U pon entering São Tomé and Príncipe in 2016, Kosmos established a local office on the island of São Tomé and appointed a country manager. We currently employ seven local staff members, working in areas such as accounting, finance, external affairs, HSE, and procurement. Galp Energia, a Portuguese oil and gas company, holds a non-operated stake as a partner in blocks 5, 11, and 12, and an operated position in block 6. Equity in these four blocks is also shared with Equator Exploration and the Agencia Nacional do Petroleo de São Tomé e Príncipe (ANP-STP), on behalf of the government. BP is our partner in blocks 10 and 13. The work program in these blocks will be phased to enable Kosmos and BP to develop a deeper understanding of the basin and create the best chance of exploration success. In the first four-year phase, Kosmos and BP will acquire seismic data and will analyze the data to decide on next steps with regard to drilling. Kosmos will be the technical operator during the exploration phase of the license, with BP taking over to manage any development in the event of exploration success. MANAGING OUR FOOTPRINT In late 2017, we completed a 3D seismic survey in blocks 5, 6, 11, and 12 covering approximately 16,000 square kilometers. The seismic survey was planned and executed to minimize potential impacts to the environment, particularly marine mammals and sea turtles. Two marine fauna observers (MFOs) and one passive acoustic monitoring (PAM) operator were present onboard the seismic vessel throughout the survey. Kosmos and its partners spent more than a year developing an understanding of the potential impacts of our seismic survey on the waters offshore São Tomé and Príncipe through the preparation of an environmental, health and social impact assessment (ESHIA). For each block, the ESHIA was developed by independent consultants and approved by the São Tomé and Príncipe Ministry of Infrastructure, Natural Resources and Environment. A project-specific marine fauna protection plan was developed to include approved marine fauna mitigations, and appropriate experts were engaged to assist in compliance with the plan. Through research and engagement, we are proud that we could design a seismic survey that exceeded international environmental standards. Processing of the data collected by the 2017 seismic survey has now been completed. We are compiling an inventory of prospects on the license areas in São Tomé and Príncipe and will continue to refine and assess the prospectivity, integrating this 3D seismic data into our geological evaluation during 2019 in anticipation of a potential start of drilling activities as early as 2020. In addition to the seismic work, Kosmos and its partner Galp undertook an Environmental and Social Impact Assessment for potential drilling in blocks 5, 6, 11, and 12. In preparation for the study, Kosmos and Galp hosted an offshore drilling workshop for regulators and government stakeholders to understand the basics of the project. We also conducted public consultations in Príncipe and São Tomé to get feedback from the public. 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 exclusive economic zone, cover an area of approximately 38,600 square kilometers and are adjacent to a proven petroleum system in Equatorial Guinea and Gabon. 53 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. PRODUCTION OPTIMIZATION INFRASTRUCTURE- LED EXPLORATION DEVELOPMENT OF WORLD-SCALE DISCOVERIES BASIN-OPENING EXPLORATION São Tomé and Príncipe EQUATORIAL GUINEA Gulf of Guinea BLOCK 13 BLOCK 10 SÃO TOMÉ PRÍNCIPE BLOCK 11 BLOCK 12 BLOCK 6 BLOCK 5 GABON