Angola Explorer Cobalt Appoints New CEO

US firm Cobalt International has named Timothy J Cutt as its new CEO effective July 2 with a 'golden hello' shares package worth $4mn. Cutt was president of BHP Billiton’s petroleum division from July 2013 until March 2016, having joined BHP in 2007 where he helped build up its US Gulf deepwater position -- something Cobalt also has.

Cutt, who prior to BHP worked for ExxonMobil, replaces Joseph H Bryant who has resigned as chairman and CEO effective June 1.

Cobalt has made a series of oil and gas discoveries offshore Angola in recent years. Last year it agreed to sell its 40% operating interest in blocks 21/09 and 20/11 to state Sonangol for $1.75bn. But May 3 this year, Cobalt said that while both companies want to complete the transaction, it remains subject to Angolan government approval, although it insisted Luanda had not withdrawn support for the deal. Cobalt shares nonetheless fell in value.

Cobalt COO Van Whitfield will be interim CEO; in 2002-03 he worked on the Angola LNG project whilst at BP (Photo credit: Cobalt Int'l)

Cobalt has continued operations and said May 3 it expects to spend some $120mn on ongoing Block 20 and 21 operations pending the closing of the Angola transaction. In April, Sonangol declared a gas and condensate find, Lontra-1 on block 20/11, was commercial and said it would consult with Cobalt on its possible development.

Cobalt meanwhile said May 3 it had completed drilling its Zalophus-1 gas-condensate discovery, its sixth offshore Angola and its third discovery on Block 20, and said it was now completing drilling operations at Golfinho-1, its final exploration well commitment on Block 20.

Cobalt’s lead independent director William P Utt has been appointed as interim chairman and Van P Whitfield as interim CEO – both effective June 1; the latter is chief operating officer. Utt thanked Bryant “for his vision and leadership since Cobalt’s founding in 2005.”  

Mark Smedley