47 drilling rig. The primary marine supply base for the operation will be in Trinidad because Suriname does not currently have a deep-water port capable of accommodating the drillship and large supply vessels which are required to support our drilling operation. Kosmos has had an ongoing dialogue with Surinamese government authorities over the last few years regarding the port and local supplier participation in offshore petroleum operations. Specifically, although we endeavor to work from a local shore base whenever possible, our primary shore base operations for the exploration wells in Suriname must be run out of Trinidad, where there is pre-existing oil and gas infrastructure and a deep-water port. The government has indicated that they will revisit the decision to dredge a deep-water port in Suriname if a commercial discovery is made offshore. The government of Suriname is keen to optimize local content at each stage of the project lifecycle, and Kosmos is pleased to work with them and other local stakeholders on this goal. In 2018, Staatsolie, the national oil company, plans to initiate a major oil and gas industry local content Industrial Baseline Study through an independent third party. This study will take a proactive approach to identify opportunities where local companies in Suriname can participate or build capacity in order to participate in current and future oil and gas activities. Throughout the study, the third- party expert firm will work with local companies and small and medium sized-enterprises (SMEs) to assess their readiness to participate in the petroleum supply chain. The study will also estimate the range of local content expenditure which would be contributed over the life of an oil or gas project – through exploration, development, production and decommissioning – with and without dredging of the port. The study will also identify viable areas of capacity building and investment which could maximize local content for each scenario. Kosmos is supporting the local content study by providing input and guidance as well as sharing in the cost of the project. We will continue to seek ways to increase local participation in our supply chain during exploration while supporting government efforts to ensure any future oil and gas operations are a driver of economic growth and sustainable development in Suriname. ENGAGEMENT AND LISTENING An Environmental and Social Impact Assessment (ESIA) was conducted prior to beginning drilling operations. As part of this assessment, we held public consultations to describe the drilling program, logistics plans, vessel locations and movements, rig description, socioeconomic baseline survey, well control, waste management, potential impacts and mitigations, the environmental management plan, and grievance mechanism. We also used the meeting to answer questions and address stakeholder concerns. The consultation attendees included government representatives, public agencies, the fishing community, NGOs, private sector companies, community members and the media. Attendees asked questions on the topics of health and safety for employees and contractors, the ESIA review process, oil spill modeling and response, potential for noise, chronology of drilling wells, training for local stakeholders, and emergency response procedures. In May 2017, Suriname took an important step and formally submitted an application to become an Extractive Industries Transparency Initiative (EITI) candidate country. Kosmos encouraged and assisted the government in the process of joining EITI. As a member country, Suriname will be required to publicly disclose revenues received from the extractive industry (petroleum and mining) and encourage public dialogue regarding government management of the countries natural resources. The government plans to publish their first EITI report in 2018 and has already set up a Multi- Stakeholder Group (MSG). Kosmos represents the oil and gas private sector on the Suriname MSG. We are pleased to support Suriname’s EITI implementation. Kosmos also supports good governance of natural resources in Suriname by engaging with international stakeholders. Kosmos sponsored and participated in Chatham House’s annual “New Producers Discussion Group” held in Paramaribo and hosted by Suriname’s Ministry of Natural Resources and Staatsolie. During the event, Kosmos was part of a panel discussion on responsible stewardship of resources and commercial due diligence. The weeklong meeting brought together representatives from various Surinamese government agencies, businesses, civil society leaders, and oil industry representatives, and included participants from A seismic vessel collects data offshore Suriname.