Cobalt International Energy, has announced that it will cut its staff by 50%, Offshore Energy Today reports.

The company stated that with the assets in Angola awaiting transfer coupled with plans to cut expenses, it is in the course of restructuring its organization in order to better support its post-Angola business needs.

In August 2015, Cobalt had signed a sale and purchase deal with Sonangol to sell its 40% working interest in Angola’s Blocks 20 and 21 for a gross consideration of $1.75 billion. The company got the first payment of $250 million in 2015 and anticipates to end the deal after the necessary approval from the government of Angola has been received.

According to the company, in line with the sale transaction as well as Sonangol’s desires, works were initiated to stop the Angola operations by late summer. As regards that Cobalt informed most of its workforce of its plans for termination of operations in a few months and has terminated all contract talks with potential contractors.

The company also said it will drill the outstanding two exploration commitment wells on Block 20 and discharge the Petroserv Catarina drilling rig when its contract expires in May 2016.

Cobalt has posted a net loss of $486.9 million for Q4 of 2015, from a loss of $216.6 million in Q4 of of 2014. The company however, added that it anticipates its capital expenses to be about $450 to $500 million in 2016.

Anita Fatunji