15 At 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 of 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 standards, we often work to provide the necessary training or certification to elevate them to the standard. This is frequently the case, as we operate in a number of countries with nascent oil and gas industries. In 2015, we organized contractor forums in both Mauritania and Senegal to provide training and reinforce our HSE-related expectations. Local and multinational contractors attended these sessions in anticipation of increased activity and re-committed themselves to working within our standards. Ensuring that our suppliers and contractors fully understand their contractual obligations regarding anti-corruption provisions is vitally important. Our local procurement professionals offer one-on-one sessions with our suppliers to explain our requirements under our policies, the U.S. Foreign Corrupt Practices Act of 1977, the UK Bribery Act of 2010, and other relevant local legislation. During this process, we often identify areas for additional training within our local supply chain. 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 when there are few non-technical jobs created and highly specialized equipment is often sourced globally. In 2015, we assessed our approach to local content, both at the corporate level as well as in Mauritania where we had 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. An example of greater cross- functional collaboration is a recent infrastructure survey covering both Mauritania and Senegal in which a multi-disciplinary team visited public and private ports, quarries, cement companies, transportation providers, and other businesses to assess their ability to support a large-scale construction project. One of the key aims of the survey was gathering sufficient information to maximize the use of local vendors and materials. For example, we are now assessing the feasibility of using local quarries to supply stone for the construction of a breakwater. In 2016, Kosmos launched a program to continue strengthening relationships with the key contractors that support drilling operations. Kosmos hosted several forums during the year which gathered management representatives from each of the contractors providing support in Mauritania and Senegal in a collaborative effort to share perspectives on organizational challenges and goals, crew resource management, and showing clear leadership in HSES. Kosmos considered this initiative to be especially important during another year in which the industry business climate, combined with a planned pause in drilling activity, affected morale among our contractors and could have led to a lowering of standards. Forum participants identified real-world challenges, such as maintaining institutional knowledge in an aging workforce, cross-cultural understanding in multi-national companies, and maintaining morale and focus in uncertain business conditions. Workshops were coupled with visits to field sites to further assess operations safety. COMMERCIAL RESPONSIBILITIES 6 BUSINESS PRINCIPLE “I have managed procurement for Kosmos in Senegal since 2015. Since day one at Kosmos Energy Senegal, I have been impressed by how we use local procurement to contribute to the long term success of our business and also the development of local communities. I think increasing the input of local labour, goods and services in our different projects is making a major contribution to the growth of the local economy. Indeed, sustaining and impacting communities in a positive manner is one of our main motives in developing our supply chain.” ANNE-MARIE GAYE Procurement Coordinator, Kosmos Energy Senegal