32 In 2016 we reviewed all of our vendors’ contracts and payroll. Over the course of the year, we took corrective actions related to late payment of wages in two instances and terminated one contract due to non-compliance with our Business Principles and related policies. We ultimately had little operational activity in Mauritania in 2016. As our workforce and vendors prepare for drilling and development activities in 2017, we will be actively prioritizing and pursuing the recommendations stemming from the labor rights risk assessment. ENGAGEMENT AND LISTENING We believe that being a great explorer is not enough to be successful – we must also engage with local people and listen to their concerns. Our gas discoveries offshore Mauritania mean that we will have a presence in the country for many years to come. We want to be a welcome investor, both to our host governments and local communities. To achieve this goal, we endeavor to build relationships with stakeholders through engagement and listening. In 2016, we led community consultations as part of our environmental and social impact assessment process for seismic surveys and drilling. We met with local representatives as part of an Environmental Impact Assessment to introduce the company, highlight our commitment to doing things the right way, and explain our planned seismic activities. These consultations were attended by NGOs, fishermen, and local religious, economic, and government leaders. We heard a general concern from civil society over offshore oil and gas projects, but also excitement for the economic possibilities as long as operations are conducted transparently. We used the community consultations as an opportunity to remind stakeholders of our grievance mechanism in Mauritania and how it works. The stakeholders had a number of questions which are addressed by the seismic environmental and social impact assessment. These questions covered impacts on fish and marine biodiversity, waste disposal, and job creation. The consultations concluded with an open invitation to continue dialogue on our activities, as well as a commitment to keep stakeholders informed of our progress and plans. Kosmos serves as a member of the Mauritanian Extractive Industry Transparency Initiative (EITI) Steering Committee. We believe that the best way to promote economic growth and fight corruption is through cooperation and transparent engagement with a range of stakeholder groups. The EITI in Mauritania has been a valuable forum for us to engage on transparency and anti-corruption initiatives. POSITIVE IMPACTS One of the first social investment projects that Kosmos developed was providing English language training for students at Centre de Formation et de Perfectionement Professionels (CFPP), the largest vocational training center in Nouakchott. We had learned from a needs assessment that the students were often being excluded from job applicant pools for which they were qualified because they did not have sufficient English language skills. Thus, 2016 was the third consecutive year that we have provided English classes for students at the CFPP. In response to student and staff suggestions, Kosmos has also provided lessons in basic management and entrepreneurship skills. We partner with the International Labor Organization (ILO) office in Mauritania on an employability skills training program for the students enrolled in the English classes. While we pursue development of the country’s natural gas resource, we aim to enhance national capacity in the oil and gas industry and related fields. An early initiative is a multi-year partnership with the Gérer les impacts des activités extractives (GAED) international “I support the activities and operations of all finance and accounting matters for Kosmos Energy Mauritania such as Treasury, Accounting and Budgets, and Tax Compliance. Since joining Kosmos in 2015, I have had the opportunity to develop my skills and fully integrate into a unique team with an innovative spirit.” SIDATY DOUMBIYA Accounting Assistant, Kosmos Energy Mauritania Young people learn entrepreneurship skills during “Start-up Week,” hosted by Start-Up Mauritania. Kosmos began supporting Start-Up Mauritania in 2016, both through event sponsorship and participating in their professional mentor program.