2018 CORPORATE RESPONSIBILITY REPORT 2 A Conversation with Andy Inglis About FROM TO THE AMERICAS, Kosmos OPERATES IN MANY NATIONS. WHEREVER WE ARE, 6 Company Overview/Financial Highlights KOSMOS IS COMMITTED TO DEVELOPING PEOPLE, Energy INCREASING ECONOMIC OPPORTUNITIES AND 7 Kosmos Energy Business Principles IMPROVING LIVES. WE WORK WITH GOVERNMENTS, Kosmos is a full-cycle deepwater independent oil and gas exploration CIVIL SOCIETY ORGANIZATIONS AND OTHER 20 Full-Cycle Operations and production company focused GROUPS TO HELP BUILD A BETTER FUTURE FOR ALL. along the Atlantic Margins. Our key assets include production offshore , Equatorial and U.S. 22 Gulf of , as well as a - class gas development offshore and . We also 26 U.S. maintain a sustainable exploration program balanced between proven basin infrastructure-led exploration (Equatorial Guinea and U.S. Gulf Ghana 30 of Mexico), emerging basins (Mauritania, Senegal and ) and frontier basins (Côte d’Ivoire, 36 Kosmos Innovation Center and São Tomé and Príncipe). As an ethical and transparent company, Kosmos is committed 42 Mauritania to doing things the right way. Our Business Principles articulate the company’s commitment to transparency, ethics, human rights, Senegal 46 safety, and the environment. Kosmos Energy is listed on the and 50 Côte d’Ivoire , traded under the ticker symbol KOS. For additional information, visit our website www.kosmosenergy.com. 52 São Tomé and Príncipe

56 Suriname

60 IPIECA/API/IOGP Content Index

63 2018 Performance Data

1 Our difference lies in the Senegalese realized we were employees and contractors. A Conversation strength of the relationships listening to their concerns, In 2018, we saw several we forge at all levels and our acting on their suggestions, incidents occur on third- with Andy Inglis, willingness to look beyond putting the countries’ interests party marine vessels that the oil and gas industry to the at the heart of our approach support our seismic and KOSMOS ENERGY’S CHAIRMAN direct and indirect benefits for the good of the project. drilling activities. In response, AND CHIEF EXECUTIVE OFFICER it can bring. Our work with In addition, I dedicated a we are actively working Mauritania and Senegal to significant amount of my own with our contractors on get to a final investment time to cementing relationships a “One Team, One Goal” decision on the Greater Tortue with both Presidents to campaign to communicate Ahmeyim liquefied natural ensure the benefits created our expectations and improve gas (LNG) project is a good by our industry accrue to the their safety performance. example. With the support countries. This needs to be a relentless of both President Abdel Aziz campaign with no room for and President Sall, we formed complacency. Our objective After several years a Working Group comprised at all times is to be incident- of excellent and of representatives from the Q and injury-free, which requires improving safety national oil companies, the employees and contractors performance, Kosmos ministries of energy, and to maintain a “safety first” finished 2018 with a Total Kosmos; a novel approach mindset. Recordable Incident Rate of Chairman and Chief Executive Officer Andy Inglis talks about Kosmos for our industry. Its purpose 1.99 and a Lost Time Incident was to drive transparency Energy’s commitment to corporate responsibility and how the company Rate (LTIR) of 0.5, against Many in oil and gas and create a forum to discuss global targets of less than Q deny that climate and solve problems together, pursues continuous improvement. 1.1 and 0.5, respectively. change is a threat rather than the foreign oil While these figures still to the planet and to the company dictating how the compare well against industry. What is Kosmos’ project should proceed, simply industry benchmarks, what position? Kosmos Energy’s of world-scale development ensure we make mutually adhering to the requirements are you doing to improve We recognize that the Q business and projects, and a diversified and beneficial decisions that of our license agreements. footprint have growing production base. strengthen the trust we create performance? A world faces a serious For about three years, the evolved significantly over by operating in the right way. Nothing is more challenge from Our commitment to corporate group met monthly, rotating the last several years. Has important than climate change influenced by responsibility is stronger between , , A your approach to corporate How does Kosmos the safety of our human activity, and believe than ever. Rapid growth and and Paris. In the beginning, responsibility changed with it? opportunity only reinforce my Q build the trust you mention? Is Kosmos the meetings were friendly, The pace of change ambition for Kosmos to stay but very formal. The has been significant. on the front edge of corporate actually different from other A companies? Mauritanians and Senegalese We recently completed responsibility. We cannot didn’t know if they could two major acquisitions in achieve our goal of being the We work very hard trust us. We responded with Equatorial Guinea and the U.S. leading deepwater company A to align our business complete transparency, Gulf of Mexico that included in the Atlantic Margin unless with a country’s telling them up front what our exploration opportunities we deliver on this objective. development and socio- economic returns needed to and production assets, When we enter a country, we economic priorities. It’s about be for an investment of this creating powerful new expect to operate there for creating a shared agenda by size and we actually gave pathways for growth. Today’s many years. We aim to be forging authentic relationships them our economic model. Kosmos creates value for a long-term partner, deeply which then leads to mutually We also showed them exactly shareholders and stakeholders committed to helping our host beneficial results for both what we were deliberating on through a portfolio filled nations create a brighter future country and company. It from a perspective with infrastructure-led and because we know our future requires transparency, respect, and asked them to weigh basin-opening exploration success is fully connected to delivering on commitments, in. Soon, a bond began to opportunities along the theirs. “Country and company” and being honest about what form as the Mauritanians and Atlantic Margin, a pipeline remains our touchstone to you can’t deliver. Kosmos Chairman and CEO Andy Inglis with Mauritania’s Minister of Energy Mohamed Abdel Vetah following a meeting to discuss progress on the Greater Tortue Ahmeyim LNG project.

2 3 the Paris Agreement reached What are those by 2040 in its New Policies host governments. When we within the Q steps? How does Scenario and positions it as operate in countries that are Framework Convention on Kosmos plan to the largest fuel in the global not yet members of the EITI, we Climate Change in 2015 is a reduce its carbon footprint energy mix by that year under actively promote the EITI and crucial step in global efforts as a business? Does Kosmos its Sustainable Development the transparent management to address climate change. have a role to play in the Scenario. of any revenues from natural We understand that achieving energy transition? We are now working with resources. the internationally accepted At this time, our our partner BP and the target of limiting mean global direct greenhouse Governments of Mauritania Your flagship social temperature rises to well A gas emissions arise and Senegal to develop Q investment program, below 2°C requires significant primarily from exploration the resources we have Kosmos Innovation and sustained reductions in activities such as use of discovered at the Greater Center, has received . drillships, seismic vessels and Tortue Ahmeyim field into an accolades and expanded In addition, around 1 billion into new countries. What support vessels, and our offices efficient, competitive natural Kosmos Chairman and CEO Andy Inglis reinforces the company’s commitment to safety during a visit people (roughly 13% of the and logistics bases. We don’t gas project – both for export to a drillship. differentiates it from other world’s population) still lack operate production platforms in the form of liquefied natural entrepreneurship programs? access to electricity, and or floating production and gas (LNG) and to provide a In São Tomé and Príncipe, gas company to disclose By nurturing the global energy needs are storage vessels. less carbon intensive source of we have also built productive project-level payments to A next generation of expected to increase by 25% working relationships with governments despite not We publish our emissions energy for the economies of entrepreneurs and by 20401 local and international being legally obligated to . The International and other environment data Mauritania and Senegal. facilitating innovation in stakeholders who have do so at the time. Although Energy Agency (IEA) annually in our corporate sectors beyond oil and gas, helped us understand the these practices separate us estimates that demand responsibility report. In What is Kosmos the Kosmos Innovation Center islands’ unique environmental from many companies, we growth will require more than response to investors, and to doing to safeguard (KIC) contributes to the Q sensitivities. This has helped us continue to see demand from $2 trillion of investment in continue our transparency some of the more creation of healthier and more refine our seismic acquisition stakeholders who want to new energy supply per year. in all areas, we aim to report environmentally sensitive diverse economies in our programs and informed our better understand how the oil This will be particularly driven for the first time to the areas where it works – places host nations. The KIC is now environmental and social and gas industry works. by emerging economies CDP (formerly the Carbon like São Tomé and Príncipe, active in Ghana, Mauritania, impact assessments ahead of such as those in which Disclosure Project) in 2019. which is known for its The transparency challenge Senegal, and Côte d’Ivoire. In Kosmos focuses much of its biodiversity? drilling activities. As a result, includes not just providing each country, we empower investment. Regarding the energy transition, we have implemented special access to data, but also young entrepreneurs to turn we believe natural gas has an When it comes measures and established Tackling this challenge – to protecting the improving understanding of their ideas into viable, self- important role to play as a A programs to protect whales it and ensuring stakeholders sustaining businesses and we reducing greenhouse gas bridge to renewables. In 2015 environment, we work and turtles around and on the emissions while enabling to the same high standards have the knowledge needed to work with promising small and 2016, Kosmos discovered islands. hold governments and industry businesses to help them scale social progress through significant natural gas reserves no matter where we operate. satisfying growing energy to account. In response, we and reach their full potential. offshore Mauritania and It’s about having experienced, With stakeholders demand – requires action have stepped up our efforts KIC programs are different Senegal, opening a major well-trained people doing calling for more from all parts of society: Q to engage civil society and from others because we new natural gas province in the work. It’s about having transparency in the governments, civil society the media, hosting workshops don’t just run competitions which we are now partnered the right processes in place oil and gas business, how and the private sector, and across our portfolio of countries or provide seed funding. with BP. Expanding use of to prevent incidents from does Kosmos plan to stay a companies like Kosmos must happening, and also having – in Ghana, Mauritania, Senegal, Local Kosmos staff and natural gas globally is widely world leader in this ? and Suriname. This has grab hold of the opportunities regarded as critical to reducing the right procedures to private sector experts work Kosmos has set proved effective in promoting and challenges that the global CO emissions, given that it respond in the unlikely event alongside the businesses so 2 a standard for transparency, building energy transition presents to produces about half as much of an incident. And finally, it’s A that the young people we transparent behavior. relationships, and deepening our business. We intend to CO as coal when burned for about engaging international engage develop a full range 2 We believe Kosmos is the trust. set out a full climate change power, and therefore offers a experts and non-governmental of commercial and leadership only oil and gas company strategy next year to ensure cleaner alternative to coal for organizations (NGOs) in We also strongly support skills they can use later in life in the world to publish that Kosmos is taking the power generation. environmental protection to the work of the Extractive – regardless of whether their right steps. ensure that we’re deploying all of its contracts with Industries Transparency start-ups ultimately succeed The IEA expects demand for best practices everywhere. host governments and we Initiative (EITI), advocating for or fail. natural gas to increase by 45% are the first U.S. oil and the adoption of EITI by our

1. International Energy Agency, World Energy Outlook, 2018 4 5 Company Overview

RESPONSIBILITIES FINANCIAL HIGHLIGHTS TO STAKEHOLDERS

Year Ended (in thousands, except volume data) 2018 2017 2016 1 Revenues and other income $ 902,369 $ 636,836 $ 385,355 Kosmos Net income (loss) (93,991) (222,792) (283,780)

Net cash provided by operating activities 260,491 236,617 52,077 EBITDAX 752,039 540,117 405,300 Energy Capital expenditures 385,434 57,432 644,510 ETHICAL CONDUCT Total Assets 4,088,189 3,192,603 3,341,465 Total long-term debt 2,120,547 1,282,797 1,321,874 Business 2 Total shareholders’ equity 941,478 897,112 1,081,199

Sales volumes (million barrels of oil equivalent)1 18.5 11.2 6.8

Total proved reserves (million barrels of oil equivalent)2 167 110 77 Principles

Crude oil (million barrels)2 151 100 74 OUR WORKPLACES Natural gas (billion cubic feet)2 99 61 15

1. Includes our share of sales volumes from our Equatorial Guinea equity method investment. 2. Includes our share of reserves from our Equatorial Guinea equity method investment. 3 Kosmos Energy was founded with the goal of creating value for all of our stakeholders: investors, employees, and the governments and citizens of our host countries. We recognize that creating steady, long-term returns can only be achieved by advancing the societies in which we work. TOTAL EMPLOYEES 2018 EMPLOYEE DISTRIBUTION KOSMOS AND THE ENVIRONMENT In 2013, we adopted the Kosmos Energy Business Principles to formalize this commitment by articulating the values that have 330 always guided our actions. The Business Principles are also 4 informed by what our stakeholders have told us about their 2018 260 expectations of a responsible company.

We define how we conduct our business and the standards 282 to which we hold ourselves accountable through the Business KOSMOS Principles. The Business Principles are supported by more 2017 199 IN SOCIETY detailed policies, procedures, and management systems which are referenced in this report and on our website. 5 Total Employees United States: 78.75% The Business Principles reflect our values across six areas: U.S. Employees Ghana: 13.00% Responsibilities to Stakeholders, Ethical Conduct, Our São Tomé and Príncipe: 2.50% Workplaces, the Environment, Society, and Commercial Mauritania: 1.75% Relationships. Although the Business Principles are our Senegal: 1.50% standard, the actions we take to adhere to them change COMMERCIAL : 1.50% as we evolve as a company. RESPONSIBILITIES Suriname: 1.00% 6

6 7 trust and accountability. We CIVIL SOCIETY countries and communities where believe Kosmos is the only oil we work create mutual value and We will engage with and listen and gas company in the world to are central to our success. WE AIM TO PROVIDE to civil society, recognizing the publish all of its contracts with BUSINESS role civil society plays in holding Kosmos also engages in public A STIMULATING AND host governments and we are the PRINCIPLE governments and companies policy discussions occurring REWARDING WORK first U.S. oil and gas company to accountable. We are always open globally on energy and corporate disclose project-level payments to ENVIRONMENT THROUGH A to having meaningful dialogue with responsibility. Kosmos has been 1 governments. The “Performance CULTURE THAT PROMOTES civil society about the challenges a formal supporter of the United Data” on page 65 of this report inherent in exploring for oil and gas. Nations Global Compact since ENTREPRENEURIAL THINKING, lists the payments we made to Sometimes we will disagree, but we 2013. The UN Global Compact is a FACILITATES TEAMWORK, governments in 2018. believe listening and engaging in voluntary initiative for businesses AND EMBRACES ETHICAL debate deepens our understanding that are committed to aligning COMMUNITIES of the issues. We seek non- their operations and strategies with BEHAVIOR. We believe in engaging local governmental organizations universal principles in the areas of communities in a manner that (NGOs) as valued partners in our human rights, labor, environment, creates economic and social social investment programs. Our and anti-corruption, and take opportunity and respects human relationships with civil society in the actions that advance societal goals. rights. Investing in community relationships ahead of drilling operations, during development Responsibilities projects, and during production operations is a key part of our approach. Our Stakeholder Engagement and Community to Stakeholders Development Policy explains the standards to which we hold ourselves accountable when interacting with communities. We have published this policy trong and supportive EMPLOYEES on our website at: http://www. partnerships underpin our We aim to provide a stimulating kosmosenergy.com/society-and- business and create value. S and rewarding work environment communities/. Our stakeholders are interested through a culture that promotes or potentially affected parties, entrepreneurial thinking, facilitates BUSINESS PARTNERS including shareholders, employees, teamwork, and embraces ethical AND SUPPLIERS governments, citizens of our host behavior. Directors, officers, and countries, communities, business We allocate contracts through a employees are required to comply partners and suppliers, and civil fair and transparent process and with all aspects of the Business society. We believe we have a adhere to our Business Principles Principles and our Code of Conduct unique corporate responsibility with in our operations. We aim to in their work activities and in respect to each of these groups: work with suppliers, both local representing the company. and multi-national, who share SHAREHOLDERS our values and standards. We are HOST GOVERNMENTS committed to maintaining effective We aim to create attractive returns We seek to collaborate with host systems and procedures to prevent and manage our business risks. governments and contribute to inhumane treatment and forced Kosmos Energy’s board of directors national development. Our goal labor from taking place within our focuses on building a successful, with host governments is to operations or our supply chain. long-term future for the company develop a shared agenda based on Our employees and contractors and maintaining good corporate mutual trust and respect. We begin are prohibited from engaging in governance. At the end of 2018, engaging with host governments improper payments and misusing the board was comprised of 6 at the time of licensing to ensure confidential information to indulge members, including 4 independent alignment with national priorities in, or help others to participate directors. The board of directors and industry needs. Kosmos aims in, insider trading. We expect has 4 standing committees: to become a partner of choice. our employees and contractors audit; nominating and corporate We are open about our business to respect confidential and governance; compensation; and dealings with governments proprietary information and we health, safety and environment. because transparency builds similarly work to protect the intellectual property of others. We seek to maximize the amount of goods, services, and employment that we source locally. Our local content approach aims to enable people to access jobs, and to enable businesses to access supply chain opportunities through Kosmos.

8 9 at every level to ensure they have BUSINESS PRINCIPLE IN ACTION: the depth of knowledge needed to hold governments and industry TRANSPARENCY AND DISCLOSURES IN AN BUSINESS accountable for managing oil and PRINCIPLE gas revenues appropriately. EVOLVING REGULATORY ENVIRONMENT In 2014, we made a policy decision to disclose payments to governments 2 Kosmos aspires to be a leader in agencies, parliamentarians, civil We have been a Supporting at the project level, as laid out in the European Union Accounting transparency and anticorruption. society organizations, and media Company of the EITI since Directive, which is designed to We have set a high standard outlets working to promote good 2012. Kosmos has operations improve corporate accounting for transparent behavior by governance and transparency in in six countries that have practices and transparency. We disclosing the terms of our the oil and gas sector. implemented or are in the process agreements and of implementing the EITI: Côte believe this type of disclosure is We strongly support the work reporting payments made to our d’Ivoire, Ghana, Mauritania, São beneficial to investors, civil society, of the Extractive Industries host governments – including Tomé and Príncipe, Senegal, and and local communities, and reflects Transparency Initiative (EITI), specific entities – at the project Suriname. In these countries, we evolving international expectations. a leading global standard that level and in aggregate. We are engage with the EITI through Kosmos was the first U.S. oil and strengthens governance by open about our business dealings feedback and dialogue in the gas company to disclose project- promoting transparency and with host governments because multi-stakeholder groups. Kosmos level payments to governments accountability in the oil, gas, and transparency builds trust and is a member of the EITI steering despite not being legally obligated mining sectors. Ethical to do so at the time. Following our accountability. All of our petroleum committee in Ghana, Mauritania, secondary listing on the London agreements with host governments The EITI requires participating Suriname, and as of 2018, in São Stock Exchange in 2017, Kosmos is are available on our website at governments to establish a Tomé and Príncipe as well. www.kosmosenergy.com. The multi-stakeholder steering group now required to report under U.K. We play an active role in the EITI “Performance Data” on page 65 comprised of representatives of Conduct regulations. process in other countries. We of this report lists the payments governments, business, and civil advocate for the adoption of EITI we made to governments in 2018. society to oversee a process in by our host governments. When which companies declare material Kosmos has met with stakeholders we operate in countries that are payments to government, and KOSMOS WAS THE around the world who want to not yet members of the EITI, we the government declares all he Business Principles work on our behalf. We conduct FIRST U.S. OIL AND better understand how the oil and actively promote the EITI and the material receipts from extractive are supported by robust background due diligence when gas industry works. To that end, transparent management of any GAS COMPANY TO companies. These figures are Tcompliance policies and appropriate to make sure we have we have organized and facilitated revenues from natural resources. DISCLOSE PROJECT- reconciled, and any discrepancies methodology, including our Anti- obtained full disclosure. In addition workshops in nearly every country are identified and investigated by Corruption Compliance Policy and to providing third parties with LEVEL PAYMENTS TO where we operate to deepen the Procedures, which align with the copies of our Business Principles an independent expert. GOVERNMENTS DESPITE knowledge of various government U.S. Foreign Corrupt Practices Act and Anti-Corruption Compliance (FCPA) of 1977, the U.K. Bribery Act Policy, we routinely conduct in- NOT BEING LEGALLY of 2010, as well as best practices in country training for key contractors OBLIGATED TO DO SO. anti-corruption compliance. and suppliers on compliance and supplement in-person training with Kosmos regularly evaluates online training modules. its anti-corruption measures We believe our approach to and performance. All Kosmos Kosmos conducts an annual transparency helps us better employees and key contractors are internal audit of the company’s manage social and political issues, required to attend anti-corruption compliance with its business ethics establishing Kosmos as a partner training, and certify annually that policies and periodically conducts of choice and mitigating barriers they have read, understood, and audits on third parties. We maintain to growth. complied with our Anti-Corruption and respond to a Whistleblower Compliance Policy. To further Hotline as a vehicle for employees, ensure comprehension, employees third parties and others to report are given a test to verify their anonymously, without risk of understanding of the policy. retaliation, potential violations of any Kosmos policy. We exercise care in the selection of vendors, suppliers, and contractors, As part of its commitment to and we impose the same high transparency, Kosmos aspires standards of conduct that we to go beyond a box-checking observe in our own company. exercise by making information We use a risk-based process to publicly available and increasing evaluate third parties who will our engagement with stakeholders A Kosmos employee leads a capacity building workshop for Senegalese stakeholders on the oil and gas value chain in partnership with the Natural Resource Governance Institute (NRGI).

10 11 We are also committed to investing in the development of our employees. For example, BUSINESS employees hired in Ghana, Mauritania, São Tomé and PRINCIPLE Príncipe, Senegal, and Suriname have rotated through our 3 U.S. headquarters on special assignments or for training. These development opportunities have enabled them to assume greater responsibility and handle increasingly complex work. We augment our internal programs with external development opportunities through our Education Reimbursement Policy.

Our KOSMOS FOCUSES ON RECRUITING, RETAINING, AND DEVELOPING A Workplaces DIVERSE AND CAPABLE WORKFORCE THAT EMBRACES OUR BUSINESS PRINCIPLES

osmos aims to be a world- We seek to hire and develop local AND ENTREPRENEURIAL class company known for employees for our international CULTURE. Kdelivering excellent results operations. We are proud that in and being a workplace of choice Cote d’Ivoire, Ghana, Mauritania, for some of the best people in the and Senegal, 100 percent of our industry. We want our employees to employees are citizens of those We recognize fundamental labor have careers that are professionally countries. In São Tomé and rights and require contractors challenging, personally rewarding, Príncipe, and Suriname, more to adhere to international labor and focused on delivering value than 90 percent of our employees standards and local laws. We do to our stakeholders. Kosmos are nationals. This level of local not permit child, forced, or bonded ended 2018 with 380 employees employment is a long-term target labor at our operations or among worldwide. We incorporate for Kosmos in all the countries our suppliers. For more information, the ideas and experiences new where we have operations. please see Kosmos’ statement in employees bring while retaining our compliance with the UK Modern distinctive culture and upholding Slavery Act of 2015 located on the our Business Principles. homepage of our website. Kosmos focuses on recruiting, Kosmos is a relatively small retaining, and developing a diverse company with a fast-paced, and capable workforce that collaborative work environment embraces our Business Principles and a high level of employee and entrepreneurial culture. We engagement. We have instituted are an equal opportunity employer programs to ensure employees and do not tolerate discrimination, remain engaged as the company harassment, or intimidation of any evolves. These programs include kind. Employees are respected and town hall meetings, during which encouraged to contribute their senior management provides an ideas. We base all work-related operational update and holds an decisions, including recruitment open forum, as well as employee- and advancement, on qualifications, led committees on Wellness and merit and performance. Community Philanthropy.

12 13 • Generation of mitigation or adapted to reflect the evolving management measures and nature of our business activities. actions Our local leadership teams and HSE advisors are mentored through BUSINESS • Significance of impacts and these exercises to develop their PRINCIPLE evaluation of residual impacts ability to lead on the ground during • Documentation of the an incident. 4 assessment process In addition to training personnel, Kosmos’ ESIAs also include Kosmos carefully considers the records of public consultation technology and drilling equipment and supporting technical that it uses. Our Well Integrity documentation. Management System governs well Conducted offshore, our seismic design and how wells are drilled, acquisition activities also provide completed, and tested. We believe unique insight into the presence in safe and efficient operations of marine life, including marine that are consistent with strong mammals, sea turtles, and sea well governance procedures and internationally recommended best As part of our Environmental and Social Impact Assessments, we evaluate potential effects on sea birds. Where possible, we share birds such as those photographed here in Mauritania’s Diawling National Park. this data with scientists and local practices. marine research institutes. In recent We finished 2018 with a Total targets are a TRIR and LTIR of less effort – through safety vigilance, Kosmos and years, we have contributed data Recordable Incident Rate (TRIR) of than 1.1 and 0.5, respectively, zero awareness of surroundings, and for papers on Clymene dolphins in 1.99 and a Lost Time Incident Rate spills, and zero fines/penalties. We focusing on the task at hand. In the Eastern , whale (LTIR) of 0.5, against our global aim to be an injury-free workplace 2018, we continued to require and dolphin occurrence offshore targets of less than 1.1 and 0.5, no matter where in the world we personal and occupational safety the Environment Ireland and São Tomé and Príncipe, respectively. We had zero fines and operate and recognize that each training for all employees to and sea turtle populations offshore zero spills. Our 2019 performance individual needs to play a role in this reinforce our safety culture. . In addition, Kosmos has also supported other marine biodiversity and conservation osmos values the natural measures that we use to plan and initiatives in Mauritania and São areas where it does business, monitor our corporate, country, Tomé and Príncipe. Kboth land and sea, and and project-level activities. The strives to prevent or minimize Standard is available on our potential adverse impacts on website. the environment. Our Health, Prior to seismic acquisition or Safety, and Environmental (HSE) KOSMOS VALUES THE drilling operations, Kosmos management system, known as The NATURAL AREAS WHERE completes environmental and Standard, is reviewed and updated social impact assessments (ESIA) IT DOES BUSINESS, BOTH as needed. The Standard sets clear as standard practice. The process LAND AND SEA, AND expectations and performance used satisfies International Finance STRIVES TO PREVENT Corporation (IFC) guidelines, as well as those reflected in the OR MINIMIZE POTENTIAL Equator Principles. ADVERSE IMPACTS ON ESIAs generally consist of the THE ENVIRONMENT. following key process elements: • Initial screening of the project and scoping of the assessment We plan for an effective and process timely response to emergencies • Examination of alternatives that could impact personnel, the environment, local communities, or • Stakeholder identification our assets. In 2018, we continued (focusing on those directly our regular program of conducting affected) and gathering of crisis simulation drills with internal environmental and social and external stakeholders to help baseline data us improve our ability to respond in • Impact identification, prediction, the unlikely event of an emergency. and analysis These simulations are created and São Tomé and Príncipe are rich in biodiversity, including many endemic species. In 2018, Kosmos initiated several social and environmental projects to ensure benefits reach both islands.

XX14 XX15 BUSINESS PRINCIPLE IN ACTION: TAKING A CLOSER LOOK AT CLIMATE CHANGE

We recognize the challenge. • Benchmarked Kosmos’ approach We report these emissions in our better access to radio and on climate against a set of annual sustainability report and television; and facilitating Kosmos recognizes that the world industry peers report key environmental data to greater productivity in economic is facing a serious challenge from IOGP annually. At the request of activities. climate change influenced by • Analyzed stakeholder attitudes, investors, we aim to report for the human activity. including emerging investor • In Senegal, we launched a first time to the CDP (formerly expectations around climate multi-faceted project to tackle We welcome the Paris Agreement the Carbon Disclosure Project) in change reporting and initiatives environmental challenges reached within the United Nations 2019. We also follow developments such as the Task Force for and improve quality of life for Framework Convention on Climate in operational best practices and Climate-Related Financial fishermen in Saint Louis. This Change in 2015 and see it as climate change, including through Disclosures (TCFD) included reforesting over 10 a crucial step in global efforts IOGP and IPIECA. hectares of coastal land with to address climate change. We • Examined the wider policy In 2015 and 2016 Kosmos mangrove and filao trees to understand that achieving the environment and climate-change discovered significant natural gas help tackle erosion; sinking 410 internationally accepted target of risks and opportunities for our reserves offshore Mauritania and artificial reefs in the Marine limiting mean global temperature business Senegal, opening a major new Protected Area; and providing rises to well below 2°C will require The review’s findings were natural gas province in which two biogas facilities as an significant and sustained reductions presented and discussed in we are now partnered with BP. alternative source of fuel for in greenhouse gas emissions. Kosmos’ Health, Safety and Expanding use of natural gas Sediment Trapping Units installed along the coast of Suriname promote sediment deposition and create women fish processors. Between conditions for halting and reversing erosion, including by creating a habitat for new mangrove juveniles. In addition, around 1 billion Environment Management and globally is widely regarded as them the reforestation and people (roughly 13% of the world’s Board Committees. critical to reducing CO2 emissions, biogas elements of this project population) still lack access to Several of our social investment to reliable power improved We continue to monitor given that it produces about half are estimated to sequester electricity, and global energy projects are focused on supporting quality of life by improving developments on climate on as much CO2 as coal when burned around 130 tons of CO2 per year needs are expected to increase local communities with sustainable health and indoor air quality; an ongoing basis, including for power, and therefore offers according to our implementing by 25% by 20402. This will be energy access and adaptation increasing connectivity through through engaging in leading a cleaner alternative to coal for partner NGO, Le Partenariat. particularly driven by emerging to environmental change. For mobile device charging and industry associations such as the power generation. economies such as those in example: International Association of Oil and The IEA expects demand for which Kosmos focuses much of • In Suriname, Kosmos partnered Gas Producers (IOGP) and IPIECA, natural gas to increase by 45% by its investment. The International with Conservation International the global oil and gas industry 2040 in its New Policies Scenario Energy Agency (IEA) estimates and Anton de Kom University to association for environmental and and positions it as the largest that demand growth will require build Sediment Trapping Units social issues. We will continue fuel in the global energy mix by more than $2 trillion of investment (STUs) to help reverse coastal to consider and integrate key that year under its Sustainable in new energy supply per year. erosion in the Weg naar See developments as needed into our Development Scenario. Tackling this challenge – reducing business strategy. coastal area. The structures We are now working with our greenhouse gas emissions while promote sediment deposition partner BP and the Governments of meeting growing energy demand and create conditions for halting We do what we can within the Mauritania and Senegal to develop – will require actions from all parts and reversing erosion, including constraints of our own business. the resources we have discovered of society: governments, civil by creating a habitat for new into an efficient, competitive natural society and the private sector, Kosmos operates to high mangrove juveniles. The next gas project – both for export in the and companies like Kosmos must environmental standards and we step is to quantify and document form of Liquid Natural Gas (LNG) consider the opportunities and continually consider opportunities the effectiveness of the STUs and and to provide a cheaper, cleaner challenges that the global energy for efficiencies within our business. potentially extend the project to source of energy for the economies transition may present to our At this time, Kosmos does not other coastal areas of Suriname. of Mauritania and Senegal. business. operate production platforms or • In Mauritania, Kosmos and BP vessels. Our direct greenhouse built solar-power installations We are also looking beyond our We are looking at how climate gas emissions arise primarily from that deliver a sustainable source business. change may affect us long term. exploration activities such as use of of electricity to over 2,000 an exploration drilling rig, seismic Finally, Kosmos is looking for people in the rural region of In 2017, Kosmos conducted a vessels and support vessels, and contributions we can make to the Ndiago who were not connected review of our approach to climate our offices and logistics bases. dual energy challenge beyond our to the grid. This new access change and the external policy and direct operations. stakeholder environment. In the Solar power installations in Mauritania have helped bring reliable and sustainable electricity to review, we: communities near Ndiago.

2. International Energy Agency, World Energy Outlook, 2018 16 17 assessments to understand our provide the necessary training or potential risk exposure. certification to elevate them to the standard. This is frequently Since it is important for community the case, as we operate in several BUSINESS members to achieve redress if BUSINESS countries with nascent oil and gas PRINCIPLE they suffer harm as a result of PRINCIPLE industries. We periodically organize our operations, we maintain and contractor forums to provide publicize mechanisms in every 5 6 training and reinforce our HSE- country for addressing grievances. related expectations. Local and In addition, we have trained multinational contractors attend employees and contractors to these sessions in order to further handle and resolve grievances commit themselves to working appropriately. within our standards. We seek to apply the U.N. Guiding It is critical that our suppliers and Principles on Business and Human contractors fully understand their Rights in all our operations. A key contractual obligations regarding element of the Guiding Principles anti-corruption provisions. Our is for companies to evaluate within local procurement or compliance their risk assessments the extent to professionals offer one-on-one which the company’s activities may sessions with our suppliers to pose risks to those around them. In explain our requirements under Kosmos the past, we have hired third party Commercial our policies, the U.S. Foreign experts to conduct labor rights Corrupt Practices Act of 1977, the risk assessments of our operations UK Bribery Act of 2010, and other to better understand our risks in Society Responsibilities relevant local legislation. During this during exploration, as well as risks process, we often identify areas for that could arise with oil or gas additional training within our local discoveries. We believe adopting supply chain. a proactive approach to human rights is good risk management We seek to maximize the amount of osmos aims to be a trusted t Kosmos, we see our Their willingness to observe and the right thing to do. goods, services, and employment partner, good corporate interactions with local the standards articulated in our that we source locally. Our local citizen, and catalyst Kosmos seeks to implement business partners as Business Principles and supporting K KOSMOS HAS A A content approach aims to enable for positive change. While the Voluntary Principles on another way to contribute to the policies is a key consideration in DEEP COMMITMENT people to access jobs, and to enable governments have the principal Security and Human Rights in countries in which we operate. In the selection process. businesses to access supply chain responsibility for ensuring TO RESPECTING our operations. Although port fact, in the event of exploration When a potential local supplier opportunities through Kosmos. citizens benefit from oil and gas AND PROMOTING facilities are often secured by success, oil and gas development is found to be outside our HSE development, we recognize that state security providers, we also can be an important engine of HUMAN RIGHTS. standards, we often work to Kosmos also has a role to play. use private security providers for economic development. We are more likely to have a certain of our office operations. sustainable business if we work We have conducted security with a range of stakeholders, Upon establishing a country office assessments and training sessions promote good governance, and for these private contractors to oversee our operations, we WE SEE OUR maximize the opportunities we complete an assessment to identify that incorporate the Voluntary create for those around us. social investment opportunities Principles as guidance. Our goal INTERACTIONS WITH is not only to prevent potential LOCAL BUSINESS Prior to seismic operations or and potential partners from the human rights abuses, but also to exploration drilling, we conduct community. Our approach to PARTNERS AS ANOTHER encourage security providers to environmental and social impact social investment aims to align serve as advocates for protecting WAY TO CONTRIBUTE assessments to consult with community, government, and and promoting human rights. We TO THE COUNTRIES IN potentially impacted communities company priorities. are participating in the Voluntary and create well-informed operating Kosmos has a deep commitment to WHICH WE OPERATE. Principles process with the plans. These assessments help us respecting and promoting human Government of Ghana, which is develop a baseline of socioeconomic rights. Our Human Rights Policy, the first country in Africa to join conditions before activities begin, available on our website, ensures the Voluntary Principles Initiative. understand and mitigate any that our behavior toward employees, We maintain high standards for Since BP is the operator of the potential adverse impacts from the contractors, and external our suppliers and commercial Greater Tortue Ahmeyim gas activities, and collect information stakeholders is both responsible partners in terms of safety, the project offshore Mauritania and that enables future operations to and respectful. We have conducted environment, and anti-corruption. Senegal, we are engaging with BP benefit workers, communities, and human rights training sessions Suppliers are required to adhere in implementation of the Voluntary local businesses. for employees and incorporated to our Business Principles. Principles as the field is developed. human rights into our social impact

18 19 A Full-Cycle E&P Company

The map below shows where Kosmos operates and the type of work we are doing in each DEVELOPMENT PRODUCTION INFRASTRUCTURE- BASIN-OPENING OF WORLD-SCALE OPTIMIZATION LED EXPLORATION EXPLORATION country. Our social investments and capacity building programs increase the longer we DISCOVERIES operate in a country, though the standards to which we hold ourselves for these activities remain high from the beginning. Colored circles on the map refer to the type of work being done, as listed to the right.

U.S. GULF OF MEXICO MAURITANIA

SENEGAL

GHANA CÔTE D’IVOIRE EQUATORIAL GUINEA

SÃO TOMÉ and PRÍNCIPE

SURINAME

NAMIBIA In 2017, Kosmos and its partner Trident Energy acquired ’s interests in the oil-producing Ceiba and Okume fields (Block G) and signed three new exploration licenses for offshore blocks W, S, and EG-21. Kosmos has also since acquired offshore block EG-24. The national oil company, GEPetrol, also owns interests in the fields and blocks.

osmos is the operator of engagement, and grievance vessel with any concerns once blocks W, S, EG-21, and EG- mechanisms. We have conducted operations began. We also trained K24. A joint venture company, similar training in other countries and hired four Equatoguineans to Kosmos Trident Equatorial Guinea where we operate. For more work as Fishing Liaison Officers Incorporated (KTEGI), was the information on our supply chain (FLOs) on board the seismic vessel operator of the Ceiba and Okume policies, please see page 19. to engage with any fishing boats production assets throughout 2018, encountered offshore. Eleven We also established an employee leveraging the distinct expertise of government representatives were whistleblower mechanism and each company, combining Kosmos’ also trained in offshore safety to be conducted company-wide training exploration and subsurface able to participate in, and observe, on the aim, accessibility, and expertise with Trident’s operational the survey. confidentiality of the mechanism. capabilities. At year-end 2018, The mechanism has been extended During the seismic survey, Marine the joint venture was ended and to key contractors so their Mammal Observers (MMOs) on Kosmos now retains a direct 40% employees can also use it to report the vessel noted the presence of interest in Block G. confidentially any concerns related Humpback whales in the vicinity. to our operations. The extent of the presence of whales was unexpected, and after Finally, as is our practice, we extensive discussions with the conducted a security risk onboard MMOs regarding how assessment for our operations in to respond to the situation, the Equatorial Guinea, integrating the decision was made to restrict Voluntary Principles on Security certain operations to daylight hours and Human Rights. and expand the mitigation zone, HUMAN RIGHTS DUE followed by a move to a different DILIGENCE AND TRAINING COMMUNITY ENGAGEMENT part of the planned survey area In keeping with regular practice, In 2018, Kosmos completed a 3D away from the whales. In the end, Kosmos engaged a third-party seismic survey across blocks W, expert to conduct human rights S EG-21, and EG-24. Before the due diligence for our anticipated survey began, we conducted a in-country activities ahead of thorough Environmental Impact Equatorial Assessment (EIA) and engaged entering Equatorial Guinea. The report stressed the importance with fishing communities to provide BLOCK W EG-21 of community engagement, as information on the purpose of Guinea well as policy implementation and the survey, the vessel that would monitoring. be conducting the work and the importance of safety around it, From the beginning of our and to hear about any concerns investment, KTEGI adopted the regarding our planned activities. Kosmos Business Principles, Anti- The EIA process included public Corruption Policy, and Code of meetings in the districts of Bata EG-24 BLOCK S Conduct. and Mbini, which were attended by Gulf of In 2018, we conducted training for more than 150 fishing community Guinea all employees on implementation representatives. of these policies, including human Kosmos established a community rights training for all KTEGI staff, grievance mechanism so that DEVELOPMENT PRODUCTION INFRASTRUCTURE- BASIN-OPENING OF WORLD-SCALE with an emphasis on labor rights, OPTIMIZATION LED EXPLORATION EXPLORATION members of the community could DISCOVERIES the supply chain, community contact the company or the seismic

23 due to the unexpected whale • Implement an external technical marine conservation, as well activity, Kosmos decided not to review process for all future as support for women’s micro- conduct seismic activities over the seismic EIAs, and enterprises, creating and selling part of the planned survey area jewelry made from recycled local • Engage, where possible, local where whales appeared to be most materials to improve livelihoods, NGOs and subject matter active. which creates an alternative experts to capture as much source of income and deters turtle As a result of this experience, region-specific and unpublished poaching. Kosmos plans to: information as possible and incorporate this into the EIA • Engage MMOs early in the seismic baseline. NATIONAL CONTENT planning process to consider possible scenarios and pre- Kosmos is currently evaluating Local content and nationalization determine adaptive mitigation and interpreting the seismic data is a key priority for Kosmos and prior to the start of operations to determine potential locations the government in Equatorial for future exploration drilling. Guinea. • Revise EIA methodology to SOCIAL INVESTMENT We intend to test a prospect account for the absence of There were approximately 78 in Block S in the second half of Kosmos began implementing a information, as gaps in data are employees in the KTEGI office 2019. If successful, we expect to social investment program in 2018. common, incorporating where in Bata at the end of 2018, 58% conduct an accelerated tie-back While we grew familiarity and possible relevant information of whom were Equatoguineans. development to the Ceiba FPSO. understanding of the local context, about sensitive species from Kosmos and its partners are our strategy was to continue Hess adjacent countries working on a training and Corporation’s social investment nationalization plan to increase this programs largely focused on over time. education and health. Related to Kosmos’ exploration The largest social investment Kosmos’ work offshore Equatorial Guinea focuses on infrastructure-led exploration in which new work in 2018, four local project, the Program for discoveries can be brought into production quickly through existing facilities. representatives and eleven Educational Development of government representatives were Equatorial Guinea (PRODEGE), ongoing positive impacts for collaboration on social projects, to provided with offshore training to established by the government Equatorial Guinea. improve outcomes and enhance work on or observe the seismic delivery for the benefit of the of Equatorial Guinea and Hess Kosmos also initiated an annual survey. Kosmos works with local people of Equatorial Guinea. Corporation, is now a public-private social investment program for vendors wherever possible, and partnership among Kosmos, Trident exploration blocks W, S and EG- We therefore set up an industry generated more than $300,000 of and the government. 21, which focused on bringing group, bringing together the business with Equatoguinean firms benefits to coastal communities. corporate social responsibility in 2018 just through exploration This included drilling and installing teams of all operators in the country activities related to Blocks W, solar-powered water wells in the to share lessons learned and S, EG-21, and EG-24. We believe communities of Handje and Nume, coordinate on projects. Two initial this investment indirectly created as well as an electric water well meetings of this group were held in several dozen local jobs. During PRODEGE’s first five years, in Rio Campo. Access to clean 2018 and we expect the process to Kosmos expects to open an office the program trained two thirds drinking water remains a challenge continue in 2019 and beyond. in in 2019 and create its for many rural communities in of the country’s primary teachers In addition, KTEGI conducted its own small team of employees Equatorial Guinea, and the three in instructional skills, established own social investment program, in Equatorial Guinea, led by the water wells Kosmos installed in model primary schools, modernized which in 2018 included further industry’s first Equatoguinean 2018 will benefit an estimated the education information system, clean water initiatives, the country manager. 1,300 people. In 2018, Kosmos and strengthened the institutional construction of a primary school capacity of the Ministry of also funded renovations to the in a rural community in the Anisok TRANSPARENCY CORAFRICA primary school in Education and Science. In total region, support to a school for Bata, benefitting over 400 children In 2018, Kosmos engaged with more than $100 million will have deaf children in the city of Bata, that attend the school, as well as the government of Equatorial been invested in education through and support for the Bioko Marine their teachers. Guinea, as well as national and the PRODEGE program from its Turtles Program. The latter is a international stakeholders on inception in 2006 through 2019. After starting to lead our own partnership with Purdue University issues related to transparency, In the second half of 2019, social investment program, Kosmos in the United States that conducts including the potential application PRODEGE will transition to full noticed that oil and gas operators research and activities to improve by the government to re-join the government ownership, to be run in Equatorial Guinea were often sea turtle conservation on the Extractive Industries Transparency by a new, independent government working in similar areas of social island of Bioko. The project Initiative. Kosmos is supportive of agency responsible for ensuring development and suspected includes a broad outreach program this initiative and the dialogue that Primary school children across Equatorial Guinea benefit from the training provided to teachers as the program’s sustainability and that there may be opportunities to teach Equatoguinean school part of the Program for Educational Development of Equatorial Guinea (PRODEGE). informs the process. for stronger coordination and children on the importance of

24 25 In late 2018, Kosmos entered the U.S. Gulf of Mexico through the acquisition of Deep Gulf Energy, a leading Gulf of Mexico operator. In the transaction, Kosmos acquired interests in 12 producing fields across the East Breaks, Garden Banks, Green Canyon and Mississippi Canyon areas, as well as a portfolio of exploration prospects suitable for both infrastructure-led and frontier exploration.

osmos now has two locations improving the quality of STEM poses a potential long-term threat in the U.S. The company’s education and building cross- to many businesses, including our Kcorporate headquarters, cultural understanding. own. In 2015, Kosmos announced with approximately 210 employees, a partnership with the Perot remains in . Our Gulf of Capacity Building in Museum of Nature and Science Mexico business unit is managed STEM Education to face this challenge head-on by from Houston, which is home to helping Dallas school teachers approximately 50 employees. Each day at Kosmos, we use develop their ability to train and the fundamentals of science, inspire young people in the STEM In 2019, Kosmos plans to continue technology, engineering, and disciplines. infill drilling on existing fields in math (STEM) to do our jobs. We the U.S. Gulf of Mexico, drilling interpret seismic data to identify infrastructure-led exploration potential oil and gas deposits. We targets, and progressing the plan deepwater drilling operations development of previous targeting prospects located more discoveries via subsea tieback to than three miles below the ocean existing infrastructure. floor. We study the rocks we bring The Kosmos Energy STEM As part of our new operations to the surface to better understand Teacher Institute is an innovative in the Gulf of Mexico, we are where oil and gas might be found. program offered through the Perot beginning a process of stakeholder Being at the forefront of science Museum to improve the quality outreach to establish relationships and technology is how we play our of formal science instruction for in the areas onshore from our part in helping to meet the world’s participating kindergarten through operations. While in the early energy needs and how we create 12th grade teachers, and increase stages of planning, this outreach is value for our shareholders. interest and engagement among expected to include stakeholders The shortage of people with their students in STEM subjects. at the state and local levels in training in the STEM disciplines Through this program, teachers states along the U.S. Gulf Coast, particularly Texas and . U.S. Gulf Similarly, in 2019, we will be taking a fresh look at our social investment approach in the Gulf of Mexico in light of our larger operational of Mexico footprint.

POSITIVE IMPACTS In 2018, Kosmos continued to support its primary social investment partners in the MISSISSIPPI CANYON Dallas-Fort Worth area through a combination of multi-year EAST GARDEN GREEN engagements and one-time BREAKS BANKS CANYON support. Our U.S.-focused social investment at the corporate The Kosmos Energy STEM Teacher Institute at the Perot Museum of Nature and Science benefited DEVELOPMENT PRODUCTION INFRASTRUCTURE- BASIN-OPENING OF WORLD-SCALE about 4,800 students during the 2017-2018 school year, with participating teachers reporting OPTIMIZATION LED EXPLORATION EXPLORATION level has historically centered on DISCOVERIES Gulf of increased confidence and creativity in teaching the STEM disciplines. Mexico

27 enjoy professional development way for our employees to engage $800,000 of support over five corporate focus areas and opportunities and access to in their community. years for a series of special priorities, geographic relevance, the Perot Museum’s network of exhibitions, installations in the and available budget. The program reached about 4,800 educators and vast resources. museum’s collection galleries, and a students during the 2017-2018 In 2018, we donated more prospective touring exhibition. The The program involves a formal school year, with participating Are there any than $110,000 to a range of sponsorship also includes resources application process for teachers teachers reporting increased The Power of organizations serving the greater to facilitate loans of items from the to ensure they are invested and confidence and creativity in Gold: Asante Dallas-Fort Worth area, including: Keir Collection to other U.S. and committed. Chosen teachers from teaching the STEM disciplines. Royal Regalia international institutions. • Buckner International, a nonprofit across the Dallas-Fort Worth from Ghana that provides support services area attend a week-long Summer In 2017, the DMA opened The Keir Building Cross-Cultural photos to families in distress, vulnerable Academy, where they are grouped Collection of Islamic Art Gallery in Understanding available? children, and aging adults. according to their level of comfort a newly redesigned gallery space and expertise in sciences – pre- In 2015, the Dallas Museum of Art that increased the number of works • Literacy Achieves, an service teachers, novice teachers, (DMA) announced Kosmos as the on view from the collection, as organization that works to equip advanced teachers, and mentor presenting sponsor of the Keir well as retained several important non-English speaking adults teachers – rather than by grade level. Collection of Islamic Art for its masterworks that were on view and their young children with inaugural years of exhibitions and in the first exhibition. The 2015- English literacy and life skills Instruction continues through the installations. Assembled over the 2016 exhibition, Spirit and Matter: to promote self-sufficiency. academic year with five professional course of five decades by noted Masterpieces from the Keir Collection Literacy Achieves serves Vickery development sessions held on art collector Edmund de Unger of Islamic Art, showcased more than Meadows, a neighborhood near weekends twice a month, for which (1918-2011), the Keir Collection is 50 masterworks from the collection our Dallas headquarters. they receive continuing education recognized by scholars as one of marking the first time many of the • Jill Stone Elementary School, a credits required for teachers by the world’s most geographically featured works had been on display school in the Vickery Meadows the Texas Education Agency. and historically comprehensive, in North America. More than 115,000 neighborhood. Kosmos provided The teachers are also mentored encompassing almost 2,000 works people visited the exhibition. care boxes to families in need. throughout the academic year. in a range of media that span 13 Although the process of Sword ornament in the form of a lion / Ghana, Nsuta, Asante peoples / c. mid-20th century / Kosmos employees – engineers, centuries of Islamic art. The Power of Gold: Asante Royal Regalia from Ghana on loan to the Dallas Museum of Art • Aberg Center for Literacy, an bridging cultures begins with the geologists, and geophysicists – East Dallas organization which Kosmos’ partnership with DMA preservation of historic artifacts, have served as guest speakers on When this knowledge is shared, The Power of Gold was the first provides English literacy courses is an extension of our desire to it develops most fully through the science related topics, including it becomes a catalyst for deeper exhibition on this subject matter and prepares people for the engage with the communities study of art and what it reveals, the practical application of understanding and greater trust at an American museum in more General Education Development where we live and work, and not just about the artists and the scientific principles in business. among societies. than 30 years. Kosmos underwrote (GED) tests that provide foster appreciation for the art works themselves – their form, their This has been a successful way to the educational programming and certification of high school-level and culture of these communities. style, and their content – but also The people of Dallas will enjoy simultaneously build capacity of community outreach associated academic skills. The partnership between the the social, political, and cultural the fruits of the scholarship now local educators while providing a with the exhibition. • Salvation Army Angel Tree museum and the company provides circumstances that shaped them. taking place at the DMA on the Keir Collection and will be able to Program, an initiative that view and learn from the collection provides clothing, toys, and daily for free. By supporting the display essentials to children and aging of the Keir Collection – and the adults in Dallas who usually go scholarship and knowledge it without Christmas gifts. Our has and will continue to generate employees serve as anonymous – we are proud to play a role in Employee-Driven Philanthropy donors who adopt these children and aging adults in an expanding increasing the understanding of In addition to working with large Christmas tradition that makes people everywhere. corporate partners like the DMA the season brighter for both the and Perot Museum, Kosmos In 2018, our work with DMA gift giver and receiver. expanded to include sponsorship of supports smaller organizations and a unique Ghana-focused exhibition. initiatives as a way to make the • Habitat for Humanity, a nonprofit Spanning three centuries, The Dallas-Fort Worth area a better organization that helps people Power of Gold: Asante Royal place to live and work. in our community build or improve a place they can call Regalia from Ghana showcased As there are more requests for home. The company supports more than 250 objects from a donations than the company can Habitat for Humanity through range of museums as well as the fulfill, opportunities are reviewed both donations and in-kind DMA’s own collection. It featured and sanctioned by an employee- contributions like a day of service crowns, sword ornaments, run philanthropy committee that in which our employees volunteer furniture, textiles, jewelry made evaluates each request in the their time. of wood, silk, brass, iron and gold, context of company guidelines, and other items. Importantly,

Kosmos’ partnership with DMA is an extension of our desire to engage with the communities where we live and work, and foster appreciation for the art and culture of these communities.

28 29 Kosmos opened a significant new hydrocarbon province, the Tano Basin, with the discovery of the Jubilee Field offshore Ghana in 2007. The Jubilee Field straddles both the West Three Points and Deepwater Tano blocks. Success at Jubilee was the result of the company’s identification of a previously overlooked exploration play concept.

osmos served as Technical Company (GNPC). Tullow Oil is the in a cost efficient and sustainable Operator for development operator of the Jubilee Unit and way, which emphasizes domestic Kat Jubilee. The Jubilee Field TEN fields, meaning it oversees gas utilization first. development was designed in a operations related to oil and gas phased approach to bring first production. Although Kosmos Prioritizing Safety and the production on quickly and to apply does not oversee day-to-day Environment early findings to follow-on phases. operations of the Jubilee Unit First production came in late 2010, and TEN fields, we take an active Our active monitoring of safety just three and a half years from role in stakeholder engagement, and environmental compliance the initial discovery, an industry- secondment of top national talent, in Ghana contributed to strong leading timeframe in deepwater social investment programs, and HSE performance in 2018. There developments. other activities to help ensure were no environmental incidents Ghanaians receive benefits from or Lost Time Incidents (LTIs) for The success at Jubilee de-risked hydrocarbon production. any of Kosmos’ operations in additional opportunities, and Ghana in 2018, continuing our Kosmos and its partners have record of zero LTIs since 2012. MANAGING OUR FOOTPRINT made a number of additional oil We continued to invest in safety and gas-condensate discoveries. In 2018, gross volumes from the training throughout the year, which Kosmos and partners discovered Jubilee and TEN fields averaged helped sustain performance gains the significant Tweneboa gas- approximately 78,000 bopd achieved in prior years. Tullow Oil, condensate accumulation in 2009, and 64,500 bopd, respectively. as operator, reports on the safety followed by the Enyenra oil field The Jubilee and TEN fields also and environmental performance for in 2010. Further drilling success continue to supply natural gas to Jubilee and TEN operations. resulted in the discovery of oil at the the Ghana National Gas Company’s Our staff in Ghana receives Ntomme field in 2012. Production onshore processing facility at behavioral safety training each from Tweneboa, Enyenra, and Atuabo and onward flow to the year in addition to annual training Ntomme (TEN) began in 2016. Aboadze power plant for fuel on Kosmos’ Health, Safety, and to generate electricity. Kosmos Kosmos is now a non-operating Environment policies and standards. continues to advocate for a co-venturer of the Jubilee Unit and These trainings are mandatory. national plan to expand Ghana’s the TEN fields, comprised of Tullow We believe they contribute to our gas infrastructure to meet the Oil, Anadarko Petroleum, PetroSA, strong safety record in Ghana. and Ghana National Petroleum country’s domestic power needs

Ghana DEEPWATER TANO BLOCK WEST CAPE THREE POINTS BLOCK

Gulf of Guinea

JUBILEE

DEVELOPMENT PRODUCTION INFRASTRUCTURE- BASIN-OPENING OF WORLD-SCALE OPTIMIZATION LED EXPLORATION EXPLORATION DISCOVERIES

The FPSO John Evans Atta Mills produces oil at the Tweneboa, Enyenra, and Ntomme (TEN) fields.

31 Grievance Mechanism For more information on the In addition, Kosmos was the only respected Ghanaian business Voluntary Principles on Security oil and gas company to support leaders in 2014 to demonstrate Although we did not operate and Human Rights in Ghana, and participate in the annual New our long-term commitment to any drilling activities in Ghana in please see the country’s website Year School and Conference at the development of Ghana. The 2018, we continued to maintain dedicated to their implementation: the University of Ghana, Legon. advisory council guides the our community-level grievance www.ghanavps.org. Organized by the School of company and serves as a sounding mechanism in the Western Region. Continuing and Distance Education, board as we work to support Our formal grievance mechanism the event convened experts in Ghana’s socio-economic needs provides a communication channel various fields to debate issues and management of oil and gas for members of the community related to Ghana’s development, resources. The six advisory council to raise concerns about our focusing on the role of the private members provide key insights that operations or submit complaints. sector in job creation. influence our business and above- We visit the Western Region ground approach. Editors and journalists are important to remind communities of the stakeholders in Ghana, as they Members of the council were grievance mechanism, how it regularly write about domestic oil selected based on their business works, and how it can be accessed. and gas activities and their work knowledge, diverse points of view, Through continuous engagement, often shapes public understanding. and history of success leading we empower community leaders In 2018, we again sponsored companies in Ghana. The advisory to assist those people with In 2015, Kosmos reached a major milestone by employing a 100 percent Ghanaian staff – an achievement that we have maintained ever since. the annual Ghana Journalist council has even taken an active role grievances to navigate the system. Awards, a forum that encourages in the Kosmos Innovation Center by We received and resolved four professionalism and innovation in volunteering as guest lecturers and grievances in 2018 related to legacy ENGAGEMENT AND LISTENING Principles on Business and Human Rights, social investments, and our news reporting across Ghana. business mentors. There is natural social investment projects. As a long-term partner in Ghana, environmental and social impact alignment between Kosmos and Kosmos regularly engages with To supplement our formal management plans. Working in Partnership with Civil Ghana when it comes to creating a wide range of stakeholders, Independent Advisory Council grievance mechanism, we have Society and Business a well-managed and increasingly including local communities, stationed a Community Liaison Kosmos created an independent productive petroleum sector. Voluntary Principles on Security Kosmos maintains regular contact Officer (CLO) in a Kosmos- suppliers, civil society, media, advisory council comprised of and Human Rights with civil society organizations in branded office in the Western and academia. We communicate Ghana such as the African Centre Region. We distribute contact regularly with these stakeholders In 2018, the Government of Ghana for Energy Policy (ACEP), the numbers and e-mail addresses for to understand their concerns about finalized its National Action Plan for National Resource Governance the CLO as well as directions to our industry and its impact on the implementation of the Voluntary Institute (NRGI), and the Ghana the local community office. The country. We share information that Principles on Security and Human Extractive Industries Transparency CLO is an important part of our improves mutual understanding of Rights. Kosmos supported this Initiative (GHEITI). GHEITI is an approach to managing grievances, the role of the oil and gas industry. process by participating as an important forum that Kosmos uses in that he solicits and responds industry representative in national to engage on issues of revenue to feedback from community Outreach to Local Communities dialogues to discuss key issues transparency and anti-corruption. members. The Kosmos CLO also regarding implementation. The The area directly onshore from the We are a private sector member works in close collaboration with dialogues covered issues such Jubilee and TEN fields includes the of the GHEITI multi-stakeholder the CLOs from our co-venturer as onshore and offshore risks six coastal districts of the Western group, which oversees the public Tullow, so that we are fully up to associated with increased activities Region, where we have centered reconciling of payments and date with Tullow-led operations in in the oil and gas sector, the status much of our local community receipts between government the Jubilee and TEN fields. of the Ghana government’s anti- engagement. In the Western and extractive companies. Ghana small scale illegal mining initiative, Region, our key stakeholders are recently completed its seventh oil and goals related to public security the fourteen traditional councils and gas reporting cycle. Kosmos training and private security within the six coastal districts, the has been a part of the process in licensing reform. Fish Processors’ Associations of Ghana since its inception. Ankobra and Ekpu Communities, Kosmos uses private security In 2018, Kosmos supported and as well as communities we have personnel to provide security participated in the Ghana Gas historically supported through for our employees and office Forum, the country’s leading social investment projects. operations in Ghana. Security independent natural gas policy for the Jubilee and TEN fields’ We join community meetings event, which brings together operations is the responsibility of held by the Jubilee and TEN stakeholders from business, the operator. We have trained all fields’ operator. We use these government and civil society to Kosmos Energy Ghana security sessions to provide updates on discuss the potential of Ghana’s personnel on the Voluntary offshore operations, environmental emerging gas industry. The output Principles on Security and Human monitoring and compliance, of the forum was presented to the Rights per our corporate policies canoe incursions and fishermen government for potential inclusion and in support of Ghana’s work on interactions, the Voluntary in the National Gas Master Plan. the Voluntary Principles.

32 33 Government Engagement We are committed to supporting of the Jubilee and TEN fields. In by a board of community members personal and professional 2018, Kosmos-initiated programs who oversee the project. Water Kosmos regularly engages with development for all our employees focused our social investment on Health Ghana works in partnership the government of Ghana to keep through tailored training programs, youth entrepreneurship through with these boards to determine them informed of our activities rotations through our other the Kosmos Innovation Center, the appropriate usage fees and with the goal of ensuring that global offices, and attendance at clean drinking water, and small and management of the water our activities contribute to national workshops and conferences. In community-level projects. Page 36 purification service. In addition, the development. As part of our 2015, Kosmos achieved a major of this report describes the Kosmos organization provides sanitation government engagement efforts in milestone by employing a 100 Innovation Center in detail. and hygiene education to further 2018, we provided all 250 members percent Ghanaian staff – a number improve health outcomes for the of the Ghanaian parliament with Each year, we contribute to the that we have now maintained for villagers using the new clean water copies of our Business Principles Jubilee Unit and TEN Development the fourth consecutive year. systems. We continued our support and annual reports. We presented social investment programs. of the Water Health Ghana program our approach to transparency In 2018, we also contracted six These initiatives are overseen by in 2018, when the program installed including publishing our contracts national service personnel to work a team of representatives from water purification facilities and and payments to governments, in finance, supply chain, human the Jubilee Unit co-venturers, conducted management training anti-corruption policy, and ongoing resources, office administration, including Kosmos. In 2018, the for an additional ten communities. support of the Extractive Industries corporate affairs and commercial Jubilee and TEN social investment Transparency Initiative. We also departments. It is our hope that projects focused on three themes: At the end of 2018, we fulfilled explained the work of the Kosmos the training and experience they local agribusiness and enterprise our commitment with all water The Kosmos Innovation Center (KIC) invests in young entrepreneurs and small businesses. We empower Innovation Center in supporting receive while working at Kosmos development, environmental entrepreneurs to turn their ideas into viable, self-sustaining businesses and we work alongside promising projects, bringing safe drinking young Ghanaian entrepreneurs helps prepare them for their future stewardship, and education in small businesses to help them scale and reach their full potential. water to more than 300,000 and small- and medium-sized careers. science, technology, engineering people in 43 different communities enterprises. and mathematics (STEM). These Clean Drinking Water for Working with Water Health spanning five regions in Ghana. projects are carefully designed Ghanaians Ghana, a subsidiary of Water Kosmos is a firm believer in creating Social Investment Projects in collaboration with community Health International, in 2017, we the right environment for Ghana Kosmos has supported clean We continue to support social stakeholders to ensure their long- expanded the program to ten new to achieve the government’s drinking water projects in Ghana investment in Ghana through term sustainability. communities outside our operational Sustainable Development Goals. In for the last seven years. We first Kosmos-initiated programs, as area, providing clean drinking water June 2018, we were one of the few worked with the Safe Water well as those led by the operator for nearly 130,000 Ghanaians. private sector companies invited to Network to build water filtration participate in an interactive session systems for over 28,000 people The overall program includes on Ghana’s development with His from twenty villages in the Western construction of water purification Excellency Nana Addo Dankwa Region. The project received such facilities, training of operators Akufo-Addo, President of the a positive community response from local communities, and Republic of Ghana. In addition, in that Kosmos decided to expand its implementation of a monitoring November 2018, we were invited to support of water projects to other program to ensure sustainability. participate in the Royal Dialogue on parts of the country. Each new water facility is governed the Sustainable Development Goals with His Majesty Otumfou Osei Tutu II, which resulted in the Kumasi Declaration on the Sustainable Development Goals.

POSITIVE IMPACTS Kosmos is committed to playing its part in creating positive development outcomes for host countries from our oil and gas discoveries. Our largest office outside the U.S. is in Ghana, where sourcing goods and services locally and hiring Ghanaian employees is an important way that we contribute to national development. Kosmos has worked hard to build a network of local suppliers, and provided training and capacity building ourselves to bring them to international industry standards.

Kosmos has supported clean drinking water projects for many years. Partnering with Safe Water Network and Water Health Ghana, Kosmos has helped to bring potable water to more that 300,000 people in 43 different towns and villages across five regions in Ghana.

34 35 Kosmos Innovation Center GHANA - OUR FLAGSHIP INITIATIVE The Kosmos Innovation Center (KIC) invests in young entrepreneurs and small businesses.

We empower entrepreneurs to turn their ideas into viable, self-sustaining businesses and we KIC Ghana started in 2016. Our work alongside promising small businesses to help them scale and reach their full potential. programs focus on empowering young men and women to drive innovation in agriculture, the country’s largest employer, and training them to lead sustainable, successful businesses. ENTREPRENEURSHIP IS IN OUR DNA. Founded in 2003 by a small team of explorers, Kosmos Energy was once a start-up too. Now a successful, publicly- AgriTech Challenge traded company, we know what it’s like to see an opportunity, pursue a dream, and grow a business. By nurturing The AgriTech Challenge is an the next generation of entrepreneurs and facilitating innovation in sectors beyond oil and gas, we are contributing to annual competition that identifies the creation of healthier and more diverse economies. young people who are interested in becoming entrepreneurs and HOW WE WORK provides them with business and The Kosmos Innovation Center works in three ways: leadership training, mentorship, and a network of support. We encourage them through coaching and market research tours across Ghana to take a fresh look at the agriculture value chain to identify new areas of business opportunity. teams who go on to enter a The goal is to show them what’s dedicated incubator program. The possible – personally and AgriTech Challenge has identified, professionally – if they’re willing to nurtured, and funded some of put in the effort. the most promising youth-driven agritech startups in Ghana today. Business training and mentorship KIC is now working to open its own INSPIRE INVEST TRANSFORM is delivered at key stages in the dedicated start-up hub in in program and as part of a life-cycle KIC Start-Up Incubator the summer of 2019. We light a fire in young people by We provide a full life-cycle of We position young entrepreneurs of development and support. When our young entrepreneurs training them to see opportunities support to the most promising to tackle tough problems in key Individual competitors join take the next step and form Business Booster that others miss, giving them the entrepreneurs, start-ups, and sectors and channel their talent together to establish teams which promising businesses, the KIC is In 2017, the Business Booster confidence to view themselves small businesses. We do it through into innovative, private sector- then participate in a series of pitch there to help them refine their program was launched to as entrepreneurs instead of tailored coaching, skills building, led solutions. We do this through and elimination events, during ideas, establish their companies, accelerate the growth of small employees and job creators expert mentorship, seed funding, the KIC’s distinctive focus on which they present their ideas to and overcome barriers to growth. and medium enterprises (SMEs) instead of job seekers. We do it by and facilitating connections within commercial solutions and local a panel of judges. Seed funding is This multi-year process involves in the agriculture sector. After delivering a best-in-class leadership and across industries. knowledge. offered to the final high-potential more focused business training, a rigorous screening process, and entrepreneurship program. specialized coaching, and potential agribusinesses are selected for two access to seed funding from KIC or week-long ‘Boot Camps’ which other entities willing to invest start- offer mentorship and coaching up or growth capital. to help participants refine their The Meltwater Entrepreneurial business plans, mitigate financial EACH KOSMOS INNOVATION CENTER PROGRAM IS School of Technology (MEST) has and operational constraints, DRIVEN BY LOCAL STAFF AND PRIVATE SECTOR EXPERTS, been our partner in delivering the rapidly prototype new products RESULTING IN A DISTINCTIVE FOCUS ON COMMERCIAL incubator program. Operating and services, and prepare to meet potential investors. SOLUTIONS AND LOCAL KNOWLEDGE. OUR CUSTOMIZED, out of the MEST Incubator facility in Accra, this full-time BEST-IN-CLASS BUSINESS SUPPORT PROGRAMS FEATURE A The Business Booster program program focuses on mentoring facilitates links with local and MIX OF SKILLS TRAINING, MENTORSHIP AND SEED FUNDING. and nurturing promising start-up international investors, fostering companies through training and relationships between businesses, investment. like-minded entrepreneurs, and across industries.

36 37 MAURITANIA SENEGAL INNOVATION CHALLENGE START-UP ACCELERATOR

In 2018, we expanded the activities receive structured, one-to-one Launched in 2018, the Senegal entrepreneurs are selected to of the KIC into Mauritania with the mentoring from an assigned coach, Start-Up Accelerator provides move forward in the process. first annual Mauritania Innovation testing their learning following the entrepreneurs who have innovative These ten finalists then undergo Challenge. classes, and receiving personalized ideas for the agricultural sector an intensive boot camp with guidance on developing a business with the skills they need to business experts and then pitch for The Mauritania Innovation concept and planning for the turn their ideas into reality. In their place in the accelerator. Five Challenge provides the opportunity first pitch event. Participants are partnership with Reach for Change, entrepreneurs go forward to take for young people to develop the guided through the early and fragile an international nonprofit focused part in the six-month program. confidence and skills they need to stages of business growth, learning on social entrepreneurship, the KIC Participants are guided through become entrepreneurs through a everything about defining a is helping fledgling businesses in the early stages of business series of classroom modules and refinement and pitch practice, the business problem, creating a value the country test and iterate their growth, learning everything from competitive pitch competitions. The remaining participants are ready proposition and understanding solutions to develop a sustainable how to develop customer profiles Mauritania Innovation Challenge for the second and final pitch. and identifying a target audience. business model. and how to carry out competitor takes entrepreneurs on a proven Participants are expected to At the end of the program, analysis, to how to make a eight-step journey to develop a The program starts with a engage in their own field research participants pitch to a panel product roadmap and develop a market-ready product or service. week-long selection process and planning to fully inform of judges and stakeholders in sustainable revenue model for their where potential candidates are The program starts with guided themselves about their chosen Nouakchott. Here, they present business. Six months later, the aim thoroughly introduced to the classroom learning through the market and business proposition. their new business ideas and is to launch five new businesses program and the program leaders first three foundational teaching proposals. The most promising with the potential to help transform The businesses that pass the first to their business ideas. With elements corresponding with ideas receive further technical the agricultural industry in Senegal. pitch go on to the second round of this depth of understanding, ten the first half of the business assistance and potential seed intensive support to develop their development journey. Participants funding to continue their growth business plan and to ready their journey. product for launch. Following a further period of product testing, In 2018, we received more than 170 applications for the program. Following a rigorous review of the online application process STIMULATING THE SPIRIT OF and individual interviews, Kosmos selected the most promising 25 ENTREPRENEURSHIP IN CÔTE D’IVOIRE businesses to participate. After several months of individual In 2018, we expanded the activities young Ivorian entrepreneurs than 300 entrepreneurs in coastal coaching and training in of the Kosmos Innovation Center and small enterprises develop communities have been selected to entrepreneurship, the field of (KIC) into Côte d’Ivoire with their businesses sustainably and take part in the program. Over the participants was narrowed to 12 the launch of a comprehensive unlock economic prosperity course of four months, participants businesses which then competed business accelerator program in the country’s coastal and receive intensive business and to win admission into a year-long called Stimulating the Spirit of other regions. The program managerial support training, KIC incubation program, as well as Entrepreneurship in Côte d’Ivoire. was developed in partnership financial consultancy, and one-to- initial seed funding to help them The accelerator aims to help with the Direction Générale des one mentorship. launch their businesses. Hydrocarbures (DGH) and is After the four-month incubation The winners developed innovative being delivered by TechnoServe, period, all 300 entrepreneurs business ideas in a range of areas, an international nonprofit that present their work to a jury. including construction materials, promotes business solutions to Around 180 will progress through solid waste removal, electronic poverty in the developing world this stage, and receive five money transfer, food delivery, office by linking people to information, months of additional support to space, and distance education. capital, and markets. help implement their business Kosmos is providing seed funding Through the accelerator program, growth plan. Further training and to four of the companies, with small enterprises led by women mentoring is provided, as well as Banque Mauritanienne pour le and men are learning how to support for accessing financial Commerce International, a large overcome barriers to growth institutions and funding. Mauritanian bank, and SEPCO, and how to build competitive For more information about the a waste management company, businesses that generate wealth for Kosmos Innovation Center, visit supporting two other businesses. fellow Ivorians through improved www.kosmosinnovationcenter.com. sales and new job creation. More

39 KOSMOS INNOVATION CENTER KOSMOS INNOVATION CENTER IMPACT SUCCESS STORIES

SEED FUNDING INVESTED Kosmos has provided more TROTRO than $300,000 in seed PROFISH TRACTOR funding to startups

The “Uber for tractors,” TroTro Tractor is ProFish brings advanced logistics and cold revolutionizing Ghanaian farmers’ access to storage techniques to the fishing industry, modern agricultural equipment. ensuring fresh and timely distribution of products to customers.

ENTREPRENEURS TRAINED KIC and its partners have trained more than 500 entrepreneurs since March 2016

GROWTH SOIL FACTOR SOLUTIONS

The company’s unique nvoicia platform pays Soil Solutions has designed soil testing kits small businesses 80% of the value of invoices to provide farmers the information needed to STARTUPS FORMED within 48 hours, solving cash flow issues cultivate the most viable and profitable crops caused by late payments. for their fields’ soil composition. The KIC has helped to launch more than a dozen new startups CAPITAL FROM EXTERNAL INVESTORS KIC startups have raised over $1,000,000 in seed funding from other private and donor funders

40 41 Since discovering large deposits of natural gas offshore Mauritania in 2015, Kosmos has pursued a development strategy for this resource aimed at bringing benefits to the country as quickly and efficiently as possible. The benefits are expected to include revenue from the export of liquefied natural gas (LNG), the economic impact of reliable power generated from a plentiful and low-cost source of energy, and the significant follow-on benefits of industrial development.

n December 2018, Kosmos and FPSO to a floating liquefied natural MANAGING OUR FOOTPRINT BP completed a 34-month effort gas (FLNG) facility at a nearshore Kosmos has been supporting BP to write and obtain approval of hub located on the Mauritania and I in its role as operator in managing the Greater Tortue Ahmeyim (GTA) Senegal maritime border. the footprint of all activities in Environmental and Social Impact The FLNG facility for Phase 1 is Mauritania. Most notably, this Assessment (ESIA) and associated designed to provide approximately includes preparations for entering Environmental Management 2.5 million tons per annum on the construction phase of the GTA Plan. There were numerous average. Production is expected project. As part of the transfer public consultations and inquiries to begin in the first half of 2022. of operatorship, most Kosmos conducted in both Mauritania and Subsequent phases, which are now employees transitioned to BP at Senegal (more than 3,000 people being planned, are expected to the end of 2017. Since then, we participated) and it is believed increase output to around 10 MTPA. have hired a new Mauritanian to be the first time that both country manager and support staff countries, with different regulatory Kosmos and BP estimate that there to maintain our employment of requirements, approved a single is 50-100 trillion cubic feet (Tcf) 100% Mauritanian nationals in our study of a private-sector project. of gas in place offshore Mauritania Nouakchott office. and Senegal, enough to eventually Following approval of the ESIA, support three 10 MTPA LNG hubs – Kosmos and BP announced a final at Tortue on the maritime border, at ENGAGEMENT AND LISTENING investment decision (FID) for Phase 1 Bir Allah to the north in Mauritania, Our gas discoveries offshore of the GTA project. The GTA project and at Yakaar-Teranga to the south Mauritania mean that we expect will produce gas from a deepwater in Senegal. to have a presence in the country subsea system and mid-water for many years to come. We want to be a welcome investor, both to our host governments and local communities. To achieve this goal, we build relationships with stakeholders through engagement and listening on all topics: the environment, transparency, our Mauritania BLOCK operations, capacity building and C6 social investment projects, health and safety, and socioeconomic impacts.

BLOCK We are pleased to support the C12 government of Mauritania’s commitments to transparency. The Mauritanian Hydrocarbon Code of BLOCK 2011 requires companies to publicly BLOCK C8 disclose the payments they make C13 to government. In 2017, Kosmos SENEGAL DEVELOPMENT PRODUCTION INFRASTRUCTURE- BASIN-OPENING served as a private sector member OF WORLD-SCALE OPTIMIZATION LED EXPLORATION EXPLORATION DISCOVERIES The first phase of the Greater Tortue Ahmeyim gas project is expected to take just seven years from of Mauritania’s EITI National discovery to first production, an industry-leading timeline. Committee.

43 center will enable the Mauritanian Ministry of Petroleum, Energy and Mines to use the latest technology to host courses taught by experts from around the world. This will provide Mauritanians with the opportunity to develop specialized skills without having to either travel abroad or bring specialized instructors to Mauritania. The Center will ultimately be turned over to the Ministry of Petroleum, Energy and Mines who will assume responsibility for its sustainability.

Kosmos Innovation Center Expands into Mauritania In 2018, we expanded the activities of the Kosmos Innovation Center (KIC) into Mauritania with the first annual Mauritania Innovation The Mauritania Innovation Challenge provides the opportunity for young people to develop the confidence and skills they need to become entrepreneurs Challenge, an initiative modeled on through a series of classroom modules and competitive pitch competitions. The Mauritania Innovation Challenge takes entrepreneurs on a proven eight-step a successful program implemented journey to develop a market-ready product or service. by the KIC in Ghana. Like Ghana, Mauritania faces high youth We received more than 170 ecosystem by bringing together • Developing incubators in local unemployment but has many applications for the program. experts and decision-makers in universities Following a rigorous review of the public and private sectors. talented entrepreneurs and provides • Facilitating access to public the online application process In December 2018, we hosted a significant opportunities for tenders by micro-, small- and and individual interviews, Kosmos workshop in Nouakchott for policy motivated business leaders with the medium-sized enterprises, and POSITIVE IMPACTS In 2017, these projects were skills to start their own companies. selected the most promising 25 makers, financial institutions, businesses to participate. After incubators, academics, small • Developing incentives for transitioned to BP as they assumed The Mauritania Innovation Since entering Mauritania in 2012, several months of individual businesses, and international integrating young entrepreneurs operatorship of the exploration Challenge is a competition in which Kosmos has supported a range coaching and training in development agencies to discuss in the supply and distribution blocks and GTA project. young entrepreneurs pitch their of social investment projects entrepreneurship, the field of how to best encourage and support chains of large enterprises. designed to: In 2018, Kosmos and BP signed a business ideas to a panel of expert participants was narrowed to 12 the next generation of Mauritanian Our work to promote Memorandum of Understanding judges who then invite a sub-set of • Bring electricity to communities businesses which then competed entrepreneurs. The event identified entrepreneurship also includes for the construction and initial the participants to enroll in a KIC near Ndiago through the to win admission into a year-long a number of suggestions to help supporting events organized by key operation of a Distance Learning program offering business skills installation of solar energy KIC incubation program, as well as entrepreneurs, such as: partners, including the . Center to improve learning and leadership training, including infrastructure initial seed funding to help them In 2018, we sponsored the World capabilities in Mauritania’s oil and coaching and mentoring, as well as • Establishing dedicated financing launch their businesses. Bank’s “Entrepreneurship Marathon” • Improve the livelihoods of small- gas industry. Once complete, the support to develop prototypes of instruments and mechanisms their products. The winners developed innovative by awarding a $5,000 prize for the scale fish processing businesses • Fostering collaboration between business ideas in a range of areas, “best innovation” in their contest for in Ndiago microfinance institutions and including construction materials, promising start-ups. • Protect the environment in commercial banks solid waste removal, electronic Diawling National Park money transfer, food delivery, office • Creating a credit bureau Supporting Communities in Need • Support research and increase space, and distance education. to alleviate the information In addition to our work in knowledge of marine biodiversity asymmetry between Kosmos is providing seed funding entrepreneurship, we also offshore Mauritania entrepreneurs and financial to four of the companies, with institutions with the establishment continued to support communities • Support a graduate degree Banque Mauritanienne pour le of a credit scoring system in need by distributing food kits to program in Mauritania on Commerce International, a large 100 disadvantaged families during managing the impact of the Mauritanian bank, and SEPCO, • Improving the capacity of Ramadan, as well as donating extractives sector a waste management company, existing incubators and other clothing to Institut Marie Diallo, a entrepreneur technical support • Teach English to vocational supporting two other businesses. nonprofit in Nouakchott that cares organizations school students to improve their In addition to running the Mauritania for orphaned, abandoned, and employability, and Innovation Challenge, we also • Improving the technical support abused children. capabilities of micro-finance • Provide meals to needy families supported the broader development institutions during Ramadan. of Mauritania’s entrepreneurial In the Mauritania Innovation Challenge, participants pitch their business ideas to a panel of judges and stakeholders in Nouakchott. The most promising ideas receive further technical assistance and potential seed funding to continue their growth journey.

44 45 Since discovering large deposits of natural gas offshore Senegal in 2016, Kosmos has pursued a development strategy for this resource aimed at bringing benefits to the country as quickly and efficiently as possible. The benefits are expected to include revenue from the export of liquefied natural gas (LNG), the economic impact of reliable power generated from a plentiful and low-cost source of energy, and the significant follow-on benefits of industrial development.

n December 2018, Kosmos and MANAGING OUR FOOTPRINT development opportunities to our BP completed a 34-month effort Senegalese staff through training Kosmos opened its office in Dakar to write and obtain approval of workshops and special assignments I in September 2014 to support our the Greater Tortue Ahmeyim (GTA) to enhance their capabilities. drilling program and to establish Environmental and Social Impact a visible presence in the country. In mid-2017, when BP took over Assessment (ESIA) and associated Kosmos spent more than a year operatorship of Cayar Offshore Environmental Management working in fishing communities Profond and Saint Louis Offshore Plan. There were numerous onshore from our license areas Profond blocks, many of our public consultations and inquiries to introduce the company, begin national staff transitioned to work conducted in both Mauritania and building productive relationships, for BP. We currently have a team Senegal (more than 3,000 people and prepare for both seismic of four employees in our office in participated) and it is believed surveys and drilling activities. Dakar to continue above-ground to be the first time that both activities, such as social investment, countries, with different regulatory Since those early days, we have and to support the operations that requirements, approved a single built a team in Dakar comprised BP leads as the operator. study of a private-sector project. predominantly of Senegalese nationals. We have provided Following approval of the ESIA, Kosmos and BP announced a final investment decision (FID) for Phase 1 of the GTA project. The GTA project is designed to produce gas from a deepwater subsea system and mid-water FPSO to a floating liquefied natural gas (FLNG) facility at a nearshore hub located on the Atlantic Mauritania and Senegal maritime Ocean border.

MAURITANIA The FLNG facility for Phase 1 is designed to provide approximately ST. LOUIS Senegal OFFSHORE 2.5 million tons per annum on PROFOND average. Production is expected to begin in the first half of 2022. Subsequent phases, which are now being planned, are expected to increase output to around 10 MTPA. Kosmos and BP estimate that there is 50-100 trillion cubic feet (Tcf) CAYAR of gas in place offshore Mauritania OFFSHORE and Senegal, enough to eventually PROFOND support three 10 MTPA LNG hubs –

DEVELOPMENT at Tortue on the maritime border, at PRODUCTION INFRASTRUCTURE- BASIN-OPENING OF WORLD-SCALE OPTIMIZATION LED EXPLORATION EXPLORATION DISCOVERIES Bir Allah to the north in Mauritania, and at Yakaar-Teranga to the south in Senegal. Kosmos employees in Senegal support the Greater Tortue Ahmeyim gas project by working alongside BP in local communities in northern Senegal.

47 At the request of EITI’s Senegal POSITIVE IMPACTS their place in the accelerator. Five chapter, we sponsored and businesses move forward to take Since entering Senegal in 2014, contributed to the development of part in the six-month program. Kosmos has supported a range two public educational documents of social investment projects Participants are guided through on topics of interest related to oil designed to: the early and fragile stages and gas: How to Develop Cross- of business growth, learning border Oil and Gas Resources: • Improve quality of life in fishing everything from how to develop Lessons Learned from International communities customer profiles and how to carry Experience and Catching the Early • Restore the environment and out competitor analysis, to how Worm: An Educational Document on combat coastal erosion along the to make a product roadmap and Lessons Learned from Oil and Gas Langue de Barbarie develop a sustainable revenue in Ghana for the Senegal Extractive • Protect the environment and model for their business. Six Industry Transparency Initiative. biodiversity in Djoudj National months later, the aim is to launch These documents are now being Bird Park five new businesses with the used by the EITI in capacity potential to help transform the • Support a graduate degree building programs to help improve agricultural industry in Senegal. program in Senegal on understanding of the oil and gas managing the impact of the industry. Catching the Early Worm Creating Local Opportunities extractives sector was written by the Africa Centre for Kosmos and BP committed to a Energy Policy (ACEP), a prominent In 2017, these projects were multi-million dollar investment Ghanaian civil society organization. transitioned to BP as they assumed Kosmos sent two people from Senegalese civil in support of the newly created society to a Natural Resource Governance Institute In November 2018, Kosmos funded operatorship of the exploration National Institute of Oil and Gas (NRGI) summer school on resource governance at the authors of the report to travel blocks and GTA project. the University of Central Africa in . from Accra to Dakar to present and (INPG), designed to build national capacity for the emerging oil and discuss their work with the Senegal Kosmos Innovation Center ENGAGEMENT AND LISTENING gas industry in Senegal. The INPG EITI Multi-Stakeholder Group. Expands into Senegal was inaugurated by President Kosmos led or participated in For the third consecutive year, In 2018, we expanded the activities and welcomed its first workshops and conferences in Kosmos sponsored members of of the Kosmos Innovation cohort of students for a specialized Senegal in 2018 on transparency Kosmos and BP both became will be working with leading oil Senegalese civil society to attend Center (KIC) into Senegal with master’s degree in oil and gas and good governance of natural founding members of Invest in and gas industry operators and a Natural Resource Governance the first annual Senegal Start- engineering in October 2018. resources. Africa’s Senegal chapter in 2018. tier-one service providers to help Institute (NRGI) summer school Up Accelerator, an initiative In addition to building the capacity Invest in Africa is a nonprofit Senegalese businesses better We continued our regular on resource governance at the modeled on a successful program of people who might work in enterprise specializing in helping understand the oil and gas sector engagement with the EITI, University of Central Africa implemented by the KIC in Ghana. the oil and gas sector, Kosmos small companies develop their and prepare to make the most supporting the dissemination of in Cameroon. Topics covered Like other countries, Senegal faces and BP have taken steps to help businesses and improve their of future opportunities in the the 2017 EITI report by presenting included oil and gas project high youth unemployment but established businesses become a competitiveness by creating industry. Invest in Africa plans to at a workshop in Saint Louis. We lifecycles, revenue flows during has many talented entrepreneurs part of the oil and gas supply chain. access to skills, markets and launch a number of programs in also sponsored and presented at an different stages of the project, the and significant opportunities for finance. In Senegal, Invest in Africa Senegal in 2019. EITI Africa conference on beneficial causes and impacts of changes in motivated business leaders to start ownership transparency held in oil price, contract transparency, their own companies. Dakar following the EITI’s annual corruption risks, and managing The Senegal Start-Up Accelerator, Board meeting which was also held the environmental impacts of launched in partnership with in Dakar. exploration and production. Reach for Change, is helping In 2018, we also sponsored and young Senegalese entrepreneurs participated in the third annual develop innovative solutions to National Conference on Sustainable challenges in the agricultural and Development organized by the environmental sector. Ministry of the Environment. The event brought together The program starts with a week- government officials, industry, civil long selection process where society and academia to discuss potential candidates are thoroughly the sustainable development of oil introduced to the program; and and gas resources. the program leaders to their business ideas. With this depth How to develop cross-border We continue to work in partnership oil and gas resources of understanding, ten people are LESSONS FROM INTERNATIONAL EXPERIENCE with BP to continue these types selected to move forward in the of capacity building engagements process. These ten finalists undergo Catching the Early Worm with government, civil society, an intensive boot camp with An educational document on lessons learned from oil and gas in Ghana, for the journalists and local communities Senegal Extractive Industry business experts and then pitch for Transparency Initiative in Senegal.

Young entrepreneurs with the Kosmos Innovation Center in Senegal learn about starting and growing businesses that use technology to address challenges in the agriculture and environmental sectors.

48 49 In late 2017, Kosmos acquired five blocks offshore Côte d’Ivoire as part of an expansion of its exploration activities in the Gulf of Guinea. This area offshore Côte d’Ivoire is thought to be an extension of the Tano Basin in Ghana, which the Kosmos exploration team opened with the Jubilee oil discovery in 2007. Côte d’Ivoire’s offshore area provides an opportunity for Kosmos and its partner BP to formulate a frontier basin exploration strategy and pursue new technical themes.

osmos and BP each acquired KOSMOS INNOVATION CENTER and men are learning how to an equal 45%-45% working EXPANDS INTO CÔTE D’IVOIRE overcome barriers to growth interest in five contiguous and how to build competitive K In 2018, we expanded the activities blocks covering approximately businesses that generate wealth for of the Kosmos Innovation Center 17,000 square kilometers. fellow Ivoirians through improved (KIC) into Côte d’Ivoire with PETROCI, the national oil company sales and new job creation. More the launch of a comprehensive of Côte d’Ivoire, has a 10% carried than 300 entrepreneurs in coastal business accelerator program working interest in the blocks as communities have been selected to called Stimulating the Spirit of well. Kosmos is the exploration take part in the program. Over the Entrepreneurship in Côte d’Ivoire. operator and BP will be the course of four months, participants The accelerator aims to help development operator in the event receive intensive business and young Ivorian entrepreneurs of a commercial discovery. managerial support training, and small enterprises develop financial consultancy, and one-to- A multi-client 3D seismic acquisition their businesses sustainably and one mentorship. program covering approximately unlock economic prosperity in the 12,000 square kilometers in Kosmos’ country’s coastal and other regions. After the four-month incubation blocks was completed in 2018. The program was developed in period, all 300 entrepreneurs Together with BP, we are now partnership with the Direction present their work to a jury. analyzing and interpreting the data. Générale des Hydrocarbures Around 180 will progress through If this work yields promising results (DGH) and is being delivered by this stage, and receive five in the form of prospects indicating TechnoServe, an international months of additional support to the potential presence of oil and gas nonprofit that promotes business help implement their business in commercial quantities, then the solutions to poverty in the growth plan. Further training and two companies will decide where to developing world by linking people mentoring is provided, as well drill an exploration well in the future. to information, capital and markets. as support to access financial institutions and funding. Through the accelerator program, Côte MANAGING OUR FOOTPRINT small enterprises led by women In 2019, Kosmos began the process of opening an office in Côte d’Ivoire and started building a small team of d’Ivoire employees in , including a local national as country manager. Kosmos also worked to deepen BLOCK BLOCK its knowledge of the operating CI-707 CI-708 environment in Côte d’Ivoire and establish relationships with key stakeholders in government, BLOCK industry, NGOs and civil society CI-526 – including the Côte d’Ivoire Extractive Industries Transparency Initiative (EITI).

DEVELOPMENT BLOCK BLOCK PRODUCTION INFRASTRUCTURE- BASIN-OPENING OF WORLD-SCALE Gulf of OPTIMIZATION LED EXPLORATION EXPLORATION CI-602 CI-603 DISCOVERIES Guinea A participant in the new Kosmos Innovation Center program in Côte d’Ivoire brainstorms business strategy as part of her training.

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

pon entering São Tomé and marine mammals and sea turtles. survey that exceeded international Príncipe in 2016, Kosmos Two marine fauna observers environmental standards. established a local office (MFOs) and one passive acoustic U Processing of the data collected by on the island of São Tomé and monitoring (PAM) operator were the 2017 seismic survey has now appointed a country manager. We present onboard the seismic vessel been completed. We are compiling currently employ seven local staff throughout the survey. an inventory of prospects on the members, working in areas such Kosmos and its partners spent license areas in São Tomé and as accounting, finance, external more than a year developing an Príncipe and will continue to refine affairs, HSE, and procurement. understanding of the potential and assess the prospectivity, Galp Energia, a Portuguese oil and impacts of our seismic survey on integrating this 3D seismic data gas company, holds a non-operated the waters offshore São Tomé and into our geological evaluation stake as a partner in blocks 5, 11, Príncipe through the preparation during 2019 in anticipation of a and 12, and an operated position of an environmental, health and potential start of drilling activities in block 6. Equity in these four social impact assessment (ESHIA). as early as 2020. blocks is also shared with Equator For each block, the ESHIA was In addition to the seismic work, Exploration and the Agencia developed by independent Kosmos and its partner Galp Nacional do Petroleo de São Tomé consultants and approved by the undertook an Environmental and e Príncipe (ANP-STP), on behalf of São Tomé and Príncipe Ministry of Social Impact Assessment for the government. Infrastructure, Natural Resources potential drilling in blocks 5, 6, and Environment. BP is our partner in blocks 10 and 11, and 12. In preparation for the 13. The work program in these A project-specific marine fauna study, Kosmos and Galp hosted blocks will be phased to enable protection plan was developed to an offshore drilling workshop Kosmos and BP to develop a include approved marine fauna for regulators and government deeper understanding of the basin mitigations, and appropriate stakeholders to understand the and create the best chance of experts were engaged to assist in basics of the project. We also exploration success. In the first compliance with the plan. Through conducted public consultations four-year phase, Kosmos and BP research and engagement, we are in Príncipe and São Tomé to get São Tomé will acquire seismic data and will proud that we could design a seismic feedback from the public. analyze the data to decide on next PRÍNCIPE steps with regard to drilling. Kosmos will be the technical EQUATORIAL and Príncipe BLOCK 10 BLOCK 5 operator during the exploration GUINEA phase of the license, with BP taking over to manage any development BLOCK 6 in the event of exploration success. SÃO TOMÉ BLOCK 11 MANAGING OUR FOOTPRINT In late 2017, we completed a 3D seismic survey in blocks 5, 6, 11, and BLOCK 12 GABON 12 covering approximately 16,000 square kilometers. The seismic BLOCK 13 survey was planned and executed DEVELOPMENT PRODUCTION INFRASTRUCTURE- BASIN-OPENING OF WORLD-SCALE OPTIMIZATION LED EXPLORATION EXPLORATION to minimize potential impacts DISCOVERIES Gulf of Guinea to the environment, particularly Kosmos has worked with Fauna and Flora International, an international wildlife conservation organization, to minimize risks to marine fauna during our seismic acquisition projects offshore São Tomé and Príncipe.

53 In 2018, Kosmos worked with 2019, and potential future drilling POSITIVE IMPACTS BP to prepare for and begin an activities, we participated in public Kosmos and its partners are environmental baseline study related consultation forums and met with “The partnership between Kosmos Energy and Fundação Príncipe obligated to spend approximately to blocks 10 and 13. The study, a variety of government and civil is more than a relationship between donor and grantee. Kosmos $3.3 million on social investment which began June 2018 and will society stakeholders. has become a member of our family with whom we share our projects over four years (2016-2019) run through July 2019, uses passive passion and love of this work, the islands, and the turtles. It Prior to our 2017 seismic program, under the terms of our production acoustic monitoring equipment to was important that Fundação Príncipe remain independent and Kosmos and its partners engaged sharing contracts with the measure ambient noise levels and be able to speak honestly about Kosmos’ work in the country with fishing communities, and government for blocks 5, 11 and 12. collect data on the presence of regardless of the grant we received. We could not be more happy established a formal grievance sensitive species such as whales and To ensure this social investment with the way Kosmos has encouraged us to do exactly that – to mechanism for individuals sea turtles. The data collected from obligation results in real benefit push everyone to do their best for the natural resources of the potentially impacted by our this study will be included in ESHIAs to the people of São Tomé and country, for the communities and for our biodiversity. We are activities. The assessment included that will be conducted ahead of Príncipe, Kosmos has engaged with pleased to continue this partnership and the work we’re doing on extensive consultation on both future activities, such as seismic the government to understand its turtle conservation and monitoring on Príncipe.” islands, which presented several surveys and drilling. national development priorities and opportunities for interested formulate a strategic plan for the Kosmos and BP have prepared an parties to provide feedback. This ESTRELA MATILDE education sector. ESHIA related to future seismic feedback was incorporated into the Executive Director, Fundação Principe activities in block 10, which was Environmental Management Plan São Tomé and Príncipe has high developed by independent and survey design. levels of literacy compared to consultants and approved by the many other developing countries. To keep stakeholders informed, a Ministry of Infrastructure, Natural However, the country’s young community engagement program Resources and Environment. demographic – over 60% of the or teachers-in-training, as well program to recruit students from • Strengthening the capacity of the was also conducted ahead of the population is under the age of 24 as the maintenance and repair of each community to be part of local staff through managerial We are committed to working seismic acquisition. The program – presents significant challenges the classrooms and facilities. This the wildlife observation team and technical training sessions closely and transparently with local included members from Kosmos, in the education sector which the initiative is being overseen and and international stakeholders Galp, Agencia Nacional do Petroleo • Filling critical research and We plan to continue our government is eager to address. monitored by a steering committee to safeguard São Tomé and de São Tomé e Príncipe (ANP-STP), knowledge gaps on the ecology, partnership with FPT and do our comprised of Kosmos, the Ministry Príncipe’s unique biodiversity. By the national oil company, the local According to recent government habitat and status of the sea part to make the island a safe of Education, Culture and Science, following international standards NGO MARAPA, and the Ministry of data, the key challenges are: turtles to better inform and guide haven for sea turtles. and ANP-STP. Construction on this and engaging in dialogue Fisheries. After the seismic campaign targeted conservation actions • Class size: an average of 80 project is now underway. with international and local had concluded, we re-visited key students per classroom organizations, we believe oil and local and international stakeholders • Pace of development: Inadequate gas exploration can proceed in a to update them on the completion Protecting Marine Life use of technology due to lack of responsible and environmentally- of the survey and the success of In addition to the education projects infrastructure and training sensitive manner. our environmental mitigation plans. on São Tomé island, Kosmos A similar engagement program is • Instruction: Insufficient number has partnered with Fundação ENGAGEMENT AND LISTENING scheduled ahead of the planned of teachers, many of whom lack Príncipe Trust (FPT), a Príncipe- 2019 seismic survey. necessary training based organization devoted to Kosmos is committed to environmental conservation, on an transparency and active promotion From 2017 to the present, Kosmos Thus, the goals of the education initiative which aims to improve the of the Extractive Industries has had an ongoing dialogue with initiative include improving access conservation status of the three Transparency Initiative (EITI) Fauna & Flora International (FFI) to quality education, reducing the species of sea turtles nesting on in each of our host countries, regarding our seismic planning and average number of students per Príncipe, as well as making the including São Tomé and Príncipe, future activities offshore São Tomé classroom, and preparing students island safe for the five species of sea which has been a member country and Príncipe. FFI provided valuable for the future labor market. feedback on our survey design turtles that inhabit Príncipe’s waters. since 2012. Kosmos is in the process of building and mitigation measures, and we The partnership is making progress two new secondary schools and Kosmos has established regular agreed to continue conversations in several areas: associated facilities (in Santana and engagement with EITI and in 2018 around seismic acquisition and Monte Café) and adding classrooms • Monitoring and protecting sea became a member of the multi- any future exploration drilling. We and additional facilities to two turtle populations through stakeholder group in São Tomé also shared cetacean and marine existing schools in Neves and São patrols of nesting beaches and and Príncipe. In 2018, Kosmos and mammal data acquired by our Marçal. This commitment will add surrounding waters, as well as its partners held two knowledge- marine fauna observers and other an additional 44 classrooms in high engaging coastal communities building workshops on the oil and scientists on the seismic vessel priority locations on the island of • Raising awareness in local gas industry, one on each island, during the acquisition program. for local stakeholders. São Tomé. Once these projects communities to increase support are completed, the Ministry of for turtle conservation through During the ESHIA process related Education, Culture, and Science an education campaign focusing to our seismic survey in 2017, will take responsibility for staffing on secondary school children the planned seismic program in the schools with qualified teachers and freedivers, as well as a

54 55 Kosmos began exploration activities offshore Suriname in December 2011 with the signing of Production Sharing Contracts for Blocks 42 and 45. In 2012, we opened an office in Paramaribo, the capital of Suriname, to support offshore operations, manage in-country activities, and liaise with local stakeholders. Since then, we have developed a capable team of local employees, listened to community members, and implemented various social and environmental projects, in addition to drilling two wells and conducting three seismic surveys.

n 2018, Kosmos drilled two exploration wells in Suriname. IWhile neither the Pontoenoe-1 well nor the Anapai-1A well encountered hydrocarbons in commercial quantities, they did enhance our geologic understanding of the basin and represented a significant investment in Suriname. We remain optimistic regarding the oil potential offshore Suriname and expect to begin a second exploration drilling campaign in 2020. In addition, we remain focused on continuing our above-ground activities, such as stakeholder engagement and social investment projects. We aim to be a welcome investor in Suriname.

MANAGING OUR FOOTPRINT During 2018 drilling activities, Kosmos established a local helicopter base in Paramaribo to transfer During exploration drilling, Kosmos personnel to and from the drillship. aims to maximize local content and the creation of economic The 2018 drilling campaign was In addition, Kosmos contracted a opportunity. However, due to managed from our local office Surinamese waste management in Paramaribo. We used the company – United Recycling & BLOCK 42 draft limitations at port and river Suriname facilities in Paramaribo, Kosmos Kuldipsingh Port on the Suriname Rental N.V. (UR) – to process our was required to operate from River as a secondary shore base waste streams from the drilling BLOCK 45 a primary shore base facility to deliver food and other small operations. UR worked with in Trinidad. In addition, limited supplies to and from the drillship. Kosmos HSE professionals to availability of qualified service We established a local helicopter significantly upgrade its facilities Atlantic base for personnel transfer to and to meet all our health, safety, Ocean companies in Suriname restricted our ability to award contracts for from the offshore drillship. Kosmos and environmental requirements. local goods and services. Kosmos also supported the local economy The enhanced capacity of their is working with local providers to through purchasing personnel facility will enable the company build capacity within Surinamese accommodations, transportation to more effectively handle companies, as well as within the services, customs and clearance various waste streams from other FRENCH technical, vocational, and university service, and support for helicopters. industries, including medical and DEVELOPMENT PRODUCTION INFRASTRUCTURE- BASIN-OPENING OF WORLD-SCALE OPTIMIZATION LED EXPLORATION EXPLORATION GUIANA education systems. biohazardous by-products. DISCOVERIES

57 In a move that illustrates the trust POSITIVE IMPACTS accretion rates and thus slowing capabilities. Since the beginning that we have built, Staatsolie asked erosion, the team has expanded of the hospital partnership, Although our drilling operations take Mike Resomardono, our external the project by upgrading the Kosmos has donated surgical tools, place far offshore with negligible affairs manager, to draft a plan for existing STUs and engaging local machines for monitoring patient impact on coastal areas, Kosmos is how international companies could community members to plant vital metrics, defibrillators (AEDs), committed to preserving the coastal support technical and vocational mangrove juveniles along the coast and intensive care unit beds. environment and supporting coastal education in Suriname. The of Weg naar Zee. communities in Suriname. Kosmos also supports St. Vincentius recommendations will be presented In addition to partnering with Hospital, the second largest in to Staatsolie and other oil and gas Mangroves grow abundantly along the university on mangrove Suriname, through the donation companies. This project builds on Suriname’s coastline and prevent conservation and research, of neonatal equipment, such as Mr. Resomardono’s previous work coastal erosion. The area of Weg Kosmos is also supporting delivery beds, infant resuscitators, leading multi-stakeholder initiatives, naar Zee, north of Paramaribo, the local university’s master’s and phototherapy lamps. including a healthcare project in experiences frequent flooding and degree program in Sustainable which Kosmos, Staatsolie, and other erosion due to the loss of mangrove Management of Natural Resources. international companies donated forests. The flooding and rising sea The support included the donation $830,000 to support local needs. levels have affected nearly 3,000 of 36 advanced computers that community members, including students can use to run more artisanal fishermen, farmers, and Transparency sophisticated computer applications bee keepers. In addition, erosion has in pursuit of their studies. Kosmos has been in an active dialogue with the government of Suriname about the potential benefits As part of Kosmos’ global effort threatened to destroy two important of dredging the Suriname River to allow larger boats to access ports in Paramaribo. to promote transparency, we have cultural and religious sites. actively supported Suriname’s Improving Healthcare Kosmos has partnered with ENGAGEMENT AND LISTENING independent consultant. This study effort to join the Extractive identified opportunities where Conservation International and The Academic Hospital Paramaribo Since the end of our 2018 drilling Industries Transparency Initiative local companies in Suriname can Anton de Kom University on a is the largest hospital in Suriname campaign, we have been looking (EITI). Suriname’s application to participate in, or build capacity to multi-year project to mitigate the and serves as a major medical for ways to increase local content become a candidate country was participate in, current and future oil coastal erosion at Weg naar Zee by research hub for the country. in Suriname in anticipation of a approved in May 2017, and the first and gas activities. building Sediment Trapping Units The government of Suriname second wave of drilling in 2020. EITI reports for 2016 and 2017 will (STUs). These structures promote has prioritized developing the We are engaging with Staatsolie, Throughout the study, the be published in 2019. As a member sediment deposition and create hospital. In support of the national the national oil company, and consulting firm worked with country, Suriname is required to Embracing Innovation conditions for halting and reversing development agenda, Kosmos Suriname’s government on two local companies and small- and publicly disclose revenues received erosion. Mangrove juveniles grow in has committed multi-year support Our multi-year support of technical important areas: medium-sized enterprises (SMEs) from the extractive industry the newly formed mud banks, both to the academic hospital and the education and STEM disciplines to assess their ability to support (petroleum and mining) and • Evaluating the costs and benefits naturally and when planted by local training of its staff. naturally encourages innovation in the oil and gas supply chain. The encourage public debate regarding of dredging the Suriname River researchers. Suriname. In 2018, we continued study estimated the range of local government management of Kosmos began by working with to make it easier for large vessels to support programs that target content expenditure that would be the country’s natural resources. The mangrove restoration project hospital personnel in 2016 to to use ports in Suriname, and the intersection of technology and Kosmos represents the oil and gas team now has more than two years identify needs and create a plan contributed over the life of a typical social entrepreneurship. • Improving Suriname’s overall project. The study also identified sector in EITI as one of 18 members of data from which to evaluate the for how Kosmos and other oil industrial capacity viable areas of capacity building and of the Multi-Stakeholder Group. effectiveness of the STUs. Since and gas operators in Suriname We worked with a local the first phase of the project was can work together to build the organization, IT Core, as a sponsor Kosmos has been in an active investment which could maximize successful in increasing sediment hospital’s research and patient care of a three-month hackathon which dialogue with the government local content for each scenario. applied elements of gaming to of Suriname about the potential We will continue to seek ways to other areas to motivate young benefits of dredging the Suriname increase local participation in our people to solve real world River to allow larger boats to supply chain, while supporting problems. More than 100 young access ports in Paramaribo. As government efforts to ensure any Editors and journalists are people participated in the 2018 part of that dialogue, we shared future oil and gas operations are important stakeholders in program which included idea- specific purchases that we made in a driver of economic growth and Suriname, as they regularly write building, business pitching, and Trinidad instead of Suriname due to sustainable development. about domestic oil and gas prototyping. They received superior port access in Trinidad. We activities and their work often A related study conducted by coaching and mentorship as part of estimate that making the Suriname shapes public understanding. In the same independent consulting the experience. River at least two meters deeper in firm developed a technical and 2018, we held a three-day media specific areas would enable Kosmos vocational education strategy for workshop to educate journalists Kosmos also supported the Digital and the rest of the industry to base Suriname. The strategy aims to regarding oil and gas activities, Talents Academy, an organization more operations in Suriname. provide for a structured discussion and set reasonable expectations that provided technology and soft- for exploration activities prior skills training to young people who To identify areas where Suriname’s between international oil and to our 2018 drilling campaign. In are interested in pursuing careers overall industrial capacity can be gas companies, the national 2019, Kosmos plans to organize in information and communications improved, Kosmos worked with oil company, the Ministry of a second media workshop to technology. Staatsolie and other international Education, and technical schools to support the development of deepen journalists’ knowledge of operators to commission an Mangrove restoration is an important part of fighting coastal erosion in Suriname. petroleum operations. industrial baseline study by an Suriname’s workforce.

58 59 IPIECA/API/IOGP Content Index

Kosmos Energy’s corporate responsibility reporting is informed by the IPIECA/API/IOGP Oil & Gas Industry Guidance Indicator Page Number in Indicator Global Compact Principle Where Reported on Voluntary Sustainability Reporting. The guidance provides direction on the content of a typical industry corporate Number 2018 CR Report responsibility report by covering 12 sustainability issues and 34 indicator categories. The table below is an index of SOCIAL AND ECONOMIC INDICATORS the indicator categories. The locations of information demonstrating our support for the Ten Principles of the United COMMUNITY AND SOCIETY Nations Global Compact are also shown in the index, both in this report and in other sources, such as our publicly available policies and on our website, www.kosmosenergy.com. CR Report: Business Principles 8, 9, 11 CR Report: Operations Spotlights 23, 24, 25, 27, 28, 29, 32, 33, 34, 35, 43, 44, 45, 48, 51, 53, Indicator Page Number in Local community Indicator Global Compact Principle Where Reported SE1 54, 55, 58 Number 2018 CR Report impacts and engagement www.kosmosenergy.com: Society and Communities Kosmos Energy Stakeholder Engagement ENVIRONMENTAL INDICATORS and Community Development Policy* CLIMATE CHANGE AND ENERGY Kosmos Energy Stakeholder Engagement SE2 Indigenous peoples CR Report: Business Principles 16, 17 and Community Development Policy* E1 Greenhouse gas emissions 7, 8 CR Report: Operations Spotlights 64 SE3 Involuntary resettlement Not applicable E2 Energy use Not reported CR Report: Business Principles 18 E3 Alternative energy sources Not reported CR Report: Operations Spotlights 23, 24, 25, 27, 28, 29, 32, 33, 34, 35, 36, 37, 40, 43, 44, 45, 48, 51, 53, 54, 55, 58, 59 E4 Flared gas Not reported SE4 Social investment CR Report: Performance Data 66 ECOSYSTEM SERVICES Kosmos Energy Stakeholder Engagement and Community Development Policy* Biodiversity and CR Report: Business Principles 14 www.kosmosenergy.com: Society and Communities E5 7, 8, 9 ecosystem services CR Report: Operations Spotlights 40, 48, 54, 55 LOCAL CONTENT E6 Fresh water CR Report: Performance Data 64 CR Report: Business Principles 12, 19 LOCAL ENVIRONMENTAL IMPACT CR Report: Operations Spotlights 23, 25, 49, 57, 58 SE5 Local content practices 6 Kosmos Energy Stakeholder Engagement E7 Other air emissions 7, 8 CR Report: Performance Data 64 and Community Development Policy* www.kosmosenergy.com: Our People CR Report: Business Principles 15 E8 Spills to the environment 8 CR Report: Performance Data 64 CR Report: Business Principles 12 CR Report: Operations Spotlights 47, 51 CR Report: Performance Data 63 CR Report: Performance Data 64 SE6 Local hiring practices 6 Kosmos did not have any hydrocarbon discharges Kosmos Energy Stakeholder Engagement E9 Discharges to water 8 to water in 2018. Indicators E8 and E9 are combined and Community Development Policy* in our Performance Data as “Hydrocarbon or www.kosmosenergy.com: Our People Non-Aqueous Drilling Fluid Spills.” CR Report: Business Principles 8, 10, 19 CR Report: Performance Data 64 Local procurement and CR Report: Operations Spotlights 57 E10 Waste 8, 9 SE7 THE STANDARD* supplier development Kosmos Energy Stakeholder Engagement and Community Development Policy* E11 Decommissioning Not reported

HEALTH AND SAFETY INDICATORS WORKFORCE PROTECTION CONTINUED ON NEXT PAGE CR Report: Business Principles 12 CR Report: Operations Spotlights 23 HS1 Workforce participation 1 www.kosmosenergy.com: Health and Safety THE STANDARD*

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

Occupational injury and CR Report: Business Principles 15 HS3 1 illness incidents CR Report: Performance Data 67

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_/ 60 61 IPIECA/API/IOGP Content Index (continued) 2018 Performance Data

HUMAN RESOURCES Indicator Global Compact Page Number in Indicator Where Reported Number Principle 2018 CR Report The data on our workforce is point-in-time as of December 31, 2018. We prioritize hiring and training local staff from the SOCIAL AND ECONOMIC INDICATORS (CONTINUED) countries in which we work. The ‘Local Employment’ metric does not include employees in our U.S. office, and we define HUMAN RIGHTS Expatriates as employees in our local country offices who are living and working on a long-term assignment in a country not of their origin. Turnover includes voluntary turnover in our U.S. office in Dallas, TX, as well as in our global operations. CR Report: Business Principles 8 Human rights due CR Report: Operations Spotlights 23 SE8 1, 2, 4, 5 diligence www.kosmosenergy.com: Human Rights 2016 2017 2018 Kosmos Energy Human Rights Policy* EMPLOYEES AND HIRING CR Report: Business Principles 9, 12, 18 Total Employees 267 282 330 CR Report: Operations Spotlights 32 SE9 Human rights and suppliers 1, 2 Kosmos Energy Human Rights Policy* New Hires 27 33 54 UK Modern Slavery Act Statement* Turnover 6% 7% 8%

CR Report: Business Principles 18 TOTAL EMPLOYEES BY COUNTRY CR Report: Operations Spotlights 23, 32 SE10 Security and human rights 1, 2 www.kosmosenergy.com: Human Rights United States 192 199 260 Kosmos Energy Human Rights Policy* Côte d’Ivoire N/A N/A 0 BUSINESS ETHICS AND TRANSPARENCY Ghana 45 43 43 CR Report: Business Principles 8, 9, 10 Mauritania 10 16 6 CR Report: Operations Spotlights 25, 34, 43, 48, 51, 58 SE11 Preventing corruption 10 www.kosmosenergy.com: Business Ethics Morocco 5 5 0 Kosmos Energy Anti-Corruption São Tomé and Príncipe 1 8 8 Compliance Policy* Senegal 10 8 5 CR Report: Business Principles 8, 9, 19 Suriname 4 3 3 CR Report: Operations Spotlights 23 Preventing corruption SE12 10 www.kosmosenergy.com: Business Ethics United Kingdom N/A N/A 5 involving business partners Kosmos Energy Anti-Corruption Compliance Policy* Contractors United States 14 33 27 CR Report: Business Principles 9, 10 CR Report: Operations Spotlights 25, 34, 43, 48, 51, 58 Côte d’Ivoire N/A N/A 0 Transparency of payments CR Report: Performance Data 65 SE13 10 to host governments Kosmos Energy Stakeholder Engagement Ghana 0 0 1 and Community Development Policy* Mauritania 11 15 2 www.kosmosenergy.com: Transparency Morocco 1 0 0 Public advocacy and CR Report: Business Principles 9, 10 São Tomé and Príncipe 1 0 0 SE14 10 lobbying Senegal 3 16 2 LABOR PROTECTION Suriname 0 0 3 CR Report: Business Principles 12 United Kingdom N/A N/A 0 Workforce diversity and CR Report: Performance Data 63 SE15 1, 6 inclusion www.kosmosenergy.com: Our People www.kosmosenergy.com: Careers LOCAL EMPLOYMENT (%) Local 92% 94% 98% CR Report: Business Principles 12, 28 SE16 Workforce engagement Expatriate 8% 6% 2% www.kosmosenergy.com: Careers

WORKFORCE GENDER DISTRIBUTION (%) Workforce training and CR Report: Business Principles 10, 12 SE17 development CR Report: Operations Spotlights 23, 31, 32, 47 Female Male Female Male Female Male United States 33% 67% 34% 66% 33% 67% CR Report: Business Principles 10 CR Report: Operations Spotlights 23, 32 Côte d’Ivoire N/A N/A N/A N/A 0% 0% Non-retaliation and CR Report: Performance Data 66 SE18 1, 2, 3, 6 Ghana 27% 73% 26% 74% 28% 72% grievance systems www.kosmosenergy.com: Business Ethics Kosmos Energy Stakeholder Engagement Mauritania 30% 70% 25% 75% 50% 50% and Community Development Policy* Morocco 40% 60% 80% 20% 0% 0% São Tomé and Príncipe 0% 100% 25% 75% 25% 75% Senegal 50% 50% 25% 75% 20% 80% Suriname 25% 75% 25% 75% 33% 67% United Kingdom N/A N/A N/A N/A 40% 60%

EQUATORIAL GUINEA (KTEGI) Employees N/A 62 78 Contractors N/A 43 48 Gender Distribution N/A Female: 21% Male: 79% Female: 37% Male: 63% Local Employment N/A 74% 68%

*PDFs are available at www.KosmosEnergy.com/responsibility_/ 62 63 2018 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 Kosmos Energy Ltd. has prepared the following consolidated report in respect of payments made to governments

measured in tons, with greenhouse gas emissions measured in metric tons of CO2 equivalent. The data represents for the year ended 31 December 2018 in accordance with the Reports on Payments to Governments Regulations 2014 drilling rigs as well as seismic and support vessels. (2014/3209) as amended by the Reports on Payments to Governments (Amendment) Regulations 2015 (2015/1928) and DTR 4.3A of the Financial Conduct Authority’s Disclosure and Transparency Rules. In 2018, Kosmos drilled exploration wells offshore Senegal and Suriname, conducted seismic surveys offshore

Equatorial Guinea and Western , and completed a geophysical and geotechnical study offshore Morocco. São Tomé & Cote d'Ivoire Equatorial Guinea Ghana Mauritania Morocco Senegal Suriname United States Príncipe 2018 Income Taxes4 — — 44,629,000 — 1,000 — — — 881,000 Equatorial Guinea Morocco Senegal Suriname Royalties (bbls)6 — — 542,877 — — — — — 596,041 WASTE (TONS) Estimated Royalties ($s)6 — — 38,713,000 — — — — — 36,766,000 Hazardous 60.25 111.34 164.65 1,182.15 116.64 Dividends — — — — — — — — — Non-Hazardous 356.68 61.94 75.44 622.26 407.22 Bonuses 3,758,000 6,000,000 — — — 4,118,000 — — 5,325,000 TOTAL 416.93 173.28 240.09 1,804.41 523.86 License Fees (Surface Rentals, — 121,000 30,000 — — — — — 571,000 Recycled/Reused/Treated 37% 20% 42% 50% 24% Permitting Fees, etc) Envt, Capacity Building 1,250,000 300,000 — 72,000 — — — — — AIR EMISSIONS (TONS) & Social Projects2

2 Carbon Dioxide (CO2) 74,022.86 1,735.20 40,810.36 116,489.39 57,214.87 Training 750,000 458,000 175,000 — 63,000 184,000 — — —

3 Mono-Nitrogen Oxides (NOx) 1,374.04 32.21 757.54 2,162.51 1,062.06 Taxes (Non-Income) — — 1,853,000 778,000 344,000 66,000 898,000 867,000 1,244,000

5 Sulfur Dioxide (SOx) 92.52 2.17 51.02 145.69 71.53 Other 314,000 — 32,000 — — — — 25,000 —

Methane (CH4) 4.17 0.1 2.29 6.67 3.23 TOTAL 6,072,000 6,879,000 85,432,000 850,000 407,000 4,368,000 898,000 892,000 44,787,000

Volatile Organic Compounds (VOCS) 46.27 1.08 25.50 72.98 35.76

1 Greenhouse Gases (GHGS) 75,488.47 1,769.80 40,858.44 116,629.46 58,346.76 PAYMENTS TO GOVERNMENTS KTEGI (USD)

KTEGI (Equatorial Guinea)7 OTHER Production Entitlements (bbls)6 969,000 Fines and Penalties 0 0 0 0 0 Estimated Production Freshwater Use (m3) 1,260.00 225.00 5,987.80 16,300.00 352.00 69,099,0008 Entitlements ($s)6 Hydrocarbon or Non-Aqueous 0 0 0 0 0 Income Taxes4 37,670,000 Drilling Fluid Spills Royalties (bbls)6 753,000

2016 2017 Estimated Royalties ($s)6 53,696,0008 São Tomé & Mauritania Senegal Suriname Mauritania Senegal Suriname Morocco Western Sahara License Fees (Surface Rentals, Permitting Fees, etc) 25,000 Príncipe Taxes (Non-Income)3 117,000 WASTE (TONS) TOTAL 160,607,000 Hazardous 298.67 112.44 10.54 830.25 319.06 2.37 N/A N/A 144.13

Non-Hazardous 296.80 114.11 82.90 412.65 135.96 6.56 N/A N/A 862.31 The Payments to Government data are reflective of direct payments made to government entities by Kosmos Energy - with the exception of payments reported for KTEGI as explained separately. These payments are categorized consistent with the Report on Payments to Governments Regulations 2014 (as amended in December 2015). These TOTAL 595.47 226.55 93.44 1,242.90 455.02 8.93 N/A N/A 1,006.44 regulations enact domestic rules in line with Directive 2013/34/EU (the EU Accounting Directive (2013). Please see the footnotes below for further detail on the payments we made to our host country governments in 2018. 1. Our project-level and receiving-entity level disclosures are available on our website at www.kosmosenergy.com/responsibility/transparency.php. Recycled/Reused/Treated 54% 43% 10% 45% 62% 85% N/A N/A N/A 2. Represents payments made directly to government for satisfaction of obligations per the Petroleum Agreements and/or Petroleum Sharing Contracts (PSCs), as applicable. In addition to the numbers above, Kosmos made payments to third party training providers and/or national oil company employees in accordance with training obligations per the PSCs totaling $33,000 for Morocco, $464,115 in Sao Tome and Principe, and $300,000 in Equatorial Guinea. AIR EMISSIONS (TONS) 3. Primarily local payroll-related taxes and withholding taxes on interest payments as well as property taxes paid on pipe and tangible goods inventory stored at various onshore locations in the United States. These values are exclusive of withholding taxes remitted on behalf of service providers. In addition to the numbers above, Kosmos made payments to Chef du Bureau de Recouvrement of $4.2 million representing W/H tax for services performed outside of Senegal but which were taxable in Senegal. Carbon Dioxide (CO2) 51,893.95 20,815.17 20,530.75 118,930.15 54,458.17 8,113.02 20,881.64 15,498.28 111,361.28 4. In addition to this, Kosmos Energy paid the UK government $450K in income tax payments during 2018. 5. Primarily relates to donations made to the Ministry of Energy in Ghana and Staatsolie in Suriname and payment to Petroci in Cote d’Ivoire to acquire seismic data. Mono-Nitrogen Oxides (NOx) 964.32 387.47 381.10 2,207.86 1,010.78 150.60 387.62 287.68 2,067.15 6. Royalties are paid to the Government of Ghana in barrels of oil out of Kosmos’ working interest share of production. Based on the annual average of daily Brent prices in 2018 of $71.31, this is worth approximately $38.7 million. United States amounts above are determined based on actual sales price. Sulfur Dioxide (SOx) 64.80 25.96 25.66 148.67 68.11 10.15 26.10 19.38 139.20 7. In late 2017, through a joint venture with an affiliate of Trident Energy, Kosmos Energy acquired all of the equity interest of an entity subsequently renamed Kosmos-Trident Equatorial Guinea, Inc. (KTEGI), which holds an 85% paying interest in the Ceiba Field and Okume Complex assets in Equatorial Guinea (Block G). Figures in the table represent Methane (CH4) 2.88 1.13 11.55 6.63 2.99 0.46 1.18 0.87 6.27 Kosmos Energy’s indirect 50% participating interest in KTEGI’s payments to the government during 2018. 8. Royalties are paid to the Republic of Equatorial Guinea in barrels of oil out of Kosmos’ working interest share of production. Production entitlements are paid to the Republic Volatile Organic Compounds (VOCS) 32.50 13.00 12.83 74.23 33.67 5.06 13.06 9.69 69.60 of Equatorial Guinea in barrels of oil based on their participating interest. Production entitlements amounts disclosed above represent Kosmos’ participating share received by the Republic of Equatorial Guinea. Based on the annual average of daily Brent prices in 2018 of $71.31, the estimated value of royalties were approximately $53.7 million and the Greenhouse Gases (GHGS) 51,954.43 20,838.84 20,773.30 119,069.33 54,521.26 8,122.64 20,906.44 15,516.50 111,492.87 estimated value of production entitlements were valued at $69.1 million in Equatorial Guinea.

OTHER

Fines and Penalties 0 0 0 0 0 0 0 0 0

Freshwater Use (m3) 1,728.00 3,082.00 3,744.00 26,799.25 6,159.20 N/A N/A N/A 7,012.00

Hydrocarbon or Non-Aqueous 0 0 0 0 0 0 0 0 0 Drilling Fluid Spills

64 65 2018 Performance Data (continued)

SOCIAL SAFETY We define Social Investment Spending as payments that will directly impact the constituents of social investment Kosmos reports safety data for our global operations, including both employees and contractors. The definitions of the projects. Not reflected in the numbers below are indirect costs related to social investment, such as needs assessments safety data reported are consistent with those used by the International Association of Oil and Gas Producers (IOGP). and reimbursable expenses incurred by our in-country social investment personnel. All of the Social Investment Spend Lost Time Injury Frequency represents the number of lost time injuries (fatalities and lost work day cases) per million is for Kosmos-initiated projects, with the exception of the Jubilee Unit and TEN Development Project in Ghana and work hours. Total Recordable Injury Rate refers to recordable injuries (fatalities, lost work day cases, and medical our non-operated share of the contractually obligated social investment for block 6 in São Tomé and Príncipe. Those treatment cases) per million hours worked. There were four Recordable injuries in 2018, all on marine vessels. values represent our participating interest in the social projects of our non-operated assets. 2016 2017 2018 2016 2017 2018 Total Man Hours 2,314,907 3,110,164 2,014,348

SOCIAL INVESTMENT SPENDING (USD) Fatalities 0 0 0

Côte d’Ivoire — — 253,000 Lost Time Injury Frequency 0 0 0

Ghana 833,000 1,339,000 1,445,000 Total Recordable Injury Rate 1.3 .64 1.99

Jubilee Unit and TEN development project1 185,000 188,000 263,000

Mauritania2 305,000 55,000 409,000

Morocco 88,000 80,000 37,000

São Tomé and Príncipe3 69,000 200,000 666,000

Senegal4 422,000 24,000 125,000

Suriname 104,000 88,000 427,000

United States 462,000 611,000 471,000

Western Sahara 42,000 86,000 54,000

TOTAL 2,510,000 2,671,000 4,195,000

1. Kosmos Energy’s participating interest in social investments of the non-Kosmos operated Jubilee and TEN Partnership, which may not necessarily represent actual social investments made by the operator during the reporting period. 2. Amounts may differ from Kosmos Energy financial statements due to funding arrangements with commercial partners. Includes Kosmos Energy’s participating interest in social investments of the non-Kosmos operated Block C-6, C-8, C-12, C-13, and C-18 projects, which may not necessarily represent actual social investments made by the operator during the reporting period. 3. Includes $109,725 of Kosmos Energy’s participating interest in social investments of the non-Kosmos operated Block 6 project, which may not necessarily represent actual social investments made by the operator during the reporting period. 4. Amounts may differ from Kosmos Energy financial statements due to funding arrangement with commercial partners. Includes Kosmos Energy’s participating interest in social investments of the non-Kosmos operated Block Cayar and St. Louis projects, which may not necessarily represent actual social investments made by the operator during the reporting period.

In 2018, Kosmos owned a 50% interest in the joint venture company Kosmos Trident International Petroleum Inc. (“KTIPI”), which held Kosmos’ interests in Equatorial Guinea. KTIPI held an 85% participating interest in the Ceiba Field and Okume Complex through its wholly-owned subsidiary, Kosmos-Trident Equatorial Guinea Inc. (“KTEGI”), representing a 40.375% net indirect interest to Kosmos.

JOINT VENTURE SOCIAL INVESTMENT SPENDING (USD)5

Equatorial Guinea (KTEGI) — 3,153,000

We have grievance mechanisms in every region where we have drilling and seismic operations. In Ghana, we received and resolved four grievances related to legacy social investment projects in the Western Region.

2016 2017 2018

GRIEVANCES LOGGED / GRIEVANCES RESOLVED

Ghana 5/2 3/3 4/4

Mauritania 1/1 0/0 0/0

Morocco 0/0 28/27 N/A

São Tomé & Príncipe N/A 1/1 0/0

Senegal 0/0 0/0 0/0

Suriname 0/0 0/0 0/0

Western Sahara 0/0 0/0 N/A

Engaging with local fishing communities in Mauritania and Senegal is critical as we pursue the Greater Tortue Ahmeyim gas project.

66 67 ABOUT THIS REPORT Our 2018 report 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 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 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 60. 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].

68