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Extractive Industries/Mining/Oil & Gas
Houston, Texas, United States
Nationality of Foreign Officials: Angola
Summary of Allegations:
On 1 March 2011, Cobalt described an ongoing FCPA investigation by the U.S. Securities and Exchange Commission ("SEC") in its SEC Form 10-K related to bribes allegedly paid in Angola. In connection with entering into the Risk Services Agreements for Blocks 9 and 21 offshore Angola, Angolan companies Nazaki Oil and Aquattro were assigned as part of the contractor group by the Angolan government. According to the filing, Cobalt had not worked with either of the companies in the past and were unfamiliar with them.
According to its SEC Form 10-K, Cobalt was made aware of allegations of a connection between senior Angolan government officials and Nazaki Oil and G?z, S.A. ("Nazaki") (a full paying member of the contractor group for Blocks 9 and 21) as early as 2010.
Media reports alleged that the officials involved with Cobalt included the former head of Sonangol, a General closely associated with the president and former head of the president's military bureau, and a General who headed the president's communications bureau. Some of the officials owned shares in Nazaki indirectly.
In exchange for an oil concession deal, Cobalt and BP committed to spend USD 350 million for development of the Sonangol Research and Technology Center. According to media reports, the research center was never built. The research center, which has attracted USD 175 million in investment from Cobalt and BP, was intended to be a training facility where Angolans could learn skills needed for work in the oil and gas sector.
Approximate Alleged Payments to Foreign Officials: Unspecified
Business Advantage Allegedly Obtained: Unspecified
Agencies: United States: Department of Justice
Results: No Action
Year Resolved: 2017
Compliance Monitor: N/A
Ongoing: No
Details:
On 11 March 2011, Cobalt announced in its SEC Form 8-K that it had voluntarily disclosed to the U.S. Department of Justice ("DOJ") to avoid overlapping information requests.
As of 5 August 2014, Cobalt was under investigation by the DOJ. Cobalt said it closed its internal investigation into the Angolan payments and found no wrongdoing.
On 24 August 2015, Cobalt announced that the sale of its interest in their Angolan offshore blocks to Angola's state-owned oil company, Sociedad Nacional De Combustiveis De Angola (SONANGOL), for USD 1.75 billion with an effective date of 1 January 2015 is subject to customary approval by the Angolan government.
On 9 February 2017, Cobalt announced that the company received a letter from the DOJ that the prosecutors closed their investigation of potential FCPA violations in their Angolan operations.
Agencies: United States: Securities and Exchange Commission
Results: No Action
Year Resolved: 2015
Compliance Monitor: N/A
Ongoing: No
Details:
On 1 March 2011, Cobalt described an ongoing FCPA investigation by the SEC in its Form 10-K related to bribes allegedly paid in Angola.
On 5 August 2014, Cobalt disclosed that it had received a Wells Notice from the SEC. According to Cobalt, the Wells Notice states that the SEC has made a preliminary determination to recommend that it should initiate an enforcement action against the company.
On 29 January 2015, Cobalt announced that it has received a termination letter from the SEC. The letter stated that the SEC's FCPA investigation relating to the Cobalt's operations in Angola has concluded and the Staff does not intend to recommend any enforcement action by the SEC.
Agencies: United States: Securities and Exchange Commission
Results: Declination
Year Resolved: 2018
Compliance Monitor:
Ongoing: No
Details:
On 13 March 2017, the SEC informed Cobalt that it was undertaking an informal inquiry concerning the Sonangol Research and Technology Center. The same day, the SEC requested information concerning its inquiry.
31 January 2018: The SEC declined to take enforcement action against Cobalt and ended its inquiry.
Discovery Method: Voluntary Disclosure
Details:
Cobalt voluntarily disclosed to the DOJ following an informal investigation by the SEC.
Country: Angola