Cobalt International says Angola oil block stake sale terminated

August 23, 2016 6:54 AM EDT

A woman walks past the head office of Angola's state oil company Sonangol in the capital Luanda, Angola August 26, 2012. REUTERS/Siphiwe Sibeko/File Photo

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(Reuters) - Cobalt International Energy Inc (NYSE: CIE) said the proposed $1.75 billion sale of a 40 percent stake in two offshore oil blocks in Angola to the state oil company was terminated as it did not get the necessary approvals from the country's government.

The deal was automatically terminated after the Angolan government did not give the approvals within one year, Cobalt said on Tuesday. (

The oil and gas producer announced in August last year the sale of its 40 percent stake in the fields to Angola's Sonangol, which holds the remaining stake.

But, three weeks back Cobalt warned that it was unlikely to close the deal.

Cobalt said on Tuesday it has begun the marketing and sale process of the assets.

The company's shares had tumbled more than 40 percent on Aug. 2 when the company first said that the deal was unlikely to close. Since then the stock has pared most of it's losses through Monday's close.

(Reporting by Arathy S Nair in Bengaluru; Editing by Savio D'Souza)

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