Cobalt International Energy to Cut 50 Houston Positions
A continuing difficult market environment due to low oil prices is the cause for another round of layoffs, this time at exploration and production company Cobalt International Energy, Inc.
In a letter to the Texas Workforce Commission dated Feb. 19, Houston-based Cobalt stated it will be cutting 50 positions from its corporate office in Houston.
The layoffs will take place April 30 and impacted employees will receive 60 days advance notice as well as severance assistance.
Cobalt has deepwater assets with material interest in the Gulf of Mexico and offshore West Africa. Cobalt is in the process of selling its 40 percent working interest in Angola Blocks 20 and 21 Sonangol for $1.75 billion before taxes. According to a company release dated Feb. 22, Cobalt has received an initial payment of $250 million in 2015. The transaction is expected to close after approvals from the Angolan government.
The release stated the job cuts are part of the company’s restructuring efforts to better serve its business needs after the Angola sale. The company expects to reduce its total workforce by about 50 percent. According to the company’s website, Cobalt employs more than 300 full-time employees and consultants.
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