Cobalt announces the end of the deal with Angola’s Sonangol

25 August 2016

The sale of stakes in two oil blocks in Angola to state oil company Sonangol for US$1.75 billion has been scrapped, US company Cobalt International Energy Inc. said on Wednesday.

In a statement, the group added that the government authorisation should have been granted within a year and, as it has not be issued, the deal has not gone ahead, and the stakes would immediately be put up for sale.

In August 2015, the US group said it had sold the stakes it owned in the two blocks to Sonangol for US$1.75 billion, minus US$19.7 million in taxes.

At the beginning of August, the group announced it would endeavour to sell the two 40% stakes in two oil blocks in Angola to “third parties” after state company Sonangol had given up on the deal, the group said in a market filing.

In a statement issued in Houston, the group also said it CEO Tim Cutt had met with the chairwoman of Sonangol, Isabel dos Santos, to discuss the sale of those two stakes.

At that meeting, the statement said, the parties agreed that Cobalt International Energy would seek to sell the stakes in blocks 20 and 21 to “third parties.” (macauhub/AO)