(Ecofin Agency) - Cobalt International Energy Inc., has announced that the planned $1.75 billion sale of a 40% interest in two offshore oil blocks in Angola to Sonangol, has been terminated.

According to the company, the agreement was terminated due to failure by Angolan government to approve the deal within a year, Reuters reports.

“As the requisite Angolan government approvals were not received within one year, the purchase and sale agreement automatically terminated. We plan to work with Sonangol to understand and agree on the financial and operational implications of the termination. The company has begun the marketing and sale process of its Angolan assets,” the company said.

Cobalt in August 2015, announced the sale of its 40% interest in Angolan blocks 20 and 21 to the state-owned company. Sonangol holds 30% in block 20 and 60% in block 21.

Sonangol had beforehand paid $250million to Cobalt but the latter also expended money over the past year on persistent drilling operations on the oil-rich blocks, with the hope that the money would be paid back by the buyer when the deal has been completed.

Anita Fatunji