Cobalt International Energy invokes force majeure

Cobalt International Energy Inc. invoked a force majeure provision under its drilling contract with Diamond Offshore Co. for the Ocean Monarch drilling rig, which was moored and ready to drill on an exploratory well on Garden Banks Block 959 in the Gulf of Mexico.

By OGJ editors
HOUSTON, June 2
-- Cobalt International Energy Inc. invoked a force majeure provision under its drilling contract with Diamond Offshore Co. for the Ocean Monarch drilling rig, which was moored and ready to drill on an exploratory well on Garden Banks Block 959 in the Gulf of Mexico.

Cobalt said it invoked the force majeure because of a May 27 announcement by the US government to temporarily suspend deepwater drilling in the gulf.

Already Cobalt had all necessary permits and insurance as required for drilling. The Houston independent also believes the direct financial impact of triggering force majeure on the Ocean Monarch will cost $15 million.

“Looking to the future, Cobalt believes that the action taken by the US government…will likely result in the delay of our Gulf of Mexico drilling program by approximately 6 months,” the company said in a news release.

Other than this initial delay, Cobalt reaffirmed its intentions to execute all aspects of its entire gulf exploration and appraisal program as previously announced. Cobalt also focuses on offshore Angola and Gabon.

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