b'Our operations may be materially adversely affected by tropical storms and hurricanes.Tropical storms, hurricanes and the threat of tropical storms and hurricanes often result in theshutdown of operations, particularly in the U.S. Gulf of Mexico, as well as operations within the pathand the projected path of the tropical storms or hurricanes. In addition, climate change could result inan increase in the frequency and severity of tropical storms, hurricanes or other extreme weatherevents. Weather events have caused significant disruption to the operations of offshore and coastalfacilities in the U.S. Gulf of Mexico region. In the future, during a shutdown period, we may be unableto access wellsites and our services may be shut down. Additionally, tropical storms or hurricanes maycause evacuation of personnel and damage to our platforms and other equipment, which may result insuspension of our operations. The shutdowns, related evacuations and damage can createunpredictability in activity and utilization rates, as well as delays and cost overruns, which could have amaterial adverse effect on our business, financial condition and results of operations.The development schedule of oil and natural gas projects, including the availability and cost of drilling rigs,equipment, supplies, personnel and oilfield services, is subject to delays and cost overruns.Historically, some oil and natural gas development projects have experienced delays and capitalcost increases and overruns due to, among other factors, the unavailability or high cost of drilling rigsand other essential equipment, supplies, personnel and oilfield services, as well as mechanical andtechnical issues. The cost to develop our projects has not been fixed and remains dependent upon anumber of factors, including the completion of detailed cost estimates and final engineering,contracting and procurement costs. Our construction and operation schedules may not proceed asplanned and may experience delays or cost overruns. Any delays may increase the costs of the projects,requiring additional capital, and such capital may not be available in a timely and cost-effective fashion.Our offshore and deepwater operations involve special risks that could adversely affect our results ofoperations.Offshore operations are subject to a variety of operating risks specific to the marine environment,such as capsizing, sinking, collisions and damage or loss to pipeline, subsea or other facilities or fromweather conditions. We could incur substantial expenses that could reduce or eliminate the fundsavailable for exploration, development or license acquisitions, or result in loss of equipment and licenseinterests.Deepwater exploration generally involves greater operational and financial risks than exploration inshallower waters. Deepwater drilling generally requires more time and more advanced drillingtechnologies, involving a higher risk of equipment failure and usually higher drilling costs. In addition,there may be production risks of which we are currently unaware. If we participate in the developmentof new subsea infrastructure and use floating production systems to transport oil from producing wells,these operations may require substantial time for installation or encounter mechanical difficulties andequipment failures that could result in loss of production, significant liabilities, cost overruns or delays.For example, we have experienced mechanical issues in the Jubilee Field, including failures of its gasand water injection facilities on the FPSO, and are currently working to complete remediation of theturret bearing issue on the FPSO. The equipment downtime caused by these mechanical issuesnegatively impacted oil production during the year.In addition, Kosmos and its Jubilee partners determined that the risers of the FPSO haveexperienced increased levels of stress compared to their original design basis, which may cause theserisers to suffer operational fatigue earlier than originally anticipated. The Jubilee partnership hasperformed remediation work on the water injection risers and additional work may be required on thegas injection riser depending on the analysis of instrumentation data of the risers to make a final53'