Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50At Kosmos, we see our interactions with local business partners as a way to contribute to the countries in which we operate, in addition to paying taxes, fees and other payments to host governments. In fact, in the event of exploration success, we see oil and gas development as an engine for economic development. We maintain high standards for our suppliers and commercial partners in terms of safety, the environment, and anti-corruption. Suppliers are required to adhere to our Business Principles. Their willingness to observe the standards articulated in our Business Principles and supporting policies is a key consideration in the selection process. When a potential local supplier is found to be outside our HSE standard, we endeavor to provide the necessary training or certification to elevate them to our standard. This is frequently the case, as we operate in a number of countries with nascent oil and gas industries. For example, in Ghana, we provide regular defensive driving and safety training for our transportation vendors. In Morocco, where we were the industry lead at the port of Agadir, we held safety trainings and provided additional Personal Protective Equipment (PPE) for stevedores and other local workers in the port. These efforts lowered the incident rate at the port, both for Kosmos and for other companies that had contracts with port employees. Ensuring that our suppliers and contractors fully understand their contractual obligations regarding anti-corruption provisions is of paramount importance. Our local procurement officials offer one- on-one sessions with our suppliers to walk them through their requirements under our policies, the U.S. Foreign Corrupt Practices Act of 1977, and other relevant legislation. During this process, we often identify areas for additional training within our local supply chain. For example, in Senegal, we will be providing English lessons for employees and contractors in 2016. Similarly, in Mauritania, we have worked with a cleaning company that services our apartments and local office on its health and safety standards, as well as its human resources practices. The company’s contract with Kosmos has been an incentive for this vendor to improve its operations. As a result, they are now attracting business from local embassies and other international organizations. We seek to maximize the amount of goods, services, and employment that we source locally. Our local content approach aims to enable people to access jobs, and to enable businesses to access supply chain opportunities through Kosmos. This is more challenging at the exploration stage in our project lifecycle, where there are few non-technical jobs created and highly specialized equipment is often sourced globally. In 2015, we thoroughly assessed our approach to local content, both at the corporate level as well as in Mauritania where we have active drilling operations. The assessment was completed by an international firm with relevant expertise and found that we needed to update certain policies and contract language, as well as improve cross- functional cooperation to optimize local content. As a result of this process, we have updated our Local Procurement Policy to include a greater emphasis on local content, as well as improved guidelines on measurement and reporting. We also created a cross-functional steering team tasked with planning and evaluating local content for our future LNG project in Mauritania and Senegal. We recognize that maximizing local participation within our business is an ongoing process that requires early planning and periodic re-evaluation based on changes in supply and demand. COMMERCIAL RESPONSIBILITIES PRINCIPLE BUSINESS 6 Kosmos provides training to local contractors at the Port of Nouakchott to raise HSE standards and enhance operations. “Oneofmyfavoriteresponsibilities ismymorningcallwithourlocal procurementteams.Therearetypically adozennationalitiesrepresented!I amalwaysimpressedbytherespect eachpersonhasfortheglobalteam andforoursupplierbase,andthe expertisethateachpersoniswillingto share.Althoughthiscallisfocusedon operationalactivities,itiscleartome thatourlocalprocurementteamdeeply understandsthepositiveimpactwecan haveonlocalbusinessesandsupplier development.” ALICIA KEMPER Procurement Analyst, Supply Chain Kosmos Energy 13 13