Sonangol unlikely to pay $2 bln Cobalt arbitration

Cash-strapped Sonangol is unlikely to be able to foot a $2 billion legal bill if it loses its arbitration case with US-based Cobalt, sources say Cash-strapped Sonangol is unlikely to be able to foot a $2 billion legal bill if it loses its arbitration case with US-based Cobalt, sources say.
By Miriam Malek 16 May 2017 0 25917
The case between Cobalt and Sonangol related to Angola’s offshore blocks 20 and 21. (Cobalt)

Angola’s state-owned oil company, Sonangol, is facing a $2 billion arbitration case against United States-based Cobalt, but severe liquidity issues make it unlikely the African company will be able to foot the bill if it loses the case, Angolan sources have told Interfax Natural Gas Daily.

The case is related to offshore blocks 20 and 21, which are estimated to hold around 225-285 billion cubic metres of gas.

“Unless resolved to Cobalt’s satisfaction, Cobalt intends to vigorously prosecute these claims in arbitration and seek all available remedies...

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