Atlantic, whale and dolphin that it uses. Our Well Integrity of the earth’s physical subsurface occurrence offshore Ireland, and sea Management System governs well characteristics which then enable us turtle populations offshore Morocco. design and how wells are drilled, to make more informed decisions Kosmos also supports a marine completed, and tested. We believe about the potential location and biodiversity initiative in Mauritania, size of oil and gas deposits. Prior to seismic acquisition or drilling operations, Kosmos completes environmental and social impact assessments (ESIA) as standard practice. The process used satisfies International Finance Corporation (IFC) guidelines, as well as those reflected in the Equator Principles. The key process elements of an ESIA generally consist of the following: • Initial screening of the project and scoping of the assessment process • Examination of alternatives • Stakeholder identification (focusing on those directly affected) and gathering of

environmental and social As part of our Environmental and Social Impact Assessment process, we evaluate potential baseline data effects on sea birds such as those pictured here in Mauritania’s Diawling National Park. 13

in safe and efficient operations Disclosure Project (CDP), Tullow Oil targets are a TRIR and LTIR of less that are consistent with strong participates in the CDP, reporting than 1.1 and 0.5, respectively, zero well governance procedures and emissions and management spills, and zero fines/penalties. We internationally recommended best processes on behalf of the Jubilee aim to be an injury-free workplace practices. co-venturers, including Kosmos. no matter where in the world we Our management plans to revisit operate and recognize that each Kosmos believes climate change this decision if Kosmos operates individual needs to play a role in this is real and influenced by human any hydrocarbon production in effort – through safety vigilance, activity. At this time, Kosmos does the future. awareness of surroundings, and not operate any of its producing focusing on the task at hand. In 2017, assets. Kosmos has oil and gas We finished 2017 with a Total we continued to require personal production offshore Ghana and Recordable Incident Rate (TRIR) of and occupational safety training for Equatorial Guinea, which we entered 0.64 and a Lost Time Incident Rate all employees to reinforce our in late 2017. In Ghana, our co-venture (LTIR) of 0.0, against our global safety culture. partner, Tullow Oil, operates the targets of less than 1.25 and 0.5, Jubilee and TEN fields. While we respectively. We had zero fines and do not participate in the Climate zero spills. Our 2018 performance

BUSINESS PRINCIPLE 4 • Analyzed stakeholder attitudes, including emerging investor expectations around climate change reporting IN ACTION: and initiatives such as the Task Force for Climate- TAKING A CLOSER LOOK Related Financial Disclosures; AT CLIMATE CHANGE • Examined the wider policy environment, projections of global energy needs, and climate-change risks and opportunities for our business. Kosmos recognizes that the world is facing a serious We are now considering how to integrate the review’s challenge from climate change influenced by human findings into our future business strategy. In the activity. meantime, climate change will remain on our agenda, In 2017, we conducted a review of our approach to and we will continue to review and adapt our approach climate change and the external policy and stakeholder as the external environment evolves. environment. In the review, we: • Benchmarked Kosmos’ approach against that of a

set of industry peers; BUSINESS 14 PRINCIPLE

a labor rights risk assessment of our operations in certain countries 5 to better understand our risks Kosmos in during exploration, as well as risks that could arise with oil or gas Society discoveries. We believe adopting a proactive approach to human rights is good risk management and the right thing to do. Kosmos aims to be a trusted stakeholders is both responsible Kosmos seeks to implement the partner, good corporate citizen, and respectful. We have conducted Voluntary Principles on Security and and catalyst for positive change. human rights training sessions Human Rights in our operations. While governments have the for employees and incorporated Although port facilities are often principal responsibility for ensuring human rights into our social impact secured by state security providers, citizens benefit from oil and gas assessments to understand our we use private security providers development, we recognize that potential risk exposure. for our office operations. We have Kosmos also has a role to play. We Since it is important for community conducted security assessments and are more likely to have a sustainable members to achieve redress if training sessions for these private business if we work with a range they suffer harm as a result of contractors that incorporate the of stakeholders, promote good our operations, we maintain and Voluntary Principles as guidance. governance, and maximize the publicize mechanisms in every Our goal is not only to prevent opportunities we create for those country for addressing grievances. In potential human rights abuses, around us. addition, we have trained employees but also to encourage security Prior to seismic operations or and contractors to handle and providers to serve as advocates for exploration drilling, we conduct resolve grievances appropriately. protecting and promoting human environmental and social impact rights. We are participating in the We seek to apply the U.N. Guiding assessments to consult with Voluntary Principles process with Principles on Business and Human potentially impacted communities the Government of Ghana, which Rights in all our operations. A key and create well-informed operating is the first country in Africa to join element of the Guiding Principles plans. These assessments help us the Voluntary Principles Initiative. is for companies to evaluate develop a baseline of socioeconomic Since BP is the operator of our gas within their risk assessments the conditions before activities begin, project offshore Mauritania and extent to which the company’s understand and mitigate any Senegal, we plan to engage with BP activities may pose risks to those potential adverse impacts from the in implementation of the Voluntary around them. In 2015, we hired activities, and collect information Principles as the field is developed. a third party expert to conduct that enables future operations to benefit workers, communities, and local businesses. Upon establishing a country office to oversee our operations, we complete an assessment to identify social investment opportunities and potential partners from the community. In 2015, we reviewed our social investment programs worldwide to better understand their impact. The result of the review led to a new approach, implemented in 2016, that better aligns with community, government, and company priorities. Kosmos has a deep commitment to respecting and promoting human rights. Our Human Rights Policy, available on our website, ensures that our behavior toward Three participants in the Kosmos Innovation Center’s Start-up Challenge gather data employees, contractors, and external during a market research tour in Ghana. 15

BUSINESS PRINCIPLE 5 the collection, as well as retained several important masterworks that were on view in the first exhibition. IN ACTION: The 2015-2016 exhibition, Spirit and Matter: Masterpieces BUILDING CULTURAL from the Keir Collection of Islamic Art, showcased more than 50 masterworks from the collection, marking the UNDERSTANDING AND first time many of the featured works had been on CONNECTIONS THROUGH display in North America. More than 115,000 people ART IN DALLAS visited the exhibition. Although the process of bridging cultures begins with the preservation of historic artifacts, it develops most In 2015, the Dallas Museum of Art (DMA) announced fully through the study of art and what it reveals, not Kosmos as the presenting sponsor of the Keir Collection just about the artists and the works themselves – their of Islamic Art for its inaugural years of exhibitions and form, their style, and their content – but also the social, installations. Assembled over the course of five decades political, and cultural circumstances that shaped them. by noted art collector Edmund de Unger (1918-2011), When this knowledge is shared, it becomes a catalyst for the Keir Collection is recognized by scholars as one deeper understanding and greater trust among societies. of the world’s most geographically and historically comprehensive, encompassing almost 2,000 works in a The people of Dallas will enjoy the fruits of the range of media that span 13 centuries of Islamic art. scholarship now taking place at the DMA on the Keir Collection and will be able to view and learn from the Kosmos’ partnership with DMA is an extension of our collection for free. By supporting the display of the Keir desire to engage with the communities where we Collection – and the scholarship and knowledge it has live and work, and foster appreciation for the art and and will continue to generate – we are proud to play a culture of these communities. The partnership between role in our United States home, Dallas, for the benefit of the museum and the company provides $800,000 of increasing the understanding of people everywhere. support over five years for a series of special exhibitions, installations in the museum’s collection galleries, and a prospective touring exhibition. The sponsorship also includes resources to facilitate loans of items from the Keir Collection to other U.S. and international institutions. In 2017, the DMA opened The Keir Collection of Islamic Art Gallery in a newly redesigned gallery space that increased the number of works on view from BUSINESS 16 PRINCIPLE

provide training and reinforce our HSE-related expectations. Local and 6 multinational contractors attend Commercial these sessions in order to further commit themselves to working within Responsibilities our standards. Ensuring that our suppliers and contractors fully understand their contractual obligations regarding At Kosmos, we see our interactions willingness to observe the standards anti-corruption provisions is vitally with local business partners as articulated in our Business Principles important. Our local procurement another way to contribute to the and supporting policies is a key professionals offer one-on-one countries in which we operate. In consideration in the selection sessions with our suppliers to explain fact, in the event of exploration process. our requirements under our policies, success, oil and gas development When a potential local supplier the U.S. Foreign Corrupt Practices can be an important engine of is found to be outside our HSE Act of 1977, the UK Bribery Act economic development. standards, we often work to provide of 2010, and other relevant local We maintain high standards for the necessary training or certification legislation. During this process, we our suppliers and commercial to elevate them to the standard. This often identify areas for additional partners in terms of safety, the is frequently the case, as we operate training within our local supply chain. environment, and anti-corruption. in several countries with nascent oil In 2015, we conducted a formal Suppliers are required to adhere and gas industries. We periodically review of our approach to local to our Business Principles. Their organize contractor forums to content, both at the corporate level

Kosmos personnel at the shore base in Nouakchott, Mauritania exemplify our entrepreneurial spirit and team-based approach. 17

as well as in Mauritania where we language as well as improve cross- that we source locally. Our local had active drilling operations. The functional cooperation to optimize content approach aims to enable assessment was completed by an local content. people to access jobs, and to enable international firm who helped us businesses to access supply chain We seek to maximize the amount of identify opportunities to update opportunities through Kosmos. goods, services, and employment certain policies and contract

BUSINESS PRINCIPLE 6 IN ACTION: COLLABORATING WITH BP TO PROTECT HUMAN RIGHTS

Since establishing our partnership with BP in Mauritania and Senegal, we have collaborated on all facets of the exploration program and the Tortue LNG project: technical, environmental, economic, and social. BP and Kosmos share similar high standards, but Mauritania and Senegal were new countries of operation for BP. As a result, Kosmos has worked hard to share its knowledge of working in these countries with BP and smoothly transition our social and environmental projects. In 2017, we worked closely with BP on our joint approach to human rights in Mauritania and Senegal, first by comparing our corporate standards and policies, then evaluating the individual contexts of each country. We shared our due diligence processes and outcomes, human rights training conducted for employees, contractors and top suppliers, and current activities related to human rights. We discussed and planned next steps together. We believe it is important to transition as seamlessly as possible, while building on – rather than duplicating – our previous work. In 2018, now that we have finished the transition to non-operator in Mauritania and Senegal, we will continue to focus on human rights by supporting BP’s policies and related activities.

FOLLOWING A THOROUGH FARM-OUT PROCESS, BP EMERGED AS THE RIGHT PARTNER TO HELP US ADVANCE THE TORTUE GAS PROJECT AT PACE AND TAKE FORWARD A MULTI-WELL EXPLORATION PROGRAM. WE ARE PLEASED TO HAVE SECURED A SUPER-MAJOR PARTNER THAT BRINGS FINANCIAL CAPABILITY, DEEPWATER DEVELOPMENT AND LNG EXPERTISE, AND A VISION THAT IS FULLY ALIGNED WITH THE INTERESTS OF BOTH COUNTRIES. – Andrew G. Inglis Kosmos Energy’s Chairman and CEO 18 19

PROJECT LIFECYCLE AND OPERATIONS MAP

The diagram below outlines the oil and gas project lifecycle, from entering a new geography, to exploration and, if successful, development and production. Our corporate responsibility activities – such as social investment and capacity building – in each country are increased as we move along the project lifecycle, although the standards to which we hold ourselves remain the same. The colors on the diagram correspond to the countries and areas of operation listed on the map to show where we were in the project lifecycle during the 2017 year under review.

PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6

Entering a Exploring Undertaking Appraisal Development Production of new market through site exploration drilling of field and oil and gas and seismic drilling building of surveys infrastructure

MOROCCO

WESTERN SAHARA

MAURITANIA

SENEGAL

GHANA EQUATORIAL CÔTE D’IVOIRE GUINEA SÃO TOMÉ SURINAME and PRINCIPE 20 PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6

ENTERING

CÔTE D’IVOIRE

In late 2017, Kosmos acquired five blocks offshore Côte d’Ivoire as part of a second cycle exploration initiative in the Gulf of Guinea. As an extension of the Tano Basin in Ghana, which the Kosmos exploration team opened with the Jubilee discovery in 2007, offshore Côte d’Ivoire provides an opportunity for Kosmos and our partner BP to execute a frontier/emerging basin exploration strategy and pursue new technical themes.

Kosmos and BP each A multi-client 3D seismic containing adequate CTE D’IVOIRE acquired an equal acquisition program is oil and gas may exist, 45%-45% working interest being conducted by then Kosmos and BP will in five contiguous blocks Petroleum Geo-Services determine where to drill BLOCK BLOCK CI-707 CI-708 covering approximately (PGS) in 2018, including an exploration well. 17,000 square kilometers, over 12,000 square In 2018, Kosmos plans to as shown in the map at kilometers in Kosmos’ open an office in Côte left. PETROCI, the national blocks during the first half BLOCK d’Ivoire and begin putting CI-526 oil company of Côte of the year. The seismic together a small team d’Ivoire, has a 10% carried survey uses sound waves of employees based working interest in the to map rock formations in the capital city of BLOCK BLOCK blocks as well. Kosmos is on and below the ocean CI-602 CI-603 Gulf of Abidjan. We are currently Guinea the exploration operator floor to establish the analyzing opportunities and BP will be the potential presence of for early social investment development operator hydrocarbons. If the programs as well. in the event of a seismic surveys show that commercial discovery. formations potentially 21 22 PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6

ENTERING SEISMIC PRODUCTION

EQUATORIAL GUINEA

Kosmos’ entry into Equatorial Guinea in October 2017 was an important milestone for the company. We and our partner Trident Energy acquired Hess Corporation’s interests in the Ceiba and Okume fields and signed three new exploration production sharing contracts over offshore blocks W, S and EG-21. Kosmos will be the exploration operator for blocks W, S and EG-21, and a new joint venture company, Kosmos Trident Equatorial Guinea Incorporated (KTEGI), is the operator of the Ceiba and Okume production assets.

This is the first time Kosmos has ADDING PRODUCTION AND acquired producing assets and EXPLORATION THROUGH BLOCK W EG-21 entered a new country with an JOINT VENTURE existing workforce, facilities, ongoing Founding members of the Kosmos operations and social investments. Energy exploration team opened the Kosmos will operate in Equatorial Rio Muni basin in 1999 when they Gulf of Guinea as we do in every country. discovered the Ceiba and Okume Guinea EQUATORIALEQUATORIAL We are in the early stages of GUINEA fields while working for Triton Energy. GUINEA BLOCK S implementing our standard policy framework which supports our Business Principles, particularly in the GABON areas of human rights, community engagement, and social investment. 23

EARLY COMMUNITY These primary school children’s teachers

ENGAGEMENT received training under the Program for In 2018, Kosmos, as operator, Educational Development of Equatorial Guinea. commenced seismic acquisition over blocks W, S and EG-21. In preparation for the seismic survey, we completed an Environmental Impact Kosmos’ commercial partner Assessment, engaged coastal and in Equatorial Guinea is Trident fishing communities, and established Energy, a privately-held a grievance mechanism. international exploration and production company. Kosmos has already begun engaging with fishing communities onshore as part of our initial activities to introduce Kosmos as a new company In addition, several other Kosmos in Equatorial Guinea. team members were involved in the development and operation of those NEW AND ONGOING SOCIAL fields after their initial discovery. INVESTMENT We entered into the new agreements We intend to implement an impactful of the country’s primary teachers in Equatorial Guinea on a 50/50 social investment program with in instructional skills, established basis with Trident Energy and the local population. While we model primary schools, modernized formed a joint venture company, are growing in familiarity and the education information system, KTEGI, to operate the fields. KTEGI understanding of the local context in and strengthened the institutional leverages the distinct expertise of Equatorial Guinea, we are continuing capacity of the Ministry of Education each company, combining Kosmos’ Hess Corporation’s social investment and Science. Over $12 million will exploration expertise and programs in education and health. have been invested in education subsurface knowledge with through the PRODEGE program from The flagship social project, Trident’s operational capabilities. its inception through 2018. the Program for Educational HUMAN RIGHTS DUE Development of Equatorial Guinea Kosmos will also initiate an annual DILIGENCE AND TRAINING (PRODEGE), is now a public-private social investment program for the partnership among Kosmos, Trident three exploration blocks, which As is our practice, Kosmos engaged and the government of Equatorial we aim to focus on the coastal a third-party expert to conduct Guinea. During PRODEGE’s first five communities. human rights due diligence for our years, the program trained two thirds anticipated in-country activities. The report stressed the importance of community engagement as well as policy implementation and monitoring. KTEGI has adopted Kosmos’ Business Principles, Anti-Corruption Policy, and Code of Conduct, and conducted training for employees on implementation of these policies. We expect to conduct human rights training for KTEGI staff and contractors, with an emphasis on supply chain. We have conducted similar training in other countries where we operate. For more information on our supply chain policies, please see page 16.

The implementing partner for the PRODEGE program is FHI 360, a development NGO dedicated to improving lives through integrated, locally driven solutions. 24 PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6

PRODUCTION

GHANA

2017 marked the tenth anniversary of our discovery of the Jubilee field in the Tano Basin offshore Ghana – one of the largest discoveries offshore West Africa in the previous two decades. Our successful fast-track development produced first oil within 42 months of the discovery.

Kosmos is a non-operating co- MANAGING OUR FOOTPRINT venturer of the Jubilee Unit and the GHANA Total oil production from the Jubilee Tweneboa, Enyenra, and Ntomme field in 2017 was 32,749,975 barrels, (TEN) fields in Ghana, comprised equivalent to an average of 89,726 DEEPWATER of Tullow Oil, Anadarko Petroleum, barrels (bbls) of oil per day (bopd). TANO BLOCK WEST CAPE PetroSA, and Ghana National THREE POINTS Total gas production from the Jubilee BLOCK Petroleum Company (GNPC). Tullow field in 2017 was 44,231 million Oil is the operator of the Jubilee Unit standard cubic feet (mmscf) of and TEN fields, meaning it oversees gas, of which 70%, equaling 30,980 operations related to oil and gas JUBILEE mmscf, was exported to the Ghana production. Although Kosmos does National Gas Company’s onshore not oversee day-to-day operations processing facility at Atuabo and of the Jubilee Unit and TEN fields, onward flow to the Aboadze power we take an active role in stakeholder Gulf of plant for fuel to generate electricity. Guinea engagement, secondment of top national talent, social investment In addition to oil exports, Kosmos programs, and other activities to help promotes the use of natural gas to ensure Ghanaians receive benefits generate power. Gas exports from from hydrocarbon production. the Jubilee field increased 15% in 2017. Kosmos continues to advocate 25

for a national plan to expand The FPSO John Evans Atta Mills produces oil at the Tweneboa, Enyenra, Ghana’s gas infrastructure to meet and Ntomme (TEN) fields. the country’s domestic power needs in a cost-efficient and sustainable way. Oil production from the TEN fields began in 2016 and increased in 2017 due to prudent and sustainable management of existing wells resulting in a gradual ramp up in production. Total oil produced from TEN in 2017 was 20,452,577 bbls averaging 56,034 bopd. Total gas produced by the TEN fields in 2017 was 26,818 mmscf, or 73 mmscf of gas per day in 2017. The Greater Jubilee Full Field Development Plan was approved by the Ghana Ministry of Energy in late 2017. The plan sets out the integrated development of the Grievance Mechanism The Kosmos CLOs also work in close collaboration with the CLOs from Jubilee field and the Mahogany and Although we did not operate our co-venturer Tullow, so that they Teak discoveries located in the West any drilling activities in Ghana in are fully up to date with Tullow-led Cape Three Points block. As a result, 2017, we continued to maintain operations in the Jubilee and we commenced new drilling in the our community-level grievance TEN fields. field in the first half of 2018, together mechanism in the Western Region. with drilling in the TEN fields due to Our formal grievance mechanism ENGAGEMENT AND LISTENING the resolution of the border dispute provides a communication channel between Ghana and Côte d’Ivoire. for members of the community to As a long-term partner in Ghana, raise concerns about our operations Kosmos regularly engages with a Prioritizing Safety and the or submit complaints. wide range of stakeholders, including Environment local communities, suppliers, civil We visit the Western Region to Our active monitoring of safety society, media, and academia. We remind communities of the grievance and environmental compliance in communicate regularly with these mechanism, how it works, and Ghana contributed to strong HSE stakeholders to understand their how it can be accessed. Through performance in 2017. There were concerns about our industry and continuous engagement, we no environmental incidents or Lost its impact on the country. We share empower community leaders to Time Incidents (LTIs) for any of information that improves mutual assist those people with grievances Kosmos’ operations in Ghana in 2017, understanding of the role of the oil navigate the system. Although we continuing our record of zero LTIs and gas industry. did not receive any new grievances since 2012. We continued to invest in in 2017, three grievances registered Outreach to Local Communities safety training throughout the year, through the formal channel were which helped sustain performance The area directly onshore from the outstanding at the end of 2016 and gains achieved in prior years. Tullow Jubilee and TEN fields includes the resolved in 2017. These grievances Oil, as operator, reports on the safety six coastal districts of the Western concerned our social investment and environmental performance for Region, where we have centered projects in the Western Region. Jubilee and TEN operations. much of our local community To supplement our formal grievance engagement. In the Western Our staff in Ghana receives mechanism, we have stationed Region, our key stakeholders are the behavioral safety training each Community Liaison Officers (CLOs) fourteen traditional councils within year in addition to annual training in Kosmos-branded offices in local the six coastal districts, the Fish on Kosmos’ Health, Safety, and villages. We distribute contact Processors’ Associations of Ankobra Environment policies and standards. numbers and e-mail addresses for and Ekpu Communities, as well as These trainings are mandatory. We the CLOs as well as directions to communities where we have ongoing believe they contribute to our strong their local community offices. The social investment projects. safety record in Ghana. CLOs are an important part of our We join community meetings held by approach to managing grievances, the Jubilee and TEN fields’ operator. in that they solicit and respond to We use these sessions to provide feedback from community members. 26

(NRGI), and the Ghana Extractive Industries Transparency Initiative (GHEITI). GHEITI is an important forum that Kosmos uses to engage on issues of revenue transparency and anti-corruption. We are a private sector member of the GHEITI multi- stakeholder group, which oversees the public reconciling of payments and receipts between government and extractive companies. In 2017, Ghana completed its sixth oil and gas reporting cycle. Kosmos has been a part of the process in Ghana since its inception. In 2017, we were pleased to co- sponsor the first Enterprise Africa Summit, hosted in Accra. The summit provided a forum for key stakeholders – development partners, government, civil society, academia, businesses community, and entrepreneurs – to explore the

Employees in our office in Accra, Ghana regularly take part in nexus between entrepreneurship professional development trainings. and economic development in Sub-Saharan Africa. The 2016 Kosmos Innovation Center Agritech updates on Jubilee and TEN fields’ gas sector, the status of the Ghana Challenge winner, TroTro Tractor, also operations, environmental monitoring government’s anti-small scale illegal participated in the summit, where and compliance, canoe incursions and mining initiative, and goals related to the company gained international fishermen interactions, the Voluntary public security training and private visibility and built new business Principles on Business and Human security licensing reform. connections. Rights, social investments, effects Kosmos uses private security of the Ghana-Côte d’Ivoire maritime personnel to provide security for Government Engagement boundary dispute decision by ITLOS, our employees and office operations and our environmental and social Kosmos regularly engages with in Ghana. Security for the Jubilee impact management plans. These the government of Ghana to keep and TEN fields’ operations is the engagements result in the support them informed of our activities and responsibility of the operator. We of local leaders and traditional with the goal of ensuring that our have trained all Kosmos Energy authorities in keeping fishermen safe activities contribute to national Ghana security personnel on the around our offshore installations development. As part of our Voluntary Principles on Security and and approval of our social government engagement efforts in Human Rights per our corporate investment plans. 2017, we provided all 250 members policies and in support of Ghana’s of the Ghanaian parliament with work on the Voluntary Principles. Voluntary Principles on copies of our Business Principles Security and Human Rights For more information on the and annual reports. We presented Voluntary Principles on Security our approach to transparency The Government of Ghana is and Human Rights in Ghana, including publishing our contracts currently finalizing its National please see the country’s website and payments to governments, Action Plan for implementation dedicated to their implementation: anti-corruption policy, and ongoing of the Voluntary Principles on www.ghanavps.org. support of the Extractive Industries Security and Human Rights. Transparency Initiative. We also Kosmos has supported this process Working in Partnership explained the work of the Kosmos by participating as an industry with Civil Society Innovation Center in supporting representative in national dialogues young Ghanaian entrepreneurs and to discuss key issues that can help Kosmos maintains regular contact small and medium sized enterprises. with implementation. The dialogues with civil society organizations in have covered issues such as onshore Ghana such as the African Centre for and offshore risks associated with Energy Policy (ACEP), the National increased activities in the oil and Resource Governance Institute 27

To further our commitment to economic needs and management supporting investment and economic of oil and gas resources. The development in Ghana, Kosmos six advisory council members sponsored the Ghana Investment provide key insights that influence Summit in August 2017. The our business and above-ground summit was attended by investors approach. from Africa, Europe, Asia and the Members of the council were Americas. Kosmos participated in selected based on their business panels with the Ghana Investment knowledge, diverse points of view, Promotion Centre to discuss and history of success leading opportunities in oil and gas as a companies in Ghana. The advisory veteran of the industry in Ghana, council has even taken an active role as well as share our learnings from in the Kosmos Innovation Center by working with young Ghanaian volunteering as guest lecturers and entrepreneurs as part of the Kosmos Fishing boats are anchored along the business mentors. There is natural Innovation Center. coast of Ankobra, a community in the alignment between Kosmos and Western Region. Ghana when it comes to creating Independent Advisory Council a well-managed and increasingly outside the U.S. is in Ghana, where Kosmos created an independent productive petroleum sector. sourcing goods and services locally advisory council comprised of and hiring Ghanaian employees is an respected Ghanaian business POSITIVE IMPACTS important way that we contribute to leaders in 2014 to demonstrate Kosmos is committed to playing national development. Kosmos has our long-term commitment to the its part in creating positive worked hard to build a network of development of Ghana. The advisory development outcomes for host local suppliers, and provided training council guides the company and countries from our oil and gas and capacity building ourselves serves as a sounding board as we discoveries. Our largest office to bring them to international work to support Ghana’s socio- industry standards. We are committed to supporting personal and professional development for all our employees through tailored training programs, rotations through our other global offices, and attendance at workshops and conferences. In 2015, Kosmos achieved a major milestone by employing a 100 percent Ghanaian staff – a number that we have now maintained for the third consecutive year. We currently have 45 employees in Ghana, 95% of whom participated in personal and/or professional development programs. We also conducted a total of 38 internal training programs for our staff in Ghana, including a refresher course on the International Finance Corporation’s Environmental and Social Performance Standards. In 2017, we also contracted six national service personnel to work in finance, supply chain, human resources, office administration, corporate affairs and commercial departments. It is our hope that the training and experience they receive Young entrepreneurs with the Kosmos Innovation Center learn about founding and growing while working at Kosmos helps businesses that use technology to solve problems in the agricultural sector. prepare them for their future careers. 28

Social Investment Projects investment projects focused on The overall program includes three themes: local agribusiness construction of water purification We continue to support social and enterprise development, facilities, training of operators investment in Ghana through environmental stewardship, and from local communities, and Kosmos-initiated programs, as well road safety and traffic management. implementation of a monitoring as those led by the operator of the These projects were carefully program to ensure sustainability. Jubilee and TEN fields. In 2017, we designed in collaboration with Each new water facility is governed focused our social investment on community stakeholders to ensure by a board of community members youth entrepreneurship through their long-term sustainability. who oversee the project. Water the Kosmos Innovation Center, Health Ghana works in partnership clean drinking water, and small Clean Drinking Water for Ghanaians with these boards to determine community-level projects. Page 29 the appropriate usage fees and of this report describes the Kosmos Kosmos has supported clean drinking management of the water purification Innovation Center in detail. water projects in Ghana for the last six years. We first worked with the service. In addition, the organization Editors and journalists are important Safe Water Network to build water provides sanitation and hygiene stakeholders in Ghana, as they filtration systems for over 28,000 education to further improve health regularly write about domestic oil people from twenty villages in the outcomes for the villagers using the and gas activities and their work Western Region. The project received new clean water systems. often shapes public understanding. such a positive community response We are continuing our support of In 2017, we again sponsored that Kosmos decided to expand our the Water Health Ghana program the annual Ghana Journalist support of water projects to other in 2018, when the program will Awards, a forum that encourages parts of the country. install water purification facilities professionalism and innovation in and conduct management training news reporting across Ghana. We are now involved in a multi- year project with Water Health for an additional ten communities. Each year, we contribute to the Ghana, a subsidiary of Water Health By the end of 2018, our multi-year Jubilee Unit and TEN Development International, to provide clean partnership with Water Health will social investment programs. These drinking water for villages in five have brought clean drinking water to initiatives are overseen by a team of regions. In 2017, we expanded the over 280,000 people across Ghana. representatives from the Jubilee Unit program to ten new communities, co-venturers, including Kosmos. In providing clean drinking water for 2017, the Jubilee and TEN social nearly 130,000 Ghanaians.

Traditional chiefs sample clean drinking water from a Kosmos-sponsored Water Health Ghana facility. 29

WE ARE ON TO SOMETHING BIG. THIS PROGRAM ENCOURAGES SMART YOUNG ENTREPRENEURS TO LOOK AT AGRICULTURE DIFFERENTLY. WITH THE TYPE OF INNOVATION FOSTERED BY THE KIC, OUR YOUNG PEOPLE CAN MAKE AGRICULTURE A MORE DYNAMIC SECTOR AND ATTRACTIVE CAREER PATH WITH PLENTY OF OPPORTUNITY. I AM THRILLED WITH THE TREMENDOUS RESPONSE THAT WE HAVE RECEIVED FROM YOUNG EMBRACING INNOVATION IN GHANA: PEOPLE WHO WANT TO BE THE KOSMOS INNOVATION CENTER A PART OF THIS EFFORT TO TRANSFORM GHANA. We launched the Kosmos largest sector in Ghana’s economy. Innovation Center (KIC) in 2016 The KIC has focused on inspiring Joe Mensah, Kosmos Energy to help Ghana build a brighter young entrepreneurs to transform Ghana Vice President and future by applying innovation and Ghana’s agricultural sector through Country Manager technology to some of the country’s innovation in the nexus between key challenges. After more than a agriculture and information and decade of helping to develop the communications technology (ICT). national oil and gas industry, we To achieve results that drive change, challenged ourselves to think big the KIC uses a three-pronged and develop a program that would approach: Collaboration, Incubation, support potentially transformative and Acceleration. economic development. The Kosmos Innovation Center was the result COLLABORATION of a year-long process of research, The Collaboration pillar of KIC is analysis, and evaluation. designed to build connections and Now in its third year, the KIC foster innovative partnerships among continues to evolve through valuable Ghanaian entrepreneurs, investors, partnerships, committed local staff, and other experts. The KIC hosts to develop solutions to challenges and feedback from stakeholders workshops, conferences, market faced in the agriculture sector. at all levels. We are excited by research tours, and other events to the futures of the businesses we promote collaboration. In 2017, Kosmos participated in have supported and are inspired the annual National Food and by the dedication of the young KIC Collaboration events bring Agricultural Show in Accra. The entrepreneurs we have met. together the best and brightest KIC team led an interactive session minds from a range of fields, such discussing how to encourage young In its initial phase, the KIC has turned as business, technology, finance, people to enter the agricultural its attention to agriculture – the and academia, to work together sector. The program was well 30

I’M GREATLY ENCOURAGED BY THE COMMITMENT KOSMOS CONTINUES TO SHOW TO THE KOSMOS INNOVATION CENTER BUSINESS BOOSTER PROGRAM.

IT HAS BEEN A GREAT PLEASURE TO WORK WITH THE VENTURES AS A BUSINESS MENTOR. I HAVE SEEN IMPROVEMENT IN THE BUSINESSES AS THEY EMBRACE THE LESSONS LEARNT FROM THE PROGRAM AND THE GUIDANCE PROVIDED BY MENTORS AND INVESTORS. BEING INVOLVED IN THE KOSMOS INNOVATION CENTER HAS PROVIDED ME AN OPPORTUNITY TO GIVE BACK TO MY COUNTRY IN A WAY THAT WILL CREATE IMPACT IN MANY LIVES.

Mr. Ishmael Yamson Jr. Mentor for the KIC Business Booster

attended by key stakeholders in startup enterprises. During our week tour brings the participants agriculture, including representatives annual business incubator program, to five regions in Ghana – Greater from the Ministry of Food and young entrepreneurs spend five Accra, Volta, Eastern, Ashanti, and Agriculture and farming District months in residence to develop Brong-Ahafo – to interact directly Assemblies such as East Gonja, business plans around commercially with farmers and agribusinesses Savelugu and Sagnarigu. viable technological solutions to to test their assumptions and development challenges within the collect valuable input. The young INCUBATION agricultural sector. entrepreneurs also attend a series of lunch-and-learn programs aimed The Incubation pillar of KIC provides One of the highlights of the at deepening their understanding capacity building, mentorship, and incubator for the young of the agricultural sector, studying seed funding through innovation entrepreneurs – known in the challenges in agriculture, and challenges to promote the program as “AgriTechies” – is the analyzing their experiences and development of promising Ghanaian market research tour. The two- learnings from the research tour. The Meltwater Entrepreneurial School of Technology (MEST) is KIC’s key partner in the Incubation programming. MEST partners with KIC to provide training to the young entrepreneurs in the incubator program. The training emphasizes confidence, teamwork, presentation abilities, critical thinking skills, and business acumen. At the end of the KIC incubator program cycle, the startups pitch their final business plans during the Agritech challenge. The winning entrepreneurs receive seed funding, technical assistance, and mentorship to help them turn their business ideas into reality. The KIC started its second year in 2017 by reaching an exciting milestone: 100 young entrepreneurs accepted into the annual KIC Agritech Challenge program. Two start-up companies from this group won the 2017 Agritech Challenge Three local entrepreneurs learn firsthand about challenges and opportunities in the agricultural industry during a market research trip to farms in Ghana. and were funded by Kosmos: AgroInnova and QualiTrace. 31

AgroInnova, with its product ACCELERATION AKOKOTAKRA, is an enterprise The Acceleration pillar of the mobile and web-based management KIC supports the development system that allows poultry farmers of promising small and medium to record, monitor, and track their sized enterprises through technical operations in real time. With this assistance and capital investment. innovative and comprehensive tool, After a stringent screening process, poultry farm managers have their selected companies receive a range farms “at their fingertips” for more of support aimed at helping them effective and efficient operations. grow. AKOKOTAKRA will help poultry farmers in Ghana monitor and grow In 2017, KIC launched its first their output. Business Booster program. We selected nine Ghanaian-owned QualiTrace developed a product businesses which have operated to authenticate, track, and trace within the agriculture sector of crop protection products used by Ghana for at least three years. farmers to increase their yields. The five-month program Using a mobile validation system, the entailed two, week-long business product aims to ensure that farmers development boot camps in Accra, and consumers in Ghana can identify a mentorship support program, and genuine farm inputs and quality food A KIC participant poses in front of a tractor. The first winner of the KIC Agritech engagement with investors and produce. This tool will also help to Challenge was TroTro Tractor, a company wealth advisors. During the program, thwart counterfeiting agricultural that connects farmers with tractor operators. the participating ventures validated inputs in Ghana, a problem that and refined their business models, accounts for the loss of about $1.5 tractor operators within their vicinity, prepared for growth, and gained trillion globally on an annual basis. enabling them to request, schedule, access capital to build and pre-pay for tractor services. In addition to the winners of the their companies. The platform gives farmers greater KIC AgriTech Challenge, four access to mechanized farming The KIC collaborates with Uncharted, other promising business teams equipment. a U.S.-based nonprofit, to lead the who competed were funded and Business Booster execution and supported by KIC partners MEST and Since winning the AgriTech curriculum delivery, and Impact Hub Premium Bank of Ghana. Challenge, TroTro Tractor has grown Accra, a collaborative co-working to seven employees and signed up The KIC continues to support space, to provide local expertise in over 30,000 farmers in Ghana for winners from previous years as logistics, operations, and recruitment its tractor sharing services, based needed. The first start-up company for the Business Booster program. on a similar model as the ride-share to win the Agritech Challenge was company Uber, but used for tractors. TroTro Tractor Limited in 2016. For more information about the The company has also secured TroTro Tractor Limited has developed Kosmos Innovation Center, visit additional investments in order www.kosmosinnovationcenter.com. a platform that uses mobile phones to continue scaling their and GPS units to connect farmers to successful business.

INCUBATION PROGRAM AT A GLANCE

270 $950K 8 79 INVESTED JOBS ASPIRING STARTUPS IN KIC STARTUPS CREATED YOUNG LAUNCHED BY KOSMOS ENTREPRENEURS AND EXTERNAL PARTICIPATED INVESTORS IN KIC 32 PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6

EXPLORATION APPRAISAL DEVELOPMENT DRILLING DRILLING

MAURITANIA

Since first acquiring licenses in Mauritania, Kosmos has drilled three successful offshore exploration wells. We drilled the Tortue-1 well and the Ahmeyim-2 well in the southern part of block C8 and made important discoveries in the Greater Tortue area. Kosmos also made another major gas discovery in the northern part of block C8 when our Marsouin-1 exploration well encountered at least 70 meters of net natural gas pay, representing a significant, play-extending find.

The Greater Tortue natural gas pace and take forward a multi- BLOCK C18 resource is a single large gas well exploration program in both accumulation that stretches across Mauritania and Senegal. the maritime boundary between Kosmos currently holds licenses for Mauritania and Senegal. The scale blocks 6, 8, 12, 13 and 18 offshore and quality of the gas field, and the Mauritania, as shown in the map at exploration potential of the rest of Atlantic BLOCK left. Since late 2016, our partners Ocean C6 the basin, attracted the attention in blocks 6, 8, 12, and 13 are BP of several major international oil BLOCK and Société Mauritanienne Des companies who expressed their C12 Hydrocarbures et de Patrimoine interest in partnering with us. Minier (SMHPM), with 65% and 10% Following a thorough farm-out MAURITANIA working interests, respectively. In BLOCK process, BP was chosen as the right C8 2017, we transitioned operatorship of partner to help Kosmos advance the Greater Tortue gas development SENEGAL the Greater Tortue gas project at BLOCK C13 project to BP. 33

Kosmos farmed in to ultra-deepwater block C18 with a 15% working interest in 2017, alongside partners Total S.A. (45%), Tullow Oil (15%), BP (15%), and SMHPM (10%). Total is the operator of block C18 and completed a 9,000-sq km 3D seismic survey in the block in early 2018.

MANAGING OUR FOOTPRINT In 2017, Kosmos performed a drill stem test on the Tortue-1 well, drilled two exploration wells, and conducted a 3D seismic survey offshore Mauritania. All activities were safely executed as planned without incident. All Kosmos personnel and contractors, such as the employee pictured here at our shorebase in The drill stem test (DST), a Nouakchott, have the right and responsibility to stop any unsafe work or remove themselves procedure that determines the from any unsafe working conditions. productive capacity, pressure, permeability and/or extent of the We have also introduced training total revenue – once Tortue LNG gas reservoir, was conducted in a programs for local suppliers and is on stream in several years, this water depth of 2725 meters, one their staff focused on workplace number will likely increase – and of the deepest drill stem tests ever health and safety, as well as labor the Mauritanian Hydrocarbon conducted. Close collaboration rights. Code of 2011 requires companies between all commercial partners to publicly disclose the payments Since we transitioned our and stakeholders throughout the they make to government. In 2017, Mauritanian employees to work for planning process, installation and Kosmos served as a private sector our partner BP at the end of 2017, test execution was key to the member of Mauritania’s EITI National we have hired a new Mauritanian success of the project. Committee. country manager and support staff Kosmos’ shorebase in Mauritania, to maintain our employment of In addition to our stakeholder located in Nouakchott, marked three 100% Mauritanian nationals in our engagements in Nouakchott, we years without a lost time incident Nouakchott office. continue to engage with fishing in 2017. We worked hard to achieve communities near our offshore this record, through dedicated ENGAGEMENT AND LISTENING exploration acreage through trainings, regular meetings, and close We believe that being a great Environmental and Social Impact cooperation among our employees, explorer is not enough to be Assessments, social investment, and contractors, business partners, and successful – we must also engage regular community visits. the government of Mauritania. with local people and listen to In 2017, we held four public We have continued to organize their concerns. Our gas discoveries consultations, covering areas contractor forums related to Greater offshore Mauritania mean that we in Nouakchott, Ndiago, and Tortue activities to provide training expect to have a presence in the Nouamjhara. We met with local and reinforce our HSE-related country for many years to come. representatives as part of the ESIA expectations. Local and multinational We want to be a welcome investor, processes to present upcoming contractors – representing drilling, both to our host governments and drilling activities and get input on shorebase, and aviation – attended local communities. To achieve this the proposed Greater Tortue plan these sessions in anticipation of goal, we build relationships with of development, as well as increased activity and re-committed stakeholders through engagement answer questions. themselves to working within our and listening on all topics: the Since we have been present in standards. environment, transparency, our Mauritania for over five years, the operations, capacity building and Our office in Nouakchott is staffed local community in the Ndiago social investment projects, health and with 100% Mauritanian citizens, region is now familiar with Kosmos safety, and socioeconomic impacts. and we prioritize the professional and informed about the oil and gas development of these employees. We are pleased to support the exploration taking place offshore. In 2017, Kosmos employees in government of Mauritania’s We met with, among others, the Mauritania attended international commitments to transparency. local Diawling Park Authority, trainings in finance, industry-specific Mineral resources currently represent fisherman’s associations, and local subjects, and English lessons. nearly a quarter of Mauritania’s religious, economic and government 34

staff suggestions, Kosmos has also provided lessons in basic management and entrepreneurship skills. We partner with the International Labor Organization (ILO) office in Mauritania on an employability skills training program for students enrolled in the English classes. Each year that Kosmos has been present in Mauritania, our office has participated in annual volunteering and charity during the month of Ramadan. The Ramadan holiday often leads to increases in food Researchers with the Biodiversity Oil and Gas Program (BGP) analyze marine prices that can put basic items out mammal and sea bird activity while on a marine survey offshore Mauritania of reach for many families. Kosmos’ sponsored by Kosmos. involvement in 2017 provided 3,000 meals for families in need during leaders. Each meeting represented Extractives (GAED) international Ramadan. Our local employees in an open invitation to continue master’s program, a joint master’s Nouakchott volunteered to assist in dialogue on our activities, as well as degree program on managing food distribution. a commitment to keep stakeholders impacts from the extractive sector, informed of our progress and plans. held at the University of Nouakchott While many of our social programs and the University Gaston Berger of are based in Nouakchott and support national development, we believe it POSITIVE IMPACTS Saint Louis, Senegal. is also important to benefit coastal Mauritania’s Biodiversity Oil and Gas The master’s degree program was communities in the Ndiago region, Program (BGP) is a multi-stakeholder developed by the International which is directly onshore from initiative supported by the Ministry Union for Conservation of our license areas near the border of Environment and Ministry of Nature (IUCN), United Nations with Senegal. Because there was Energy. Kosmos is pleased to have Development Programme (UNDP), little demographic and economic a multi-year partnership with the the German Development Institute information available on the Ndiago BGP team and to provide support (GIZ), MAVA Foundation, Global region when we entered Mauritania, for marine research and policy Environment Facility (GEF), the we began our work in the area by development. The BGP aims to World Wildlife Fund (WWF), and conducting a community needs bring researchers and policymakers the two universities for students assessment. together to improve marine from Mauritania, Senegal, and The assessment identified energy biodiversity protection, regulatory other African countries. Kosmos access as a local need in Ndiago. capacity, and engagement among is supporting the GAED master’s During stakeholder meetings, the various groups that use the program by providing our employees community and local authorities had ocean. as guest lecturers, hosting field trips and internships, and contributing suggested that the local economy In 2017, we again sponsored BGP financial support. GAED students could benefit from electrification researchers on a multi-week marine have also joined our teams in the projects. Kosmos responded by survey to increase knowledge and field for seismic and drilling ESIAs in developing a rural electrification data about biodiversity in the waters both Mauritania and Senegal. project in Ndiago in partnership with offshore Mauritania. This is the third the local community and the Ministry such survey that we have sponsored. For four consecutive years, Kosmos of Energy. In the coming year, BGP, along with has funded English language Kosmos built solar installations in its partner IMROP, intends to use this training for students at Centre de three remote areas of Ndiago that data to author a Marine Biodiversity Formation et de Perfectionement were not previously connected to Atlas of Mauritania. Professionels (CFPP), the largest vocational training center in the power grid. The project now While we pursue development of the Nouakchott. We had learned from a provides electricity to more than Mauritania’s natural gas resource, needs assessment that the students 2,100 people in Ndiago. It is our hope we aim to also enhance national were often being excluded from that the new electricity will result capacity in the oil and gas industry job applicant pools for which they in increases to quality of life in the and related fields. One such initiative were qualified because they did not local villages. Electrification has been is our multi-year partnership with have sufficient English language shown to improve health and indoor the Gérer les Impacts des Activités skills. In response to student and air quality, increase connectivity 35

through mobile device charging and fish are brought ashore. Many of better access to radio and television, these women are part of co-ops to and lead to greater productivity in increase efficiency, share the costs economic activities. of equipment and improve access to market for the fish products. The Diawling National Park (PND) Kosmos partnered with EcoDev, a borders the Senegal River and local development NGO, to build the municipality of Ndiago in southwest capacity of the Ndiago women’s fish Mauritania. The 16000-hectare processing co-ops. national park is characterized by a range of different habitats (pond, We provided a series of workshops river, islands, estuary, and lakes) for members of the cooperative and is home to a wide diversity of on organization and management flora and fauna. Diawling is part of a of small and medium enterprises Trans-Border Biosphere Reserve that The mouth of the Senegal River is home to (SMEs), entrepreneurship skills, and is a valuable avian breeding site due a multitude of birdlife, such as the sea birds hygiene and safety. Through this pictured here offshore Mauritania. to the combination of saltwater and training, the co-ops aim to increase freshwater at the Senegal River delta. their profits and develop more Fisheries are a key income sustainable business practices. The Kosmos supports the national park provider in the Ndiago region. hygiene and safety training was through skills training for park staff Understandably, the local community augmented by construction of a new on park surveillance, monitoring strongly cares about the safety of fish drying and processing area to of invasive species, and tourism its fishermen and their vessels, as lessen environmental impacts and management. We also provided well as the safety of those engaged improve working conditions for the new monitoring equipment, such in ancillary activities such as fish women. as watchtowers, binoculars, GPS, processing. Kosmos has previously and a drone, to improve capacity on provided safety gear and fish In addition to improvements to the park surveillance and research. Due processing equipment to the Ndiago physical work space, we provided to our cross-border offshore LNG community to reduce health risks the women with new equipment project, we encouraged the Diawling and improve working conditions, and for fish processing and safe National Park to work together with in 2017 we decided to expand our food handling. The project also the Djoudj National Bird Park on program in Ndiago. established a fund owned by the the Senegal side of the river delta women’s cooperatives to provide The population of Ndiago has a since the two national parks share working capital for the purchase majority of women due to the similar geography, flora, and fauna, of fresh fish, processing costs, and travel required by the men who fish and thus have similar challenges and access to markets for sales. offshore. The women of Ndiago are opportunities. responsible for processing after the

EMBRACING INNOVATION We are excited to partner with Start-Up Mauritania IN MAURITANIA on this first phase of the Kosmos Innovation Center in Mauritania. This partnership includes capacity In 2017, Kosmos began planning the establishment building for their business incubator and start- of a Kosmos Innovation Center (KIC) in Mauritania up competition as well as direct support to the to promote entrepreneurship among the winning start-up companies. country’s youth. We identified Mauritania as an Through Start-Up Mauritania, we will offer a excellent location for the KIC because young program for 50 Mauritanian youths to create people comprise 20% of the population and are start-up concepts in 2018. The start-up teams will experiencing a 19% unemployment rate. Youth participate in a business training curriculum and are key drivers of economic growth and social capacity-building program, learning from senior change in Mauritania, but currently face a lack of mentors and market research tours. They will economic opportunities and jobs. Entrepreneurship ultimately compete in successive rounds of pitch is a key pathway to employment and economic competitions, with the winners receiving support to empowerment for youth and can boost the overall launch their businesses. Mauritanian economy as well. The ethos of the Kosmos Innovation Center is to offer sustainable KIC Mauritania will encourage collaboration and opportunities for young people to create their own innovation among young entrepreneurs, investors, futures – not to give short-term handouts. and business leaders in Mauritania.

36 PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6

SEISMIC

MOROCCO

As one of the first oil and gas companies to explore offshore Morocco in recent years, Kosmos helped set the standard for how the industry does business in the country. Over four years, Kosmos built capacity at the shore base in Agadir, implemented social investment programs, engaged with a wide range of stakeholders and community members, and conducted several 3D seismic surveys.

We drilled our first exploration we conducted a geochemical Atlantic well in the Foum Assaka block in survey in the Essaouira block to Ocean 2014, which failed to encounter obtain sediment samples for further hydrocarbons in commercial analysis. ESSAOUIRA quantities. Based on these drilling BLOCK results and further analysis of the MANAGING OUR FOOTPRINT basin, we made the decision in 2016 Many artisanal small-scale fishermen to relinquish a portion of our acreage work along Morocco’s coast, MOROCCO offshore Morocco. We maintained including in the Essaouira block our position in the Essaouira block area. One common style of fishing to continue acquiring and analyzing in this area is for fishers to pause data in the area. in one location and hang either a In the spring of 2017, we completed net or hundreds of small hooks at varying depths. When employing MAURITANIA a three-month seismic acquisition survey in the Essaouira block. The this technique, it can take hours for interpretation of this seismic data fishermen to move from the chosen is ongoing. In the first half of 2018, fishing spot. 37

We learned in our Environmental guard vessels had to cut the nets of POSITIVE IMPACTS and Social Impact Assessment that the fishing boats in the path of the Corps Africa matches Moroccan the seismic survey would take place seismic vessels. youth with local communities to in a densely fished area. Kosmos We asked fishermen whose implement poverty-reduction conducted extensive mitigation equipment was lost or damaged projects. This program helps prepare measures in order to safely share the during the survey to provide their the next generation of Moroccan area with artisanal fishermen. information to the fishing liaison development practitioners by Our local team presented the officer. After a full engagement to giving them practical experiences survey to fishing cooperatives and ensure we were providing the proper that they can apply to their career, government officials along the reparations, Kosmos replaced all of as they develop skills in program coast. The team then handed out their equipment, including new nets management, leadership and flyers presenting the survey in three and hooks where relevant. adapting to difficult circumstances. languages to fishing communities Kosmos has supported Corps Africa and placed the flyers in central ENGAGEMENT AND LISTENING volunteer fellows each year since locations. We also sent a daily email Through workshops on a range the program started in 2013. For the with the vessel location to the fishing of topics – such as transparency, 2016-17 cohort, Kosmos sponsored cooperatives and relevant officials. resource governance models, and two volunteers in the Essaouira To maintain the exclusion zone stakeholder engagement – we have region. One volunteer refurbished around the seismic vessel, Kosmos helped to promote sustainable a multi-functional room that is now deployed four guard vessels with development in the oil and gas being used as a nursery school, fishing liaison officers (FLOs) sector in Morocco. For several years, classroom for women’s literacy onboard to communicate to ONHYM has been developing a programs, meeting place for women fishermen the location of the seismic corporate responsibility strategy and to sew carpets and a meeting space vessel and how to stay away. We program. for the community. He also led also employed a land-based fishing In early 2017, Kosmos’ staff led environmental projects focused on liaison officer to each fishing a workshop with ONHYM senior cleaning up the plastic bags that village on a weekly basis during the leadership on social investment are common in Morocco, as well duration of the survey. strategy. Kosmos also provided as workshops on leadership, self- confidence and teamwork. The other Despite these extensive mitigation written reports, materials and advice volunteer helped village women form measures, there were some cases in to help ONHYM implement a social an association and sell traditional which fishing boats got too close to investment strategy. handicrafts which provide income for the seismic vessel. In order to ensure the women’s families. the safety of the fishermen, the

EMBRACING INNOVATION see which teams had the best business ideas, plans and IN MOROCCO pitches. Some of the teams ultimately launched their businesses, creating jobs and generating revenue. Enactus is an international nonprofit organization, active in 36 countries, dedicated to inspiring students to improve the world through entrepreneurship. Kosmos partnered with ENACTUS Morocco to expand programming in Agadir and Essaouira, two cities on the Moroccan coast near our Essaouira license area.

Through our partnership with Enactus, over 1,200 university students learned about social entrepreneurship and the basics of running their own businesses. Students who wished to pursue additional learning in entrepreneurship formed Enactus teams and launched 22 new projects. The teams then participated in the Moroccan national competition to 38 PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6

SEISMIC

SÃO TOMÉ AND PRÍNCIPE

Kosmos first entered São Tomé and Príncipe by acquiring acreage in four offshore blocks – 5, 6, 11 and 12 – in 2015 and 2016. In early 2018, Kosmos acquired two additional offshore blocks – 10 and 13. In total, these six blocks cover an area of approximately 38,600 square kilometers and are adjacent to a proven petroleum system in Equatorial Guinea and Gabon.

Upon entering São Tomé and government. Kosmos, Galp, Equator, Gulf of PRÍNCIPE Guinea Príncipe in 2016, Kosmos established and ANP-STP intend to make a a local office on São Tomé island and decision regarding exploration BLOCK 10 BLOCK 5 appointed a country manager. We drilling in 2019. currently employ seven local staff Our partner in blocks 10 and 13 is BP. SÃO members, working in areas such as TOMÉ BLOCK 6 The work program in these blocks accounting, finance, external affairs, will be phased, which will enable HSE, and procurement. BLOCK 11 Kosmos and BP to develop a deeper Galp Energia, a Portuguese oil and understanding of the basin and gas company, holds a non-operated create the best chance of exploration GUINEA BLOCK 12 stake as a partner in blocks 5, 11, and success. In the first four-year GABON 12, and an operated position in block phase, Kosmos and BP will acquire BLOCK 13 6. Equity in these four blocks is also additional seismic data and will shared with Equator and the Agencia analyze the data to decide on next Nacional do Petroleo de São Tomé e steps with regard to drilling. Príncipe (ANP-STP), on behalf of the 39

Kosmos will be the technical mitigations, and appropriate During the ESHIA process for operator during the exploration experts were engaged to assist in our seismic survey in 2017, we phase of the license, with BP taking compliance with the plan. Through participated in public consultation over to manage any development in research and engagement, we are forums, met with a variety of the event of exploration success. proud that we could design a seismic government and civil society survey that exceeded international stakeholders, engaged with fishing MANAGING OUR FOOTPRINT environmental standards. communities, and established a formal grievance mechanism for In 2017, we conducted a 3D We are committed to working individuals potentially impacted seismic campaign in blocks 5, 6, closely and transparently with local by our activities. The assessment 11, and 12 covering over 16,000 and international stakeholders to included extensive consultation square kilometers, the largest data safeguard São Tomé and Príncipe’s on both islands, which presented acquisition in our company’s history. unique biodiversity. By following several opportunities for interested The seismic survey was planned international standards and engaging parties to provide feedback. This and executed to minimize potential in dialogue with international and feedback was incorporated into the exposure to the environment, local organizations, we believe oil Environmental Management Plan particularly marine mammals and sea and gas exploration can proceed in and survey design. turtles. Two marine fauna observers a responsible and environmentally- (MFOs) and one passive acoustic sensitive manner. To keep stakeholders informed, a monitoring (PAM) operator were community engagement program present. ENGAGEMENT AND LISTENING was also conducted ahead of the Kosmos and its partners spent over Kosmos is committed to seismic acquisition. The program a year developing an understanding transparency and active promotion included members from Kosmos, of the potential impacts of our of the Extractive Industries Galp, Agencia Nacional do Petroleo seismic survey on the waters Transparency Initiative (EITI) in each de São Tomé e Príncipe (ANP-STP), offshore São Tomé and Príncipe of our host countries, including São the national oil company, the local through the preparation of an Tomé and Príncipe, which has been a NGO MARAPA, and the Ministry of environmental, health and social member country since 2012. Fisheries. After the seismic campaign impact assessment (ESHIA). had concluded, we re-visited key Kosmos has established regular For each block, the ESHIA was local and international stakeholders engagement with the Director of EITI developed by independent to update them on the completion and the multi-stakeholder group in consultants and approved by the of the survey and the success of our São Tomé and Príncipe. In 2017, we São Tomé and Príncipe Ministry of environmental mitigation plans. deepened our relationship with EITI Infrastructure, Natural Resources and plan to work together in 2018 to Kosmos has had an ongoing and Environment. hold knowledge-building workshops dialogue with Fauna & Flora A project-specific marine fauna on the oil and gas industry for local International (FFI) regarding our protection plan was developed to stakeholders and the media. seismic campaign offshore São Tomé include approved marine fauna and Príncipe. FFI provided valuable feedback on our survey design and mitigation measures, and we agreed to continue conversations around seismic acquisition and any future exploration drilling. We also shared cetacean and marine mammal data acquired by our marine fauna observers and other scientists on the seismic vessel during the acquisition program.

POSITIVE IMPACTS Kosmos and our partners are contractually obligated to spend approximately $3.3 million on social investment projects over four years (2016-2019) under the terms of our production sharing contracts with the government for blocks 5, 11 and 12. To ensure this social investment An artisanal fisherman checks his equipment on the shores of São Tomé. Kosmos held public obligation results in real benefit consultations with the fishing community and other local stakeholders in São Tomé and Príncipe prior to beginning seismic operations. to the people of São Tomé and Príncipe, Kosmos has engaged with 40

the government to understand its national development priorities and formulate a strategic plan for the education sector. São Tomé and Príncipe has high levels of literacy compared to many other developing countries. However, the country’s young demographic – over 60% of the population is under the age of 24 – presents significant challenges in the education sector which the government is eager to address. According to recent government data, the key challenges are:

• Class size: an average of 80 In partnership with the government of São Tomé and Príncipe, Kosmos is building schools students per classroom and classrooms in four locations on São Tomé for children such as the two boys pictured playing here. • Pace of development: Inadequate use of technology due to lack of infrastructure and training average number of students per schools in Neves and São Marçal. classroom, and preparing students Once these projects are completed, • Instruction: Insufficient number for the future labor market. the Ministry of Education, Culture, of teachers, many of whom lack and Science will take responsibility necessary training Kosmos has agreed to build two new for staffing the schools with qualified secondary schools and associated Thus, the goals of the education teachers or teachers-in-training, as facilities (in Santana and Monte Café) initiative include improving access well as the maintenance and repair and add classrooms to two existing to quality education, reducing the of the classrooms and facilities. Kosmos has also procured two mini- buses that are now used to transport teachers to remote schools in Porto Alegre and Santa Catarina. This initiative is being overseen and monitored by a steering committee comprised of Kosmos, the Ministry of Education, Culture and Science, and ANP-STP. Groundbreaking for the school construction is expected in the first half of 2018. Kosmos is currently working with the Ministry of Education, Culture, and Science and ANP-STP to move the project forward and ensure high standards for construction. In addition to the education projects on São Tomé island, Kosmos intends to implement social investment projects on Príncipe island in the coming year. In 2017, we conducted an assessment and partner analysis on Príncipe. Based on the results of this assessment, we plan to focus our social investment efforts on Príncipe around biodiversity and The island of Príncipe is home to approximately 7,000 people and has a rich biodiversity, including many endemic species. In 2018, Kosmos plans to initiate several social and conservation, access to water supply, environmental projects on Príncipe to ensure benefits reach both islands in the country. and innovation in local enterprises. 41

ENGAGING ON ENVIRONMENTAL ISSUES WITH FAUNA & FLORA INTERNATIONAL

At Kosmos, we are committed to During our initial meeting, FFI provided arising. Eight mitigation actions were actively consulting with stakeholders on valuable input on the design of our implemented during the seismic the actions we take to mitigate impacts seismic survey and mitigation measures program: four involving Pilot whales when exploring for hydrocarbons. We in relation to potential impacts on and four for Humpback whales, believe that partnering and engaging in biodiversity. Kosmos presented the including one full shut-down for the dialogue with stakeholders deepens our detailed Environmental and Social extended mitigation zone for understanding of public concerns that Impact Assessment completed during mother-calf pairs. should be addressed. These dialogues the planning phase of operations, can ultimately lead to better-informed along with other key studies and the decision making and reduced risks to logistics plan that minimized the overall environment. duration of the survey and ensured that maximum distance was kept from each Following the public consultations area of sensitivity. for our seismic acquisition program offshore São Tomé and Príncipe, we We discussed and clarified items were contacted by Fauna & Flora about which FFI had concerns. International (FFI), an international Subjects under discussion included: wildlife conservation organization, • source level used for the seismic with an ongoing environmental We continued to work with FFI after campaign; program on Príncipe Island. In the initial engagement by facilitating response, the project management • the timing of operations to avoid the a meeting between our Marine Fauna team from Kosmos met with migratory period of whales; Observers and FFI staff in São Tomé conservation specialists from FFI to • the noise propagation model and Príncipe, and by holding a follow discuss in greater detail our survey used to establish the size of the up meeting at FFI’s headquarters plans and the proposed seismic mitigation exclusion zone; after the seismic acquisition was mitigation options. complete. With the permission of • the proposed monitoring and the government of São Tomé and mitigation actions; Príncipe, Kosmos shared with FFI OUR ENGAGEMENT WITH • the necessity for adaptive the cetacean and marine mammal KOSMOS WAS A VALUABLE management; and data acquired by our Marine Fauna KNOWLEDGE SHARING Observers and other scientists during • possibilities for data sharing and in- EXERCISE. THEY SHOWED the acquisition program. The data is country support for GREAT WILLINGNESS TO particularly important because there is conservation actions. ENGAGE WITH FFI AND a lack of current research and data on EXPLAIN IN DETAIL THE Communication is critical, and no cetaceans and turtles in the waters far EFFORTS THEY WERE more so than during field operations. offshore São Tomé and Príncipe. FFI reviewed Kosmos’ Sensitive PLANNING TO MITIGATE Through research, engagement, and Marine Fauna Protection Plan, the IMPACT TO MARINE MAMMALS a collaborative approach, we are primary document that professional AND TURTLES. IN ADDITION, proud to have completed a seismic Marine Fauna Observers and Passive KOSMOS WAS RESPONSIVE survey offshore São Tomé and Acoustic Monitoring operators use Príncipe that meets high international TO OUR CONCERNS WHICH to implement the practical field environmental standards. We greatly RESULTED IN ENHANCED tools to minimize the risks to marine appreciate the willingness of FFI to MITIGATION ACTIONS fauna. During the seven-month-long meet with us and work together to DURING THEIR SURVEY. seismic survey, 306 observations ensure that we are each doing our of 12 cetacean species were made. Sophie Benbow part to protect marine fauna and Compliance with the mitigation Marine Programme Manager, FFI respect the unique environment of plan was exemplary, with no issues São Tomé and Príncipe. 42 PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6

EXPLORATION APPRAISAL DEVELOPMENT DRILLING DRILLING

SENEGAL

Kosmos has a participating interest in two exploration blocks offshore Senegal – Cayar Offshore Profond and Saint Louis Offshore Profond. The license areas are adjacent to, and on trend with, our blocks offshore neighboring Mauritania.

We first drilled two successful gas deposit and confirmed that a Atlantic Ocean exploration wells offshore Senegal prolific inboard gas fairway extends ST. LOUIS in 2016, which both discovered approximately 200 kilometers from OFFSHORE PROFOND significant deposits of natural gas. the Marsouin-1 well in Mauritania The Guembeul-1 well, which was through the Tortue area on the located approximately five kilometers maritime boundary all the way to the south of our basin-opening Tortue-1 Teranga-1 well in Senegal. well gas discovery offshore Announced in late 2016, Kosmos has Mauritania, demonstrated reservoir a partnership with BP in Senegal continuity, as well as static pressure (and Mauritania) that combines SENEGAL communication with the Tortue-1 Kosmos’ exploration expertise CAYAR well, suggesting that a single large OFFSHORE with BP’s deepwater development, PROFOND gas accumulation stretches across LNG production and marketing the maritime boundary between experience. Kosmos holds an Mauritania and Senegal. effective 30% participating interest The Teranga-1 well, drilled in the in both licenses. BP holds a 60% Cayar Offshore Profond block participating interest. The national approximately 91 kilometers oil company Société des Pétroles du southwest of the Guembeul-1 well, Sénégal (Petrosen) holds 10%. also discovered a very large, material 43

In early 2017, Kosmos announced department, and representatives another major discovery of gas of fishing communities directly. We BY IDENTIFYING FUTURE offshore Senegal with the results of met with over 200 fishermen to NEEDS, COLLABORATION the Yakaar-1 exploration well. Located describe the location and duration OPPORTUNITIES, AND in the Cayar Offshore Profond of the survey, the names and contact block approximately 95 kilometers information of the survey vessels, the POTENTIAL FUNDING northwest of Dakar in nearly 2,550 nature and reason for the exclusion AVENUES TO MAINTAIN meters of water, the well discovered a zone around the boats, and the phone AND EXPAND OCEAN gross Pmean gas resource of about 15 number and email address for the ACIDIFICATION RESEARCH trillion cubic feet, in-line with pre-drill Kosmos Grievance Mechanism. We THROUGHOUT AFRICA, expectations. also handed out flyers on the survey, THIS INITIATIVE IN broadcast a radio announcement, SENEGAL OFFERED A MANAGING OUR FOOTPRINT and deployed a fishing liaison officer UNIQUE OPPORTUNITY TO Kosmos opened its office in Dakar (FLO) on board each vessel. MOVE FROM A PROBLEM in September 2014 to support our Our survey vessels encountered many DEFINING ERA INTO A drilling program and to establish artisanal boats in the nearshore zone. MUCH-NEEDED a visible presence in the country. The density of fishing activities often SOLUTION SPACE. Kosmos spent more than a year required our vessels to pause work working in fishing communities until artisanal fishers moved on, and Shona Paterson onshore from our license areas the geophysical work often had to Science Officer, Future Earth Coasts to introduce the company, begin stop completely during the hours of building productive relationships, and darkness. Despite this, there were no prepare for both seismic surveys and significant incidents with artisanal This was the first face-to-face meeting drilling activities. boats. Interactions with fishermen of the Ocean Acidification Africa Since those early days, we have built were cordial and cooperative. Network to discuss mechanisms for a team in Dakar which was comprised Our External Affairs staff returned knowledge sharing among scientists predominantly of Senegalese to Saint Louis at least twice a across Africa and to build momentum nationals. We have provided month for the duration of the for scientific action. development opportunities to our survey to re-deliver messages about Scientists from eighteen coastal Senegalese staff through training the importance of the exclusion African nations – working in chemistry, workshops and special assignments zone around our vessels, gather biology, economics and/or social to enhance their capabilities. feedback from fishermen on our science – came together to discuss In mid-2017, when BP took over operations and how we were handling the best way forward for research operatorship of Cayar Offshore interactions offshore, and ensure across the continent. The workshop Profond and Saint Louis Offshore ongoing awareness of the Grievance also included institutions such as Profond blocks, many of our staff Mechanism. the Abidjan UNEP Regional Seas transitioned to work for BP. We Kosmos maintains a program to Convention in order to create linkages currently have a team of three strengthen HSE management to future policy development. employees in our office in Dakar to with the local and multi-national In addition to the workshop events, continue above-ground activities, contractors that support our drilling fifteen early-career scientists, such as social investment, and to operations. The program involves graduate students, and technicians support the operations that BP leads bringing together management underwent practical training in the as the operator. representatives from each of the implementation of ocean acidification In the first half of 2017, we conducted contractors supporting Kosmos research. Participants hailed from a geotechnical and geophysical operations to collaborate on Benin, Cameroon, Ivory Coast, Nigeria, survey in the Saint Louis Offshore organizational challenges, crew Senegal, Ghana, and Togo. The Profond license in Senegal and the resource management, and showing training was specifically designed to C8 license in Mauritania. Part of the leadership in safety, health, and the emphasize eastern Atlantic waters to survey took place in the nearshore environment. build capacity for the practitioners area where the Tortue project from West Africa. ENGAGEMENT AND LISTENING breakwater will be located – up to Kosmos also worked with the 10km from the coast and the town of As part of our commitment to government in Senegal to build Saint Louis. It is a densely fished area, supporting environmental initiatives capacity in environmental with approximately 5,000 artisanal in the countries where we operate, management as part of our ESIA fishing boats operating from Saint Kosmos sponsored a workshop on processes. As a first step, in 2016 Louis. ocean acidification in Senegal through Kosmos organized a training on the the Future Earth Coasts initiative. At the beginning of the survey, we conduct of environmental monitoring The week-long event was held at the held in-person meetings in Saint of drilling activities. This training Ecole Superieure Polytechnique of the Louis with the local artisanal fishing included the Bosiet-Huet certification Universite Cheikh-Anta-Diop in Dakar. council (CLPA), the local fisheries of Department of Environment and 44

Classified Establishments (DEEC) In addition to capacity building four neighborhoods in Saint Louis: agents and their visit to the drillship. within Senegal, Kosmos also Goxu Mbacc, Ndar Toute, Guet Ndar sponsored members of Senegalese and Hydrobase. The project aims to In 2017, we built upon this training civil society to attend a Natural address several environmental issues by bringing members of the DEEC Resource Governance Institute (NRGI) Côte d’Ivoire and Ghana to engage affecting fishing communities on workshop in Cameroon, where we with their counterparts in those the Langue de Barbarie including were a presenter. The topics covered countries. We facilitated meetings artificial reefs, reforestation, and waste included oil and gas project lifecycles, between DEEC and environmental management. revenue flows during different stages agency officials in Ghana (Ghana Artificial reefs create new breeding of the project, the causes and impacts Environmental Protection Agency) habitats and ecological niches for of changes in oil price, contract and in Côte d’Ivoire (Agence Nationale fish, which is important in the heavily- transparency, corruption risks, and De l’Environnement) to help DEEC fished waters offshore the Langue de managing the environmental impacts develop a global support network, Barbarie. Le Partenariat commissioned of exploration and production. identify comparable mechanisms, and a local company to construct over share lessons learned about how to We are now working in partnership 400 artificial reefs, then worked with regulate and monitor offshore oil and with BP to continue these types of fishing representatives, the national gas activities. capacity building engagements with maritime agency, professional scuba government, civil society, journalists Kosmos also led or participated in divers, Saint Louis firefighters and the and local communities in Senegal. workshops in Senegal in the past year Marine Protected Area to sink them on transparency, local content, good over a period of four days. We also POSITIVE IMPACTS governance of natural resources, commissioned a local environmental Fishing Livelihoods in Saint Louis and fundamentals of the oil and consultancy to do a health and safety gas industry. We continued our Kosmos is working with Le assessment, oversee the immersion, regular engagement with the EITI, Partenariat, an international NGO, as and ensure a safe and incident-free supporting dissemination of the 2015 our implementing partner for social immersion process. investment on the Langue de Barbarie and 2016 EITI reports by presenting The artificial reefs have all been ‘geo- in Saint Louis, Senegal. Le Partenariat at a workshop in Saint Louis. We localized’ so that representatives is a partnership between the Saint also hosted a group of students from from the Marine Protected Area can Louis region of Senegal and the local the CESTI School of Journalism in monitor them and confirm they stay in authorities of the Nord Pas-de-Calais Dakar at our offices, presenting on place despite the underwater currents. region in France. The organization has the Tortue project to help improve In 2018, Kosmos and BP plan to work been working in Saint Louis for over understanding of our work and the oil with Le Partenariat and the Marine 30 years. and gas industry. This was part of an Protected Area to design a multi-year Oxfam-sponsored training program Our projects with Le Partenariat are monitoring and evaluation program for student journalists. focused on improving the quality to fully measure the environmental of life for fishing communities in impacts of the artificial reefs. For reforestation, we worked with Le Partenariat to plant eight hectares of pine trees and two hectares of mangrove trees. Approximately 9,000 pine trees and 10,000 mangroves were planted in total. The pine trees help combat localized erosion by securing the dunes with their roots, and mangroves promote sediment buildup in coastal waters and provide habitats for fish reproduction. Over 680 community members participated in the reforestation efforts. The project was also supported by local government agencies, Marine Protected Area representatives, and the local artisanal fishing council. Waste management and pollution reduction proved to be the most challenging. The aim was to clean trash from the local river banks and reduce unauthorized waste dumps A Kosmos employee leads a capacity building workshop for Senegalese stakeholders on the oil and gas value chain in partnership with the Natural Resource Governance Institute (NRGI). on the Langue de Barbarie by 80%. In addition to high-profile public 45

“clean up” days, the project included and gas industry in countries that capacity building work with local are relatively new to oil and gas authorities to strengthen the waste like Senegal. These institutions management system so that once are home to our future workforce trash was removed, the waterways and often help inform the national would stay clear of new pollution. policy conversations and legislation. Kosmos sponsored professors from We held four successful clean up the University Cheikh Antar Diop days, mobilizing nearly 100 local in Dakar (as well as representatives people to help clean up trash from the University of Nouakchott in and plastic waste that normally Mauritania) to attend the GetEnergy line this section of the Senegal A pelican hunts for fish in the Djoudj National Bird Park along the coast of Senegal. conference on local content in oil and River, gathering over 46 tons of gas in London in 2017. waste in total. The local artisanal villagers. The project, which began fishing council, the mayor’s office, The GetEnergy event was designed in 2017, reinforces the ecological local government departments, specifically for providers of education monitoring and surveillance of the the Saint Louis Development and training to learn from companies, Park and supports the socioeconomic Agency and the municipal cleaning governments and service providers, development activities of the service all participated, along with with the goal of increasing the Djoudj Inter-Village Committee. This representatives from the fishing number of local people working in committee is made up of national communities. We also donated the oil and gas industry. Kosmos aims park officials and community leaders. equipment such as forks, shovels and to contribute to the development personal protective equipment (PPE) Our support goes toward: of linkages between educational offerings and the needs of the oil and to community waste management 1. Habitat restoration and the gas industry in Senegal as well as all organizations. management of invasive plant the countries where we are in the species. In total around 16 hectares Unfortunately, trash quickly returned development and production stage of of degraded natural habitats will be to the river banks in some of the the project lifecycle. neighborhoods. After a review of restored and rehabilitated. In 2017, Kosmos and BP began the project, we concluded that 2. Biological monitoring and tracking working together to support the waste management on the Langue the health of the park’s ecosystem Senegalese government in the de Barbarie is complex and the – including equipment for 50 ‘eco creation of a National Institute for solutions are not straightforward. Le guards’ that volunteer from the Petroleum and Gas to provide higher Partenariat held several workshops park’s surrounding villages. with local leaders to try to work education and training to develop the leaders, managers, and operators of towards a more sustainable solution. 3. Providing risk huskers as an income-generating activity for Senegal’s new petroleum industry. Djoudj National Bird Park community volunteers that work The initial scoping for the Institute with the park. The Djoudj National Bird Park in included a jobs and opportunity Senegal, located along the border 4. Bird spotting guides, binoculars assessment to inform curricula and with Mauritania, was created in 1971 and other equipment to support goals for the proposed institute’s as a natural bird sanctuary in the the villagers that work as guides in future growth, including technical adjoining backwaters, lakes and the park. English language training for a range rivers of the Senegal River delta. of stakeholders in the academic The 16,000 hectare national park is Responding to Natural Disasters system, government, suppliers home to approximately 365 different As a responsible corporate citizen and our workforce; leadership, species of birds, 80 species of fish, 10 in Senegal, Kosmos understands the management and technical training species of mammals, and 132 species need to partner with communities for the first cohort of a national of plants. The area is also a resting when disaster strikes. In August 2017, workforce; and partnerships with place for nearly 1.5 million migratory seventy-three families living along the international universities and training birds crossing the Sahara Desert to coast in Saint Louis had their homes providers. We are also coordinating the north. The park is located onshore destroyed during a severe storm. As with other oil and gas investors from the area where Kosmos made a result, they were forced to shelter in Senegal on this initiative to leverage partnerships and ensure a the Tortue-1 well natural gas discovery in local schools while rebuilding their streamlined industry approach. and is bordered by eight villages with homes. Kosmos donated food and nearly 25,000 inhabitants. mosquito nets to these families and Through our partner BP, we also to local mosques to help support engaged the British Council to Kosmos worked with the Djoudj them while displaced. launch a multi-year English-language Park authorities to design a project training program for university that aims to conserve the habitats Capacity Building students, professors, and staff in key of the park through a participatory government departments relevant to approach to land-management Universities and academia are the oil and gas industry. activities involving the neighboring important stakeholders for the oil 46 PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6

EXPLORATION DRILLING

SURINAME

Kosmos holds exploration licenses offshore Suriname for blocks 42 and 45. Five years ago, we established an office in Paramaribo, the capital of Suriname. Since then, we have developed a capable team of local employees, listened to community members, and implemented various social and environmental projects.

Since beginning operations offshore to support local communities and BLOCK 45 Suriname in 2012, Kosmos has capacity building even before we conducted three seismic surveys. have drilled any wells. The processing and interpretation In preparation for drilling, we moved of this data has confirmed that into a larger office in Paramaribo BLOCK 42 the exploration potential offshore and added three local employees to Suriname represents a top-ranked our team. This expansion will better opportunity in Kosmos’ exploration position Kosmos to manage the Atlantic portfolio. Ocean increased activity associated with In addition to this technical work, our drilling operations. Kosmos has focused on conducting above-ground activities, such MANAGING OUR FOOTPRINT as stakeholder engagement and During exploration drilling, Kosmos GUINEAexecution of social investment will manage operations from our local SURINAME projects. Kosmos aims to be a office in Paramaribo. We established welcome investor in Suriname and a local helicopter base for personnel use our expertise and knowledge transfer to and from the offshore 47

drilling rig. The primary marine viable areas of capacity building supply base for the operation and investment which could will be in Trinidad because maximize local content for Suriname does not currently have each scenario. a deep-water port capable of Kosmos is supporting the local accommodating the drillship and content study by providing input large supply vessels which are and guidance as well as sharing required to support in the cost of the project. We our drilling operation. will continue to seek ways to Kosmos has had an ongoing increase local participation in our dialogue with Surinamese supply chain during exploration government authorities over the while supporting government last few years regarding the port efforts to ensure any future oil and local supplier participation and gas operations are a driver of in offshore petroleum operations. economic growth and sustainable Specifically, although we endeavor development in Suriname. to work from a local shore base whenever possible, our primary ENGAGEMENT AND shore base operations for the LISTENING exploration wells in Suriname An Environmental and Social must be run out of Trinidad, where Impact Assessment (ESIA) was there is pre-existing oil and gas conducted prior to beginning infrastructure and a deep-water drilling operations. As part of A seismic vessel collects data port. The government has indicated this assessment, we held public offshore Suriname. that they will revisit the decision consultations to describe the to dredge a deep-water port in drilling program, logistics plans, to publicly disclose revenues Suriname if a commercial discovery vessel locations and movements, received from the extractive is made offshore. rig description, socioeconomic industry (petroleum and mining) The government of Suriname is baseline survey, well control, waste and encourage public dialogue keen to optimize local content management, potential impacts regarding government management at each stage of the project and mitigations, the environmental of the countries natural resources. lifecycle, and Kosmos is pleased management plan, and grievance The government plans to publish to work with them and other mechanism. We also used the their first EITI report in 2018 local stakeholders on this goal. In meeting to answer questions and and has already set up a Multi- 2018, Staatsolie, the national oil address stakeholder concerns. Stakeholder Group (MSG). Kosmos company, plans to initiate a major The consultation attendees included represents the oil and gas private oil and gas industry local content government representatives, public sector on the Suriname MSG. We Industrial Baseline Study through agencies, the fishing community, are pleased to support Suriname’s an independent third party. This NGOs, private sector companies, EITI implementation. study will take a proactive approach community members and the Kosmos also supports good to identify opportunities where media. Attendees asked questions governance of natural resources local companies in Suriname can on the topics of health and safety in Suriname by engaging with participate or build capacity in for employees and contractors, international stakeholders. Kosmos order to participate in current and the ESIA review process, oil spill sponsored and participated in future oil and gas activities. modeling and response, potential Chatham House’s annual “New Throughout the study, the third- for noise, chronology of drilling Producers Discussion Group” party expert firm will work with wells, training for local stakeholders, held in Paramaribo and hosted local companies and small and and emergency response by Suriname’s Ministry of Natural medium sized-enterprises (SMEs) to procedures. Resources and Staatsolie. During assess their readiness to participate In May 2017, Suriname took an the event, Kosmos was part of a in the petroleum supply chain. important step and formally panel discussion on responsible The study will also estimate the submitted an application to stewardship of resources and range of local content expenditure become an Extractive Industries commercial due diligence. The which would be contributed over Transparency Initiative (EITI) weeklong meeting brought together the life of an oil or gas project – candidate country. Kosmos representatives from various through exploration, development, encouraged and assisted the Surinamese government agencies, production and decommissioning government in the process businesses, civil society leaders, – with and without dredging of the of joining EITI. As a member and oil industry representatives, port. The study will also identify country, Suriname will be required and included participants from 48

The mangrove restoration project team now has over a year of KOSMOS HAS SHOWN SINCE THE START OF data from which to evaluate the ITS OPERATIONS IN SURINAME TO BE VERY effectiveness of the STUs. Since COMMITTED TO HIGH INTERNATIONAL the first phase of the project was successful in increasing sediment STANDARDS AND A VALUABLE PARTNER accretion rates and thus slowing IN CAPACITY BUILDING IN TECHNICAL AND erosion, the team has decided to GEOLOGICAL EDUCATION IN SURINAME. expand the project by upgrading PERSONALLY, HAVING WORKED IN THE the existing STUs and engaging EDUCATION SECTOR FOR OVER 20 YEARS, local community members to plant mangrove juveniles along the coast of I WAS PARTICULARLY PLEASED WITH KOSMOS’ SAFETY Weg naar Zee. CULTURE AWARENESS CAMPAIGN. THIS PROGRAM BENEFITED In addition to partnering with the AROUND 2300 STUDENTS AND 300 TEACHERS AT NATIN, university on mangrove conservation WHERE I WAS MANAGING DIRECTOR UNTIL NOVEMBER 2010. and research, Kosmos is also ALSO – AS THE MINISTRY OF NATURAL RESOURCES IS supporting STEM education by UPDATING THE GEOLOGICAL MAP OF SURINAME – WE WERE working closely with the local university’s geology department HAPPY TO SEE KOSMOS HELP REVITALIZE THE GEOLOGY to evaluate their needs in terms of DEPARTMENT OF THE UNIVERSITY OF SURINAME THROUGH hands-on laboratory and field work. In NEW LABORATORY EQUIPMENT AND TRAINING. THE 2017, we provided specialized geology IMPROVED TECHNICAL EDUCATION IS MOTIVATING STUDENTS lab equipment to the university, TO STUDY GEOLOGY AND NATURAL RESOURCE DEVELOPMENT. our second academic collaboration with the geology department since Dave Abeleven, Msc. entering Suriname in 2012. Students Permanent Secretary of the will now be able to conduct more Suriname Ministry of Natural Resources advanced laboratory experiments and research during their undergraduate and graduate studies on campus. Our hope is that the new field work and lab equipment will lead students to be more interested in, and better Colombia, Ghana, Guyana, Liberia, of Paramaribo, has in recent years prepared for, future careers in the and Trinidad and Tobago. experienced frequent flooding and extractive sectors in Suriname. erosion due to the loss of mangrove In 2018, Kosmos plans to organize With rain forest covering forests. The flooding and rising sea a series of media workshops in approximately 94% of the national levels have affected nearly 3,000 Suriname to deepen the knowledge territory and a rich terrestrial local community members, including of journalists regarding petroleum biodiversity, Suriname is known as artisanal fishermen, local farmers, and operations. We have held similar one of the greenest countries in the bee keepers. In addition, erosion has workshops in other countries and world. The Green Heritage Fund is threatened to destroy two important have found that this approach can a local NGO in Suriname dedicated cultural and religious sites. help manage expectations around to protecting biodiversity and exploration drilling in addition Kosmos has partnered with raising awareness regarding national to educating stakeholders and Conservation International and Anton environmental issues. One of the promoting transparency in the oil de Kom University of Suriname on Green Heritage Fund’s largest projects and gas sector. a multi-year project to mitigate the is the Xenarthra Program, which coastal erosion at Weg naar Zee by provides shelter, care, rehabilitation POSITIVE IMPACTS building Sediment Trapping Units and release of sloths into the forests (STUs). These structures promote Although our drilling operations of Suriname. Kosmos is supporting sediment deposition and create take place far offshore, Kosmos is the construction of an education and conditions for halting and reversing committed to preserving the coastal research center for the Xenarthra erosion. Mangrove juveniles will be environment and supporting coastal Program, where Green Heritage Fund able to grow in the newly formed communities in Suriname. Mangroves staff will protect and rehabilitate mud banks, both naturally and when grow abundantly along Suriname’s sloths while simultaneously using the planted by local researchers. coastline and prevent coastal erosion. space to educate and raise awareness The area of Weg naar Zee, north of the need for conservation of the species and others in Suriname. 49

Safety and Health, or NEBOSH, is an accredited program that teaches practical skills in risk identification and risk reduction. In 2017, we offered the NEBOSH course for teachers at the three technical schools on the NATIN campus. This intensive training helps teachers identify and control potential hazards on campus to reduce accidents and injuries. As Suriname’s extractive industries continue to grow, it is our goal that safety be fully integrated into the country’s vocational technical education, which will help build the safety culture of the Suriname workforce for years to come. The Academic Hospital Paramaribo Engineering students at NATIN were among those who participated in the Kosmos-sponsored is the largest hospital in Suriname safety training in Paramaribo. and serves as a major medical research hub for the country. Promoting Safety in Technical School 2 (STS2) and Avond The government of Suriname has Education Middelbare Technish Opleiding prioritized developing the hospital. In (AMTO). Kosmos’ top priority is ensuring support of the national development the safety of our workers and the SafeStart is a global “train the agenda, Kosmos has committed integrity of our operations, and this trainer” program that teaches multi-year support to the academic commitment to safety often extends behavioral based safety techniques. hospital and the training of its staff. into our capacity building and social Participants learn to recognize the Kosmos began by working with investment programs. state-to-error patterns that cause hospital personnel in 2016 to most injuries in the classroom, In 2016, Kosmos launched a multi- identify needs and create a plan workplace, on the road, and at home. year safety culture program at for how Kosmos and other oil The SafeStart program included the Natuurtechnisch Instituut and gas operators in Suriname instruction to certify teachers at the (NATIN) campus with the goal of can work together to build the NATIN campus to become SafeStart establishing a safe learning and hospital’s research and patient care trainers. The teachers administered working environment for all technical capabilities. Since the beginning of the second half of the SafeStart students and staff members. The the hospital partnership, Kosmos program in 2017, thus ensuring program was developed through has donated surgical tools, machines ongoing reinforcement of safety consultation with the staff at for monitoring patient vital metrics, concepts. NATIN, the Ministry of Education, defibrillators (AEDs), and intensive Staatsolie, and teachers from two The Health and Safety Foundations care unit beds. other technical schools on the NATIN at Work course from the National campus, Surinaamse Technische Examination Board in Occupational

EMBRACING INNOVATION IN other areas to motivate young people to solve SURINAME real world problems. Due to the success of this event, we also sponsored a multi-month Our multi-year support of technical education hackomation program through IT Core focused and STEM disciplines naturally encourages on fostering renewable energy and sustainability innovation in Suriname. In 2017, we partnered solutions in Suriname. with existing programs to help them expand their As we look to 2018, we plan to develop more long- offerings in the intersection between technology term partnerships in Suriname that will help equip and social entrepreneurship. We worked with a young people to pursue their innovative ideas for local organization, IT Core, as a sponsor of their addressing local economic and social issues. hackathon which applies elements of gaming to

50 PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6

WESTERN SAHARA

Following a review of our global operations, Kosmos made the difficult decision to withdraw from Western Sahara after more than a decade of investment in the region. The decision to withdraw from the Boujdour Maritime block was made as part of an industry-standard portfolio review, and is based on a combination of exploration results and our capital allocation strategy.

Kosmos has held rights to explore an providing ONHYM with oversight Atlantic area offshore Western Sahara since and quality assurance services to Ocean 2006. Kosmos completed its first ensure this work is completed. BOUJDOUR exploration well offshore Western MARITIME MANAGING OUR FOOTPRINT BLOCK Sahara in early 2015. The well encountered hydrocarbons, but not While deciding to leave was a difficult in commercial quantities. decision given our decade-long WESTERN SAHARA With our withdrawal effective presence in Western Sahara, we are 31 December 2017, Kosmos has doing everything we can to make transitioned its exploration work the process of leaving as smooth on the Boujdour Maritime block as possible for everyone involved. to ONHYM. Kosmos has assigned Kosmos transitioned its exploration the relevant service contracts to work on the Boujdour Maritime block ONHYM so ONHYM can complete the to ONHYM, but continues to provide acquisition of additional 3D seismic ONHYM with the oversight and data. For a period of time, including quality assurance services to make after its withdrawal, Kosmos is the transition successful. 51

In addition, we met with a wide conclusion, Kosmos worked with range of stakeholders in Western AMIDEAST to design and implement Sahara, Morocco and Europe to an “English for specific purposes” explain the reasoning behind our course to educate young people decision to exit the block, answer in the specific English vocabulary questions and thank them for their they needed to improve their collaboration and open discussions incomes. Similar English classes were about our approach to investing in designed for the nearby town of Western Sahara. Boujdour and began in spring 2018. As with other countries and regions As a complement to the courses, where we have chosen to cease Kosmos partnered with the Dakhla exploration activity, we will strive to Association of Teachers of English, leave a legacy of social investment in Bookland, the Fulbright Commission support of local communities. and the Region of Dakhla-Oued Ed-Dahab to organize a conference ENGAGEMENT AND LISTENING on Teaching English to Speakers Young children participate in a cultural of Other Languages (TESOL). festival in Dakhla sponsored by Kosmos. Kosmos maintained a constant International experts and local presence on the ground in Western teachers gave presentations on was a four-night, traditional music, Sahara for more than two years innovative techniques for teaching poetry and games festival that with our placement of an American English to teachers working in Kosmos has sponsored for three expatriate Community Relations Dakhla and nearby cities. The consecutive years. As in previous Coordinator in Dakhla. The conference was well-attended years, thousands of people attended Community Relations Coordinator by motivated teachers who then and enjoyed hearing traditional – a former Peace Corps volunteer – implemented some of these new songs and exposing their children speaks Hassaniya, the language of techniques in the classroom. to a culture that is changing as the the Saharawi people. Through our engagement in Western population shifts from a primarily During the last two years, Kosmos Sahara, we have learned that events nomadic lifestyle to an urban one. held more than 200 meetings with celebrating local Saharawi culture In the spirit of preserving Saharawi local people and was involved in are popular in Dakhla as many culture, Kosmos also sponsored a many open forums during that Saharawis are proud of their distinct cultural educational event. During time. We listened to opinions culture. Kosmos has promoted the event, 80 middle school and concerns about oil and gas Saharawi culture and built positive students attended a presentation exploration, and the future of the relationships in Dakhla by sponsoring on traditional nomadic tools, played region, from a wide range of local cultural festivals. traditional games, rode camels, stakeholders – from elected officials and heard a lecture on traditional to unemployed youth, in both public In 2017, Kosmos sponsored two literature and culture. and private settings. cultural events during the month of Ramadan. The main event POSITIVE IMPACTS

Throughout our time in Western Sahara, we invested in bringing benefits to local communities primarily through educational programs. In 2017, Kosmos partnered with AMIDEAST to teach English to 80 young people in Dakhla. A previous partnership had provided English lessons to a different group of 80 young people as part of a broader skills initiative. Feedback from the initial course showed that students were most interested in English courses, and that the people who could most benefit from English language training were those working in tourism, fishermen, traditional School children in Dakhla play a traditional checkers game at a Kosmos-sponsored event to artisans and traders. Based on that promote Saharawi culture in a rapidly urbanizing society. 52

Kosmos Energy Chairman and Chief Executive Officer Andy Inglis listens intently to a Sahrawi leader during a visit to Western Sahara.

AN INNOVATIVE APPROACH and academia, we informed Saharawis and other stakeholders TO INVESTING IN Moroccan thinking on best practice in the territory. WESTERN SAHARA models for consultation, revenue • Ongoing social investment in management, sovereign wealth While many investors have been several locations within Western funds, management of public intimidated by the political Sahara, which provided direct expectations, and transparency. complexities of investing in Western benefits to young Saharawis, Sahara, Kosmos took an innovative • The signing, in December 2013, of as well as emphasized the local approach to understanding the a Joint Declaration of Principles Saharawi Culture. legal and practical intricacies of the between Kosmos and ONHYM, • Regular engagements with local Western Sahara issue. In 2015, we on behalf of the Government of and international human rights and drilled the first ever deepwater well Morocco, committing to ensuring civil society organizations. offshore Western Sahara. that resource development will be in accordance with Article While our decision to exit Western From the very beginning of our 73 of the U.N. Charter and the Sahara was based solely on involvement in the region, we U.N. Legal Opinion, and that the exploration results and our capital dedicated time and resources to local population will benefit in an allocation strategy, we hope that our developing a deep knowledge of the effective and equitable manner proactive approach to investing in complex and nuanced situation in from any development and will be Western Sahara can serve as a the Western Sahara. We have been consulted in the process. model for future investors. welcomed by the local communities who have recognized the enormous • The completion of the first social Potential future investors will potential and benefits that an oil impact assessment (SIA) by an have the opportunity to build on discovery could bring to the region. international company in Western our approach to develop natural Sahara. The SIA involved extensive resources in parallel with the UN-led Our innovative approach to investing and structured engagement with mediation process. It is our belief in Western Sahara included: key groups of society in Western that the local population must be • Regular engagement, starting Sahara and followed a workshop involved in and benefit from natural in 2011, with the Government of for regulators on best practices in resource development. Morocco to develop an equitable social impact assessment. framework for a possible • The continuous presence in hydrocarbon development. Western Sahara of a Hassaniya- Through a series of workshops speaking, American expatriate involving international experts Community Relations Coordinator from major lending institutions who held over 200 meetings with 53 54

IPIECA/API/IOGP CONTENT INDEX

Kosmos Energy’s corporate responsibility reporting is informed by the IPIECA/API/IOGP Oil & Gas Industry Guidance on Voluntary Sustainability Reporting. The guidance provides direction on the content of a typical industry corporate responsibility report by covering 12 sustainability issues and 34 indicator categories. The table below is an index of the indicator categories. The locations of information demonstrating our support for the Ten Principles of the United Nations Global Compact are also shown in the index, both in this report and in other sources, such as our publicly available policies and on our website, www.kosmosenergy.com.

Indicator Global Compact Page Number in Indicator Where Reported Number Principle 2017 CR Report

ENVIRONMENTAL INDICATORS

CLIMATE CHANGE AND ENERGY CR Report: Business Principles 13 E1 Greenhouse gas emissions 7, 8 CR Report: Performance Data 58

E2 Energy use Not reported

E3 Alternative energy sources Not reported

E4 Flared gas Not reported ECOSYSTEM SERVICES CR Report: Business Principles 12 Biodiversity and E5 7, 8, 9 CR Report: Operations Spotlights 34, 40, 48 ecosystem services CR Report: Case Study 41

E6 Fresh water CR Report: Performance Data 58 LOCAL ENVIRONMENTAL IMPACT E7 Other air emissions 7, 8 CR Report: Performance Data 58

CR Report: Business Principles 13 E8 Spills to the environment 8 CR Report: Operations Spotlights 47 CR Report: Performance Data 58

CR Report: Performance Data 58 Kosmos did not have any hydrocarbon discharges to E9 Discharges to water 8 water in 2017. Indicators E8 and E9 are combined in our Performance Data as “Hydrocarbon or Non-Aqueous Drilling Fluid Spills.”

CR Report: Performance Data 58 E10 Waste 8, 9 THE STANDARD*

E11 Decommissioning Not reported

HEALTH AND SAFETY INDICATORS WORKFORCE PROTECTION CR Report: Business Principles 10, 11, 14 CR Report: Operations Spotlights 27, 33 HS1 Workforce participation 1 www.kosmosenergy.com: Health, Safety, Environment and Security THE STANDARD*

HS2 Workforce health 1 www.kosmosenergy.com: Health and Safety

Occupational injury and CR Report: Business Principles 13 HS3 1 illness incidents CR Report: Performance Data 61 PRODUCT HEALTH, SAFETY AND ENVIRONMENTAL RISK Not applicable Kosmos Energy’s activities are limited to the HS4 Product stewardship exploration for and the production of oil and gas. We produce oil in Ghana and Equatorial Guinea only as a non-operator. PROCESS SAFETY AND ASSET INTEGRITY www.kosmosenergy.com: Environment HS5 Process safety 7, 8, 9 THE STANDARD*

*PDFs are available at www.KosmosEnergy.com/responsibility/ 55

Indicator Global Compact Page Number in Indicator Where Reported Number Principle 2017 CR Report

SOCIAL AND ECONOMIC INDICATORS COMMUNITY AND SOCIETY CR Report: Business Principles 6, 7, 14 CR Report: Operations Spotlights 23, 25, 26, 33, 37, 39, 43, 44, Local community 47, 51, 52 SE1 impacts and engagement www.kosmosenergy.com: Society and Communities Kosmos Energy Stakeholder Engagement and Community Development Policy*

Kosmos Energy Stakeholder Engagement SE2 Indigenous peoples and Community Development Policy*

SE3 Involuntary resettlement Not applicable

CR Report: Business Principles 7, 14, 15 CR Report: Operations Spotlights 23, 25, 27, 28, 34, 35, 37, 40, 44, 45, 48, 49, 51 CR Report: Case Study 29-31 SE4 Social investment CR Report: Performance Data 60 Kosmos Energy Stakeholder Engagement and Community Development Policy* www.kosmosenergy.com: Society and Communities LOCAL CONTENT CR Report: Business Principles 11, 15 CR Report: Operations Spotlights 24, 30, 38 SE5 Local content practices 6 Kosmos Energy Stakeholder Engagement and Community Development Policy* www.kosmosenergy.com: Our People

CR Report: Business Principles 17 CR Report: Operations Spotlights 45, 47 CR Report: Performance Data 57 SE6 Local hiring practices 6 Kosmos Energy Stakeholder Engagement and Community Development Policy* www.kosmosenergy.com: Our People

CR Report: Business Principles 6, 16, 17 Local procurement and CR Report: Operations Spotlights 27, 33 SE7 supplier development Kosmos Energy Stakeholder Engagement and Community Development Policy*

CONTINUED ON NEXT PAGE

*PDFs are available at www.KosmosEnergy.com/responsibility/ 56

IPIECA/API/IOGP CONTENT INDEX (CONTINUED)

Indicator Global Compact Page Number in Indicator Where Reported Number Principle 2017 CR Report

SOCIAL AND ECONOMIC INDICATORS (CONTINUED)

HUMAN RIGHTS

CR Report: Business Principles 6, 14, 17 Human rights due CR Report: Operations Spotlights 23, 31, 33 SE8 1, 2, 4, 5 diligence www.kosmosenergy.com: Human Rights Kosmos Energy Human Rights Policy*

CR Report: Business Principles 7, 10, 14 CR Report: Operations Spotlights 26 SE9 Human rights and suppliers 1, 2 Kosmos Energy Human Rights Policy* UK Modern Slavery Act Statement*

CR Report: Business Principles 14 CR Report: Operations Spotlights 26 SE10 Security and human rights 1, 2 www.kosmosenergy.com: Security Kosmos Energy Human Rights Policy*

BUSINESS ETHICS AND TRANSPARENCY

CR Report: Business Principles 8, 9 CR Report: Operations Spotlights 26, 44 SE11 Preventing corruption 10 www.kosmosenergy.com: Business Ethics Kosmos Energy Anti-Corruption Compliance Policy*

CR Report: Business Principles 8, 16 CR Report: Operations Spotlights 23 Preventing corruption SE12 10 www.kosmosenergy.com: Business Ethics involving business partners Kosmos Energy Anti-Corruption Compliance Policy*

CR Report: Business Principles 9 CR Report: Performance Data 59 Transparency of payments SE13 10 Kosmos Energy Stakeholder Engagement to host governments and Community Development Policy* www.kosmosenergy.com: Transparency

Public advocacy and CR Report: Business Principles 9 SE14 10 lobbying

LABOR PROTECTION

CR Report: Business Principles 10 Workforce diversity and CR Report: Performance Data 60 SE15 1, 6 inclusion www.kosmosenergy.com: Our People www.kosmosenergy.com: Careers

CR Report: Business Principles 10 SE16 Workforce engagement www.kosmosenergy.com: Careers

CR Report: Business Principles 10, 11, 12 Workforce training and SE17 CR Report: Operations Spotlights 25, 27, 33, 43 development www.kosmosenergy.com: Our People

CR Report: Business Principles 14 CR Report: Operations Spotlights 23, 25, 39, 43, 47 Non-retaliation and CR Report: Performance Data 60 SE18 1, 2, 3, 6 grievance systems www.kosmosenergy.com: Business Ethics Kosmos Energy Stakeholder Engagement and Community Development Policy*

*PDFs are available at www.KosmosEnergy.com/responsibility/ 57

2017 PERFORMANCE DATA

HUMAN RESOURCES

The data on our workforce is point-in-time as of December 31, 2017. We prioritize hiring and training local staff from the countries in which we work. The ‘Local Employment’ metric does not include employees in our U.S. office, and we define Expatriates as employees in our local country offices who are living and working on a long-term assignment in a country not of their origin. Turnover includes voluntary turnover in our U.S. office in Dallas, TX, as well as in our global operations.

2015 2016 2017 EMPLOYEES AND HIRING Total Employees 256 267 282 New Hires 54 27 33 Turnover 7% 6% 7%

TOTAL EMPLOYEES BY COUNTRY United States 187 192 199 Ghana 43 45 43 Mauritania 5 10 16 Morocco 16 5 5 São Tomé and Príncipe 0 1 8 Senegal 1 10 8 Suriname 4 4 3

Contractors United States 28 14 33 Ghana 0 0 0 Mauritania 16 11 15 Morocco 3 1 0 São Tomé and Príncipe 0 1 0 Senegal 6 3 16 Suriname 0 0 0

LOCAL EMPLOYMENT (%) Local 94% 92% 94% Expatriate 6% 8% 6%

WORKFORCE GENDER DISTRIBUTION (%) Female Male Female Male Female Male United States 32% 68% 33% 67% 34% 66% Ghana 28% 72% 27% 73% 26% 74% Mauritania 60% 40% 30% 70% 25% 75% Morocco 50% 50% 40% 60% 80% 20% São Tomé and Príncipe 0% 0% 0% 100% 25% 75% Senegal 0% 0% 50% 50% 25% 75% Suriname 25% 75% 25% 75% 25% 75%

EQUATORIAL GUINEA (KTEGI) Employees N/A N/A 62 Contractors N/A N/A 43 Gender Distribution N/A N/A Female: 21% Male: 79% Local Employment N/A N/A 74% 58

2017 PERFORMANCE DATA (CONTINUED)

ENVIRONMENT

The Environment data presented in this report is for Kosmos operated assets only. Waste and air emissions are measured in tons,

with greenhouse gas emissions measured in metric tons of CO2 equivalent. The data represents drilling rigs as well as seismic and support vessels. Kosmos drilled exploration wells offshore Mauritania and Senegal and conducted seismic surveys offshore Mauritania, Morocco, Western Sahara, São Tomé and Príncipe, and Suriname. The Ensco DS-12 drillship sat offshore Mauritania during a pause period from January 1 through March 21, 2017. Kosmos did not operate any drilling in Ghana in 2017.

2017 Mauritania Senegal Suriname Moroccoo Western Sahara São Tomé & Príncipe

WASTE (TONS) Hazardous 830.25 319.06 2.37 N/A N/A 144.13

Non-Hazardous 412.65 135.96 6.56 N/A N/A 862.31

TOTAL 1,242.90 455.02 8.93 N/A N/A 1,006.44

Recycled/Reused/Treated 45% 62% 85% N/A N/A N/A

AIR EMISSIONS (TONS)

Carbon Dioxide (CO2) 118,930.15 54,458.17 8,113.02 20,881.64 15,498.28 111,361.28

Mono-Nitrogen Oxides (NOx) 2,207.86 1,010.78 150.60 387.62 287.68 2,067.15

Sulfur Dioxide (SOx) 148.67 68.11 10.15 26.10 19.38 139.20

Methane (CH4) 6.63 2.99 0.46 1.18 0.87 6.27

Volatile Organic Compounds (VOCS) 74.23 33.67 5.06 13.06 9.69 69.60

Greenhouse Gases (GHGS) 119,069.33 54,521.26 8,122.64 20,906.44 15,516.50 111,492.87

OTHER Fines and Penalties 0 0 0 0 0 0

Freshwater Use (m3) 26,799.25 6,159.20 N/A N/A N/A 7,012.00 Hydrocarbon or Non-Aqueous 0 0 0 0 0 0 Drilling Fluid Spills

2015 2016 Mauritania Morocco Senegal Mauritania Senegal Suriname WASTE (TONS) Hazardous 184.00 92.00 10.00 298.67 112.44 10.54

Non-Hazardous 115.00 542.00 14.16 296.80 114.11 82.90

TOTAL 299.00 634.00 24.16 595.47 226.55 93.44

Recycled/Reused/Treated 27% 56% 34% 54% 43% 10%

AIR EMISSIONS (TONS)

Carbon Dioxide (CO2) 35,225.94 12,591.45 17,914.02 51,893.95 20,815.17 20,530.75

Mono-Nitrogen Oxides (NOx) 654.20 233.28 332.52 964.32 387.47 381.10

Sulfur Dioxide (SOx) 44.18 15.39 13.97 64.80 25.96 25.66

Methane (CH4) 2.22 1.05 1.01 2.88 1.13 11.55

Volatile Organic Compounds (VOCS) 12.54 8.10 11.19 32.50 13.00 12.83

Greenhouse Gases (GHGS) 35,272.56 12,613.50 17,935.23 51,954.43 20,838.84 20,773.30

OTHER Fines and Penalties 0 0 0 0 0 0

Freshwater Use (m3) 12,855.00 5,108.00 2,915.20 1,728.00 3,082.00 3,744.00 Hydrocarbon or Non-Aqueous 0 0 0 0 0 0 Drilling Fluid Spills 59

PAYMENTS TO GOVERNMENTS (USD)1

The Payments to Government data are reflective of direct payments made to government entities by Kosmos Energy on operated projects, with the exception of payments reported for KBSL and KTEGI as explained in the separate joint venture table below, and our working interest share of production entitlement to the Government of Ghana. Please see the footnotes for further detail on the payments we made to our host country governments in 2017.

Ghana Mauritania Morocco São Tomé & Príncipe Senegal Suriname Surface Rentals 18,000 69,000 — — — — Training2 175,000 1,200,000 56,000 66,000 — —

Environmental & Capacity — 900,000 — — — — Building Obligation2

Permitting Fees 74,000 — — 11,000 — — Taxes3 1,951,000 891,000 89,000 — 53,000 358,000 Income Taxes4 36,958,000 — 192,000 — — — Other5 45,000 — 10,000 — — — TOTAL 39,221,000 3,060,000 347,000 77,000 53,000 358,000

Royalties/Production 613,295 bbl — — — — — Entitlements (in barrels of oil)6

Royalties/Production 33,200,000 — — — — — Entitlements (estimated value)6

PAYMENTS TO GOVERNMENTS KTEGI (USD)1

Kosmos BP Senegal Limited (KBSL) represents a joint venture company which Kosmos Energy held a 50.01% interest in for the period March - October 2017 and 100% interest thereafter. Costs in this table represents Kosmos’ participating interest in the joint venture. In late 2017, through a joint venture with an affiliate of Trident Energy, Kosmos Energy acquired all of the equity interest of an entity subsequently renamed Kosmos-Trident Equatorial Guinea, Inc. (KTEGI), which holds an 85% paying interest in the Ceiba Field and Okume Complex assets in Equatorial Guinea (block G). Figures in the table represent Kosmos Energy’s indirect 50% participating interest in KTEGI’s payments to the government during December 2017.

S Senegal (KBSL) Equatorial Guinea (KTEGI) Surface Rentals 49,000 25,000 Training2 300,000 — Taxes3 208,000 139,000 TOTAL 557,000 164,000

Royalties/Production Entitlements 66,259 bbl (in barrels of oil)7

Royalties/Production Entitlements $3,590,000 (estimated value)7

1. Our project-level and receiving-entity level disclosures are available on our website at www.kosmosenergy.com/responsibility/transparency.php. 2. Represents payments made directly to government for satisfaction of obligations per the Petroleum Agreements and/or Petroleum Sharing Contracts (PSCs), as applicable including payments made in Mauritania to support the management of environmental risks in a precautionary manner and to assist with capacity building. In addition to the numbers above, Kosmos made payments to third party training providers and/or national oil company employees in accordance with training obligations per the PSCs totaling $83,000 for Morocco and $235,000 in São Tomé and Príncipe. 3. Primarily local payroll-related taxes and withholding taxes on interest payments in Ghana. These values are exclusive of withholding taxes remitted on behalf of service providers. 4. Includes interest payments made to the Ghana Revenue Authority of $4.7 million. In addition to this, Kosmos Energy paid the U.S. government $11.4 million in income tax payments during 2017. 5. Primarily relates to donations made to the Ministry of Energy and Ministry of Trade in Ghana and payments to the port authority in Morocco for leased use of port facilities. 6. Royalties represent the production entitlement to the Government of Ghana paid in barrels of oil out of Kosmos’ working interest share of production. Estimate of approximately $33.2 million based on the annual average of daily Brent prices in 2017 of $54.19 per bbl. 7. Production entitlement to the Republic of Equitorial Guinea paid in barrels of oil out of Kosmos’ working interest share of production. Based on the annual average of daily Brent prices in 2017 of $54.19 per bbl, this is worth approximately $3.59 million. 60

2017 PERFORMANCE DATA (CONTINUED)

SOCIAL

We define Social Investment Spending as payments that will directly impact the constituents of social investment projects. Not reflected in the numbers below are indirect costs related to social investment, such as needs assessments and reimbursable expenses incurred by our in-country social investment personnel. All of the Social Investment Spend is for Kosmos-initiated projects, with the exception of the Jubilee Unit and TEN Development Project in Ghana and our non-operated share of the contractually obligated social investment for block 6 in São Tomé and Príncipe. Those values represent our participating interest in the social projects of our non-operated assets.

2015 2016 2017

SOCIAL INVESTMENT SPENDING (USD) Ghana $ 461,000 $ 833,000 $ 1,339,000 Jubilee Unit and TEN development project1 1,040,000 185,000 188,000 Mauritania2 396,000 305,000 55,000 Morocco 216,000 88,000 80,000 São Tomé and Príncipe3 — 69,000 200,000 Senegal2 106,000 422,000 24,000 Suriname 143,000 104,000 88,000 United States 510,000 462,000 611,000 Western Sahara 90,000 42,000 86,000 Other4 205,000 — — TOTAL $ 3,167,000 $ 2,510,000 $ 2,671,000

JOINT VENTURE SOCIAL INVESTMENT SPENDING (USD)5 Senegal (KBSL) $ 113,000 Equatorial Guinea (KTEGI) —

1. Kosmos Energy’s participating interest in social investments of the non-Kosmos operated Jubilee and TEN Partnership, which may not necessarily represent actual payments made by the operator during the reporting period. 2. Amounts may differ from Kosmos Energy financial statements due to funding arrangements with commercial partners. 3. Kosmos Energy’s participating interest in contractually-obligated social investments of the non-Kosmos operated block 6 project, which may not necessarily represent actual payments made by the operator during the reporting period. 4. Represents social investment in countries where Kosmos no longer has operations. 5. The table above represents social investment payments made in Senegal and Equatorial Guinea by joint venture companies of which Kosmos is a co-venturer.

We have grievance mechanisms in place in every region where we have drilling and seismic operations. In Ghana, we received three grievances into our grievance mechanism in 2017. All three grievances were related to our potable water social investment projects in the Western Region, and were resolved through coordination with the Safe Water Network and traditional councils. In Morocco, we received 28 grievances during our seismic acquisition survey in the Essaouira block, where there is a very high volume of artisanal fishermen. Twenty-seven of these were related to damaged or missing fishing nets, which were resolved through the mutually agreeable solution of replacing the lost or damaged equipment with new equipment. The one unresolved grievance was a letter of general concern regarding impacts of the seismic survey on fish stocks. We worked with ONHYM to respond to the concerned party by providing scientific data and baseline information. 2015 2016 2017

GRIEVANCES LOGGED / GRIEVANCES RESOLVED Ghana 8/2 5/2 3/3 Mauritania 0/0 1/1 0/0 Morocco 0/0 0/0 28/27 Mauritania 0/0 1/1 0/0 São Tomé & Príncipe N/A N/A 1/1 Senegal 1/1 0/0 0/0 Suriname 0/0 0/0 0/0 Western Sahara 0/0 0/0 0/0 61

SAFETY

Kosmos reports safety data for our global operations, including both employees and contractors. The definitions of the safety data reported are consistent with those used by the International Association of Oil and Gas Producers (IOGP). Lost Time Injury Frequency represents the number of lost time injuries (fatalities and lost work day cases) per million work hours. Total Recordable Injury Rate refers to recordable injuries (fatalities, lost work day cases, restricted work day cases, and medical treatment cases) per million hours worked. There were two Recordable Injuries in 2017: a sliced fingertip on a seismic support vessel and an injured hip from a fall in our Dallas office.

2015 2016 2017 Total Man Hours 2,103,056 2,314,907 3,110,164 Fatalities 0 0 0 Lost Time Injury Frequency 0 0 0 Total Recordable Injury Rate .95 1.3 .64

Workers on the ENSCO DS-12 conduct a safety check. The responsibility to ensure healthy employees, safe operations, and environmental protection is integral to the way Kosmos conducts our business. 62 ABOUT THIS REPORT

Our 2017 report, “Embracing Innovation,” explains how corporate responsibility is a fundamental part of Kosmos Energy’s day-to-day business, and how we are promoting innovation and making a positive difference in our host countries. The report reviews the application of our Business Principles and supporting policies across each stage of the upstream project lifecycle. We include information in this report based on internal discussions, external stakeholder feedback, and consultations with third-party experts. The report is designed to communicate our progress on the Ten Principles of the United Nations Global Compact, which we support and endorse. In addition, this report is guided by the International Petroleum Industry Environmental Conservation Association (IPIECA) standards for voluntary reporting in the oil and gas sector and by the Global Reporting Initiative (GRI). For an index of where information related to the Ten Principles and IPIECA reporting standards is located, please see page 54. This report has not received external assurance from an independent reviewer. We appreciate your interest in our company and welcome your feedback on how we can improve our reporting. Please contact us at [email protected].