Kosmos Energy : 2023 SustainabilityReport

2023

Sustainability

Report

A MESSAGE FROM	OUR STRATEGIC APPROACH	2023	HEALTH	CLIMATE CHANGE &	ETHICS	OUR
ANDY INGLIS	TO SUSTAINABILITY	HIGHLIGHTS	& SAFETY	THE ENERGY TRANSITION	PEOPLE

ABOUT KOSMOS ENERGY

COMMUNITIES

HUMAN ESG

RIGHTS DATA

APPENDIX	KOSMOS ENERGY	2
2023 SUSTAINABILITY REPORT

Kosmos Energy is a leading deepwater exploration and production company focused on meeting the world's growing demand for secure, affordable, and cleaner energy. We have a diversified portfolio of low cost, lower carbon assets, including oil production in Ghana, the U.S. Gulf of Mexico, and Equatorial Guinea, as well as world-class natural gas and LNG development projects offshore Mauritania and Senegal. At Kosmos, our purpose is clear: we work to supply the energy the world needs today, find and develop cleaner energy for the future, and be a force for good in our host countries.

U.S. GULF OF MEXICO

EXPLORATION

DEVELOPMENT

PRODUCTION

DEVELOPMENT

DEVELOPMENT

FINANCIAL AND OPERATIONAL HIGHLIGHTS (as of December 31, 2023)

MAURITANIA

SENEGAL

GHANA

	EXPLORATION
DEVELOPMENT	PRODUCTION	EQUATORIAL
	GUINEA
PRODUCTION
	EXPLORATION	SÃO TOMÉ/
	PRÍNCIPE

~$1.2

BILLION

EBITDAX

(Full Year 2023)

~63,000

BOEPD

Full Year

Net Production1

Assumed operatorship

and a greater

working interest at

YAKAAR-TERANGA

offshore Senegal

TIBERIUS

infrastructure-led

exploration (ILX) oil discovery offshore U.S. Gulf of Mexico

~$0.7

BILLION

Liquidity

1. Production means net entitlement volumes. In Ghana and Equatorial Guinea, this means those volumes net to Kosmos' working interest or participating interest and net of royalty or production sharing contract effect. In the U.S. Gulf of Mexico, this means those volumes net to Kosmos' working interest and net of royalty.

Table of Contents

A MESSAGE FROM CHAIRMAN
AND CEO ANDY INGLIS	4
OUR STRATEGIC APPROACH
TO SUSTAINABILITY	8
2023 SUSTAINABILITY HIGHLIGHTS	18
HEALTH & SAFETY	20
CLIMATE CHANGE &
THE ENERGY TRANSITION	25
ETHICS	34
OUR PEOPLE	38
COMMUNITIES	43
HUMAN RIGHTS	53
ESG DATA 2021-2023	56
APPENDIX	65

A MESSAGE FROM	OUR STRATEGIC APPROACH
ANDY INGLIS	TO SUSTAINABILITY

2023	HEALTH	CLIMATE CHANGE &
HIGHLIGHTS	& SAFETY	THE ENERGY TRANSITION

ETHICS

OUR

PEOPLE

COMMUNITIES

HUMAN ESG

RIGHTS DATA

APPENDIX	KOSMOS ENERGY	4
2023 SUSTAINABILITY REPORT

A Message from the Chairman of the Board of Directors and Chief Executive Officer Andy Inglis

"With oil production from our low cost, lower carbon assets in Ghana, the U.S. Gulf of Mexico, and Equatorial Guinea, we are providing Africa and the wider world with the energy it needs today."

Fellow stakeholders,

As in the past, this year's Sustainability Report brings you the latest data, information and narrative on how Kosmos embeds sustainability in everything we do. Our sustainability strategy is indivisible from our business strategy. I know these words may sound cliché since every company has its own formulation of Benjamin Franklin's famous phrase about "doing well by doing good."

But for me these aren't mere words - they are a personal commitment. When I visit our host countries and speak to local people and business leaders, Presidents and elected officials, and our own employees and their families, I am reminded of the importance of Kosmos' work, as well as its potential to make a difference to people's lives. But to borrow another of Franklin's sayings, "Well done is better than well said." And I hope that you will see from this report that Kosmos is focused on being out there doing, not just talking - putting our words into action.

Africa's energy crisis

Any success we have achieved in business and sustainability needs to be seen against the reality of the energy crisis in Africa today. Sometimes we can become inured to the human impact and deprivations that this crisis creates, so I would like to remind you of three key statistics:

• The latest figures from the International Energy Agency show that 745 million people in Africa lack access to energy.
• Nearly a billion people in Africa lack access to clean cooking fuels. According to the United Nations Environment Programme (UNEP) heating and

cooking using biomass fuels results in a staggering 600,000 deaths every year.

• Africa - home to one fifth of the world's population
  - still accounts for less than 3% of global CO2 emissions. This is pertinent when we consider that Africa is at greater risk than the rest of the world from an already extreme environment.

A just, orderly and equitable energy transition

The fundamental unfairness these statistics describe was highlighted in the recent COP28 agreement, which stated that the transition away from fossil fuels must be done in a "just, orderly and equitable manner." We must ask ourselves if those Africans without power, whose lives are being shortened by unclean fuels and the impact of global warming are receiving just and equitable treatment. At Kosmos we believe there is much more to be done to achieve that outcome.

This is why our purpose as a company - and how it informs our business strategy - is so important. We are a leading deepwater exploration and production company focused on meeting the world's growing demand for cleaner energy. With oil production from our low cost, lower carbon assets in Ghana, the U.S. Gulf of Mexico, and Equatorial Guinea, we are providing Africa and the wider world with the energy it needs today. At the same time, we are developing cleaner sources of energy for the future, through world-scale gas projects offshore Mauritania and Senegal. And as we deliver the energy the world needs, we strive to be a force for good in our host countries, accelerating economic and social progress.

A MESSAGE FROM	OUR STRATEGIC APPROACH
ANDY INGLIS	TO SUSTAINABILITY

2023	HEALTH	CLIMATE CHANGE &
HIGHLIGHTS	& SAFETY	THE ENERGY TRANSITION

ETHICS

OUR

PEOPLE

COMMUNITIES

HUMAN ESG

RIGHTS DATA

APPENDIX	KOSMOS ENERGY	5
2023 SUSTAINABILITY REPORT

Kosmos is committed to producing energy for the African nations we partner with, to ameliorate the impact of the energy crisis they face. We are committed to doing so in the cleanest and most sustainable way possible, but we must never allow ourselves to become blind to the situation that Africa faces at this time. I am reminded of this when I see some in Europe and the U.S. advocate for cutting off natural gas investments - an action that could cripple Africa's progress and further handicap the continent. This would move us ever further away from the just, orderly and equitable energy transition we should all want to happen.

Africa's indigenous natural gas has, in the words of the COP28 agreement, an important role to play in "facilitating the energy transition while ensuring energy security." Natural gas is a vital transition fuel that emits about 50 to 60 percent less CO2 than coal when combusted and about 20 to 30 percent less than heavy fuel oil. Enabling Africa to transition away from imported coal or heavy fuel oil to domestic gas in power generation would provide the reliable energy needed to improve living standards and spur economic development, while substantially reducing power sector emissions.

The truth is that Africa desperately needs more energy of all kinds to bring greater prosperity to its people. Modern commerce, most industries, and the entire digital economy all depend on reliable electricity. So while lack of household power hinders daily life, energy scarcity outside the home cripples economic opportunity. No economy can create lots of jobs without abundant and reliable power

Growing production to meet demand

In 2023, Kosmos advanced our key development projects, which aim to deliver around 50% production growth from the second half of 2022. The start-

up of Jubilee Southeast in Ghana was a major step toward achieving this goal and we expect production from Winterfell in the U.S. Gulf of Mexico to be an important contributor as well. We expect these milestones to be followed by first gas at Greater

Tortue Ahmeyim (GTA) offshore Mauritania and Senegal. By the end of 2024, we expect to grow production to around 90,000 barrels of oil equivalent per day. As part of this growth, we expect gas to increase from about 10% of overall production to around 25%. GTA will produce LNG for export and make gas available for domestic use. This gas has

negligible carbon dioxide and minimal impurities, which reduces the need for processing ahead of transportation and liquefaction.

In addition, Kosmos is working to develop Yakaar- Teranga offshore Senegal, one of the largest gas discoveries in recent years. We believe this gas field holds around 25 trillion cubic feet of advantaged

A MESSAGE FROM	OUR STRATEGIC APPROACH
ANDY INGLIS	TO SUSTAINABILITY

2023

HIGHLIGHTS

HEALTH	CLIMATE CHANGE &
& SAFETY	THE ENERGY TRANSITION

ETHICS

OUR

PEOPLE

COMMUNITIES

HUMAN RIGHTS

ESG

DATA

APPENDIX	KOSMOS ENERGY	6
2023 SUSTAINABILITY REPORT

gas-in-place, which has similarly beneficial characteristics to the gas at GTA. Kosmos assumed operatorship of Yakaar-Teranga in 2023. We are working with the national oil company on an innovative development concept that prioritizes cost-competitive gas to the rapidly growing domestic market, combined with an offshore LNG facility targeting exports into international markets.

Renewable energy now represents about 30% of Senegal's power generation capacity with the aim to move to 40% by 2030. Natural gas can help achieve this goal by providing flexible baseload power, facilitating integration of variable renewable energy sources into the grid. A cleaner and more diversified energy mix will be required to meet the demands of a young and growing population while the country decarbonizes at the same time. Kosmos aims to be a part of the solution by providing domestic gas to displace imported heavy fuel oil.

Shifting our portfolio from oil to gas

As Kosmos looks to the future and our move towards natural gas, we are still investing in growing oil supply at each of our core production hubs in Ghana, the U.S. Gulf of Mexico and Equatorial Guinea. We are doing this with an emphasis on high-graded projects that yield low cost, carbon-advantaged barrels. At the same time, we are working with our partners

"As we increase the weighting of natural gas compared to oil in our portfolio, we expect the carbon intensity of our Scope 3 category 11 (use of sold products) emissions will decrease."

in Mauritania and Senegal to bring new sources of low cost, lower carbon natural gas into production. Kosmos intends to achieve and maintain top quartile carbon intensity in both our oil and gas portfolios.

Longer term, we plan to continue shifting the balance of our portfolio from oil to natural gas and LNG to help meet the world's energy needs as cleaner natural gas displaces coal, heavy fuel oil, and biomass as

a primary source of energy in both developed and emerging economies. As we increase the weighting of natural gas compared to oil in our portfolio, we expect the carbon intensity of our Scope 3 category 11 (use of sold products) emissions will decrease.

Addressing climate change and emissions

With our advantaged oil and gas production, we can be a responsible producer that the world can count on to balance energy security and affordability with the need to lower emissions.

For the third consecutive year, we have maintained carbon neutrality for our operated Scope 1 and Scope 2 emissions, and in 2023 we announced a new near-term target to reduce by 25% our Scope 1 equity emissions in 2026 from a 2022 baseline. We are making good progress and are on track to meet this goal, which involves initiatives such as working with partners to eliminate routine flaring in Ghana and Equatorial Guinea.

Considering that our climate strategy is core to our business strategy, Kosmos is strengthening our climate-related disclosures this year by reporting our Scope 3 category 11 emissions using the internationally recognized GHG Protocol and industry-specific guidance from Ipieca. Since the Paris agreement

in 2015, we have been following the complex and unresolved public debate about the measurement, disclosure, and management of Scope 3 emissions and, in particular, their relevance to our portfolio.

"...sustainability is never an add-on or an afterthought, but a commitment that begins with our board of directors and is embedded throughout the company from leadership to employees."

Despite having no direct control over these emissions, Kosmos has chosen to disclose this information. Our approach has been reviewed by a leading sustainability consultancy and our total Scope

3 category 11 emissions received review-level external assurance from EY. We plan to periodically review and refine our calculation methodology so

we stay consistent with the evolving standards and best practices for Scope 3 emissions accounting and reporting.

Unwavering commitment to sustainability

Our commitment to sustainability has been recognized by stakeholders. MSCI, one of the leading ESG ratings agencies, awarded Kosmos its highest possible "AAA" rating for the second consecutive year, which puts us in the top 20% of companies across the sector. Similarly, Newsweek and Statista named Kosmos one of America's Most Responsible Companies for the fourth consecutive year.

Executing our strategy relies on our ongoing commitment to operating responsibly. For us, this means that sustainability is never an add-on or an afterthought, but a commitment that begins with our board of directors and is embedded throughout the company from leadership to employees.

A MESSAGE FROM	OUR STRATEGIC APPROACH
ANDY INGLIS	TO SUSTAINABILITY

2023	HEALTH	CLIMATE CHANGE &
HIGHLIGHTS	& SAFETY	THE ENERGY TRANSITION

ETHICS

OUR

PEOPLE

COMMUNITIES

HUMAN ESG

RIGHTS DATA

APPENDIX	KOSMOS ENERGY	7
2023 SUSTAINABILITY REPORT

Safety

Safety has been, and always will be, a core value. In 2023, we had zero fatalities, a 0.21 lost time incident rate (LTIR), and a 0.42 total recordable incident rate (TRIR). While this level of performance is significantly better than the industry average, we believe we can improve. That's why in 2023 we reviewed our HSE Training Program to look for ways to further enhance our strong safety record. Additionally, I have asked everyone at Kosmos to join me in re-committing to an HSE culture that strives to keep our people and contractors safe, no matter where they work.

Transparency

Kosmos has earned a reputation for transparency, particularly in our dealings with host governments. We believe the open nature of our business dealings fosters mutual accountability and builds trust

with our stakeholders. We have long disclosed the terms of our petroleum agreements and reported payments made to host governments at both the project level and in aggregate. We are still the only U.S. oil and gas company to do so and we are proud to offer the sector a benchmark for transparency. Disclosures should provide clarity and benefit to shareholders and the countries where we operate. Not just data for the sake of data. As such, we take care to ensure the information we provide is both meaningful and valuable.

Investing in people and communities

By nurturing the next generation of entrepreneurs and facilitating innovation in sectors beyond oil and gas, Kosmos Innovation Center (KIC) programs contribute to the creation of healthier and more diverse economies in our host nations. Our focus on underprivileged or historically undervalued communities is an important part of our ethos.

"Ra'idat was inspired by the success of the women's bootcamp at increasing the participation of women entrepreneurs in the established KIC Mauritania Innovation Challenge."

In 2023, KIC Mauritania developed Ra'idat, a new two- month workshop for female entrepreneurs in which participants receive training on market research, price refinement, and business pitch development, among other topics. Ra'idat was inspired by the success of the women's bootcamp at increasing the participation of women entrepreneurs in the established KIC Mauritania Innovation Challenge.

In 2024, KIC Senegal will be expanding its reach through a new program in Saint Louis emphasizing economic diversification and entrepreneurship training. It will focus on training women and young people to pursue income-generating activities in the fisheries, handicrafts and agricultural sectors. Local Kosmos staff and private sector experts will work alongside the entrepreneurs so they develop a full

range of commercial and leadership skills they can use later in life - regardless of whether their start-ups ultimately succeed or fail.

Being a force for good

Our agenda is both exciting and ambitious, and requires continued input and debate with our investors, host governments, local communities, business partners, and others. We welcome these conversations and the opportunity to learn from them, especially as attitudes shift, driven by understanding the need for energy security, the moral imperative of a just energy transition, and the evolving definition of what it means to be a responsible company.

No matter what the future holds, I am confident that Kosmos will keep moving forward and acting responsibly. Our purpose informs everything we do, and sustainability is core to our business strategy and decision-making.

On behalf of everyone at Kosmos Energy, thank you for your continued support.

ANDREW G. INGLIS

Chairman of the Board of Directors

and Chief Executive Officer

Our Strategic Approach to Sustainability

At Kosmos, our purpose is clear: we work to supply the energy the world needs today, find and develop cleaner energy for the future, and be a force for good in our host countries. Our role is to meet the world's growing demand for secure, affordable, and cleaner energy.

OUR COMMITMENT	9
BUSINESS PRINCIPLES	9
SUSTAINABILITY GOVERNANCE	11
THE STANDARD	13
RISK MANAGEMENT	13
AUDIT COMMITTEE OVERSIGHT	14
STAKEHOLDER ENGAGEMENT	15
SUSTAINABILITY MATERIALITY ASSESSMENT	17

BUSINESS PRINCIPLES

CODE OF BUSINESS CONDUCT AND ETHICS

CLIMATE CHANGE POLICY

THE STANDARD

A MESSAGE FROM	OUR STRATEGIC APPROACH
ANDY INGLIS	TO SUSTAINABILITY

2023	HEALTH	CLIMATE CHANGE &
HIGHLIGHTS	& SAFETY	THE ENERGY TRANSITION

ETHICS

OUR

PEOPLE

COMMUNITIES

HUMAN ESG

RIGHTS DATA

APPENDIX	KOSMOS ENERGY	9
2023 SUSTAINABILITY REPORT

Our Commitment

We are committed to understanding the needs and concerns of our stakeholders and, guided by our Senior Leadership Team, focus on the topics most relevant to our business. Our Business Principlesand Code of Business Conduct

and Ethicsoutline our expectations for how our people behave while doing business and engaging with communities.

Through our CEO-led Climate Change Task Force, our HSE management system, and our supporting policies, procedures, and tools, we establish consistent expectations to embed sustainability across our business.

We are committed to supporting the U.N. Sustainable Development Goals (U.N. SDGs) and believe our core operations help our host countries progress on goals 3: Good Health and Well-Being, 5: Gender Equality, 7: Affordable and Clean Energy, 8: Decent Work and Economic Growth, 9: Industry, Innovation, and Infrastructure,

1. Reduced Inequalities, 13: Climate Action, and 17: Partnerships for the Goals.

Business Principles

Adopted in 2013, our Business Principlesare the foundation of our company culture. These Principles reflect Kosmos' shared values, inform our business practices, and define the standards to which we hold ourselves accountable. We share these Principles with employees, contractors, and external stakeholders, and require employees - including senior leadership and our CEO - to comply with all aspects in their work activities and when representing the company.

Our Business Principlesare supported with robust management systems and guide our actions across six key areas: engage with stakeholders, act with integrity, create safe and inclusive workplaces, protect the environment, embrace our role in communities, and choose the right partners.

Engage with Stakeholders

Strong and supportive relationships with our stakeholders are the basis of our business and how we create value. Our aims for our key stakeholders are to:

Create attractive returns, protect investments, and manage potential risks to the business, including climate risks, while capitalizing on opportunities for shareholders.

Provide a stimulating and rewarding work environment for employees through an inclusive and diverse culture that promotes entrepreneurial thinking, encourages excellence, facilitates teamwork, and embraces ethical behavior.

Collaborate in a manner that contributes to national, regional, and local development by engaging with host governments to align national priorities and industry needs using a shared agenda based on mutual trust and respect.

Engage communities in ways that create economic opportunity, facilitate social progress, and respect human rights.

Work with business partners and suppliers who share our commitment to standards of business ethics, compliance, and human rights. We seek to foster sustainable economic development by, whenever feasible, sourcing goods and services from vendors in our host countries.

Engage with and consult civil society, recognizing the role civil society plays in holding governments and companies accountable for their actions.

Act with Integrity

We strive to foster a culture of integrity, professionalism, respect, and fairness across the company. We do not tolerate corruption and continue to maintain a robust legal and ethical compliance program.

Our contracts with and material payments to governments are published annually and we support and adhere to the principles of the Extractive Industries Transparency Initiative (EITI).

Kosmos is politically neutral and does not provide funding for candidates, political parties, or partisan entities. We expect our employees to deal honestly and fairly with governments, regulators, investors, customers, suppliers, the public, and each other.

It is the responsibility of every employee to uphold our Business Principlesand to report any concerns they may have if the conduct of others has fallen short of these standards. No one will be penalized for making such reports in good faith.

A MESSAGE FROM	OUR STRATEGIC APPROACH
ANDY INGLIS	TO SUSTAINABILITY

2023	HEALTH	CLIMATE CHANGE &
HIGHLIGHTS	& SAFETY	THE ENERGY TRANSITION

ETHICS

OUR

PEOPLE

COMMUNITIES

HUMAN RIGHTS

ESG

DATA

APPENDIX	KOSMOS ENERGY	10
2023 SUSTAINABILITY REPORT

Create Safe and Inclusive Workplaces

We aim to be a world-class company known for being a workplace of choice. We seek to provide employees with careers that are professionally challenging and personally rewarding. We expect all of our people

to work co-operatively and strive to make our offices a place where everyone feels respected and free to contribute their ideas. We do not tolerate discrimination, harassment, or intimidation of any kind.

We recognize fundamental labor rights, including the right to freedom of association. We do not permit child, forced, or bonded labor at our operations or among our suppliers. We require our contractors to adhere to international labor standards and local laws and to pay their employees enough to meet their basic needs in the context of their local labor market.

We have a fundamental commitment to the health and safety of our employees and those who work with us: we strive for an incident- and injury- free workplace.

To support these commitments and ambitions, we expect our managers to show leadership and provide

clear direction to their teams, including adherence to the Business Principlesand Code of Business Conduct and Ethics.

Protect the Environment

We respect the environment and seek to prevent adverse impacts by adhering to best practices in environmental stewardship and reporting. This includes using natural resources efficiently and responsibly, maintaining strong management systems to manage risk and track performance, and being prepared to respond to emergencies in an effective and timely manner.

We are committed to managing our response to climate change and the energy transition. We regularly monitor scientific, regulatory, and other external developments related to climate change and our industry to better understand the evolving expectations of our stakeholders and best practices for upstream oil and gas companies. We seek to reduce our emissions, where possible, and we embed climate change and energy transition related

challenges, risks, and opportunities into our business strategy and decision making.

Embrace Our Role in Communities

We engage regularly with the communities associated with our operations to understand their priorities and concerns, including developing and maintaining mechanisms to address grievances related to our activities. We also seek to build human capacity and create economic opportunity through local employment, skills development, and

social investment.

We aim to prevent or minimize adverse risks to community health, safety, and security, and only proceed with material activities after assessing and establishing measures to avoid or mitigate adverse environmental or social impacts. We respect human rights and exercise due diligence in identifying and, when in our control, mitigating any potential infringements on human rights.

Choose the Right Partners

We expect our business partners - including operating partners, suppliers, and contractors - to behave ethically. Willingness to observe standards in line with our Business Principlesand supporting policies is a key factor when evaluating whether or not to establish a business relationship. Because we commonly work with co-venturers who have day to day control of operations, we seek to influence such joint ventures so that they operate in a manner consistent with our Business Principles.

We exercise due diligence in the selection of partners and suppliers and aim to allocate contracts through transparent and fair processes.

We expect our employees and contractors to respect confidential and proprietary information and similarly aim to protect the intellectual property of our business partners and suppliers. Our employees are expected to avoid conflicts of interest or the appearance of any such conflicts.