2018 CORPORATE RESPONSIBILITY REPORT 2 a Conversation with Andy Inglis About from AFRICA to the AMERICAS, KOSMOS ENERGY Kosmos OPERATES in MANY NATIONS
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2018 CORPORATE RESPONSIBILITY REPORT 2 A Conversation with Andy Inglis About FROM AFRICA TO THE AMERICAS, KOSMOS ENERGY 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 Ghana, Equatorial Guinea and U.S. Equatorial Guinea 22 Gulf of Mexico, as well as a world- class gas development offshore Mauritania and Senegal. We also 26 U.S. Gulf of Mexico 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 Suriname) and frontier basins (Côte d’Ivoire, 36 Kosmos Innovation Center Namibia 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 New York Stock Exchange and 50 Côte d’Ivoire London Stock Exchange, 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 Nouakchott, Dakar, 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 technical 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 United Nations 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 greenhouse gas emissions. 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.