Environmental Social and Governance (ESG) ComplianceAudit

African Capital Alliance (ACA) has invested in FHN’s OML 26 JV, via its CAPE IV Fund in 2016. Prior to its investment, ACA conducted an independent Environmental and Social Due Diligence (ESDD) assessment of FHN’s OML 26 assets and operations in December 2015. Consequently, CARES was commissioned by ACA, to assess and report on the status and observance of FHN to the environmental, social, and governance provisions according to the environmental and social standards in the shareholder agreement. The audit will provide detailed findings latest monitoring period and appropriate corrective actions to address material non-compliance items.

The monitoring audit involved:

•Identifying the E&S compliance gaps, if any, required mitigations and follow-up actions.

•Review of the FHN’shealth and safety incidents track record; labour management practices; pollution management procedure and records; GHG emission tracking; carbon offset programs and oil spill management.

•A review of the company’s own Corona / Covid-19 Emergency Prevention-and Preparedness plan;

•Assess the effectiveness of general E&S safeguard measures including documentation and operations.

•Identify and describe any changes in scope/nature of FHN’s operational activities at OML 26.

CARES provided a prioritized list of actions, status, and costed action plan for all recommendations.