Cobalt International Energy, Inc. (OTCMKTS:CIEIQ) and Sonangol (Angolan National Concessionaire Sociedade Nacional de Combustíveis de Angola — Empresa Pública) have inked an agreement aimed at resolving disputes between the two entities as well as transition the Angolan offshore interests of the former in Blocks 21 and Blocks 20 to the latter at a price of half a billion US dollars.
Before the settlement can be concluded however, the deal will have to get the approval of a U.S. Bankruptcy court sitting in Texas’ Southern District. Sonangol is under obligation to initially pay $150 billion before February 24, 2018. This amount is non-refundable. The remaining $350 million will be paid before July 2, 2018. The chief executive officer and chairman of Sonangol, Carlos Satumino, was full of gratitude to the entire Cobalt team especially the CEO, Tim Cutt, following the agreement.
Angolan assets
“I would like to thank Mr. 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,” said Satumino.
This comes a little over a week since Cobalt International Energy filed for Chapter 11 bankruptcy. Per court documents Cobalt possesses assets valued between $1 billion to $10 billion and liabilities of between $1 billion to $10 billion.
In a press release following the announcement of the bankruptcy the Houston, Texas-based upstream firm indicated that business operations would proceed as usual and that in the course of the bankruptcy proceedings the company would have enough cash required to run. Per the release the upstream firm filed for bankruptcy in order to undertake a restructuring process which would see some assets sold.
Delisted from the NYSE
For several months Cobalt had made efforts aimed at reducing debt and avoiding getting delisted from the NYSE. Seven months ago the upstream firm indicated that its debt load had been reduced by approximately $339 million. However Cobalt has not been successful in its efforts to prevent getting delisted and is now trading on OTC Pink marketplace.
In Thursday’s trading session the stock of Cobalt International Energy Inc plunged by 14.29% to close the day at $0.63 per share.
