52 AN INNOVATIVE APPROACH TO INVESTING IN WESTERN SAHARA While many investors have been intimidated by the political complexities of investing in Western Sahara, Kosmos took an innovative approach to understanding the legal and practical intricacies of the Western Sahara issue. In 2015, we drilled the first ever deepwater well offshore Western Sahara. From the very beginning of our involvement in the region, we dedicated time and resources to developing a deep knowledge of the complex and nuanced situation in the Western Sahara. We have been welcomed by the local communities who have recognized the enormous potential and benefits that an oil discovery could bring to the region. Our innovative approach to investing in Western Sahara included: •  Regular engagement, starting in 2011, with the Government of Morocco to develop an equitable framework for a possible hydrocarbon development. Through a series of workshops involving international experts from major lending institutions and academia, we informed Moroccan thinking on best practice models for consultation, revenue management, sovereign wealth funds, management of public expectations, and transparency. •  The signing, in December 2013, of a Joint Declaration of Principles between Kosmos and ONHYM, on behalf of the Government of Morocco, committing to ensuring that resource development will be in accordance with Article 73 of the U.N. Charter and the U.N. Legal Opinion, and that the local population will benefit in an effective and equitable manner from any development and will be consulted in the process. •  The completion of the first social impact assessment (SIA) by an international company in Western Sahara. The SIA involved extensive and structured engagement with key groups of society in Western Sahara and followed a workshop for regulators on best practices in social impact assessment. •  The continuous presence in Western Sahara of a Hassaniya- speaking, American expatriate Community Relations Coordinator who held over 200 meetings with Saharawis and other stakeholders in the territory. •  Ongoing social investment in several locations within Western Sahara, which provided direct benefits to young Saharawis, as well as emphasized the local Saharawi Culture. •  Regular engagements with local and international human rights and civil society organizations. While our decision to exit Western Sahara was based solely on exploration results and our capital allocation strategy, we hope that our proactive approach to investing in Western Sahara can serve as a model for future investors. Potential future investors will have the opportunity to build on our approach to develop natural resources in parallel with the UN-led mediation process. It is our belief that the local population must be involved in and benefit from natural resource development. Kosmos Energy Chairman and Chief Executive Officer Andy Inglis listens intently to a Sahrawi leader during a visit to Western Sahara.