b'The inability of one or more third parties who contract with us to meet their obligations to us may adverselyaffect our financial results.We may be liable for certain costs if third parties who contract with us are unable to meet theircommitments under such agreements. We are currently exposed to credit risk through joint interestreceivables from our block and/or unit partners. If any of our partners in the blocks or unit in which wehold interests are unable to fund their share of the exploration and development expenses, we may beliable for such costs. In the past, certain of our partners have not paid their share of block costs in thetime frame required by the joint operating agreements for these blocks. This has resulted in such partybeing in default, which in return requires Kosmos and its non-defaulting block partners to pay theirproportionate share of the defaulting partys costs during the default period. Should a default not becured, Kosmos could be required to pay its share of the defaulting partys costs going forward.In addition, we contract with third parties to conduct drilling and related services on ourdevelopment projects and exploration prospects. Such third parties may not perform the services theyprovide us on schedule or within budget. Furthermore, the drilling equipment, facilities andinfrastructure owned and operated by the third parties we contract with is highly complex and subjectto malfunction and breakdown. Any malfunctions or breakdowns may be outside our control and resultin delays, which could be substantial. Any delays in our drilling campaign caused by equipment, facilityor equipment malfunction or breakdown could materially increase our costs of drilling and cause anadverse effect on our business, financial position and results of operations.Our principal exposure to credit risk will be through receivables resulting from the sale of our oil,which we currently sell to an energy marketing company, and to cover our commodity derivativescontracts. The inability or failure of our significant customers or counterparties to meet theirobligations to us or their insolvency or liquidation may adversely affect our financial results. Inaddition, our oil and natural gas derivative arrangements expose us to credit risk in the event ofnonperformance by counterparties. Joint interest receivables arise from our block partners. Theinability or failure of third parties we contract with to meet their obligations to us or their insolvency orliquidation may adversely affect our financial results. We are unable to predict sudden changes increditworthiness or ability to perform. Even if we do accurately predict sudden changes, our ability tonegate the risk may be limited and we could incur significant financial losses.The unit partners respective interests in the Jubilee Unit and Greater Tortue Ahmeyim Unit are subject toredetermination and our interests in such unit may decrease as a result.The interests in and development of the Jubilee Field are governed by the terms of theJubilee UUOA. The parties to the Jubilee UUOA, the collective interest holders in each of the WCTPand DT Blocks, initially agreed that interests in the Jubilee Unit will be shared equally, with each blockdeemed to contribute 50% of the area of such unit. The respective interests in the Jubilee Unit weretherefore initially determined by the respective interests in such contributed block interests. Pursuant tothe terms of the Jubilee UUOA, the percentage of such contributed interests is subject to a process ofredetermination once sufficient development work has been completed in the unit. The initialredetermination process was completed on October 14, 2011. As a result of the initial redeterminationprocess, the tract participation was determined to be 54.4% for the WCTP Block and 45.6% for theDT Block. Our Unit Interest (participating interest in the Jubilee Unit) was increased from 23.5% to24.1%. An additional redetermination could occur sometime if requested by a party that holds greaterthan a 10% interest in the Jubilee Unit. We cannot assure you that any redetermination pursuant tothe terms of the Jubilee UUOA will not negatively affect our interests in the Jubilee Unit or that suchredetermination will be satisfactorily resolved.The interests in and development of the Greater Tortue Ahmeyim Field are governed by the termsof the GTA UUOA. The parties to the GTA UUOA, the collective interest holders in each of the46'