Continental Focus, International Reach

Cobalt and Sonangol Reach Sale Terms on Blocks 20 and 21

Sunday, December 24, 2017

Cobalt International Energy (CIE) and Sonangol, the state-run oil and gas firm of Angola, signed an agreement that brings the stalemate over two offshore blocks to an end. The agreement resolves all disputes and transitions Cobalt’s interests in Blocks 20 and 21 offshore to Sonangol for $500 million.

The settlement is subject to approval by the US Bankruptcy Court for the Southern District of Texas as Cobalt recently filed for Chapter 11 to aid in restructuring the company .

Sonangol will need to pay an initial non-refundable payment of $150 million to Cobalt no later than February 23, with the final $350 million payment to be received no later than July 1.

Carlos Saturnino, Chairman and CEO of Sonangol said: “I would like to thank Tim Cutt and Cobalt team for all efforts made to conclude with success, the settlement of all issues related to the Angolan offshore oil concessions, i.e., Block 21/09 and Block 20/11. Sonangol will continue the development of strategies and actions with all stakeholders to relaunch the stability and attractiveness of the hydrocarbons industry in Angola.”

“I want to thank Carlos Saturnino for his leadership in decisively and successfully resolving the outstanding issues between our companies. I also wish to thank Sonangol’s Board of Directors. I believe this resolution is in the best interest of our stakeholders,” said Timothy J. Cutt, Cobalt’s Chief Executive Officer. “We look forward to working with Sonangol to implement this agreement and wish them all the best in developing these world class assets.”


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