The standardized measure is intended to provide a better means to compare the value of Kosmos’ proved reserves at a given time with those of other oil producing companies than is provided by comparing raw proved reserve quantities. Equity Method Investment— Equatorial Ghana Guinea Total (In millions) At December 31, 2017 Future cash inflows . . . . . . . . . . . . . . . . . . . . . $ 4,473 $1,003 $ 5,476 Future production costs . . . . . . . . . . . . . . . . . . (1,925) (473) (2,398) Future development costs . . . . . . . . . . . . . . . . (1,059) (296) (1,355) Future Ghanaian tax expenses(1) . . . . . . . . . . . (203) (225) (428) Future net cash flows . . . . . . . . . . . . . . . . . . . 1,286 9 1,295 10% annual discount for estimated timing of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . (315) 121 (194) Standardized measure of discounted future net cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . $ 971 $ 130 $ 1,101 At December 31, 2016 Future cash inflows . . . . . . . . . . . . . . . . . . . . . $ 3,204 Future production costs . . . . . . . . . . . . . . . . . . (1,437) Future development costs . . . . . . . . . . . . . . . . (428) Future Ghanaian tax expenses(1) . . . . . . . . . . . (228) Future net cash flows . . . . . . . . . . . . . . . . . . . 1,111 10% annual discount for estimated timing of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . (265) Standardized measure of discounted future net cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . $ 846 At December 31, 2015 Future cash inflows . . . . . . . . . . . . . . . . . . . . . $ 3,998 Future production costs . . . . . . . . . . . . . . . . . . (1,362) Future development costs . . . . . . . . . . . . . . . . (679) Future Ghanaian tax expenses(1) . . . . . . . . . . . (411) Future net cash flows . . . . . . . . . . . . . . . . . . . 1,546 10% annual discount for estimated timing of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . (377) Standardized measure of discounted future net cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,169 (1) The Company is a tax exempt company incorporated pursuant to the laws of Bermuda. The Company has not been and does not expect to be subject to future income tax expense related to its proved oil and gas reserves levied at a corporate parent level. Accordingly, the Company’s Standardized Measure for the years ended December 31, 2017, 2016 and 2015, respectively, only reflect the effects of future tax expense levied at an asset level (in the Company’s case, future Ghanaian tax expense). 153