4 5 In São Tomé and Príncipe, we have also built productive working relationships with local and international stakeholders who have helped us understand the islands’ unique environmental sensitivities. This has helped us refine our seismic acquisition programs and informed our environmental and social impact assessments ahead of drilling activities. As a result, we have implemented special measures and established programs to protect whales and turtles around and on the islands. With stakeholders calling for more transparency in the oil and gas business, how does Kosmos plan to stay a world leader in this area? Kosmos has set a standard for transparent behavior. We believe Kosmos is the only oil and gas company in the world to publish all of its contracts with host governments and we are the first U.S. oil and gas company to disclose project-level payments to governments despite not being legally obligated to do so at the time. Although these practices separate us from many companies, we continue to see demand from stakeholders who want to better understand how the oil and gas industry works. The transparency challenge includes not just providing access to data, but also improving understanding of it and ensuring stakeholders have the knowledge needed to hold governments and industry to account. In response, we have stepped up our efforts to engage civil society and the media, hosting workshops across our portfolio of countries – in Ghana, Mauritania, Senegal, and Suriname. This has proved effective in promoting transparency, building relationships, and deepening trust. We also strongly support the work of the Extractive Industries Transparency Initiative (EITI), advocating for the adoption of EITI by our host governments. When we operate in countries that are not yet members of the EITI, we actively promote the EITI and the transparent management of any revenues from natural resources. Your flagship social investment program, Kosmos Innovation Center, has received accolades and expanded into new countries. What differentiates it from other entrepreneurship programs? By nurturing the next generation of entrepreneurs and facilitating innovation in sectors beyond oil and gas, the Kosmos Innovation Center (KIC) contributes to the creation of healthier and more diverse economies in our host nations. The KIC is now active in Ghana, Mauritania, Senegal, and Côte d’Ivoire. In each country, we empower young entrepreneurs to turn their ideas into viable, self- sustaining businesses and we work with promising small businesses to help them scale and reach their full potential. KIC programs are different from others because we don’t just run competitions or provide seed funding. Local Kosmos staff and private sector experts work alongside the businesses so that the young people we engage develop a full range of commercial and leadership skills they can use later in life – regardless of whether their start-ups ultimately succeed or fail. the Paris Agreement reached within the United Nations Framework Convention on Climate Change in 2015 is a crucial step in global efforts to address climate change. We understand that achieving the internationally accepted target of limiting mean global temperature rises to well below 2°C requires significant and sustained reductions in greenhouse gas emissions. In addition, around 1 billion people (roughly 13% of the world’s population) still lack access to electricity, and global energy needs are expected to increase by 25% by 20401 . The International Energy Agency (IEA) estimates that demand growth will require more than $2 trillion of investment in new energy supply per year. This will be particularly driven by emerging economies such as those in which Kosmos focuses much of its investment. Tackling this challenge – reducing greenhouse gas emissions while enabling social progress through satisfying growing energy demand – requires action from all parts of society: governments, civil society and the private sector, and companies like Kosmos must grab hold of the opportunities and challenges that the global energy transition presents to our business. We intend to set out a full climate change strategy next year to ensure that Kosmos is taking the right steps. What are those steps? How does Kosmos plan to reduce its carbon footprint as a business? Does Kosmos have a role to play in the energy transition? At this time, our direct greenhouse gas emissions arise primarily from exploration activities such as use of drillships, seismic vessels and support vessels, and our offices and logistics bases. We don’t operate production platforms or floating production and storage vessels. We publish our emissions and other environment data annually in our corporate responsibility report. In response to investors, and to continue our transparency in all areas, we aim to report for the first time to the CDP (formerly the Carbon Disclosure Project) in 2019. Regarding the energy transition, we believe natural gas has an important role to play as a bridge to renewables. In 2015 and 2016, Kosmos discovered significant natural gas reserves offshore Mauritania and Senegal, opening a major new natural gas province in which we are now partnered with BP. Expanding use of natural gas globally is widely regarded as critical to reducing CO2 emissions, given that it produces about half as much CO2 as coal when burned for power, and therefore offers a cleaner alternative to coal for power generation. The IEA expects demand for natural gas to increase by 45% by 2040 in its New Policies Scenario and positions it as the largest fuel in the global energy mix by that year under its Sustainable Development Scenario. We are now working with our partner BP and the Governments of Mauritania and Senegal to develop the resources we have discovered at the Greater Tortue Ahmeyim field into an efficient, competitive natural gas project – both for export in the form of liquefied natural gas (LNG) and to provide a less carbon intensive source of energy for the economies of Mauritania and Senegal. What is Kosmos doing to safeguard some of the more environmentally sensitive areas where it works – places like São Tomé and Príncipe, which is known for its biodiversity? When it comes to protecting the environment, we work to the same high standards no matter where we operate. It’s about having experienced, well-trained people doing the work. It’s about having the right processes in place to prevent incidents from happening, and also having the right procedures to respond in the unlikely event of an incident. And finally, it’s about engaging international experts and non-governmental organizations (NGOs) in environmental protection to ensure that we’re deploying best practices everywhere. Q Q Q Q A A A A Kosmos Chairman and CEO Andy Inglis reinforces the company’s commitment to safety during a visit to a drillship. 1. International Energy Agency, World Energy Outlook, 2018