Sonangol and Cobalt announce US$500mn settlement

Sonangol Cobalt aThe signing of the agreement between the two companies to resolve the dispute. (Image source: Sonangol)The Sonangol EP and Cobalt International Energy, Inc have signed an agreement to resolve all disputes between the two companies, including transferring Cobalt’s interests in Blocks 20 and 21 offshore Angola to Sonangol for US$500mn

Sonangol said that the proposed settlement is subject to approval by the US Bankruptcy Court for the Southern District of Texas.

Under the settlement agreement, Sonangol will pay a non-refundable amount of US$150mn by 23 February 2018, with the final payment of US$350mn to be made by 1 July 2018.

Carlos Saturnino, Chairman and CEO of Sonangol, considered this agreement as the first step in resolving the dispute between Sonangol and Cobalt, following a lawsuit filed by the US carrier in international arbitration proceedings against the national oil company, of a dossier negotiated and signed in 2015 and not completed.

Carlos Saturnino emphasised the importance of the agreement for the country, considering its contribution to attract foreign investment, industry stability and credibility.

The next step will be the re-launch of the contracting groups in Blocks 20 and 21, he added. “Sonangol will continue the development of strategies and actions with all stakeholders to re-launch the stability and attractiveness of the hydrocarbons industry in Angola,” Saturnino said.

Timothy J Cutt, CEO of Cobalt, noted that the company looks forward to working with Sonangol to implement this agreement for developing world class assets.

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