Continental Focus, International Reach

Cobalt Sees Interest from Buyers for Angola

Thursday, August 10, 2017

Cobalt International Energy (CIE) is negotiating with potential buyers for its two blocks offshore Angola. CIE hopes that the current talks with break the impasse that it has with state-run Angolan firm Sonangol.

CIE and Sonangol have been in a deadlock for some time with CIE saying in in May that it had attempted an arbitration action before the International Chamber of Commerce, demanding more than $2 billion from Sonangol for non-compliance of agreement.

The company argued at the time that cancellation of the agreement as well as uncertainty regarding the business meant it had been impossible to find a buyer for those two Angolan offshore oil holdings.

Cobalt has been trying to sell the blocks for several years. A deal to sell the licenses to Sonangol in a $1.75 billion deal fell through in 2016 because required approvals from the Angolan government did not come in time.

In its Q2 report CIE said that meetings with the Sonangol’s administration had led to the parties stating they would resolve the dispute in a friendly manner, however the company did not say what that would entail.

CIE holds blocks 20 and 21 with a 40% interest, Sonangol and BP each hold 30% in the blocks.


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