Cobalt Has Talks with Angola's Sonangol

US independent Cobalt has had contact with Sonangol officials, despite having referred the Angolan state producer to international arbitration earlier this year after it backed out of a $1.75bn deal with Cobalt in 2016. It did not say whom it had recently met from Sonangol or when.

The US firm said in May it is claiming over $2bn damages from Sonangol through arbitration; it will now continue to “vigorously” press that claim.

In its 2Q results statement August 8, Cobalt said: “With regard to Angola, the previously announced arbitration process between Cobalt and Sonangol is progressing as planned and currently the arbitral tribunals are being constituted. In addition, Cobalt recently met with representatives from Sonangol and the Angolan government and it appears that all parties share a common goal to resolve this matter amicably. However, until this matter is resolved in a satisfactory manner, Cobalt will continue to vigorously prosecute these claims in arbitration and seek all available remedies.”

Cobalt reported a 2Q net loss of $186mn, compared to a net 2Q2016 loss of $206mn; the reduced loss was largely because of a “$113mn reduction in dry hole costs and impairments” year on year from its primarily US upstream business.

BP booked a $753mn write-off charge in its 2Q2017 results primarily related to Angola. It named no other Angolan interests relinquished, apart from the Katambi gas discovery on offshore block 24/11 but did have stakes in oil and gas blocks in which Cobalt was to sell its operated interests to Sonangol.

Mark Smedley