PART I
Item 1.
Business
General
We are a leading independent oil and gas exploration and production company focused on frontier
and emerging areas along the Atlantic Margin. Our assets include existing production and other major
development projects offshore Ghana, as well as exploration licenses with significant hydrocarbon
potential offshore Ireland, Mauritania, Morocco (including Western Sahara) and Suriname. Kosmos is
listed on the New York Stock Exchange (‘‘NYSE’’) and is traded under the ticker symbol KOS.
Following our formation in 2003, we acquired multiple exploration licenses and established a new,
major oil province in West Africa with the discovery of the Jubilee Field within the Tano Basin offshore
Ghana in 2007. This was the first of our discoveries offshore Ghana; it was one of the largest oil
discoveries worldwide in 2007 and is considered one of the largest finds offshore West Africa during
the last decade. Oil production from the Jubilee Field commenced in November 2010.
In the near-term, we are focused on maximizing production and cash flow from the Jubilee Field;
developing the Tweneboa-Enyenra-Ntomme (‘‘TEN’’) project which was approved by the Ministry of
Energy in 2013; appraising our other discoveries in Ghana; and beginning a multi-year, exploration
drilling program targeting several high impact opportunities.
Our Business Strategy
Grow proved reserves and production through exploration, appraisal and development
We plan to optimize production and further develop the Jubilee Field, bring the TEN development
project to production and appraise the Mahogany, Teak, Akasa and Wawa discoveries. In May 2013, the
government of Ghana approved the PoD over the TEN discoveries. The TEN project is expected to
deliver first oil in 2016. In the event of a declaration of commerciality and approval of a plan of
development over our Mahogany, Teak, Akasa and/or Wawa discoveries, we intend to develop these
discoveries to grow proved reserves and production. We also plan to drill exploration prospects, with
the intent to further grow proved reserves and production should discoveries be made.
Successfully open and develop our offshore exploration plays
We believe the prospects and leads potentially existing offshore Morocco, Mauritania, Suriname
and Ireland provide a favorable opportunity to meaningfully create value. We anticipate drilling two to
three play-opening exploratory wells per year in these basins beginning in 2014, depending on our
analysis of seismic data covering the blocks, initial exploration drilling results and availability of drilling
rigs and other required equipment and services. Depending on the results of these exploratory wells,
additional wells may be drilled. Given the potential size of these prospects and leads, we believe that
exploratory success in our operating areas could be significantly accretive to shareholder value.
Apply our technically-driven culture, which fosters innovation and creativity, to continue our successful
exploration and development program
We differentiate ourselves from other E&P companies through our approach to exploration and
development. Our geoscientists, petroleum engineers and development personnel are critical to the
success of our business strategy. We have created an environment that enables them to focus their
knowledge, skills and experience on finding and developing oil fields. Culturally, we have an open,
team-oriented work environment that fosters both creative and contrarian thinking. This approach
enables us to fully consider and understand both risk and reward, as well as deliberately and
collectively pursue strategies that maximize value. We used this philosophy and approach to make
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