WESTERN SAHARA
Investing In The Non-Self-Governing Territory Of Western Sahara
Kosmos holds a petroleum agreement over the Cap Boujdour block
offshore Western Sahara, which is
classified by the United Nations
as a Non-Self-Governing Territory. We are aware that some have
reservations about any foreign
investment in Western Sahara
due to the disputed geopolitical
status of the territory. An authoritative UN Legal Opinion in 2002,
however, deems Morocco as the
de facto administering power and
established parameters for any
resource development in the territory. To explain our position, we
published a detailed statement on
our exploration activities offshore
Western Sahara. The statement is
available on our website at http://
www.kosmosenergy.com/pdfs/
PositionStatement-WesternSahara-English.pdf.
We have always maintained that we would
only proceed with activities in Western
Sahara in line with international law, established good practices, and our company
Business Principles. To that end, in December 2013 we concluded a Joint Declaration
of Principles with the Office National des
Hydrocarbures et des Mines (ONHYM), on
behalf of the Government of Morocco. This
made clear that both parties are committed to the implementation, inter alia, of the
principles of the UN Charter and the terms
of the 2002 UN Legal Opinion. We see this
Declaration as a significant advancement
and an example of responsible engagement
in what many see as a fragile region and
disputed territory.
We believe that, if exploration is successful, responsible resource development in
Western Sahara has the potential to create
significant long-term social and economic benefits for the people of the territory.
Much of our on-the-ground work has been
focused on stakeholder engagement and
social investment, in line with how we conduct our business everywhere we operate.
In 2013, the Moroccan Economic, Social and
Environmental Council (CESE) released its
recommendations for a new development
model for the territory, using a year-long
consultative approach. In order to better understand the Council’s engagement
methodology and feedback from the local
population, several senior representatives
from Kosmos observed consultations held
by the CESE in major cities in Western Sahara. Further, we organized two workshops for
the CESE in order to assist their research on
best practices in natural resource management. The workshops, held with our partner
ONHYM, included presentations from international experts on topics such as natural
resource revenue distribution and management mechanisms, consultation methods
and transparency. We also organized a
workshop for ONHYM on good practices
in social impact assessment.
In 2013, we worked with AMIDEAST and the
High Atlas Foundation to conduct needs assessments in the cities of Dakhla and Boujdour, respectively. The assessments highlighted a number of areas where we could
have a potential positive impact, such as
the need for business and language skills
among youth and training opportunities for
fishermen. We are using these studies to
design several new social investment projects, including working with AMIDEAST to
develop a new training center in Dakhla. We
are also conducting an early-stage supply
chain analysis to ensure that our operational
decisions and social investment programs
maximize employment and supply chain
opportunities generated by oil and gas operations.
Exploration drilling in the Cap Boujdour
block could occur as early as the fourth
quarter of 2014. Prior to drilling, we will
conduct environmental and social impact
assessments to develop well-informed
management plans and to engage and
consult with potentially impacted populations. We are also consulting with leading
experts to ensure that our activities are
aligned with the United Nations Guiding
Principles on Business and Human Rights.
We firmly believe that our investment in
the region, if successful, has the potential
to create long-term benefits for all the
people of the territory.
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