EMBRACING INNOVATION

KOSMOS ENERGY 2017 CORPORATE  RESPONSIBILITY REPORT 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 2 Letter to Stakeholders 19 Project Lifecycle and 36 Morocco that aims to help them build a brighter future. Operations Map 4  Company Overview/ 38 São Tomé and Príncipe Financial Highlights 20 Côte d’Ivoire We seek to work with our host nations to create 42 Senegal 5 Business Principles 22 Equatorial Guinea healthy and diverse economies. 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. 2 3

FELLOW STAKEHOLDERS, At Kosmos Energy, we are tourism. We work from a shared agenda with Although this practice separates us from challenge of making our partners in government and the wider some oil and gas companies, we continue sure development restless to improve. community. to see demand from stakeholders who want proceeds in a In order to continue to grow and reach our In Ghana, the KIC targets innovation in to better understand how the oil and gas sustainable manner potential as a company, we continuously seek agriculture, the country’s most important industry works. The transparency challenge that benefits local new ideas and innovative solutions that will sector and largest employer. Kosmos runs includes not just providing access to data, people. In Mauritania improve our business and how we engage the KIC program itself using local employees but also improving understanding of it, and and Senegal, Kosmos with our host countries. Whether it’s through and experts. The result is a distinctive focus ensuring stakeholders have the knowledge and its partner are incremental improvement or fundamentally on commercial solutions informed by local needed to use it constructively, and hold working hard to challenging conventional wisdom, Kosmos knowledge. governments and industry to account. In maximize the use embraces creativity and maintains an open, response, we have stepped up our efforts of local companies Since its inception in 2016, the Kosmos responsive and entrepreneurial spirit. to engage civil society and the media, and suppliers in the Innovation Center in Ghana has: hosting workshops across our portfolio of construction of the The success of this approach can be seen • Trained and mentored 270 young countries – in Ghana, Mauritania, Morocco, ANDREW (ANDY) G. INGLIS project’s nearshore quite clearly in our “below ground” technical Chairman and entrepreneurs Senegal, and Suriname. This has proved Chief Executive Officer infrastructure. work. Our geologists and geophysicists have effective in promoting transparency, building opened basins in Ghana, Mauritania and • Helped form and fund 8 start-up businesses relationships, and deepening trust. Staying True to Our Business Principles Senegal – places where it took new ideas to who have gone on to access $850,000 in As we enter more countries and work with find commercial hydrocarbons when others additional capital EMBRACING INNOVATION new partners, we will need to manage our had failed. It can also be seen in the way our • Accelerated the growth of 9 existing With new production assets in our portfolio, above ground activities with the same level of engineers devised the innovative nearshore small businesses several new countries of operation, and an diligence. Our Business Principles remain an concept we are using to develop the Tortue • Stimulated the national dialogue on the active exploration program underway, we important touchstone. gas resource and accelerate the delivery of importance of agriculture, and will need to channel our innovative and economic benefits to Mauritania and Senegal. entrepreneurial spirit to meet both new and FOCUSED ON THE FUTURE • Enhanced the sector’s appeal to In our “above ground” engagement, our pursuit familiar challenges: We achieved a great deal in 2017, but there is young people. of better ways of working centers on being a Continuous Improvement in Safety much more for us to do. Every member of the long-term partner that is aiming to help host Kosmos team recognizes that we can never be The KIC has proved countries build a brighter future. We know our In 2017, we met our safety target with a total satisfied. We must always strive to find new and so successful in future success is fully connected to theirs. As recordable injury rate of 0.64 and marked our better ways of working that deliver benefits to Ghana that we have a result, we seek to work with our host nations fifth straight year without a lost time incident. our host communities. to create healthy and diverse economies. plans to adapt the We are proud of this record and will continue This differentiated approach is demonstrated model and expand its to stay focused on protecting our people and through the success of the Kosmos Innovation footprint into some contractors while driving toward an incident Center (KIC) in Ghana, which is our way of of our other host and injury free workplace. countries. investing in the country’s future beyond Kosmos has been a Protecting the Environment oil and gas. formal supporter of the Andrew G. Inglis LEADING ON We have been successful at working with local United Nations Global TRANSPARENCY and international stakeholders to conduct our Chairman and Chief Executive Officer KOSMOS INNOVATION CENTER Compact since 2013. seismic operations in a manner that protects The KIC invests in young entrepreneurs and The UN Global Compact Our embrace of is a voluntary initiative marine life, most recently whales and sea turtles small businesses who have big ideas and innovation has also for businesses that are offshore São Tomé and Príncipe. As we acquire want to see their country grow. By marrying helped to shape committed to aligning our approach to more seismic data in new areas, and mature entrepreneurship, innovation, and technology, their operations and transparency. Over prospects for potential drilling, we will need to we are empowering people to turn their strategies with universal the years, we have ensure that we continue working collaboratively ideas into viable, self-sustaining businesses. principles in the areas to safeguard marine biodiversity. 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 Delivering Economic Benefit corruption, and take by publishing our sector focus is chosen based on a country’s We believe that hydrocarbon development can actions that advance host government needs, and challenges are looked at through be an engine of economic opportunity. With the societal goals. contracts, along with a business lens. The goal of the KIC is to drive Tortue LNG gas project moving toward a final our payments to innovation where it is needed most — whether investment decision, the partnership faces the in agriculture or healthcare, education or governments. 4 5

COMPANY OVERVIEW 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 FINANCIAL HIGHLIGHTS steady, long-term returns can only be achieved by PRINCIPLES advancing the societies in which we work. Year Ended (in thousands, except volume data) 2017 2016 2015 Revenues and other income $636,836 $385,355 $471,556 In 2013, we adopted the Kosmos Energy Business Principles to formalize this Net income (loss) (222,792) (283,780) (69,836) commitment by articulating the values that have always guided our actions. The Net cash provided by operating activities 236,617 52,077 440,779 Business Principles are also informed by what our stakeholders have told us about EBITDAX 540,117 405,300 500,064 their expectations of a responsible company. Capital expenditures 57,432 644,510 777,204

Total Assets 3,192,603 3,341,465 3,203,050 We define how we conduct our business and the standards to which we hold Total long-term debt 1,282,797 1,321,874 860,878

Total shareholders’ equity 897,112 1,081,199 1,325,513 ourselves accountable through the Business Principles. The Business Principles are supported by more detailed policies, procedures, and management systems which

Production (thousand barrels of oil per day) 29.6 19.21 23.4 are referenced in this report and on our website.

Sales volumes (million barrels)2 11.2 6.8 8.5 Total proved reserves (million barrels of oil equivalent) 3 110 77 76 The Business Principles reflect our values across six areas: Responsibilities to Crude oil (million barrels) 3 100 74 74 Stakeholders, Ethical Conduct, Our Workplaces, the Environment, Society, and Natural gas (billion cubic feet) 3 61 15 14 Commercial Relationships. Although the Business Principles are our standard, the

1 1.3 million barrels of lost production due to mechanical issues with the Jubilee FPSO turret bearing were paid to the company under actions we take to adhere to them change as we evolve as a company. For each its Loss of Production Insurance policy in 2016. Principle, we have included a case study to demonstrate how we translated the 2 Includes our share of sales volumes from our Equatorial Guinea equity method investment. words into action in 2017. 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 BUSINESS 6 7 PRINCIPLE

this report lists the payments we who share our values and standards. and proprietary information and and engaging in debate deepens our made to governments in 2017. We are committed to maintaining we similarly work to protect the understanding of the issues. We seek 1 effective systems and procedures intellectual property of others. non-governmental organizations Communities We believe in to prevent inhumane treatment and (NGOs) as valued partners in our Responsibilities to engaging local communities in Civil Society We will engage forced labor from taking place within social investment programs. Our a manner that creates economic with and listen to civil society, Stakeholders our operations or our supply chain. relationships with civil society in the and social opportunity and recognizing the role civil society Our employees and contractors are countries and communities where respects human rights. Investing plays in holding governments and prohibited from engaging in improper we work create mutual value and are in community relationships ahead companies accountable. We are payments, misusing confidential central to our success. of drilling operations is a key part always open to having meaningful Strong and supportive partnerships Employees We aim to provide a information to indulge in, or assist of our approach. Our Stakeholder dialogue with civil society about Kosmos also engages in public policy underpin our business and create stimulating and rewarding work others to participate in, insider Engagement and Community the challenges inherent in exploring discussions occurring globally on value. Our stakeholders are environment through a culture that trading. We expect our employees and Development Policy explains for oil and gas. Sometimes we will energy and corporate responsibility. interested or potentially affected promotes entrepreneurial thinking, contractors to respect confidential the standards to which we hold disagree, but we believe listening parties, including shareholders, facilitates teamwork, and embraces ourselves accountable when employees, governments, ethical behavior. Directors, officers, interacting with communities. We communities, business partners and employees are required to have published this policy on our and suppliers, and civil society. comply with all aspects of the website at: www.kosmosenergy. We believe we have unique Business Principles and our Code of com/responsibility. Two years corporate responsibilities with Conduct in their work activities and ago, we reviewed our global social BUSINESS PRINCIPLE 1 school teachers develop their ability to train and inspire respect to each of these groups: in representing the company. investment programs to better IN ACTION: young people in the STEM disciplines. Shareholders We aim to create Host Governments We seek to understand their impacts and The Kosmos Energy STEM Teacher Institute is an attractive returns and manage our collaborate with host governments align their focus areas with our CAPACITY BUILDING IN innovative program offered through the Perot Museum business risks. Kosmos Energy’s and contribute to national business. As a result of the review, STEM EDUCATION AND to improve the quality of formal science instruction for participating kindergarten through 12th grade teachers, board of directors focuses on development. Our goal with host we enhanced program design and SCIENTIFIC INNOVATION and increase interest and engagement among their building a successful, long-term governments is to develop a shared project selection criteria to ensure students in STEM subjects. Through this program, teachers future for the company and ensures agenda based on mutual trust and our efforts are sustainable and Each day at Kosmos, we use the fundamentals of science, enjoy professional development opportunities and access we maintain good corporate respect. We begin engaging with complementary with local and technology, engineering, and math (STEM) to do our jobs. to the Perot Museum’s network of educators and vast We interpret seismic data to identify potential oil and gas resources. governance. In 2017, the board was host governments at the time of national development priorities. deposits. We plan deepwater drilling operations targeting The program, which is now in its third year, involves a comprised of 10 members, including licensing to ensure alignment with Our new approach targets the prospects located more than three miles below the ocean formal application process for teachers to ensure they are eight independent directors. The national priorities and industry following areas: floor. We study the rocks we bring to the surface to better invested and committed. Chosen teachers from across understand where oil and gas might be found. Being at board of directors had six standing needs. Kosmos aims to become a the Dallas-Fort Worth area attend a week-long Summer Entrepreneurship and Innovation the forefront of science and technology is how we play our committees: audit; nominating and partner of choice. We are open about Academy, where they are grouped according to their Linking to the entrepreneurial spirit part in helping to meet the world’s energy needs and how corporate governance; compensation; our business dealings with host level of comfort and expertise in sciences – pre-service and can-do attitude that is at the we create value for our shareholders. exploration assurance; external affairs governments because transparency teachers, novice teachers, advanced teachers, and mentor heart of Kosmos’ culture, the same The shortage of people with training in the STEM teachers – rather than by grade level. and political risk; and health, safety builds trust and accountability. The disciplines poses a potential long-term threat to many spirit that led to the company’s Instruction continues through the academic year with and environment. “Performance Data” on page 59 of businesses, including our own. In 2015, Kosmos announced founding. five professional development sessions held on weekends a partnership with the Perot Museum of Nature and twice a month, for which they receive continuing Oceans and Coasts Linking to Science to face this challenge head-on by helping Dallas education credits required for teachers by the Texas where Kosmos conducts its Education Agency. The teachers are also mentored operations and where relations throughout the academic year. with fishing communities are vital Kosmos employees – engineers, geologists, and to protection of our license to geophysicists – have served as guest speakers on science- operate. related topics, including the practical application of scientific principles in business. This has been a successful Science, Technology, Engineering way to simultaneously build capacity of local educators and Math (STEM) Education while providing a way for our employees to engage in Linking to the deep expertise of their community. our geologists, geophysicists, and The program reached about 4,800 students during engineers who give Kosmos its the 2016-2017 school year, with participating teachers technical and operational edge. reporting increased confidence and creativity in teaching the STEM disciplines. 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 A start-up team discusses strategy as part of the business incubator program of the Kosmos Innovation Center in Ghana. our operations. We aim to work with suppliers, both local and multi-national, BUSINESS 8 9 PRINCIPLE

industry accountable for managing 2 oil and gas revenues appropriately. In 2014, we made a policy Ethical Conduct decision to disclose payments The EITI requires participating governments to to governments at the project BUSINESS PRINCIPLE 2 establish a multi-stakeholder steering group comprised level, as laid out in the European IN ACTION: of representatives of governments, business, and civil Union Accounting Directive, TRANSPARENCY AND society to oversee a process in which companies which is designed to improve declare material payments to government, and DISCLOSURES IN AN corporate accounting practices and the government declares all material receipts from The Business Principles are to a Whistleblower Hotline as a EVOLVING REGULATORY extractive companies. These figures are reconciled, transparency. We believe this type of supported by robust compliance vehicle for employees, third parties ENVIRONMENT and any discrepancies are identified and investigated disclosure is beneficial to investors, by an independent expert. 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 We have been a Supporting Company of the EITI since and reflects evolving international Kosmos aspires to be a leader in transparency and anti- 2012. Kosmos has operations in six countries that have Policy and Procedures, which Kosmos policy. expectations. Kosmos was the corruption. We have set a high standard for transparent implemented or are in the process of implementing the align with the U.S. Foreign Corrupt behavior by disclosing the terms of our petroleum Leading in Transparency first U.S. oil and gas company to EITI: Côte d’Ivoire, Ghana, Mauritania, São Tomé and Practices Act (FCPA) of 1977, the agreements and reporting payments made to our Príncipe, Senegal, and Suriname. In these countries, and Engagement disclose project-level payments U.K. Bribery Act of 2010, as well as host governments – including specific entities – at the we engage with the EITI through feedback and dialogue to governments despite not being project level and in aggregate. We are open about best practices in anti-corruption As part of its commitment to in the multi-stakeholder groups. Kosmos is a member legally obligated to do so. our business dealings with host governments because of the EITI steering committee in Ghana, Suriname, compliance. Kosmos regularly transparency, Kosmos aspires to go transparency builds trust and accountability. All our and as of 2018, in São Tomé and Príncipe as well. evaluates its anti-corruption beyond a box-checking exercise by We believe our approach to petroleum agreements with host governments are We play an active role in the EITI process in measures and performance. making information publicly available transparency helps us better available on our website at www.kosmosenergy.com. Mauritania and Senegal. and increasing our engagement with manage social and political issues, The “Performance Data” on page 59 of this report lists All Kosmos employees and key the payments we made to governments in 2017. We advocate for the adoption of EITI by our host stakeholders at every level to ensure establishing Kosmos as a partner contractors are required to attend governments. When we operate in countries that are they have the depth of knowledge of choice and mitigating Kosmos has met with stakeholders around the world not yet members of the EITI, we actively promote yearly anti-corruption training, who want to better understand how the oil and gas needed to hold governments and barriers to growth. the EITI and the transparent management of any and certify that they have read, industry works. To that end, we have organized and revenues from natural resources. For example, Kosmos understood, and will comply with our facilitated workshops in nearly every country where encouraged and assisted the Government of Suriname we operate to deepen the knowledge of various Anti-Corruption Compliance Policy. in the process of joining EITI, and we were pleased government agencies, parliamentarians, civil society when Suriname formally applied to become an To further ensure comprehension, organizations, and media outlets working to promote EITI candidate country in May 2017. all employees are required to pass a good governance and transparency in the oil test on the substance of the policy. and gas sector. We strongly support the work of the Extractive We exercise care in the selection of Industries Transparency Initiative (EITI), a leading vendors, suppliers, and contractors, global standard that strengthens governance by and we impose the same high promoting transparency and accountability in the standards of conduct that we oil, gas, and mining sectors. 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. BUSINESS 10 11 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 Dallas-based employees and direct-hire contractors São Tomé and Príncipe, Senegal, an operational update and holds an BUSINESS PRINCIPLE 3 embraces our Business Principles were required to attend a course on distracted driving, and Suriname have rotated through open forum, as well as employee- IN ACTION: and entrepreneurial culture. We defined by the National Highway Traffic and Safety our U.S. headquarters on special led committees on Wellness and Administration (NHTSA) as “any activity that diverts are an equal opportunity employer DRIVING DISTRACTION AWAY assignments or for training. These Community Philanthropy. attention from driving, including talking or texting on and do not tolerate discrimination, 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.

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. BUSINESS 12 13 PRINCIPLE

the Biodiversity Oil and Gas in safe and efficient operations Disclosure Project (CDP), Tullow Oil targets are a TRIR and LTIR of less Program, to improve understanding that are consistent with strong participates in the CDP, reporting than 1.1 and 0.5, respectively, zero 4 and protection of the ecosystems well governance procedures and emissions and management spills, and zero fines/penalties. We Kosmos and the offshore Mauritania. This research internationally recommended best processes on behalf of the Jubilee aim to be an injury-free workplace project is being carried out by practices. co-venturers, including Kosmos. no matter where in the world we Environment the Mauritanian Institute for Our management plans to revisit operate and recognize that each Kosmos believes climate change Oceanographic and Fisheries this decision if Kosmos operates individual needs to play a role in this is real and influenced by human Research in collaboration with the any hydrocarbon production in effort – through safety vigilance, activity. At this time, Kosmos does Royal Netherlands Institute for Sea the future. awareness of surroundings, and not operate any of its producing Kosmos values the natural areas • Impact identification, prediction, Research based in the Netherlands. focusing on the task at hand. In 2017, assets. Kosmos has oil and gas We finished 2017 with a Total where it does business, both land and analysis More information about this program we continued to require personal production offshore Ghana and Recordable Incident Rate (TRIR) of and sea, and strives to prevent or is available on page 34. and occupational safety training for • Generation of mitigation or Equatorial Guinea, which we entered 0.64 and a Lost Time Incident Rate minimize potential adverse impacts all employees to reinforce our management measures and We plan for an effective and timely in late 2017. In Ghana, our co-venture (LTIR) of 0.0, against our global on the environment. Our Health, safety culture. actions response to emergencies that could partner, Tullow Oil, operates the targets of less than 1.25 and 0.5, Safety, and Environmental (HSE) impact personnel, the environment, Jubilee and TEN fields. While we respectively. We had zero fines and management system, known as The • Significance of impacts and local communities, or our assets. do not participate in the Climate zero spills. Our 2018 performance 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 BUSINESS PRINCIPLE 4 • Analyzed stakeholder attitudes, including emerging investor expectations around climate change reporting After signing a contract for a new Conducted offshore, our seismic adapted to reflect the evolving IN ACTION: and initiatives such as the Task Force for Climate- license area, the first stage of acquisition activities also provide nature of our business activities. TAKING A CLOSER LOOK Related Financial Disclosures; the upstream oil and gas project unique insight into the presence Our local leadership teams and of marine life, including marine AT CLIMATE CHANGE • Examined the wider policy environment, projections lifecycle is the acquisition of seismic HSE advisors are mentored through of global energy needs, and climate-change risks and data. In 2017, Kosmos completed mammals, sea turtles, and sea birds. these exercises to develop their opportunities for our business. Where possible, we share this data Kosmos recognizes that the world is facing a serious or began seismic surveys offshore ability to lead on the ground We are now considering how to integrate the review’s with scientists and local marine challenge from climate change influenced by human Suriname, São Tomé and Príncipe, during an incident. findings into our future business strategy. In the activity. Morocco, and Western Sahara. Our research institutes. In recent years, meantime, climate change will remain on our agenda, In addition to training personnel, geologists and geophysicists use the we have contributed data for papers In 2017, we conducted a review of our approach to and we will continue to review and adapt our approach Kosmos carefully considers the climate change and the external policy and stakeholder as the external environment evolves. geophysical data acquired in these on Clymene dolphins in the Eastern technology and drilling equipment environment. In the review, we: surveys to create detailed images Tropical Atlantic, whale and dolphin that it uses. Our Well Integrity • Benchmarked Kosmos’ approach against that of a of the earth’s physical subsurface occurrence offshore Ireland, and sea Management System governs well set of industry peers; 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. BUSINESS 14 15 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 BUSINESS PRINCIPLE 5 the collection, as well as retained several important plans. These assessments help us the Voluntary Principles Initiative. masterworks that were on view in the first exhibition. is for companies to evaluate IN ACTION: develop a baseline of socioeconomic Since BP is the operator of our gas The 2015-2016 exhibition, Spirit and Matter: Masterpieces within their risk assessments the conditions before activities begin, project offshore Mauritania and BUILDING CULTURAL from the Keir Collection of Islamic Art, showcased more extent to which the company’s than 50 masterworks from the collection marking the first understand and mitigate any Senegal, we plan to engage with BP activities may pose risks to those UNDERSTANDING AND time many of the featured works had been on display potential adverse impacts from the in implementation of the Voluntary around them. In 2015, we hired CONNECTIONS THROUGH in North America. More than 115,000 people visited the activities, and collect information Principles as the field is developed. exhibition. a third party expert to conduct ART IN DALLAS that enables future operations to Although the process of bridging cultures begins with benefit workers, communities, and the preservation of historic artifacts, it develops most In 2015, the Dallas Museum of Art (DMA) announced local businesses. 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 Upon establishing a country office of Islamic Art for its inaugural years of exhibitions and form, their style, and their content – but also the social, to oversee our operations, we installations. Assembled over the course of five decades political, and cultural circumstances that shaped them. by noted art collector Edmund de Unger (1918-2011), complete an assessment to identify 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. social investment opportunities of the world’s most geographically and historically and potential partners from the comprehensive, encompassing almost 2,000 works in a The people of Dallas will enjoy the fruits of the scholarship now taking place at the DMA on the Keir community. In 2015, we reviewed range of media that span 13 centuries of Islamic art. Collection and will be able to view and learn from the our social investment programs Kosmos’ partnership with DMA is an extension of our collection for free. By supporting the display of the Keir worldwide to better understand their 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 impact. The result of the review led and will continue to generate – we are proud to play a culture of these communities. The partnership between to a new approach, implemented 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. in 2016, that better aligns with support over five years for a series of special exhibitions, community, government, and installations in the museum’s collection galleries, and company priorities. a prospective touring exhibition. The sponsorship also includes resources to facilitate loans of items from the Kosmos has a deep commitment Keir Collection to other U.S. and international institutions. to respecting and promoting In 2017, the DMA opened The Keir Collection of human rights. Our Human Rights Islamic Art Gallery in a newly redesigned gallery space Policy, available on our website, that increased the number of works on view from 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. BUSINESS 16 17 PRINCIPLE

provide training and reinforce our as well as in Mauritania where we language as well as improve cross- that we source locally. Our local HSE-related expectations. Local and had active drilling operations. The functional cooperation to optimize content approach aims to enable 6 multinational contractors attend assessment was completed by an local content. people to access jobs, and to enable these sessions in order to further international firm who helped us businesses to access supply chain Commercial We seek to maximize the amount of commit themselves to working within identify opportunities to update opportunities through Kosmos. goods, services, and employment Responsibilities our standards. certain policies and contract 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 BUSINESS PRINCIPLE 6 sessions with our suppliers to explain fact, in the event of exploration process. our requirements under our policies, IN ACTION: success, oil and gas development When a potential local supplier the U.S. Foreign Corrupt Practices COLLABORATING WITH BP TO can be an important engine of is found to be outside our HSE Act of 1977, the UK Bribery Act economic development. PROTECT HUMAN RIGHTS 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 Since establishing our partnership with BP in our suppliers and commercial to elevate them to the standard. This often identify areas for additional Mauritania and Senegal, we have collaborated on partners in terms of safety, the is frequently the case, as we operate training within our local supply chain. all facets of the exploration program and the Tortue environment, and anti-corruption. in several countries with nascent oil LNG project: technical, environmental, economic, In 2015, we conducted a formal Suppliers are required to adhere and gas industries. We periodically and social. BP and Kosmos share similar high review of our approach to local standards, but Mauritania and Senegal were new to our Business Principles. Their organize contractor forums to content, both at the corporate level 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

Kosmos personnel at the shore base in Nouakchott, Mauritania exemplify our entrepreneurial spirit and team-based approach. 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 21 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 22 23 PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6

ENTERING SEISMIC PRODUCTION

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 Kosmos’ commercial partner Impact Assessment, engaged in Equatorial Guinea is Trident coastal and fishing communities, and Energy, a privately-held established 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 EQUATORIAL GUINEA HUMAN RIGHTS DUE Development of Equatorial Guinea Kosmos will also initiate an annual social investment program for the DILIGENCE AND TRAINING (PRODEGE), is now a public-private 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 Kosmos’ entry into Equatorial Guinea in October 2017 was an important milestone a third-party expert to conduct Guinea. During PRODEGE’s first five communities. human rights due diligence for our for the company. We and our partner Trident Energy acquired Hess Corporation’s years, the program trained two thirds anticipated in-country activities. interests in the Ceiba and Okume fields and signed three new exploration The report stressed the importance of community engagement as production sharing contracts over offshore Blocks W, S and EG-21. Kosmos will well as policy implementation and be the exploration operator for Blocks W, S and EG-21, and a new joint venture monitoring. KTEGI has adopted Kosmos’ company, Kosmos Trident Equatorial Guinea Incorporated (KTEGI), is the operator Business Principles, Anti-Corruption of the Ceiba and Okume production assets. Policy, and Code of Conduct and conducted training for employees on implementation of these policies. This is the first time Kosmos has ADDING PRODUCTION AND We expect to conduct human acquired producing assets and EXPLORATION THROUGH rights training for KTEGI staff and contractors, with an emphasis on BLOCK W EG-21 entered a new country with an JOINT VENTURE existing workforce, facilities, ongoing supply chain. We have conducted Founding members of the Kosmos operations and social investments. similar training in other countries Energy exploration team opened the Kosmos will operate in Equatorial where we operate. For more Rio Muni basin in 1999 when they Gulf of Guinea as we do in every country. information on our supply chain discovered the Ceiba and Okume Guinea policies, please see page 16. 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 The implementing partner for the PRODEGE program is FHI 360, a development NGO engagement, and social investment. dedicated to improving lives through integrated, locally driven solutions. 24 25 PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6

PRODUCTION

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 field 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 GHANA 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 2017 marked the tenth anniversary of our discovery of the Jubilee field in the We visit the Western Region to Our active monitoring of safety society, media, and academia. We remind communities of the grievance Tano Basin offshore Ghana – one of the largest discoveries offshore West Africa and environmental compliance in communicate regularly with these mechanism, how it works, and Ghana contributed to strong HSE stakeholders to understand their in the previous two decades. Our successful fast-track development produced 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 first oil within 42 months of the discovery. 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 Kosmos is a non-operating co- MANAGING OUR FOOTPRINT continuing our record of zero LTIs and gas industry. did not receive any new grievances venturer of the Jubilee Unit and the GHANA Total oil production from the Jubilee since 2012. We continued to invest in in 2017, three grievances registered Outreach to Local Communities Tweneboa, Enyenra, and Ntomme safety training throughout the year, field in 2017 was 32,749,975 barrels, through the formal channel were (TEN) fields in Ghana, comprised which helped sustain performance The area directly onshore from the equivalent to an average of 89,726 outstanding at the end of 2016 and DEEPWATER of Tullow Oil, Anadarko Petroleum, gains achieved in prior years. Tullow Jubilee and TEN fields includes the TANO BLOCK WEST CAPE barrels (bbls) of oil per day (bopd). resolved in 2017. These grievances THREE POINTS PetroSA, and Ghana National Oil, as operator, reports on the safety six coastal districts of the Western Total gas production from the Jubilee concerned our social investment BLOCK Petroleum Company (GNPC). Tullow and environmental performance for Region, where we have centered field in 2017 was 44,231 million projects in the Western Region. Oil is the operator of the Jubilee Unit standard cubic feet (mmscf) of Jubilee and TEN operations. much of our local community and TEN fields, meaning it oversees To supplement our formal grievance engagement. In the Western gas, of which 70%, equaling 30,980 Our staff in Ghana receives JUBILEE operations related to oil and gas mechanism, we have stationed Region, our key stakeholders are the mmscf, was exported to the Ghana behavioral safety training each production. Although Kosmos does Community Liaison Officers (CLOs) fourteen traditional councils within National Gas Company’s onshore year in addition to annual training not oversee day-to-day operations in Kosmos-branded offices in local the six coastal districts, the Fish processing facility at Atuabo and on Kosmos’ Health, Safety, and of the Jubilee Unit and TEN fields, villages. We distribute contact Processors’ Associations of Ankobra onward flow to the Aboadze power Environment policies and standards. we take an active role in stakeholder numbers and e-mail addresses for and Ekpu Communities, as well as Gulf of plant for fuel to generate electricity. These trainings are mandatory. We Guinea engagement, secondment of top the CLOs as well as directions to communities where we have ongoing In addition to oil exports, Kosmos believe they contribute to our strong national talent, social investment their local community offices. The social investment projects. safety record in Ghana. programs, and other activities to help promotes the use of natural gas to CLOs are an important part of our We join community meetings held by ensure Ghanaians receive benefits generate power. Gas exports from approach to managing grievances, the Jubilee and TEN field operator. from hydrocarbon production. the Jubilee Field increased 15% in in that they solicit and respond to We use these sessions to provide 2017. Kosmos continues to advocate feedback from community members. 26 27

(NRGI), and the Ghana Extractive To further our commitment to economic needs and management Industries Transparency Initiative supporting investment and economic of oil and gas resources. The (GHEITI). GHEITI is an important development in Ghana, Kosmos six advisory council members forum that Kosmos uses to engage sponsored the Ghana Investment provide key insights that influence on issues of revenue transparency Summit in August 2017. The our business and above-ground and anti-corruption. We are a private summit was attended by investors approach. sector member of the GHEITI multi- from Africa, Europe, Asia and the Members of the council were stakeholder group, which oversees Americas. Kosmos participated in selected based on their business the public reconciling of payments panels with the Ghana Investment knowledge, diverse points of view, and receipts between government Promotion Centre to discuss and history of success leading and extractive companies. In 2017, opportunities in oil and gas as a companies in Ghana. The advisory Ghana completed its sixth oil and veteran of the industry in Ghana, council has even taken an active role gas reporting cycle. Kosmos has as well as share our learnings from in the Kosmos Innovation Center by been a part of the process in Ghana working with young Ghanaian volunteering as guest lecturers and since its inception. 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 In 2017, we were pleased to co- alignment between Kosmos and Western Region. sponsor the first Enterprise Africa Ghana when it comes to creating Independent Advisory Council Summit, hosted in Accra. The a well-managed and increasingly outside the U.S. is in Ghana, where Kosmos created an independent summit provided a forum for productive petroleum sector. sourcing goods and services locally advisory council comprised of key stakeholders – development and hiring Ghanaian employees is an respected Ghanaian business POSITIVE IMPACTS partners, government, civil society, important way that we contribute to leaders in 2014 to demonstrate academia, businesses community, Kosmos is committed to playing national development. Kosmos has our long-term commitment to the and entrepreneurs – to explore the its part in creating positive worked hard to build a network of development of Ghana. The advisory Employees in our office in Accra, Ghana regularly take part in nexus between entrepreneurship development outcomes for host local suppliers, and provided training council guides the company and professional development trainings. and economic development in countries from our oil and gas and capacity building ourselves serves as a sounding board as we Sub-Saharan Africa. The 2016 discoveries. Our largest office to bring them to international Kosmos Innovation Center Agritech work to support Ghana’s socio- updates on Jubilee and TEN field gas sector, the status of the Ghana industry standards. Challenge winner, TroTro Tractor, also operations, environmental monitoring government’s anti-small scale illegal participated in the summit, where We are committed to supporting and compliance, canoe incursions and mining initiative, and goals related to the company gained international personal and professional fishermen interactions, the Voluntary public security training and private visibility and built new business development for all our employees Principles on Business and Human security licensing reform. connections. through tailored training programs, Rights, social investments, effects Kosmos uses private security rotations through our other global of the Ghana-Côte d’Ivoire maritime personnel to provide security for Government Engagement offices, and attendance at workshops boundary dispute decision by ITLOS, and conferences. In 2015, Kosmos our employees and office operations Kosmos regularly engages with and our environmental and social achieved a major milestone by in Ghana. Security for the Jubilee the government of Ghana to keep impact management plans. These employing a 100 percent Ghanaian and TEN fields’ operations is the them informed of our activities and engagements result in the support staff – a number that we have now responsibility of the operator. We with the goal of ensuring that our of local leaders and traditional maintained for the third consecutive have trained all Kosmos Energy activities contribute to national authorities in keeping fishermen safe year. We currently have 45 Ghana security personnel on the development. As part of our around our offshore installations employees in Ghana, 95% of whom Voluntary Principles on Security and government engagement efforts in and approval of our social participated in personal and/or Human Rights per our corporate 2017, we provided all 250 members investment plans. professional development programs. policies and in support of Ghana’s of the Ghanaian parliament with We also conducted a total of 38 work on the Voluntary Principles. copies of our Business Principles Voluntary Principles on internal training programs for our and annual reports. We presented Security and Human Rights For more information on the staff in Ghana, including a refresher Voluntary Principles on Security our approach to transparency The Government of Ghana is course on the International Finance and Human Rights in Ghana, including publishing our contracts currently finalizing its National Corporation’s Environmental and please see the country’s website and payments to governments, Action Plan for implementation Social Performance Standards. dedicated to their implementation: anti-corruption policy, and ongoing of the Voluntary Principles on www.ghanavps.org. support of the Extractive Industries In 2017, we also contracted six Security and Human Rights. Transparency Initiative. We also national service personnel to work Kosmos has supported this process Working in Partnership explained the work of the Kosmos in finance, supply chain, human by participating as an industry with Civil Society Innovation Center in supporting resources, office administration, representative in national dialogues corporate affairs and commercial Kosmos maintains regular contact young Ghanaian entrepreneurs and to discuss key issues that can help departments. It is our hope that the with civil society organizations in small and medium sized enterprises. with implementation. The dialogues training and experience they receive Ghana such as the African Centre for have covered issues such as onshore Young entrepreneurs with the Kosmos Innovation Center learn about founding and growing while working at Kosmos helps Energy Policy (ACEP), the National businesses that use technology to solve problems in the agricultural sector. and offshore risks associated with prepare them for their future careers. increased activities in the oil and Resource Governance Institute 28 29

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 water projects in Ghana for the last management of the water purification Innovation Center in detail. WE ARE ON TO SOMETHING six years. We first worked with the service. In addition, the organization Editors and journalists are important BIG. THIS PROGRAM Safe Water Network to build water provides sanitation and hygiene stakeholders in Ghana as they ENCOURAGES SMART YOUNG filtration systems for over 28,000 education to further improve health regularly write about domestic oil ENTREPRENEURS TO LOOK AT people from twenty villages in the outcomes for the villagers using the and gas activities and their work AGRICULTURE DIFFERENTLY. Western Region. The project received new clean water systems. often shapes public understanding. WITH THE TYPE OF such a positive community response We are continuing our support of In 2017, we again sponsored INNOVATION FOSTERED BY that Kosmos decided to expand our the Water Health Ghana program the annual Ghana Journalist THE KIC, OUR YOUNG PEOPLE support of water projects to other in 2018, when the program will Awards, a forum that encourages CAN MAKE AGRICULTURE parts of the country. install water purification facilities professionalism and innovation in A MORE DYNAMIC SECTOR and conduct management training news reporting across Ghana. We are now involved in a multi- AND ATTRACTIVE CAREER year project with Water Health for an additional ten communities. PATH WITH PLENTY OF Each year, we contribute to the Ghana, a subsidiary of Water Health By the end of 2018, our multi-year OPPORTUNITY. I AM THRILLED Jubilee Unit and TEN Development International, to provide clean partnership with Water Health will WITH THE TREMENDOUS social investment programs. These drinking water for villages in five have brought clean drinking water to RESPONSE THAT WE HAVE initiatives are overseen by a team of regions. In 2017, we expanded the over 280,000 people across Ghana. RECEIVED FROM YOUNG representatives from the Jubilee Unit program to ten new communities, PEOPLE WHO WANT TO BE co-venturers, including Kosmos. In EMBRACING INNOVATION IN GHANA: providing clean drinking water for A PART OF THIS EFFORT TO 2017, the Jubilee and TEN social THE KOSMOS INNOVATION CENTER nearly 130,000 Ghanaians. 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 Traditional chiefs sample clean drinking water from a Kosmos-sponsored Water Health Ghana facility. 30 31

AgroInnova, with its product ACCELERATION AKOKOTAKRA, is an enterprise The Acceleration pillar of the I’M GREATLY ENCOURAGED BY THE COMMITMENT KOSMOS CONTINUES TO mobile and web-based management KIC supports the development SHOW TO THE KOSMOS INNOVATION CENTER BUSINESS BOOSTER PROGRAM. system that allows poultry farmers of promising small and medium to record, monitor, and track their IT HAS BEEN A GREAT PLEASURE TO WORK WITH THE VENTURES AS A sized enterprises through technical operations in real time. With this BUSINESS MENTOR. I HAVE SEEN IMPROVEMENT IN THE BUSINESSES AS THEY assistance and capital investment. innovative and comprehensive tool, EMBRACE THE LESSONS LEARNT FROM THE PROGRAM AND THE GUIDANCE After a stringent screening process, poultry farm managers have their selected companies receive a range PROVIDED BY MENTORS AND INVESTORS. BEING INVOLVED IN THE KOSMOS farms “at their fingertips” for more of support aimed at helping them INNOVATION CENTER HAS PROVIDED ME AN OPPORTUNITY TO GIVE BACK TO effective and efficient operations. grow. MY COUNTRY IN A WAY THAT WILL CREATE IMPACT IN MANY LIVES. AKOKOTAKRA will help poultry farmers in Ghana monitor and grow In 2017, KIC launched its first Mr. Ishmael Yamson Jr. their output. Business Booster program. Mentor for the KIC Business Booster We selected nine Ghanaian- QualiTrace developed a product owned businesses which have to authenticate, track, and trace operated within the agriculture crop protection products used by sector of Ghana for at least three farmers to increase their yields. attended by key stakeholders in startup enterprises. During our week tour brings the participants years. The five-month program Using a mobile validation system, the agriculture, including representatives annual business incubator program, to five regions in Ghana – Greater entailed two, week-long business product aims to ensure that farmers from the Ministry of Food and young entrepreneurs spend five Accra, Volta, Eastern, Ashanti, and development boot camps in Accra, and consumers in Ghana can identify Agriculture and farming District months in residence to develop Brong-Ahafo – to interact directly a mentorship support program genuine farm inputs and quality food A KIC participant poses in front of a Assemblies such as East Gonja, business plans around commercially with farmers and agribusinesses tractor. The first winner of the KIC Agritech and engagement with investors produce. This tool will also help to Savelugu and Sagnarigu. viable technological solutions to to test their assumptions and Challenge was TroTro Tractor, a company and wealth advisors. During the thwart counterfeiting agricultural that connects farmers with tractor operators. development challenges within the collect valuable input. The young program, the participating ventures inputs in Ghana, a problem that INCUBATION agricultural sector. entrepreneurs also attend a series validated and refined their business accounts for the loss of about $1.5 tractor operators within their vicinity, The Incubation pillar of KIC provides of lunch-and-learn programs aimed models, prepared for growth, and One of the highlights of the trillion globally on annual basis. enabling them to request, schedule, at deepening their understanding gained access capital to build their capacity building, mentorship, and incubator for the young and pre-pay for tractor services. of the agricultural sector, studying In addition to the winners of the companies. seed funding through innovation entrepreneurs – known in the The platform gives farmers greater challenges in agriculture, and KIC AgriTech Challenge, four challenges to promote the program as “AgriTechies” – is the access to mechanized farming The KIC collaborates with Uncharted, analyzing their experiences and other promising business teams development of promising Ghanaian market research tour. The two- equipment. a U.S.-based nonprofit, to lead the learnings from the research tour. who competed were funded and Business Booster execution and supported by KIC partners MEST and Since winning the AgriTech The Meltwater Entrepreneurial curriculum delivery, and Impact Hub Premium Bank of Ghana. Challenge, TroTro Tractor has grown School of Technology (MEST) is Accra, a collaborative co-working to seven employees and signed up KIC’s key partner in the Incubation The KIC continues to support space, to provide local expertise in over 30,000 farmers in Ghana for programming. MEST partners with winners from previous years as logistics, operations, and recruitment its tractor sharing services, based KIC to provide training to the young needed. The first start-up company for the Business Booster program. on a similar model as the ride-share entrepreneurs in the incubator to win the Agritech Challenge was company Uber, but used for tractors. program. The training emphasizes TroTro Tractor Limited in 2016. For more information about the The company has also secured confidence, teamwork, presentation TroTro Tractor Limited has developed Kosmos Innovation Center, visit additional investments in order www.kosmosinnovationcenter.com. abilities, critical thinking skills, and a platform that uses mobile phones to continue scaling their business acumen. and GPS units to connect farmers to successful business. At the end of the KIC incubator program cycle, the startups pitch INCUBATION PROGRAM AT A GLANCE 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. 270 $950K 8 79 The KIC started its second year INVESTED JOBS ASPIRING STARTUPS in 2017 by reaching an exciting IN KIC STARTUPS CREATED YOUNG LAUNCHED milestone: 100 young entrepreneurs BY KOSMOS ENTREPRENEURS accepted into the annual KIC AND EXTERNAL Agritech Challenge program. Two PARTICIPATED INVESTORS start-up companies from this group IN KIC 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. 32 33 PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6

EXPLORATION APPRAISAL DEVELOPMENT DRILLING DRILLING

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 MAURITANIA success of the project. Committee. country manager and support staff Kosmos’ shorebase in Mauritania, to maintain our employment of In addition to our stakeholder Since first acquiring licenses in Mauritania, Kosmos has drilled three successful 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 offshore exploration wells. We drilled the Tortue-1 well and the Ahmeyim-2 well in in 2017. We worked hard to achieve communities near our offshore the southern part of block C8 and made important discoveries in the Greater Tortue 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, area. Kosmos also made another major gas discovery in the northern part of block explorer is not enough to be Assessments, social investment, and contractors, business partners, and successful – we must also engage regular community visits. C8 when our Marsouin-1 exploration well encountered at least 70 meters of net the government of Mauritania. with local people and listen to In 2017, we held four public natural gas pay, representing a significant, play-extending find. 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 The Greater Tortue natural gas pace and take forward a multi- BLOCK and reinforce our HSE-related country for many years to come. representatives as part of the ESIA resource is a single large gas well exploration program in both C18 expectations. Local and multinational We want to be a welcome investor, processes to present upcoming accumulation that stretches across Mauritania and Senegal. contractors – representing drilling, both to our host governments and drilling activities and get input on the maritime boundary between Kosmos currently holds licenses for shorebase, and aviation – attended local communities. To achieve this the proposed Greater Tortue plan Mauritania and Senegal. The scale blocks 6, 8, 12, 13 and 18 offshore these sessions in anticipation of goal, we build relationships with of development, as well as and quality of the gas field, and the Mauritania, as shown in the map at increased activity and re-committed stakeholders through engagement answer questions. exploration potential of the rest of Atlantic BLOCK left. Since late 2016, our partners themselves to working within our and listening on all topics: the Ocean C6 the basin, attracted the attention Since we have been present in in blocks 6, 8, 12, and 13 are BP standards. environment, transparency, our of several major international oil Mauritania for over five years, the BLOCK and Société Mauritanienne Des operations, capacity building and companies who expressed their Our office in Nouakchott is staffed local community in the Ndiago C12 Hydrocarbures et de Patrimoine social investment projects, health and interest in partnering with us. with 100% Mauritanian citizens, region is now familiar with Kosmos Minier (SMHPM), with 65% and 10% safety, and socioeconomic impacts. Following a thorough farm-out and we prioritize the professional and informed about the oil and gas MAURITANIA working interests, respectively. In BLOCK process, BP was chosen as the right development of these employees. We are pleased to support the exploration taking place offshore. C8 2017, we transitioned operatorship of partner to help Kosmos advance In 2017, Kosmos employees in government of Mauritania’s We met with, among others, the the Greater Tortue gas development SENEGAL the Greater Tortue gas project at Mauritania attended international commitments to transparency. local Diawling Park Authority, BLOCK C13 project to BP. 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 35

staff suggestions, Kosmos has through mobile device charging and fish are brought ashore. Many of also provided lessons in basic better access to radio and television, these women are part of co-ops to management and entrepreneurship and lead to greater productivity in increase efficiency, share the costs skills. We partner with the economic activities. of equipment and improve access International Labor Organization to market for the fish products. The Diawling National Park (PND) (ILO) office in Mauritania on an Kosmos partnered with EcoDev, a borders the Senegal River and employability skills training program local development NGO, to build the municipality of Ndiago in southwest for students enrolled in the English capacity of the Ndiago women’s fish Mauritania. The 16000-hectare classes. processing co-ops. national park is characterized by a Each year that Kosmos has been range of different habitats (pond, We provided a series of workshops present in Mauritania, our office has river, islands, estuary, and lakes) for members of the cooperative participated in annual volunteering and is home to a wide diversity of on organization and management and charity during the month of flora and fauna. Diawling is part of a of small and medium enterprises Ramadan. The Ramadan holiday Trans-Border Biosphere Reserve that The mouth of the Senegal River is home to (SMEs), entrepreneurship skills, and often leads to increases in food 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. Researchers with the Biodiversity Oil and Gas Program (BGP) analyze marine prices that can put basic items out to the combination of saltwater and training, the co-ops aim to increase mammal and sea bird activity while on a marine survey offshore Mauritania of reach for many families. Kosmos’ freshwater at the Senegal River delta. their profits and develop more sponsored by Kosmos. Fisheries are a key income involvement in 2017 provided 3,000 sustainable business practices. The Kosmos supports the national park provider in the Ndiago region. meals for families in need during hygiene and safety training was through skills training for park staff Understandably, the local community leaders. Each meeting represented Extractives (GAED) international Ramadan. Our local employees in augmented by construction of a new on park surveillance, monitoring strongly cares about the safety of an open invitation to continue master’s program, a joint master’s Nouakchott volunteered to assist in fish drying and processing area to of invasive species, and tourism its fishermen and their vessels, as dialogue on our activities, as well as degree program on managing food distribution. lessen environmental impacts and management. We also provided well as the safety of those engaged a commitment to keep stakeholders impacts from the extractive sector, improve working conditions for the While many of our social programs new monitoring equipment, such in ancillary activities such as fish informed of our progress and plans. held at the University of Nouakchott women. and the University Gaston Berger of are based in Nouakchott and support as watchtowers, binoculars, GPS, processing. Kosmos has previously national development, we believe it and a drone, to improve capacity on In addition to improvements to the POSITIVE IMPACTS Saint Louis, Senegal. provided safety gear and fish is also important to benefit coastal park surveillance and research. Due processing equipment to the Ndiago physical work space, we provided The master’s degree program was Mauritania’s Biodiversity Oil and Gas communities in the Ndiago region, to our cross-border offshore LNG community to reduce health risks the women with new equipment developed by the International Program (BGP) is a multi-stakeholder which is directly onshore from project, we encouraged the Diawling and improve working conditions, and for fish processing and safe Union for Conservation of initiative supported by the Ministry our license areas near the border National Park to work together with in 2017 we decided to expand our food handling. The project also Nature (IUCN), United Nations of Environment and Ministry of with Senegal. Because there was the Djoudj National Bird Park on program in Ndiago. established a fund owned by the Energy. Kosmos is pleased to have Development Programme (UNDP), little demographic and economic the Senegal side of the river delta women’s cooperatives to provide The population of Ndiago has a a multi-year partnership with the the German Development Institute information available on the Ndiago since the two national parks share working capital for the purchase majority of women due to the BGP team and to provide support (GIZ), MAVA Foundation, Global region when we entered Mauritania, similar geography, flora, and fauna, of fresh fish, processing costs, and travel required by the men who fish for marine research and policy Environment Facility (GEF), the we began our work in the area by and thus have similar challenges and access to markets for sales. offshore. The women of Ndiago are development. The BGP aims to World Wildlife Fund (WWF), and conducting a community needs opportunities. responsible for processing after the 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 EMBRACING INNOVATION We are excited to partner with Start-Up Mauritania community and local authorities had ocean. as guest lecturers, hosting field trips IN MAURITANIA on this first phase of the Kosmos Innovation Center and internships, and contributing suggested that the local economy in Mauritania. This partnership includes capacity In 2017, we again sponsored BGP financial support. GAED students could benefit from electrification In 2017, Kosmos began planning the establishment building for their business incubator and start- researchers on a multi-week marine have also joined our teams in the projects. Kosmos responded by of a Kosmos Innovation Center (KIC) in Mauritania up competition as well as direct support to the survey to increase knowledge and field for seismic and drilling ESIAs in developing a rural electrification to promote entrepreneurship among the winning start-up companies. data about biodiversity in the waters both Mauritania and Senegal. project in Ndiago in partnership with country’s youth. We identified Mauritania as an offshore Mauritania. This is the third Through Start-Up Mauritania, we will offer a the local community and the Ministry excellent location for the KIC because young such survey that we have sponsored. For four consecutive years, Kosmos program for 50 Mauritanian youths to create of Energy. people comprise 20% of the population and are In the coming year, BGP, along with has funded English language start-up concepts in 2018. The start-up teams will Kosmos built solar installations in experiencing a 19% unemployment rate. Youth its partner IMROP, intends to use this training for students at Centre de participate in a business training curriculum and three remote areas of Ndiago that are key drivers of economic growth and social data to author a Marine Biodiversity Formation et de Perfectionement capacity-building program, learning from senior were not previously connected to change in Mauritania, but currently face a lack of Atlas of Mauritania. Professionels (CFPP), the largest mentors and market research tours. They will economic opportunities and jobs. Entrepreneurship vocational training center in the power grid. The project now ultimately compete in successive rounds of pitch is a key pathway to employment and economic While we pursue development of the Nouakchott. We had learned from a provides electricity to more than competitions, with the winners receiving support to empowerment for youth and can boost the overall Mauritania’s natural gas resource, needs assessment that the students 2,100 people in Ndiago. It is our hope launch their businesses. Mauritanian economy as well. The ethos of the we aim to also enhance national were often being excluded from that the new electricity will result Kosmos Innovation Center is to offer sustainable KIC Mauritania will encourage collaboration and capacity in the oil and gas industry job applicant pools for which they in increases to quality of life in the opportunities for young people to create their own innovation among young entrepreneurs, investors, and related fields. One such initiative were qualified because they did not local villages. Electrification has been futures – not to give short-term handouts. and business leaders in Mauritania. 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 36 37 PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6

SEISMIC

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 safety 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 MOROCCO 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 As one of the first oil and gas companies to explore offshore Morocco in recent the seismic vessel. In order to ensure the women’s families. the safety of the fishermen, the 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. 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. We drilled our first exploration 2018, we conducted a geochemical Enactus is an international nonprofit organization, Atlantic well in the Foum Assaka block in survey in the Essaouira block to Ocean active in 36 countries, dedicated to inspiring students 2014, which failed to encounter obtain sediment samples for further to improve the world through entrepreneurship. hydrocarbons in commercial analysis. Kosmos partnered with ENACTUS Morocco to expand ESSAOUIRA quantities. Based on these drilling BLOCK programming in Agadir and Essaouira, two cities on the results and further analysis of the MANAGING OUR FOOTPRINT Moroccan coast near our Essaouira license area. basin, we made the decision in 2016 Many artisanal small-scale fishermen to relinquish a portion of our acreage work along Morocco’s coast, Through our partnership with Enactus, over MOROCCO offshore Morocco. We maintained including in the Essaouira block 1,200 university students learned about social our position in the Essaouira Block area. One common style of fishing entrepreneurship and the basics of running their own to continue acquiring and analyzing in this area is for fishers to pause businesses. Students who wished to pursue additional data in the area. in one location and hang either a learning in entrepreneurship formed Enactus teams In the spring of 2017, we completed net or hundreds of small hooks at and launched 22 new projects. The teams then varying depths. When employing MAURITANIA a three-month seismic acquisition participated in the Moroccan national competition to survey in the Essaouira Block. this technique, it can take hours for The interpretation of this seismic fishermen to move from the chosen data is ongoing. In the first half of fishing spot. 38 39 PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6

SEISMIC

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 and particularly marine mammals and sea and gas exploration can proceed in 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. SÃO TOMÉ AND PRÍNCIPE 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 Kosmos first entered São Tomé and Príncipe by acquiring acreage in four A project-specific marine fauna on the oil and gas industry for local International (FFI) regarding our offshore blocks – 5, 6, 11 and 12 – in 2015 and 2016. In early 2018, Kosmos protection plan was developed to stakeholders and the media. seismic campaign offshore São Tomé include approved marine fauna and Príncipe. FFI provided valuable acquired two additional offshore blocks – 10 and 13. In total, these six blocks feedback on our survey design and mitigation measures, and we agreed cover an area of approximately 38,600 square kilometers and are adjacent to to continue conversations around a proven petroleum system in Equatorial Guinea and Gabon. seismic acquisition and any future exploration drilling. We also shared cetacean and marine mammal data acquired by our marine fauna Upon entering São Tomé and government. Kosmos, Galp, Equator, Gulf of observers and other scientists on PRÍNCIPE Príncipe in 2016, Kosmos established and ANP-STP intend to make a Guinea the seismic vessel during the a local office on São Tomé island and decision regarding exploration BLOCK 10 acquisition program. BLOCK 5 appointed a country manager. We drilling in 2019. currently employ seven local staff, Our partner in blocks 10 and 13 is BP. POSITIVE IMPACTS SÃO working in areas such as accounting, TOMÉ BLOCK 6 The work program in these blocks Kosmos and our partners are finance, external affairs, HSE, and will be phased, which will enable contractually obligated to spend procurement. BLOCK 11 Kosmos and BP to develop a deeper approximately $3.3 million on social Galp Energia, a Portuguese oil and understanding of the basin and investment projects over four years gas company, holds a non-operated create the best chance of exploration (2016-2019) under the terms of our GUINEA BLOCK 12 stake as a partner in blocks 5, 11, and success. In the first four-year GABON production sharing contracts with 12, and an operated position in Block phase, Kosmos and BP will acquire the government for blocks 5, 11 and BLOCK 13 6. Equity in these four blocks is also additional seismic data and will 12. To ensure this social investment shared with Equator and the Agencia analyze the data to decide on next An artisanal fisherman checks his equipment on the shores of São Tomé. Kosmos held public obligation results in real benefit Nacional do Petroleo de São Tomé e steps with regard to drilling. 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 (ANP-STP), on behalf of the Príncipe, Kosmos has engaged with 40 41

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 ENGAGING ON ENVIRONMENTAL ISSUES WITH challenges in the education sector FAUNA & FLORA INTERNATIONAL which the government is eager to address. At Kosmos, we are committed to During our initial meeting, FFI provided arising. Eight mitigation actions were According to recent government actively consulting with stakeholders on valuable input on the design of our implemented during the seismic data, the key challenges are: 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, • Class size: an average of 80 In partnership with the government of São Tomé and Príncipe, Kosmos is building schools believe that partnering and engaging in biodiversity. Kosmos presented the including one full shut-down for the students per classroom and classrooms in four locations on São Tomé for children such as the two boys pictured playing here. dialogue with stakeholders deepens our detailed Environmental and Social extended mitigation zone for • Pace of development: Inadequate understanding of public concerns that Impact Assessment completed during mother-calf pairs. use of technology due to lack of should be addressed. These dialogues the planning phase of operations, infrastructure and training Kosmos has agreed to build two new of the classrooms and facilities. can ultimately lead to better-informed along with other key studies and the secondary schools and associated Kosmos has also procured two mini- decision making and reduced risks to logistics plan that minimized the overall • Instruction: Insufficient number facilities (in Santana and Monte Café) buses that are now used to transport environment. duration of the survey and ensured that of teachers, many of whom lack and add classrooms to two existing teachers to remote schools in Porto maximum distance was kept from each necessary training Following the public consultations schools in Neves and São Marçal. Alegre and Santa Catarina. area of sensitivity. for our seismic acquisition program Thus, the goals of the education Once these projects are completed, This initiative is being overseen and offshore São Tomé and Príncipe, we We discussed and clarified items initiative include improving access the Ministry of Education, Culture, monitored by a steering committee were contacted by Fauna & Flora about which FFI had concerns. to quality education, reducing the and Science will take responsibility comprised of Kosmos, the Ministry International (FFI), an international Subjects under discussion included: of Education, Culture and Science, wildlife conservation organization, • source level used for the seismic and ANP-STP. Groundbreaking for with an ongoing environmental We continued to work with FFI after campaign; the school construction is expected program on Príncipe Island. In the initial engagement by facilitating in the first half of 2018. Kosmos is response, the project management • the timing of operations to avoid the a meeting between our Marine Fauna currently working with the Ministry team from Kosmos met with migratory period of whales; Observers and FFI staff in São Tomé of Education, Culture, and Science conservation specialists from FFI to • the noise propagation model and Príncipe, and by holding a follow and ANP-STP to move the project discuss in greater detail our survey used to establish the size of the up meeting at FFI’s headquarters forward and ensure high standards plans and the proposed seismic mitigation exclusion zone; after the seismic acquisition was for construction. mitigation options. complete. With the permission of • the proposed monitoring and In addition to the education projects the government of São Tomé and mitigation actions; Príncipe, Kosmos shared with FFI on São Tomé island, Kosmos intends OUR ENGAGEMENT WITH • the necessity for adaptive the cetacean and marine mammal to implement social investment KOSMOS WAS A VALUABLE projects on Príncipe island in the management; and data acquired by our Marine Fauna KNOWLEDGE SHARING Observers and other scientists during coming year. In 2017, we conducted • possibilities for data sharing and in- EXERCISE. THEY SHOWED the acquisition program. The data is an assessment and partner analysis country support for GREAT WILLINGNESS TO particularly important because there is on Príncipe. Based on the results of conservation actions. ENGAGE WITH FFI AND this assessment, we plan to focus a lack of current research and data on Communication is critical, and no our social investment efforts on EXPLAIN IN DETAIL THE cetaceans and turtles in the waters far more so than during field operations. Príncipe around biodiversity and EFFORTS THEY WERE offshore São Tomé and Príncipe. FFI reviewed Kosmos’ Sensitive conservation, access to water supply, PLANNING TO MITIGATE Through research, engagement, and Marine Fauna Protection Plan, the and innovation in local enterprises. 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 average number of students per appreciate the willingness of FFI to The island of Príncipe is home to approximately 7,000for peoplestaffing and the has aschools rich biodiversity, with qualified MITIGATION ACTIONS fauna. During the seven-month-long classroom, and preparing students meet with us and work together to including many endemic species. In 2018, Kosmos teachersplans to initiate or teachers-in-training,several social and as DURING THEIR SURVEY. seismic survey, 306 observations forenvironmental the future laborprojects market. on Príncipe to ensure benefits reach both islands in the country. ensure that we are each doing our well as the maintenance and repair 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 43 PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6

EXPLORATION APPRAISAL DEVELOPMENT DRILLING DRILLING 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 SENEGAL 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 Kosmos has a participating interest in two exploration blocks offshore Profond and Saint Louis Offshore ongoing awareness of the Grievance also included institutions such as Mechanism. Senegal – Cayar Offshore Profond and Saint Louis Offshore Profond. Profond blocks, many of our staff the Abidjan UNEP Regional Seas transitioned to work for BP. We Kosmos maintains a program to Convention in order to create linkages The license areas are adjacent to, and on trend with, our blocks offshore currently have a team of three strengthen HSE management to future policy development. employees in our office in Dakar to neighboring Mauritania. 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 We first drilled two successful gas deposit and confirmed that a as the operator. Atlantic representatives from each of the implementation of ocean acidification exploration wells offshore Senegal prolific inboard gas fairway extends Ocean In the first half of 2017, we conducted contractors supporting Kosmos research. Participants hailed from in 2016, which both discovered approximately 200 kilometers from ST. LOUIS a geotechnical and geophysical operations to collaborate on Benin, Cameroon, Ivory Coast, Nigeria, OFFSHORE significant deposits of natural gas. the Marsouin-1 well in Mauritania PROFOND survey in the Saint Louis Offshore organizational challenges, crew Senegal, Ghana, and Togo. The The Guembeul-1 well, which was through the Tortue area on the Profond license in Senegal and the resource management, and showing training was specifically designed to located approximately five kilometers maritime boundary all the way to the C8 license in Mauritania. Part of the leadership in safety, health, and the emphasize eastern Atlantic waters to south of our basin-opening Tortue-1 Teranga-1 well in Senegal. survey took place in the nearshore environment. build capacity for the practitioners well gas discovery offshore Announced in late 2016, Kosmos has area where the Tortue project from West Africa. Mauritania, demonstrated reservoir ENGAGEMENT AND LISTENING a partnership with BP in Senegal breakwater will be located – up to Kosmos also worked with the continuity, as well as static pressure (and Mauritania) that combines 10km from the coast and the town of As part of our commitment to government in Senegal to build SENEGAL communication with the Tortue-1 Kosmos’ exploration expertise Saint Louis. It is a densely fished area, supporting environmental initiatives capacity in environmental CAYAR well, suggesting that a single large OFFSHORE with BP’s deepwater development, with approximately 5,000 artisanal in the countries where we operate, management as part of our ESIA PROFOND gas accumulation stretches across LNG production and marketing fishing boats operating from Saint Kosmos sponsored a workshop on processes. As a first step, in 2016 the maritime boundary between experience. Kosmos holds an Louis. ocean acidification in Senegal through Kosmos organized a training on the Mauritania and Senegal. effective 30% participating interest the Future Earth Coasts initiative. At the beginning of the survey, we conduct of environmental monitoring The Teranga-1 well, drilled in the in both licenses. BP holds a 60% The week-long event was held at the held in-person meetings in Saint of drilling activities. This training Cayar Offshore Profond block participating interest. The national Ecole Superieure Polytechnique of the Louis with the local artisanal fishing included the Bosiet-Huet certification approximately 91 kilometers oil company Société des Pétroles du Universite Cheikh-Anta-Diop in Dakar. council (CLPA), the local fisheries of Department of Environment and southwest of the Guembeul-1 well, Sénégal (Petrosen) holds 10%. also discovered a very large, material 44 45

Classified Establishments (DEEC) In addition to capacity building four neighborhoods in Saint Louis: “clean up” days, the project included and gas industry in countries that agents and their visit to the drillship. within Senegal, Kosmos also Goxu Mbacc, Ndar Toute, Guet Ndar capacity building work with local are relatively new to oil and gas sponsored members of Senegalese and Hydrobase. The project aims to authorities to strengthen the waste like Senegal. These institutions In 2017, we built upon this training civil society to attend a Natural address several environmental issues management system so that once are home to our future workforce by bringing members of the DEEC Resource Governance Institute (NRGI) and often help inform the national Côte d’Ivoire and Ghana to engage affecting fishing communities on trash was removed, the waterways workshop in Cameroon, where we policy conversations and legislation. with their counterparts in those the Langue de Barbarie including would stay clear of new pollution. were a presenter. The topics covered artificial reefs, reforestation, and waste Kosmos sponsored professors from countries. We facilitated meetings We held four successful clean up included oil and gas project lifecycles, management. the University Cheikh Antar Diop between DEEC and environmental days, mobilizing nearly 100 local revenue flows during different stages in Dakar (as well as representatives agency officials in Ghana (Ghana Artificial reefs create new breeding people to help clean up trash of the project, the causes and impacts from the University of Nouakchott in Environmental Protection Agency) habitats and ecological niches for and plastic waste that normally of changes in oil price, contract Mauritania) to attend the GetEnergy and in Côte d’Ivoire (Agence Nationale fish, which is important in the heavily- line this section of the Senegal A pelican hunts for fish in the Djoudj National transparency, corruption risks, and Bird Park along the coast of Senegal. conference on local content in oil and De l’Environnement) to help DEEC fished waters offshore the Langue de river, gathering over 46 tons of managing the environmental impacts gas in London in 2017. develop a global support network, Barbarie. Le Partenariat commissioned waste in total. The local artisanal of exploration and production. villagers. The project, which began identify comparable mechanisms, and a local company to construct over fishing council, the mayor’s office, The GetEnergy event was designed in 2017, reinforces the ecological share lessons learned about how to We are now working in partnership 400 artificial reefs, then worked with local government departments, specifically for providers of education monitoring and surveillance of the regulate and monitor offshore oil and with BP to continue these types of fishing representatives, the national the Saint Louis Development and training to learn from companies, Park and supports the socioeconomic gas activities. capacity building engagements with maritime agency, professional scuba Agency and the municipal cleaning governments and service providers, government, civil society, journalists development activities of the with the goal increasing the number Kosmos also led or participated in divers, Saint Louis firefighters and the service all participated, along with and local communities in Senegal. Djoudj Inter-Village Committee. This of local people working in the oil workshops in Senegal in the past year Marine Protected Area to sink them representatives from the fishing committee is made up of national and gas industry. Kosmos aims on transparency, local content, good over a period of four days. We also communities. We also donated POSITIVE IMPACTS park officials and community leaders. to contribute to the development governance of natural resources, commissioned a local environmental equipment such as forks, shovels and Fishing Livelihoods in Saint Louis of linkages between educational and fundamentals of the oil and consultancy to do a health and safety personal protective equipment (PPE) Our support goes toward: offerings and the needs of the oil and gas industry. We continued our Kosmos is working with Le assessment, oversee the immersion, to community waste management 1. Habitat restoration and the gas industry in Senegal as well as all regular engagement with the EITI, Partenariat, an international NGO, as and ensure a safe and incident-free organizations. management of invasive plant our implementing partner for social immersion process. the countries where we are in the supporting dissemination of the 2015 Unfortunately, trash quickly returned species. In total around 16 hectares investment on the Langue de Barbarie development and production stage of and 2016 EITI reports by presenting The artificial reefs have all been ‘geo- to the river banks in some of the of degraded natural habitats will be in Saint Louis, Senegal. Le Partenariat the project lifecycle. at a workshop in Saint Louis. We localized’ so that representatives neighborhoods. After a review of restored and rehabilitated. is a partnership between the Saint also hosted a group of students from from the Marine Protected Area can the project, we concluded that In 2017, Kosmos and BP began Louis region of Senegal and the local 2. Biological monitoring and tracking the CESTI School of Journalism in monitor them and confirm they stay in waste management on the Langue working together to support the authorities of the Nord Pas-de-Calais the health of the park’s ecosystem Dakar at our offices, presenting on place despite the underwater currents. de Barbarie is complex and the Senegalese government in the region in France. The organization has – including equipment for 50 ‘eco the Tortue project to help improve In 2018, Kosmos and BP plan to work solutions are not straightforward. Le creation of a National Institute for been working in Saint Louis for over guards’ that volunteer from the understanding of our work and the oil with Le Partenariat and the Marine Partenariat held several workshops Petroleum and Gas to provide higher 30 years. park’s surrounding villages. and gas industry. This was part of an Protected Area to design a multi-year with local leaders to try to work education and training to develop the Oxfam-sponsored training program leaders, managers, and operators of Our projects with Le Partenariat are monitoring and evaluation program towards a more sustainable solution. 3. Providing risk huskers as an for student journalists. Senegal’s new petroleum industry. focused on improving the quality to fully measure the environmental income-generating activity for of life for fishing communities in impacts of the artificial reefs. Djoudj National Bird Park community volunteers that work The initial scoping for the Institute with the park. included a jobs and opportunity For reforestation, we worked with Le The Djoudj National Bird Park in assessment to inform curricula and Partenariat to plant eight hectares Senegal, located along the border 4. Bird spotting guides, binoculars goals for the proposed institute’s of pine trees and two hectares of with Mauritania, was created in 1971 and other equipment to support future growth, including technical mangrove trees. Approximately 9,000 as a natural bird sanctuary in the the villagers that work as guides in English language training for a range pine trees and 10,000 mangroves adjoining backwaters, lakes and the park. of stakeholders in the academic were planted in total. The pine trees rivers of the Senegal River delta. Responding to Natural Disasters system, government, suppliers help combat localized erosion by The 16,000 hectare national park is and our workforce; leadership, securing the dunes with their roots, home to approximately 365 different As a responsible corporate citizen management and technical training and mangroves promote sediment species of birds, 80 species of fish, 10 in Senegal, Kosmos understands the for the first cohort of a national buildup in coastal waters and provide species of mammals, and 132 species need to partner with communities workforce; and partnerships with habitats for fish reproduction. Over of plants. The area is also a resting when disaster strikes. In August 2017, international universities and training 680 community members participated place for nearly 1.5 million migratory seventy-three families living along the providers. We are also coordinating in the reforestation efforts. The birds crossing the Sahara Desert to coast in Saint Louis had their homes with other oil and gas investors project was also supported by the north. The park is located onshore destroyed during a severe storm. As in Senegal on this initiative to local government agencies, Marine from the area where Kosmos made a result, they were forced to shelter leverage partnerships and ensure a Protected Area representatives, and the Tortue-1 well natural gas discovery in local schools while rebuilding their streamlined industry approach. the local artisanal fishing council. 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 Waste management and pollution to local mosques to help support engaged the British Council to reduction proved to be the most Kosmos worked with the Djoudj them while displaced. launch a multi-year English-language challenging. The aim was to clean Park authorities to design a project training program for university that aims to conserve the habitats trash from the local river banks and Capacity Building students, professors, and staff in key reduce unauthorized waste dumps of the park through a participatory A Kosmos employee leads a capacity building workshop for Senegalese stakeholders on the oil Universities and academia are government departments relevant to and gas value chain in partnership with the Natural Resource Governance Institute (NRGI). on the Langue de Barbarie by 80%. approach to land-management important stakeholders for the oil the oil and gas industry. In addition to high-profile public activities involving the neighboring 46 47 PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6

EXPLORATION DRILLING 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, that although we development in Suriname. endeavor to work from a local shore base whenever possible, our ENGAGEMENT AND primary shore base operations for LISTENING the 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. SURINAME 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 Kosmos holds exploration licenses offshore Suriname for Blocks 42 and 45. Five 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 years ago, we established an office in Paramaribo, the capital of Suriname. Since company, plans to initiate a major The consultation attendees included represents the oil and gas private sector on the Suriname MSG. We then, we have developed a capable team of local employees, listened to community oil and gas industry local content government representatives, public Industrial Baseline Study through agencies, the fishing community, are pleased to support Suriname’s members, and implemented various social and environmental projects. 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 Since beginning operations offshore to support local communities and local companies in Suriname can on the topics of health and safety in Suriname by engaging with BLOCK 45 Suriname in 2012, Kosmos has capacity building even before we participate or build capacity in for employees and contractors, international stakeholders. Kosmos conducted three seismic surveys. have drilled any wells. order to participate in current and the ESIA review process, oil spill The processing and interpretation sponsored and participated in In preparation for drilling, we moved future oil and gas activities. modeling and response, potential of this data has confirmed that Chatham House’s annual “New into a larger office in Paramaribo for noise, chronology of drilling Producers Discussion Group” BLOCK 42 the exploration potential offshore Throughout the study, the third- and added three local employees to wells, training for local stakeholders, Suriname represents a top-ranked party expert firm will work with held in Paramaribo and hosted our team. This expansion will better and emergency response opportunity in Kosmos’ exploration local companies and small and by Suriname’s Ministry of Natural position Kosmos to manage the procedures. Atlantic portfolio. medium sized-enterprises (SMEs) to Resources and Staatsolie. During increased activity associated with Ocean assess their readiness to participate the event, Kosmos was part of a In addition to this technical work, our drilling operations. In May 2017, Suriname took an in the petroleum supply chain. panel discussion on responsible Kosmos has focused on conducting important step and formally The study will also estimate the stewardship of resources and above-ground activities, such MANAGING OUR FOOTPRINT submitted an application to range of local content expenditure become an Extractive Industries commercial due diligence. The as stakeholder engagement and During exploration drilling, Kosmos which would be contributed over Transparency Initiative (EITI) weeklong meeting brought together GUINEAexecution of social investment will manage operations from our local the life of an oil or gas project – candidate country. Kosmos representatives from various SURINAME projects. Kosmos aims to be a office in Paramaribo. We established through exploration, development, encouraged and assisted the Surinamese government agencies, welcome investor in Suriname and a local helicopter base for personnel production and decommissioning government in the process businesses, civil society leaders, use our expertise and knowledge transfer to and from the offshore – 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 49

The mangrove restoration project Safety and Health, or NEBOSH, is team now has over a year of an accredited program that teaches KOSMOS HAS SHOWN SINCE THE START OF data from which to evaluate the practical skills in risk identification ITS OPERATIONS IN SURINAME TO BE VERY effectiveness of the STUs. Since and risk reduction. In 2017, we COMMITTED TO HIGH INTERNATIONAL the first phase of the project was offered the NEBOSH course for successful in increasing sediment teachers at the three technical STANDARDS AND A VALUABLE PARTNER accretion rates and thus slowing schools on the NATIN campus. This IN CAPACITY BUILDING IN TECHNICAL AND erosion, the team has decided to intensive training helps teachers GEOLOGICAL EDUCATION IN SURINAME. expand the project by upgrading identify and control potential PERSONALLY, HAVING WORKED IN THE the existing STUs and engaging hazards on campus to reduce EDUCATION SECTOR FOR OVER 20 YEARS, local community members to plant accidents and injuries. As Suriname’s mangrove juveniles along the coast of extractive industries continue to I WAS PARTICULARLY PLEASED WITH KOSMOS’ SAFETY Weg naar Zee. grow, it is our goal that safety be CULTURE AWARENESS CAMPAIGN. THIS PROGRAM BENEFITED fully integrated into the country’s In addition to partnering with AROUND 2300 STUDENTS AND 300 TEACHERS AT NATIN, vocational technical education, the University on mangrove WHERE I WAS MANAGING DIRECTOR UNTIL NOVEMBER 2010. which will help build the safety conservation and research, Kosmos culture of the Suriname workforce ALSO – AS THE MINISTRY OF NATURAL RESOURCES IS is also supporting STEM education for years to come. UPDATING THE GEOLOGICAL MAP OF SURINAME – WE WERE by working closely with the local university’s Geology Department The Academic Hospital Paramaribo HAPPY TO SEE KOSMOS HELP REVITALIZE THE GEOLOGY to evaluate their needs in terms of Engineering students at NATIN were among those who participated in the Kosmos-sponsored is the largest hospital in Suriname safety training in Paramaribo. DEPARTMENT OF THE UNIVERSITY OF SURINAME THROUGH hands-on laboratory and field work. In and serves as a major medical NEW LABORATORY EQUIPMENT AND TRAINING. THE 2017, we provided specialized geology research hub for the country. IMPROVED TECHNICAL EDUCATION IS MOTIVATING STUDENTS lab equipment to the university, Promoting Safety in Technical School 2 (STS2) and Avond The government of Suriname has Education Middelbare Technish Opleiding TO STUDY GEOLOGY AND NATURAL RESOURCE DEVELOPMENT. our second academic collaboration prioritized developing the hospital. In (AMTO). with the geology department since Kosmos’ top priority is ensuring support of the national development Dave Abeleven, Msc. entering Suriname in 2012. Students the safety of our workers and the SafeStart is a global “train the agenda, Kosmos has committed Permanent Secretary of the will now be able to conduct more integrity of our operations, and this trainer” program that teaches multi-year support to the academic Suriname Ministry of Natural Resources advanced laboratory experiments and commitment to safety often extends behavioral based safety techniques. hospital and the training of its staff. research during their undergraduate into our capacity building and social Participants learn to recognize the Kosmos began by working with and graduate studies on campus. investment programs. state-to-error patterns that cause hospital personnel in 2016 to Our hope is that the new field work most injuries in the classroom, In 2016, Kosmos launched a multi- identify needs and create a plan and lab equipment will lead students workplace, on the road, and at home. year safety culture program at for how Kosmos and other oil to be more interested in, and better The SafeStart program included and gas operators in Suriname Colombia, Ghana, Guyana, Liberia, of Paramaribo, has in recent years the Natuurtechnisch Instituut prepared for, future careers in the instruction to certify teachers at the (NATIN) campus with the goal of can work together to build the and Trinidad and Tobago. experienced frequent flooding and extractive sectors in Suriname. NATIN campus to become SafeStart hospital’s research and patient care erosion due to the loss of mangrove establishing a safe learning and In 2018, Kosmos plans to organize With rain forest covering trainers. The teachers administered capabilities. Since the beginning of forests. The flooding and rising sea working environment for all technical a series of media workshops in approximately 94% of the national the second half of the SafeStart the hospital partnership, Kosmos levels have affected nearly 3,000 students and staff members. The Suriname to deepen the knowledge territory and a rich terrestrial program in 2017, thus ensuring has donated surgical tools, machines local community members, including program was developed through of journalists regarding petroleum biodiversity, Suriname is known as ongoing reinforcement of safety for monitoring patient vital metrics, artisanal fishermen, local farmers, and consultation with the staff at operations. We have held similar one of the greenest countries in the concepts. defibrillators (AEDs), and intensive bee keepers. In addition, erosion has NATIN, the Ministry of Education, workshops in other countries and world. The Green Heritage Fund is care unit beds. threatened to destroy two important Staatsolie, and teachers from two The Health and Safety Foundations have found that this approach can a local NGO in Suriname dedicated cultural and religious sites. other technical schools on the NATIN at Work course from the National help manage expectations around to protecting biodiversity and campus, Surinaamse Technische Examination Board in Occupational 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 EMBRACING INNOVATION IN other areas to motivate young people to solve coastal erosion at Weg naar Zee by provides shelter, care, rehabilitation SURINAME real world problems. Due to the success of POSITIVE IMPACTS building Sediment Trapping Units and release of sloths into the forests this event, we also sponsored a multi-month (STUs). These structures promote Our multi-year support of technical education hackomation program through IT Core focused Although our drilling operations of Suriname. Kosmos is supporting sediment deposition and create and STEM disciplines naturally encourages on fostering renewable energy and sustainability take place far offshore, Kosmos is the construction of an education and conditions for halting and reversing innovation in Suriname. In 2017, we partnered solutions in Suriname. committed to preserving the coastal research center for the Xenarthra erosion. Mangrove juveniles will be with existing programs to help them expand their environment and supporting coastal Program, where Green Heritage Fund As we look to 2018, we plan to develop more long- able to grow in the newly formed offerings in the intersection between technology communities in Suriname. Mangroves staff will protect and rehabilitate term partnerships in Suriname that will help equip mud banks, both naturally and when and social entrepreneurship. We worked with a grow abundantly along Suriname’s sloths while simultaneously using the young people to pursue their innovative ideas for planted by local researchers. local organization, IT Core, as a sponsor of their coastline and prevent coastal erosion. space to educate and raise awareness addressing local economic and social issues. of the need for conservation of the hackathon which applies elements of gaming to The area of Weg naar Zee, north species and others in Suriname. 50 51 PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 PHASE 6

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 four-night, traditional music, poetry Sahara for more than two years innovative techniques for teaching and games festival that Kosmos has with our placement of an American English to teachers working in sponsored for three consecutive expatriate Community Relations Dakhla and nearby cities. The years. As in previous years, Coordinator in Dakhla. The conference was well-attended thousands of people attended and Community Relations Coordinator by motivated teachers who then enjoyed hearing traditional songs – a former Peace Corps volunteer – implemented some of these new and exposing their children to a speaks Hassaniya, the language of techniques in the classroom. culture that is being diluted 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 many open forums during that Saharawis are proud of their distinct a cultural educational event. time. We listened to opinions WESTERN SAHARA culture. Kosmos has promoted During 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 Following a review of our global operations, Kosmos made the difficult decision cultural festivals. traditional games, rode camels, stakeholders – from elected officials and heard a lecture on traditional to withdraw from Western Sahara after more than a decade of investment in the to unemployed youth, in both public In 2017, Kosmos sponsored two literature and culture. and private settings. cultural events during the month region. The decision to withdraw from the Boujdour Maritime block was made as of Ramadan. The main event was POSITIVE IMPACTS part of an industry-standard portfolio review, and is based on a combination of Throughout our time in Western exploration results and our capital allocation strategy. Sahara, we invested in bringing benefits to local communities primarily through educational Kosmos has held rights to explore an data. For a period of time, including programs. In 2017, Kosmos Atlantic area offshore Western Sahara since after its withdrawal, Kosmos is partnered with AMIDEAST to Ocean 2006. Kosmos completed its first providing ONYHM with oversight teach English to 80 young people BOUJDOUR exploration well offshore Western and quality assurance services to in Dakhla. A previous partnership MARITIME Sahara in early 2015. The well ensure this work is completed. BLOCK had provided English lessons to a encountered hydrocarbons, but not different group of 80 young people in commercial quantities. MANAGING OUR FOOTPRINT as part of a broader skills initiative. WESTERN SAHARA With our withdrawal effective While deciding to leave was a difficult Feedback from the initial course 31 December 2017, Kosmos has decision given our decade-long showed that students were most transitioned its exploration work presence in Western Sahara, we are interested in English courses, and on the Boujdour Maritime Block doing everything we can to make that the people who could most to ONHYM. Kosmos has assigned the process of leaving as smooth as benefit from English language the relevant service contracts to possible for everyone involved. training were those working in ONHYM so ONHYM can complete the tourism, fishermen, traditional acquisition of additional 3D seismic 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 53

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 54 55

IPIECA/API/IOGP CONTENT INDEX

Kosmos Energy’s corporate responsibility reporting is informed by the IPIECA/API/IOGP Oil & Gas Industry Indicator Global Compact Page Number in Indicator Where Reported Guidance on Voluntary Sustainability Reporting. The guidance provides direction on the content of a typical Number Principle 2017 CR Report 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 SOCIAL AND ECONOMIC INDICATORS for the Ten Principles of the United Nations Global Compact are also shown in the index, both in this report COMMUNITY AND SOCIETY and in other sources, such as our publicly available policies and on our website, www.kosmosenergy.com. CR Report: Business Principles 6, 7, 14 CR Report: Operations Spotlights 23, 25, 26, 33, 37, 39, 43, 44, Indicator Global Compact Page Number in Local community 47, 51, 52 Indicator Where Reported SE1 Number Principle 2017 CR Report impacts and engagement www.kosmosenergy.com: Society and Communities Kosmos Energy Stakeholder Engagement and Community Development Policy* ENVIRONMENTAL INDICATORS Kosmos Energy Stakeholder Engagement SE2 Indigenous peoples CLIMATE CHANGE AND ENERGY and Community Development Policy* CR Report: Business Principles 13 E1 Greenhouse gas emissions 7, 8 SE3 Involuntary resettlement Not applicable CR Report: Performance Data 58 CR Report: Business Principles 7, 14, 15 E2 Energy use Not reported CR Report: Operations Spotlights 23, 25, 27, 28, 34, 35, 37, 40, 44, 45, 48, 49, 51 E3 Alternative energy sources Not reported CR Report: Case Study 29-31 SE4 Social investment CR Report: Performance Data 60 E4 Flared gas Not reported Kosmos Energy Stakeholder Engagement ECOSYSTEM SERVICES and Community Development Policy* www.kosmosenergy.com: Society and Communities CR Report: Business Principles 12 Biodiversity and E5 7, 8, 9 CR Report: Operations Spotlights 34, 40, 48 LOCAL CONTENT ecosystem services CR Report: 41 Case Study CR Report: Business Principles 11, 15 CR Report: Operations Spotlights 24, 30, 38 E6 Fresh water CR Report: 58 Performance Data SE5 Local content practices 6 Kosmos Energy Stakeholder Engagement LOCAL ENVIRONMENTAL IMPACT and Community Development Policy* www.kosmosenergy.com: Our People E7 Other air emissions 7, 8 CR Report: Performance Data 58 CR Report: Business Principles 17 CR Report: Business Principles 13 CR Report: Operations Spotlights 45, 47 E8 Spills to the environment 8 CR Report: Operations Spotlights 47 CR Report: Performance Data 57 SE6 Local hiring practices 6 CR Report: Performance Data 58 Kosmos Energy Stakeholder Engagement and Community Development Policy* CR Report: Performance Data 58 www.kosmosenergy.com: Our People Kosmos did not have any hydrocarbon discharges to E9 Discharges to water 8 water in 2017. Indicators E8 and E9 are combined in CR Report: Business Principles 6, 16, 17 our Performance Data as “Hydrocarbon or Local procurement and CR Report: Operations Spotlights 27, 33 Non-Aqueous Drilling Fluid Spills.” SE7 supplier development Kosmos Energy Stakeholder Engagement CR Report: Performance Data 58 and Community Development Policy* E10 Waste 8, 9 THE STANDARD*

E11 Decommissioning Not reported CONTINUED ON NEXT PAGE

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/ *PDFs are available at www.KosmosEnergy.com/responsibility/ 56 57

IPIECA/API/IOGP CONTENT INDEX (CONTINUED) 2017 PERFORMANCE DATA

HUMAN RESOURCES Indicator Global Compact Page Number in Indicator Where Reported Number Principle 2017 CR Report 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 SOCIAL AND ECONOMIC INDICATORS (CONTINUED) 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. HUMAN RIGHTS 2015 2016 2017 CR Report: Business Principles 6, 14, 17 Human rights due CR Report: Operations Spotlights 23, 31, 33 SE8 1, 2, 4, 5 EMPLOYEES AND HIRING diligence www.kosmosenergy.com: Human Rights Total Employees 256 267 282 Kosmos Energy Human Rights Policy* New Hires 54 27 33 CR Report: Business Principles 7, 10, 14 Turnover 7% 6% 7% CR Report: Operations Spotlights 26 SE9 Human rights and suppliers 1, 2 Kosmos Energy Human Rights Policy* TOTAL EMPLOYEES BY COUNTRY UK Modern Slavery Act Statement* United States 187 192 199 CR Report: Business Principles 14 Ghana 43 45 43 CR Report: Operations Spotlights 26 SE10 Security and human rights 1, 2 Mauritania 5 10 16 www.kosmosenergy.com: Security Kosmos Energy Human Rights Policy* Morocco 16 5 5 São Tomé and Príncipe 0 1 8 BUSINESS ETHICS AND TRANSPARENCY Senegal 1 10 8 CR Report: Business Principles 8, 9 Suriname 4 4 3 CR Report: Operations Spotlights 26, 44 SE11 Preventing corruption 10 www.kosmosenergy.com: Business Ethics Contractors Kosmos Energy Anti-Corruption Compliance Policy* United States 28 14 33 Ghana 0 0 0 CR Report: Business Principles 8, 16 Mauritania 16 11 15 CR Report: Operations Spotlights 23 Preventing corruption SE12 10 www.kosmosenergy.com: Business Ethics Morocco 3 1 0 involving business partners Kosmos Energy Anti-Corruption São Tomé and Príncipe 0 1 0 Compliance Policy* Senegal 6 3 16 Suriname 0 0 0 CR Report: Business Principles 9 CR Report: Performance Data 59 Transparency of payments SE13 10 Kosmos Energy Stakeholder Engagement LOCAL EMPLOYMENT (%) to host governments and Community Development Policy* Local 94% 92% 94% www.kosmosenergy.com: Transparency Expatriate 6% 8% 6% Public advocacy and CR Report: Business Principles 9 SE14 10 lobbying WORKFORCE GENDER DISTRIBUTION (%) Female Male Female Male Female Male LABOR PROTECTION United States 32% 68% 33% 67% 34% 66% CR Report: Business Principles 10 Ghana 28% 72% 27% 73% 26% 74% Workforce diversity and CR Report: Performance Data 60 SE15 1, 6 Mauritania 60% 40% 30% 70% 25% 75% inclusion www.kosmosenergy.com: Our People www.kosmosenergy.com: Careers Morocco 50% 50% 40% 60% 80% 20% São Tomé and Príncipe 0% 0% 0% 100% 25% 75% CR Report: Business Principles 10 SE16 Workforce engagement Senegal 0% 0% 50% 50% 25% 75% www.kosmosenergy.com: Careers Suriname 25% 75% 25% 75% 25% 75% CR Report: Business Principles 10, 11, 12 Workforce training and SE17 CR Report: Operations Spotlights 25, 27, 33, 43 EQUATORIAL GUINEA (KTEGI) development www.kosmosenergy.com: Our People Employees N/A N/A 62 Contractors N/A N/A 43 CR Report: Business Principles 14 Gender Distribution N/A N/A Female: 21% Male: 79% CR Report: Operations Spotlights 23, 25, 39, 43, 47 Non-retaliation and CR Report: Performance Data 60 SE18 1, 2, 3, 6 Local Employment N/A N/A 74% grievance systems www.kosmosenergy.com: Business Ethics Kosmos Energy Stakeholder Engagement and Community Development Policy*

*PDFs are available at www.KosmosEnergy.com/responsibility/ 58 59

2017 PERFORMANCE DATA (CONTINUED)

ENVIRONMENT PAYMENTS TO GOVERNMENTS (USD)1

The Environment data presented in this report is for Kosmos operated assets only. Waste and air emissions are measured in tons, The Payments to Government data are reflective of direct payments made to government entities by Kosmos Energy on operated

with greenhouse gas emissions measured in metric tons of CO2 equivalent. The data represents drilling rigs as well as seismic and projects, with the exception of payments reported for KBSL and KTEGI as explained in the separate joint venture table below, and support vessels. 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. 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. Ghana Mauritania Morocco São Tomé & Príncipe Senegal Suriname Surface Rentals 18,000 69,000 — — — — 2017 Training2 175,000 1,200,000 56,000 66,000 — — Mauritania Senegal Suriname Moroccoo Western Sahara São Tomé & Príncipe Environmental & Capacity WASTE (TONS) — 900,000 — — — — Building Obligation2 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 Permitting Fees 74,000 — — 11,000 — — 3 TOTAL 1,242.90 455.02 8.93 N/A N/A 1,006.44 Taxes 1,951,000 891,000 89,000 — 53,000 358,000 Income Taxes4 36,958,000 — 192,000 — — — Recycled/Reused/Treated 45% 62% 85% N/A N/A N/A Other5 45,000 — 10,000 — — — AIR EMISSIONS (TONS) TOTAL 39,221,000 3,060,000 347,000 77,000 53,000 358,000

Carbon Dioxide (CO2) 118,930.15 54,458.17 8,113.02 20,881.64 15,498.28 111,361.28 Royalties/Production Mono-Nitrogen Oxides (NOx) 2,207.86 1,010.78 150.60 387.62 287.68 2,067.15 613,295 bbl — — — — — Entitlements (in barrels of oil)6 Sulfur Dioxide (SOx) 148.67 68.11 10.15 26.10 19.38 139.20 Royalties/Production Methane (CH4) 6.63 2.99 0.46 1.18 0.87 6.27 33,200,000 — — — — — Entitlements (estimated value)6 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 PAYMENTS TO GOVERNMENTS KTEGI (USD)1

OTHER 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. Fines and Penalties 0 0 0 0 0 0 In late 2017, through a joint venture with an affiliate of Trident Energy, Kosmos Energy acquired all of the equity interest of an entity Freshwater Use (m3) 26,799.25 6,159.20 N/A N/A N/A 7,012.00 subsequently renamed Kosmos-Trident Equatorial Guinea, Inc. (KTEGI), which holds an 85% paying interest in the Ceiba Field and Hydrocarbon or Non-Aqueous Okume Complex assets in Equatorial Guinea (Block G). Figures in the table represent Kosmos Energy’s indirect 50% participating 0 0 0 0 0 0 interest in KTEGI’s payments to the government during December 2017. Drilling Fluid Spills

S Senegal (KBSL) Equatorial Guinea (KTEGI) Surface Rentals 49,000 25,000 2015 2016 2 Mauritania Morocco Senegal Mauritania Senegal Suriname Training 300,000 —

3 WASTE (TONS) Taxes 208,000 139,000 Hazardous 184.00 92.00 10.00 298.67 112.44 10.54 TOTAL 557,000 164,000

Non-Hazardous 115.00 542.00 14.16 296.80 114.11 82.90 Royalties/Production Entitlements 66,259 bbl TOTAL 299.00 634.00 24.16 595.47 226.55 93.44 (in barrels of oil)7

Recycled/Reused/Treated 27% 56% 34% 54% 43% 10% Royalties/Production Entitlements $3,590,000 (estimated value)7

AIR EMISSIONS (TONS) 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 2 35,225.94 12,591.45 17,914.02 51,893.95 20,815.17 20,530.75 Carbon Dioxide (CO ) (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 Mono-Nitrogen Oxides (NOx) 654.20 233.28 332.52 964.32 387.47 381.10 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 Sulfur Dioxide (SOx) 44.18 15.39 13.97 64.80 25.96 25.66 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 Methane (CH4) 2.22 1.05 1.01 2.88 1.13 11.55 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 Volatile Organic Compounds (VOCS) 12.54 8.10 11.19 32.50 13.00 12.83 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. Greenhouse Gases (GHGS) 35,272.56 12,613.50 17,935.23 51,954.43 20,838.84 20,773.30  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 OTHER average of daily Brent prices in 2017 of $54.19 per bbl, this is worth approximately $3.59 million. 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 60 61

2017 PERFORMANCE DATA (CONTINUED)

SOCIAL SAFETY

We define Social Investment Spending as payments that will directly impact the constituents of social investment projects. Not reflected Kosmos reports safety data for our global operations, including both employees and contractors. The definitions of the safety data in the numbers below are indirect costs related to social investment, such as needs assessments and reimbursable expenses incurred reported are consistent with those used by the International Association of Oil and Gas Producers (IOGP). by our in-country social investment personnel. All of the Social Investment Spend is for Kosmos-initiated projects, with the exception of Lost Time Injury Frequency represents the number of lost time injuries (fatalities and lost work day cases) per million work hours. Total the Jubilee Unit and TEN Development Project in Ghana and our non-operated share of the contractually obligated social investment for Recordable Injury Rate refers to recordable injuries (fatalities, lost work day cases, restricted work day cases, and medical treatment cases) Block 6 in São Tomé and Príncipe. Those values represent our participating interest in the social projects of our non-operated assets. 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

SOCIAL INVESTMENT SPENDING (USD) 2015 2016 2017 Ghana $ 461,000 $ 833,000 $ 1,339,000 Total Man Hours 2,103,056 2,314,907 3,110,164 Fatalities 0 0 0 Jubilee Unit and TEN development project1 1,040,000 185,000 188,000 Lost Time Injury Frequency 0 0 0 Mauritania2 396,000 305,000 55,000 Total Recordable Injury Rate .95 1.3 .64 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 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. Suriname 0/0 0/0 0/0 Western Sahara 0/0 0/0 0/0 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].