Strong relationships with stakeholders in the countries and communities where we operate create mutual value and are central to our success. By taking a collaborative approach, acting in an open and accountable manner, contributing to development and respecting human rights, we work to be a welcome investor. While our legal license to operate is granted by national governments, we seek to obtain the broad support of, and bring sustainable benefits to, the communities directly associated with our operations.
Kosmos is committed to understanding the direct and indirect effects of our activities on people and communities. We inform local communities of our plans and seek to ensure that they are engaged and kept informed about our activities through accessible and culturally appropriate methods of communication. We identify other relevant stakeholders and consult with them throughout the project life cycle on matters that affect them in order to understand their perspectives and any concerns. These consultations at the national, regional and local levels allow Kosmos to share information, understand concerns and build relationships based on collaboration and partnership.
At Kosmos, we strive to maximize the benefits that local residents and businesses derive from successful exploration and production activities, particularly in nations that are relatively new to hydrocarbon development. This includes creating direct benefits from our own operations and working to ensure that the activities of those acting as our partners, including national oil companies and other international investors, generate as much broadly-based economic opportunity as possible. We recognize that our principal beneficial impacts flow from our core operations. However, we undertake a variety of Corporate Social Investment (CSI) activities as well as seeking to support capacity-building programs. These programs enhance the ability of governments new to oil and gas operations in regulating and managing oil and gas operations and in delivering improved services made possible by oil and gas tax revenues.
We frame our CSI programs around the theme of “Building Human Capacity and Economic Opportunity.” We believe this consistent theme, while underscoring the tangible, much-needed benefits our investments provide to people living in the countries where we operate, will also provide practical benefits to the Company by creating greater clarity about the way we view these activities. We want to highlight to our employees, contractors and to external stakeholders that our CSI activities are an integral part of our larger business plans and objectives rather than discrete, unrelated programs.
Our decisions when identifying, designing and implementing CSI projects are guided by the following principles:
We define Social Investment Spending as payments that will directly impact the constituents of social investment projects. Not reflected in the numbers below are indirect costs related to social investment, such as needs assessments and reimbursable expenses incurred by our in-country social investment personnel. All of the Social Investment Spend is for Kosmos-initiated social investment, with the exception of the Jubilee Unit and TEN development project in Ghana, which represents our participating interest in social investments of these non-Kosmos operated projects.
We have grievance mechanisms in place in every region where we have drilling operations. The grievance we received in Morocco concerned damage of fishing nets by a drilling support vessel. In Ghana, we received eight grievances regarding the implementation of some of our social investment projects in the Western Region. The unresolved grievances include: the timing of extensions of the SafeWater project, use of the fish smoking ovens, and requests for additional social investment projects. We continue engagement with the concerned parties to resolve these grievances with a mutually-agreeable solution.
In 2014, one report was made to the Whistleblower Hotline by an external party. Upon investigation, it was revealed that there had been an incidence of email phishing using a Kosmos Energy email account. Kosmos responded by educating employees on email phishing and prevention, as well as contacting the appropriate regulatory bodies who track such incidents.
|Social Investment Spending|
|Jubilee Unit & TEN development project||$2,699,000||$4,739,000||$1,509,000|
|Grievances Logged / Grievances Resolved|
|Whistleblower Program Reports|