58 59 ENGAGEMENT AND LISTENING Since the end of our 2018 drilling campaign, we have been looking for ways to increase local content in Suriname in anticipation of a second wave of drilling in 2020. We are engaging with Staatsolie, the national oil company, and Suriname’s government on two important areas: • Evaluating the costs and benefits of dredging the Suriname River to make it easier for large vessels to use ports in Suriname, and • Improving Suriname’s overall industrial capacity Kosmos has been in an active dialogue with the government of Suriname about the potential benefits of dredging the Suriname River to allow larger boats to access ports in Paramaribo. As part of that dialogue, we shared specific purchases that we made in Trinidad instead of Suriname due to superior port access in Trinidad. We estimate that making the Suriname River at least two meters deeper in specific areas would enable Kosmos and the rest of the industry to base more operations in Suriname. To identify areas where Suriname’s overall industrial capacity can be improved, Kosmos worked with Staatsolie and other international operators to commission an industrial baseline study by an independent consultant. This study identified opportunities where local companies in Suriname can participate in, or build capacity to participate in, current and future oil and gas activities. Throughout the study, the consulting firm worked with local companies and small- and medium-sized enterprises (SMEs) to assess their ability to support the oil and gas supply chain. The study estimated the range of local content expenditure that would be contributed over the life of a typical project. The study also identified viable areas of capacity building and investment which could maximize local content for each scenario. We will continue to seek ways to increase local participation in our supply chain, while supporting government efforts to ensure any future oil and gas operations are a driver of economic growth and sustainable development. A related study conducted by the same independent consulting firm developed a technical and vocational education strategy for Suriname. The strategy aims to provide for a structured discussion between international oil and gas companies, the national oil company, the Ministry of Education, and technical schools to support the development of Suriname’s workforce. In a move that illustrates the trust that we have built, Staatsolie asked Mike Resomardono, our external affairs manager, to draft a plan for how international companies could support technical and vocational education in Suriname. The recommendations will be presented to Staatsolie and other oil and gas companies. This project builds on Mr. Resomardono’s previous work leading multi-stakeholder initiatives, including a healthcare project in which Kosmos, Staatsolie, and other international companies donated $830,000 to support local needs. Transparency As part of Kosmos’ global effort to promote transparency, we have actively supported Suriname’s effort to join the Extractive Industries Transparency Initiative (EITI). Suriname’s application to become a candidate country was approved in May 2017, and the first EITI reports for 2016 and 2017 will be published in 2019. As a member country, Suriname is required to publicly disclose revenues received from the extractive industry (petroleum and mining) and encourage public debate regarding government management of the country’s natural resources. Kosmos represents the oil and gas sector in EITI as one of 18 members of the Multi-Stakeholder Group. Editors and journalists are important stakeholders in Suriname, as they regularly write about domestic oil and gas activities and their work often shapes public understanding. In 2018, we held a three-day media workshop to educate journalists regarding oil and gas activities, and set reasonable expectations for exploration activities prior to our 2018 drilling campaign. In 2019, Kosmos plans to organize a second media workshop to deepen journalists’ knowledge of petroleum operations. POSITIVE IMPACTS Although our drilling operations take place far offshore with negligible impact on coastal areas, Kosmos is committed to preserving the coastal environment and supporting coastal communities in Suriname. Mangroves grow abundantly along Suriname’s coastline and prevent coastal erosion. The area of Weg naar Zee, north of Paramaribo, experiences frequent flooding and erosion due to the loss of mangrove forests. The flooding and rising sea levels have affected nearly 3,000 community members, including artisanal fishermen, farmers, and bee keepers. In addition, erosion has threatened to destroy two important cultural and religious sites. Kosmos has partnered with Conservation International and Anton de Kom University on a multi-year project to mitigate the coastal erosion at Weg naar Zee by building Sediment Trapping Units (STUs). These structures promote sediment deposition and create conditions for halting and reversing erosion. Mangrove juveniles grow in the newly formed mud banks, both naturally and when planted by local researchers. The mangrove restoration project team now has more than two years of data from which to evaluate the effectiveness of the STUs. Since the first phase of the project was successful in increasing sediment accretion rates and thus slowing erosion, the team has expanded the project by upgrading the existing STUs and engaging local community members to plant mangrove juveniles along the coast of Weg naar Zee. In addition to partnering with the university on mangrove conservation and research, Kosmos is also supporting the local university’s master’s degree program in Sustainable Management of Natural Resources. The support included the donation of 36 advanced computers that students can use to run more sophisticated computer applications in pursuit of their studies. Improving Healthcare The Academic Hospital Paramaribo is the largest hospital in Suriname and serves as a major medical research hub for the country. The government of Suriname has prioritized developing the hospital. In support of the national development agenda, Kosmos has committed multi-year support to the academic hospital and the training of its staff. Kosmos began by working with hospital personnel in 2016 to identify needs and create a plan for how Kosmos and other oil and gas operators in Suriname can work together to build the hospital’s research and patient care capabilities. Since the beginning of the hospital partnership, Kosmos has donated surgical tools, machines for monitoring patient vital metrics, defibrillators (AEDs), and intensive care unit beds. Kosmos also supports St. Vincentius Hospital, the second largest in Suriname, through the donation of neonatal equipment, such as delivery beds, infant resuscitators, and phototherapy lamps. Embracing Innovation Our multi-year support of technical education and STEM disciplines naturally encourages innovation in Suriname. In 2018, we continued to support programs that target the intersection of technology and social entrepreneurship. We worked with a local organization, IT Core, as a sponsor of a three-month hackathon which applied elements of gaming to other areas to motivate young people to solve real world problems. More than 100 young people participated in the 2018 program which included idea- building, business pitching, and prototyping. They received coaching and mentorship as part of the experience. Kosmos also supported the Digital Talents Academy, an organization that provided technology and soft- skills training to young people who are interested in pursuing careers in information and communications technology. Kosmos has been in an active dialogue with the government of Suriname about the potential benefits of dredging the Suriname River to allow larger boats to access ports in Paramaribo. Mangrove restoration is an important part of fighting coastal erosion in Suriname.