Cobalt terminates $1.75 billion sale of Angola oil blocks

August 24, 2016 | Angola, Asset Acquisitions & Divestitures

London, UK | –  Cobalt International Energy Inc. said the proposed $1.75 billion sale of a 40% stake in two offshore oil blocks in Angola to the state oil company Sonangol was terminated as it did not get the necessary approvals from the country’s government.

The deal was automatically terminated after the Angolan government did not give the approvals within one year, Cobalt said on Aug. 23.

The oil and gas producer announced in August last year the sale of its 40% stake in the fields to Angola’s Sonangol, which holds the remaining stake. But, three weeks back Cobalt warned that it was unlikely to close the deal.

Cobalt said on Aug. 23 it has begun the marketing and sale process of the assets.

The company’s shares had tumbled more than 40% on Aug. 2 when the company first said that the deal was unlikely to close. Since then the stock has pared most of it’s losses through close on Aug. 22.