SHARE
Image courtesy of Cobalt International Energy.

Cobalt International Energy agreed Monday to sell its entire participating interest in two offshore Angola blocks to state owned Sonangol for $1.75 billion.

Houston-based Cobalt sold its entire 40 percent participating interests in Blocks 21/09 and 20/11 in offshore Angola.

Cobalt will stay on as operator for an interim period and said the agreement “provides for a smooth transition to a new operator.”

Sonangol will pay for all costs moving forward, Cobalt added.

The transaction is subject to customary Angolan government approvals that are expected before to the end of the year.

The deal is effective as of January 1, 2015.

Cobalt said it remains committed to obtaining a final investment decision for the Cameia development in Block 21/09 by the end of 2015.

The company hopes to deliver first oil from Cameia in 2018.

“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,” Sonangol chairman and CEO Francisco Lemos José Maria said.

Cobalt has made five significant discoveries in Angola’s offshore Kwanza Basin to date.

“We remain committed to continuing our joint efforts with Sonangol to move the Cameia development project to sanction by year end,” Cobalt chairman and CEO Joseph H. Bryant.