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Sonangol and Cobalt agree a settlement

Dec 20, 2017
2 min read
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Angola’s national oil company Sonangol has resolved all disputes with U.S. independent Cobalt International Energy that will see Cobalt’s interests in Blocks 20 and 21 offshore Angola transferred to Sonangol for US$500 million.

The settlement is subject to approval by the U.S. Bankruptcy Court for the Southern District of Texas. An initial non-refundable payment of $150 million is to be paid by Sonangol no later than February 23, 2018 with the final $350 million payment to be received no later than July 1, 2018.

The deal follows a dispute after Cobalt said its years-long efforts to find a buyer for its 40 percent stakes in the Blocks were impacted by the uncertainty surrounding the extension. Sonangol originally owned a 30 per cent and held the rights to extend exploration deadlines for production sharing agreements.

Carlos Saturnino, chairman and chief executive officer 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 believe this resolution is in the best interest of our stakeholders “We look forward to working with Sonangol to implement this agreement and wish them all the best in developing these world class assets,” said Timothy J. Cutt, Cobalt’s chief executive officer.