Kosmos Energy Ltd
Report on payments to government for the year 2021
Introduction
Kosmos Energy Ltd. has prepared the following consolidated report in respect of payments made to governments for the year ended 31 December 2021 in accordance with the Reports on Payments to Governments Regulations 2014 (2014/3209) as amended by the Reports on Payments to Governments (Amendment) Regulations 2015 (2015/1928) and DTR 4.3A of the Financial Conduct Authority's Disclosure and Transparency Rules.
| Payments to Governments (USD) (1) | |||||||
| |
Equatorial Guinea |
Ghana |
Mauritania | Sao Tome & Principe |
Senegal |
Suriname |
United States |
| Income Taxes (3) | $ 31,125,000 | $ 106,350,000 | $ - | $ - | $ - | $ - | $ (61,000) |
| Royalties (BOE) (2) | 510,000 | 541,000 | - | - | - | - | 1,187,000 |
| Estimated Royalties ($s) (2) | $ 36,164,000 | $ 38,362,000 | $ - | $ - | $ - | $ - | $ 73,062,000 |
| Dividends | $ - | $ - | $ - | $ - | $ - | $ - | $ - |
| Bonuses | $ - | $ - | $ - | $ - | $ - | $ - | $ 700,000 |
| License Fees (Surface Rentals, Permitting Fees, etc.) | $ 1,419,000 | $ 31,000 | $ - | $ - | $ - | $ - | $ 2,781,000 |
| Infrastructure Improvement | $ - | $ - | $ - | $ - | $ - | $ - | $ - |
| Total | $ 109,269,000 | $ 144,743,000 | $ - | $ - | $ - | $ - | $ 76,482,000 |
FOOTNOTES
The Payments to Government data are reflective of direct payments made to government entities by Kosmos Energy. These payments are categorized consistent with the Report on Payments to Governments Regulations 2014 (as amended in December 2015) (the Regulations). The Regulations enact domestic rules in line with Directive 2013/34/EU (the EU Accounting Directive (2013). Kosmos Energy has also included supplementary disclosures of payments to governments in addition to those prescribed by the Regulations. Please see the footnotes below for further detail on the payments we made to our host country governments in 2021.
(1) Our summary, project-level and receiving-entity level payments to government disclosures are also available on our website at www.kosmosenergy.com/transparency.
(2) Royalties are paid to the Government of Ghana and the Republic of Equatorial Guinea in barrels of oil out of Kosmos Energy's working interest share of production, including the additional working interest in Ghana acquired during October 2021. Production entitlements are paid to the Republic of Equatorial Guinea in barrels of oil based on their participating interest. The production entitlement amounts presented represent Kosmos Energy's participating share received by the Republic of Equatorial Guinea. The value of the royalties and production entitlements disclosed above are based on the annual average of daily Brent prices of $70.91 during 2021. United States amounts above are determined based on actual sales prices. These figures exclude 8.860 Bscf of associated Jubilee and TEN sold to GNPC during the year.
(3) Inclusive of any tax refunds received
Introduction - Supplemental Information
In addition to the above Payments to Governments, Kosmos Energy Ltd. has prepared the following supplemental information for the year ended 31 December 2021.
| Payments to Governments (USD) - Supplemental Information | |||||||
| |
Equatorial Guinea |
Ghana |
Mauritania | Sao Tome & Principe |
Senegal |
Suriname |
United States |
| Supplementary Disclosures | | ||||||
| Production Entitlements (bbls) (1) | 572,000 | - | - | - | - | - | - |
| Estimated Production Entitlements ($s) (1) | $ 40,561,000 | $ - | $ - | $ - | $ - | $ - | $ - |
| Envt, Capacity Building & Social Projects (3) | $ - | $ - | $ - | $ - | $ - | $ - | $ - |
| Training (3) | $ 500,000 | $ - | $ - | $ - | $ - | $ - | $ - |
| Taxes (Non-Income) (2)(4) | $ 165,000 | $ 4,307,000 | $ 378,000 | $ 83,000 | $ 401,000 | $ 60,000 | $ 1,270,000 |
FOOTNOTES
(1) Production entitlements are paid to the Republic of Equatorial Guinea in barrels of oil based on their participating interest. The production entitlement amounts presented represent Kosmos Energy's participating share received by the Republic of Equatorial Guinea. The value of the royalties and production entitlements disclosed above are based on the annual average of daily Brent prices of $70.91 during 2021. These figures exclude 8.860 Bscf of associated Jubilee and TEN sold to GNPC during the year.
(2) Inclusive of any tax refunds received
(3) Represents payments made directly to government for satisfaction of obligations per the Petroleum Agreements and/or Petroleum Sharing Contracts (PSCs), as applicable. In addition to the numbers above, Kosmos made payments to national oil company employees in accordance with training obligations per the PSCs totaling $24,000 in Sao Tome and Principe.
(4) Primarily withholding taxes on interest payments, employer paid payroll-related taxes and associated employee retention tax credits, and property taxes paid on pipe and tangible goods inventory stored at various onshore locations in the United States. These values are exclusive of withholding or similar taxes remitted on behalf of service providers.
| Payments to Governments - Receiving Entity-Level Disclosures (1) | |||||||||||||
| |
Production Entitlements (bbls) (2) |
Estimated Production Entitlements ($s) (2) |
Income Taxes (3) |
Royalties (bbls) (2) |
Estimated Royalties ($s) (2) |
Dividends |
Bonuses |
License Fees (Surface Rentals, Permitting Fees, etc) |
Infrastructure Improvement |
Environment, Capacity Building & Social Projects (4) |
Training (4) |
Taxes (Non- Income) (5) |
TOTAL |
| Ministry of Mines and Hydrocarbons | 572,000 | 40,561,000 | - | 510,000 | 36,164,000 | - | - | 500,000 | - | - | - | - | $ 77,225,000 |
| Tresoreria General Del Estado | - | - | 31,125,000 | - | - | - | - | - | - | - | - | 88,000 | $ 31,213,000 |
| Instituto Nacional de Seguridad Social de Guinea Ecuatorial | - | - | - | - | - | - | - | - | - | - | - | 63,000 | $ 63,000 |
| Fondo de Formacion del Ministerio de Minas e | - | - | - | - | - | - | - | - | - | - | 500,000 | - | $ 500,000 |
| Excmo Ayuntamiento de Malabo | - | - | - | - | - | - | - | - | - | - | - | 14,000 | $ 14,000 |
| Tresor Public De Guinee Equatoriale Depots | - | - | - | - | - | - | - | 919,000 | - | - | - | - | $ 919,000 |
| Total Equatorial Guinea | 572,000 | $ 40,561,000 | $ 31,125,000 | 510,000 | $ 36,164,000 | $ - | $ - | $ 1,419,000 | $ - | $ - | $ 500,000 | $ 165,000 | $ 109,934,000 |
| Government of Republic of Ghana | - | - | - | 541,000 | 38,362,000 | - | - | - | - | - | - | - | $ 38,362,000 |
| Petroleum Commission of Ghana | - | - | - | - | - | - | - | 24,000 | - | - | - | - | $ 24,000 |
| Registrar General Department | | | | | | | | 7,000 | | | | - | $ 7,000 |
| Social Security & Nat'l Insura | - | - | - | - | - | - | - | - | - | - | - | (13,000) | $ (13,000) |
| Ghana Revenue Authority | - | - | 106,350,000 | - | - | - | - | - | - | - | - | 4,262,000 | $ 110,612,000 |
| Electricity Company of Ghana | - | - | - | - | - | - | - | - | - | - | - | 58,000 | $ 58,000 |
| Ghana Water Company Ltd. | - | - | - | - | - | - | - | - | - | - | - | - | $ - |
| Total Ghana | - | $ - | $ 106,350,000 | 541,000 | $ 38,362,000 | $ - | $ - | $ 31,000 | $ - | $ - | $ - | $ 4,307,000 | $ 149,050,000 |
| Caisse Nationale D'Assuramce Maladie | - | - | - | - | - | - | - | - | - | - | - | 74,000 | $ 74,000 |
| Caisse Nationale De Securite Sociale | - | - | - | - | - | - | - | - | - | - | - | 2,000 | $ 2,000 |
| Tresorier General | - | - | - | - | - | - | - | - | - | - | - | 302,000 | $ 302,000 |
| Total Mauritania | - | $ - | $ - | - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ 378,000 | $ 378,000 |
| INSS - Instituto Nacional De Seguranca Social | - | - | - | - | - | - | - | - | - | - | - | 25,000 | $ 25,000 |
| Tesouro Publico | - | - | - | - | - | - | - | - | - | - | - | 58,000 | $ 58,000 |
| Total Sao Tome & Principe | - | $ - | $ - | - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ 83,000 | $ 83,000 |
| Chef du Bureau de Recouvrement | - | - | - | - | - | - | - | - | - | - | - | $ 391,000 | $ 391,000 |
| Senegal Retirement | - | - | - | - | - | - | - | - | - | - | - | $ 9,000 | $ 9,000 |
| Senegal Social Security | - | - | - | - | - | - | - | - | - | - | - | $ 1,000 | $ 1,000 |
| Total Senegal | - | $ - | $ - | - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ 401,000 | $ 401,000 |
| Ontvanger der Direkte Belastingen | - | - | - | - | - | - | - | - | - | - | - | 60,000 | $ 60,000 |
| Total Suriname | - | $ - | $ - | - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ 60,000 | $ 60,000 |
| ONRR | - | - | - | 1,187,000 | 73,062,000 | - | 700,000 | 2,781,000 | - | - | - | - | $ 76,543,000 |
| Various | - | - | (61,000) | - | - | - | - | - | - | - | - | 1,270,000 | $ 1,209,000 |
| Total United States of America | - | $ - | $ (61,000) | 1,187,000 | $ 73,062,000 | $ - | $ 700,000 | $ 2,781,000 | $ - | $ - | $ - | $ 1,270,000 | $ 77,752,000 |
| Total | 572,000 | $ 40,561,000 | $ 137,414,000 | 2,238,000 | $ 147,588,000 | $ - | $ 700,000 | $ 4,231,000 | $ - | $ - | $ 500,000 | $ 6,664,000 | $ 337,658,000 |
FOOTNOTES
The Payments to Government data are reflective of direct payments made to government entities by Kosmos Energy. These payments are categorized consistent with the Report on Payments to Governments Regulations 2014 (as amended in December 2015) (the Regulations). The Regulations enact domestic rules in line with Directive 2013/34/EU (the EU Accounting Directive (2013). Kosmos Energy has also included supplementary disclosures of payments to governments in addition to those prescribed by the Regulations. Please see the footnotes below for further detail on the payments we made to our host country governments in 2021.
(1) Our summary, project-level and receiving-entity level payments to government disclosures are also available on our website at www.kosmosenergy.com/transparency
(2) Royalties are paid to the Government of Ghana and the Republic of Equatorial Guinea in barrels of oil out of Kosmos Energy's working interest share of production, including the additional working interest in Ghana acquired during October 2021. Production entitlements are paid to the Republic of Equatorial Guinea in barrels of oil based on their participating interest. The production entitlement amounts presented represent Kosmos Energy's participating share received by the Republic of Equatorial Guinea. The value of the royalties and production entitlements disclosed above are based on the annual average of daily Brent prices of $70.91 during 2021. United States amounts above are determined based on actual sales prices. These figures exclude 8.860 Bscf of associated Jubilee and TEN sold to GNPC during the year.
(3) Inclusive of any tax refunds received
(4) Represents payments made directly to government for satisfaction of obligations per the Petroleum Agreements and/or Petroleum Sharing Contracts (PSCs), as applicable. In addition to the numbers above, Kosmos made payments to national oil company employees in accordance with training obligations per the PSCs totaling $24,000 in Sao Tome and Principe.
(5) Primarily withholding taxes on interest payments, employer paid payroll-related taxes and associated employee retention tax credits, and property taxes paid on pipe and tangible goods inventory stored at various onshore locations in the United States. These values are exclusive of withholding or similar taxes remitted on behalf of service providers.
| Payments to Governments Project-Level Disclosures (1) | |||||||||||||
| |
Production Entitlements (bbls) (2) | Estimated Production Entitlements ($s) (2) |
Income Taxes (3) |
Royalties (bbls) (2) |
Estimated Royalties ($s) (2) |
Dividends |
Bonuses | License Fees (Surface Rentals, Permitting Fees, etc) |
Infrastructure Improvement | Environment, Capacity Building & Social Projects (4) |
Training (4) |
Taxes (Non- Income) (5) |
TOTAL |
| Ceiba Field | 180,000 | 12,764,000 | - | 160,000 | 11,346,000 | - | - | - | - | - | - | - | $ 24,110,000 |
| Okume Complex Field | 392,000 | 27,797,000 | - | 350,000 | 24,818,000 | - | - | - | - | - | - | - | $ 52,615,000 |
| Equatorial Guinea Block S | - | - | - | - | - | - | - | 62,000 | - | - | 100,000 | 41,250 | $ 203,250 |
| Equatorial Guinea Block W | - | - | - | - | - | - | - | 113,000 | - | - | 100,000 | 41,250 | $ 254,250 |
| Equatorial Guinea Block 21 | - | - | - | - | - | - | - | 125,000 | - | - | 100,000 | 41,250 | $ 266,250 |
| Equatorial Guinea Block 24 | - | - | - | - | - | - | - | 1,119,000 | - | - | 200,000 | 41,250 | $ 1,360,250 |
| Company Level - Kosmos Equatorial Guinea, Inc. | - | - | 31,124,000 | - | - | - | - | - | - | - | - | - | $ 31,124,000 |
| Company Level - Kosmos Energy Equatorial Guinea | - | - | 1,000 | - | - | - | - | - | - | - | - | - | $ 1,000 |
| Total Equatorial Guinea | 572,000 | $ 40,561,000 | $ 31,125,000 | 510,000 | $ 36,164,000 | $ - | $ - | $ 1,419,000 | $ - | $ - | $ 500,000 | $ 165,000 | $ 109,934,000 |
| Jubilee | - | - | - | 418,000 | 29,640,000 | - | - | - | - | - | - | - | $ 29,640,000 |
| TEN | - | - | - | 123,000 | 8,722,000 | - | - | - | - | - | - | - | $ 8,722,000 |
| West Cape Three Points | - | - | - | - | - | - | - | 15,500 | - | - | - | - | $ 15,500 |
| Deepwater Tano | - | - | - | - | - | - | - | 15,500 | - | - | - | - | $ 15,500 |
| Company Level | - | - | 106,350,000 | - | - | - | - | - | - | - | - | 4,307,000 | $ 110,657,000 |
| Total Ghana | - | $ - | $ 106,350,000 | 541,000 | $ 38,362,000 | $ - | $ - | $ 31,000 | $ - | $ - | $ - | $ 4,307,000 | $ 149,050,000 |
| Company Level | - | - | - | - | - | - | - | - | - | - | - | 378,000 | $ 378,000 |
| Total Mauritania | - | $ - | $ - | - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ 378,000 | $ 378,000 |
| Company Level | - | - | - | - | - | - | - | - | - | - | - | 83,000 | $ 83,000 |
| Total Sao Tome and Principe | - | $ - | $ - | - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ 83,000 | $ 83,000 |
| Company Level | - | - | - | - | - | - | - | - | - | - | - | 401,000 | $ 401,000 |
| Total Senegal | - | $ - | $ - | - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ 401,000 | $ 401,000 |
| Company Level | - | - | - | - | - | - | - | - | - | - | - | 60,000 | $ 60,000 |
| Total Suriname | - | - | - | - | - | - | - | - | - | - | - | 60,000 | $ 60,000 |
| Mississippi Canyon | - | - | - | 639,000 | 41,008,000 | - | - | 633,000 | - | - | - | - | $ 41,641,000 |
| De Soto Canyon | - | - | - | - | - | - | - | 1,042,000 | - | - | - | - | $ 1,042,000 |
| Garden Banks | - | - | - | 4,000 | 283,000 | - | - | 72,000 | - | - | - | - | $ 355,000 |
| Green Canyon | - | - | - | 544,000 | 31,771,000 | - | 199,000 | 174,000 | - | - | - | - | $ 32,144,000 |
| Keathley Canyon | - | - | - | - | - | - | - | 317,000 | - | - | - | - | $ 317,000 |
| Walker Ridge | - | - | - | - | - | - | 501,000 | 64,000 | - | - | - | - | $ 565,000 |
| Company Level | - | - | (61,000) | - | - | - | - | 479,000 | - | - | - | 1,270,000 | $ 1,688,000 |
| Total United States of America | - | $ - | $ (61,000) | 1,187,000 | $ 73,062,000 | $ - | $ 700,000 | $ 2,781,000 | $ - | $ - | $ - | $ 1,270,000 | $ 77,752,000 |
| Total | 572,000 | $ 40,561,000 | $ 137,414,000 | 2,238,000 | $ 147,588,000 | $ - | $ 700,000 | $ 4,231,000 | $ - | $ - | $ 500,000 | $ 6,664,000 | $ 337,658,000 |
FOOTNOTES
The Payments to Government data are reflective of direct payments made to government entities by Kosmos Energy. These payments are categorized consistent with the Report on Payments to Governments Regulations 2014 (as amended in December 2015) (the Regulations). The Regulations enact domestic rules in line with Directive 2013/34/EU (the EU Accounting Directive (2013). Kosmos Energy has also included supplementary disclosures of payments to governments in addition to those prescribed by the Regulations. Please see the footnotes below for further detail on the payments we made to our host country governments in 2021.
(1) Our summary, project-level and receiving-entity level payments to government disclosures are also available on our website at www.kosmosenergy.com/transparency.
(2) Royalties are paid to the Government of Ghana and the Republic of Equatorial Guinea in barrels of oil out of Kosmos Energy's working interest share of production, including the additional working interest in Ghana acquired during October 2021. Production entitlements are paid to the Republic of Equatorial Guinea in barrels of oil based on their participating interest. The production entitlement amounts presented represent Kosmos Energy's participating share received by the Republic of Equatorial Guinea. The value of the royalties and production entitlements disclosed above are based on the annual average of daily Brent prices of $70.91 during 2021. United States amounts above are determined based on actual sales prices. These figures exclude 8.860 Bscf of associated Jubilee and TEN sold to GNPC during the year.
(3) Inclusive of any tax refunds received
(4) Represents payments made directly to government for satisfaction of obligations per the Petroleum Agreements and/or Petroleum Sharing Contracts (PSCs), as applicable. In addition to the numbers above, Kosmos made payments to national oil company employees in accordance with training obligations per the PSCs totaling $24,000 in Sao Tome and Principe.
(5) Primarily withholding taxes on interest payments, employer paid payroll-related taxes and associated employee retention tax credits, and property taxes paid on pipe and tangible goods inventory stored at various onshore locations in the United States. These values are exclusive of withholding or similar taxes remitted on behalf of service providers.
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