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StatementofBusinessPrinciples KosmosEnergywasfoundedin2003withthegoalofcreatingvalueforallourstakeholdersincludinginvestorsemployeesandthegovernmentsandthecitizensofourhostcountries.AsKosmoshastransformedintoapubliccompanythisgoalhasbecomeourmission.Whilethecompanyexistsprimarilytoprovidereturnstoinvestorsthisismostlikelytobeachievedoverthelongertermthroughadvancingthesocietiesinwhichwework.ThesePrinciplesreectthevaluesthathaveguidedusthroughourrstdecade.Theyarealsoinformedbywhatwehavelearnedoverthoseearlyyearsandbywhatourstakeholdershavetoldusabouttheirexpectationsofaresponsibleoilandgascompany.Wethankthemfortheirinsights. ResponsibilitiestoStakeholdersKosmosandtheEnvironment14EthicalConductKosmosinSociety25OurWorkplacesCommercialRelationships36IfyoubelievethatanypracticebyKosmosemployeesorcontractorsraisesquestionsastocompliancewithourpoliciesorapplicablelawsyoucanreportitthroughthefollowingwebsiteornumberhttpskosmosenergy.alertline.comor1.888.419.0569tollfreeifcalledfromwithintheUnitedStates.KosmosEnergyBusinessPrinciplesSummaryWebelievethatcreatingvalueforallourstakeholdersemployeesinvestorsgovernmentscommunitiesandbusinesspartnersisthebestfoundationforasustainablebusiness.OurBusinessPrinciplesreectourvaluesandpracticesacrosssixkeyareas Strongandsupportiverelationshipswithourstakeholdersunderpinourbusinessandcreatevalue.ShareholdersWeaimtocreateattractivereturnsforourinvestorsinamannerwhichbuildslong-termvalueandtomanagethefullrangeofbusinessrisksinsuchawayastobuildwidesupportinthecountrieswhereweoperateandtherebytoprotectourinvestments.EmployeesWeaimtorecruitthemostappropriatelyskilledindividualsandtoprovidestimulatingandrewardingcareers.Wewillnottolerateunfairdiscriminationandarecommittedtorecruitingandpromotingpeopleonthebasisoftheirpotentialandperformance.Weaimtocreateaculturethatcombinesanentrepreneurialandteam-basedapproachwithethicalbehavior.GovernmentsOurhostnationsaretheownersoftheresourceswhichweexploreforanddevelop.Wethereforeseektoestablishacollaborativeapproachwithourhostgovernments.Throughactinginanopenandaccountablemannerandseekingtocontributetodevelopmentweaimtobeandtoremainawelcomeinvestor.CommunitiesWearecommittedtorespectinghumanrightsandtobroadly-basedconsultationandengagementwiththecommunitiesdirectlyassociatedwithouroperations.Throughdoingbusinessresponsiblyweaimtoimprovelivescreateopportunitiesandminimizeharm.BusinesspartnersandsuppliersWeseektoworkwithcompanieswhoshareourvaluesandstandards.Weaimtobuildsustainableeconomicopportunitiesthroughseekingtosourcegoodsandservicesfromthecountrieswherewework.CivilsocietyorganizationsWerecognizetheimportantrolethatNGOsandothercivilsocietygroupsplayinafreesocietyincludinginholdinggovernmentsandcompaniestoaccount.Engagementwithcivilsocietygroupsincreasesourunderstandingofthesocietiesinwhichweworkandhelpsustomakebetterdecisions.NGOsmaybevaluedpartnersinhelpingtodeliverimpactfulsocialinvestmentprograms.ResponsibilitiestoStakeholders1 Weaimtofosteraculturebasedonintegrityprofessionalismrespectfairnessandlegalandethicalcompliance.Wewilltakeresponsibilityandbeaccountableforouractions.Wearecommittedtocompliancewithapplicablelawsandaimtoalignourconductwithinternationalstandardsofgoodpractice.Corruptioninmanyresource-richcountrieshaspreventedtheircitizensfrombenetingfullyfromthefruitsoftheircountrysnaturalresources.Wehavezerotoleranceofcorruptionandhaveandwillmaintainarobustcomplianceprogram.Wearepoliticallyneutralandwillnotprovidefundingforcandidatesorpartypoliticalentities.WewillbeadvocatesfortransparencyinourdealingswithhostgovernmentsincludingthroughoursupportfortheExtractiveIndustriesTransparencyInitiativeEITI.Wewillannuallypublishourmaterialpaymentstogovernments.Wherethisisacceptabletoourhostgovernmentsweprefertomakethematerialtermsofourexplorationandproductionagreementswiththempubliclyavailable.Itistheresponsibilityofeveryemployeetoupholdthecompanysstatedvaluesandstandardsthroughtheirconductandtoreportanyconcernstheymayhavethattheconductofothershasfallenshortofthesestandards.Noonewillbepenalizedformakingsuchreportsingoodfaitheitherthroughtheirline-managerortheKosmoswhistleblowersystemwhichallowsforinformationtobereportedanonymously.EthicalConduct2 Weexpectourmanagerstoshowleadershipandtoprovidecleardirectiontotheirteamsincludinginensuringadherencetothestandardssetoutinthisdocument.Wehaveafundamentalcommitmenttothehealthandsafetyofouremployeesandofthosewhoworkwithus.Weaimtoeliminateaccidents.Noonewillberequiredtoworkinunsafeconditions.RecruitmentandadvancementinKosmosarebasedonmerit.Wewillnottolerateunfairdiscriminationincludingongroundsofagegenderracereligionorsexualorientation.Wewillseektopromotediversityinourworkforcebothbecauseitistherightthingtodoandbecauseitgivesusaccesstothewidestrangeoftalents.Wearecommittedtoinvestinginthedevelopmentofouremployees.Whereopeningsexistwewillseektoemploysuitablyqualiedindividualsfromthecountriesinwhichweoperate.Ouroperationsareplacesinwhichpeopleareexpectedtoworkco-operativelyinanentrepreneurialenvironmentandwhereeveryoneshouldfeelrespectedandfreetocontributetheirideas.Wewillnottolerateharassmentorintimidation.Werecognizethefundamentallaborrightsincludingtherighttofreedomofassociation.Wewillnotpermitchildforcedorbondedlaboratouroperationsoramongstoursuppliers.Werequireourcontractorstoadheretocoreinternationallaborstandardsandlocallawsandpaytheiremployeessufcientlyatleasttomeettheirbasicneedsinthecontextoftheirlocallabormarket.OurWorkplaces3 Werespecttheenvironmentandwillseektopreventorminimizeadverseimpactsbyconformingwithbestpracticesinourindustry.Weplanforaneffectiveandtimelyresponsetoemergenciesthathavethepotentialtoimpactpersonneltheenvironmentlocalcommunitiesorourassets.Trainingexercisesanddrillswillbeconductedwithbothinternalandexternalstakeholderstocontinuouslyimproveourreadinesstorespond.Weendeavortouseresourcesefcientlyandresponsiblyincludingthroughtheapplicationofappropriatetechnicalsolutionsandregularmonitoring.Wearecommittedtoreducingemissionsandwaste.Werecognizetheimportanceofprotectingandconservingbiodiversityandmaintainingecosystemservicesandwillaimtopromotethesustainablemanagementoflivingnaturalresourcesthroughtheadoptionofpracticesthatintegrateconservationneedswithdevelopmentpriorities.KosmosandtheEnvironment4 Wewillonlyproceedwithmaterialactivitiesoncewehaveassessedandwherenecessaryandpracticablesoughttoputinplacemeasurestoavoidormitigateadverseenvironmentalorsocialimpacts.Wewillseektopreventorminimizeadverseriskstocommunityhealthsafetyandsecurity.Werespecthumanrightsandseektoavoidcausingorcontributingtoadverseimpactsuponthemthroughouroperationsorbusinessrelationships.Wewillexerciseduediligenceinidentifyingandwheremattersarewithinourcontrolmitigatinganyinfringementsofhumanrights.Whereitispracticabletodosowewilluseourinuencewithhostgovernmentstoraiseissuesrelatingtothehumanrightsofouremployeesandcommunitiesassociatedwithouroperationseitherdirectlyorincollaborationwithothers.WewillimplementtheVoluntaryPrinciplesonSecurityandHumanRightsandseektoapplyrelevantaspectsoftheUnitedNationsGuidingPrinciplesonBusinessandHumanRights.Weunderstandthefundamentalimportanceofrespectinghumandignityandofproceedingwithrespectfortheculturesofourhostcountriesandcommunities.Wewillengageregularlywiththecommunitiesassociatedwithouroperationsinordertounderstandtheirprioritiesandanyconcerns.Wewishtocreatearelationshipbasedonrespectandequality.Wewillseektoearnthebroadly-basedsupportofthecommunitieswherewework.Wewilldevelopandmaintainmechanismsforaddressinggrievancesrelatedtoouractivities.Itisimportantthatcitizensareabletoachieveredressiftheysufferharmasaresultofouroperations.Weaimtobuildhumancapacityandcreateeconomicopportunitiesincludingwherepracticablethroughourcommitmenttolocalcontentandskillsdevelopmentandsocialinvestment.Werecognizeboththeopportunitiesandthechallengeswhichresourcedevelopmentcancreateforhostcountries.Wearecommittedtoworkingwithgovernmentsandcivilsocietygroupstomaximizethechancesofouractivitiescontributingtosustainabledevelopment.KosmosinSociety5 Weexpectourbusinesspartnersagentssuppliersandcontractorstobehaveethically.TheirwillingnesstoobservestandardscomparabletothosesetoutinthesePrinciplesandoursupportingpolicieswillbeakeyconsiderationinanydecisiononwhethertoworkwiththem.Wewillexerciseduediligenceintheselectionofpartnersandsuppliersandwillallocatecontractsthroughtransparentandfairprocesses.Wecommonlyworkwithco-venturerswhomayhavedaytodaycontrolofoperationswewillseektoinuencesuchjointventuressothattheyoperateinamannerconsistentwiththesePrinciples.Werequireouremployeestodealhonestlyandfairlywithgovernmentsregulatorsinvestorscustomerssuppliersthepublicandeachother.Employeesmustnotseektoobtainunfairadvantagesforthemselvesorthecompanythroughmanipulationmisrepresentationorconcealmentofmaterialinformation.Employeesmustavoidconictsofinterestortheappearanceofanysuchconicts.Ouremployeesandcontractorsareprohibitedfrommisusingprivilegedinformationtoindulgeinorassistotherstoparticipateininsiderdealing.Weexpectouremployeesandcontractorstorespectcondentialandproprietaryinformationandwesimilarlyundertaketoprotecttheintellectualpropertyofothers.Anti-trustlawsprohibitcollusionbetweencompetitorsonmatterssuchaspricestermsofsaleandallocatingmarketsorcustomers.Weprohibitemployeesfromindulginginsuchanti-competitiveactivities.Werecognizetherolewhichthetaxesroyaltiesandfeeswepayshouldplayintheeconomicdevelopmentofourhostcountries.Wewillbehonestinourdeclarationsandpaytherequiredsums.Wewillnotallowanyformofabusivetransferpricing.Weaimtoensurethatourpublicdisclosuresaretimelyhonestconsistentandnotmisleading.WewillreportpubliclyonmaterialaspectsofourperformanceincludingontheimplementationofthesePrinciples.CommercialRelationships6 DirectorsofcersandemployeesarerequiredtocomplywithallaspectsofthesePrinciplesintheirworkactivitiesandinrepresentingthecompany.Anyfailuretodosomayresultindisciplinaryaction.AppropriatemechanismswillbemaintainedtomonitorandreportoncompliancewiththesePrinciples.ThesePrincipleswillbeatthecoreofthewayinwhichwemanagethecompanyandofourbusinessrelationships.Wewillcommunicatethemwidelytoemployeesandexternalstakeholders.WewillsupportthesePrinciplesasnecessarywithmoredetailedpoliciesandmanagementsystemstoensurecomplianceandwillreviewthetermsofthisdocumentfromtimetotimeinthelightofexperienceandofinputfromourstakeholders. KosmosEnergyLtd.coKosmosEnergyLLC8176ParkLaneSuite500DallasTexas7523112144459600NYSESymbolKOSwww.kosmosenergy.comLastupdatedFebruary2013