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 50ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT IN SENEGAL Kosmos conducts a thorough environmental and social impact assessment (ESIA) prior to engaging in any drilling or seismic operations. ESIAs review operational plans, establish a social and environmental baseline, and assess the potential environmental and social impacts of a proposed project, as well as develop appropriate mitigation approaches and management tools. Once completed, the ESIA is submitted to the host government for review, feedback, and approval. In 2015, Kosmos partnered with international experts and a Senegalese company, Tropica Environmental Consultants, to prepare the ESIA for our proposed exploratory drilling operations offshore Senegal. The process and final assessment report help us better understand potential social and environmental impacts of the project as well as public concerns, which leads to more informed impact management plans and project planning. The ESIA process included extensive public consultations. Kosmos and the ESIA team initiated public consultations early in the process to identify stakeholders’ questions and concerns. Approximately 500 people were informed and consulted during 32 meetings in the first quarter of 2015. An additional 500 people were consulted during the regulatory public hearings organized in the third quarter of 2015 by the Ministry of Environment. The Senegalese public asked questions and shared concerns during the consultations. We received feedback about fishing, environmental protection, and potential interference of the drillship with other maritime vessels. The assessment found that no impacts on artisanal fisheries are expected from the routine operations of the exploration program, but there is a potential for interaction between support vessels and pirogues (small fishing boats). To mitigate this, both the rig and support vessels are equipped with radar scanner systems that will pick up another marine vessel in the area even if the vessel does not have signal/communication systems on board. Further, the support vessels established a navigation routing plan from the shore base to the rig that minimized risks of interference with populated fishing areas. While it is true that negative impacts to marine fauna could occur from routine operations, the magnitude and extent of these impacts were almost uniformly negligible or low, and very localized. Implementation of proposed mitigation measures further reduced the potential for environmental impacts. During the ESIA consultations, community members regularly inquired about benefits to the local population and job creation. Exploration drilling creates little immediate benefit, and this was explained during the consultation meetings. In the event of exploration success, Kosmos works with the government to determine ways that benefits can flow to local people. However, even during the exploration phase, Kosmos is committed to creating economic opportunity both through its core business and its social investment programs. We are committed to optimizing the participation of capable local suppliers so as to increase the linkages between Kosmos’ business and the Senegalese economy. Further, Kosmos has developed a social investment plan that takes into consideration local needs and development priorities. Throughout the ESIA process, we engaged a range of stakeholders in order to gain support for the drilling project. The ESIA team spent considerable time building relationships with key regulators, agencies, ministries, and coastal fishing communities. Each of these constituencies participated in the ESIA process (through consultations, reviews of materials, or facilitating meetings) and ultimately supported the outcome and Kosmos’ plan of activities. The results of the ESIA are incorporated into a comprehensive Environmental and Social Management Plan for Kosmos’ drilling operations in Senegal. Comprehensive impact assessment prior to exploration drilling is a crucial step for Kosmos everywhere we operate, and we continue to learn and improve our processes with each ESIA we conduct. 27 27