Cobalt, Sonangol in $1.75B deal for pair of Angolan blocks

Sonangol, a company responsible for the management of oil and gas reserves in Angola, and Cobalt International Energy, Inc. on Monday announced the signing of a Sale and Purchase Agreement for Sonangol to acquire all of Cobalt’s 40% participating interest in Blocks 21/09 and 20/11 offshore Angola.

Sonangol will acquire the interest in two blocks for $1.75 billion with an effective date of January 1, 2015.

This transaction is subject to customary Angolan government approvals which are expected prior to the end of the year.

According to Cobalt, the Sale and Purchase Agreement provides for a smooth transition to a new operator and underscores the parties’ commitment to attain the final investment decision for the Cameia development in Block 21/09 by year end 2015 in order to deliver first oil from Cameia in 2018. Notwithstanding Cobalt’s continuing as operator for an interim period, all costs going forward will be borne by Sonangol.

Commenting on the transaction, Francisco Lemos José Maria, Chairman and Chief Executive Officer of Sonangol said, “Over the past seven years, Cobalt International Energy has had outstanding exploration success in Angola’s pre-salt, which will accrue considerable prosperity to the Angolan people over coming generations. We are thankful and appreciative of their efforts and dedication to the task and wish them well in their future endeavors in the global industry.”

“We are proud of the tremendous success that our partnership with Sonangol has achieved in opening the pre-salt play in the Kwanza Basin with five significant discoveries and a deep portfolio of exploration prospects,” said Joseph H. Bryant, Cobalt’s Chairman and Chief Executive Officer.

“We remain committed to continuing our joint efforts with Sonangol to move the Cameia development project to sanction by year end.”