Cobalt International Energy, Inc.
Notes to Consolidated Financial Statements (Continued)
F-32
17. Commitments
The following table summarizes by period the payments due for the Company’s estimated commitments, excluding long-term
debt, as of December 31, 2015:
Payments Due By Year
2016
2017
2018
2019
2020
Thereafter
($ in thousands)
Drilling Rig and Related Contracts; midstream
agreements ................................................................... $ 245,726 $ 246,464 $ 26,236 $ 7,175 $
5,907 $ 10,133
Operating Leases..........................................................
2,263
2,309
2,369
2,405
2,454
3,172
Lease Rentals(1)...........................................................
5,578
5,220
2,839
2,446
2,341
7,182
Total
............................................................................
$ 253,567 $ 253,993 $ 31,444 $ 12,026 $ 10,702 $ 20,487
(1) Relates to the annual delay rental payments payable to the Office of Natural Resources Revenue within the U.S. Department of
the Interior with respect to the Company’s U.S. Gulf of Mexico leases. These annual payments are required to maintain the
leases from year to year.
The Company recorded $9.0 million, $9.5 million, and $8.7 million of office and delay rental expense for the years ended
December 31, 2015, 2014 and 2013, respectively.
18. Contingencies
The Company is currently, and from time to time may be, subject to various lawsuits, claims and proceedings that arise in the
normal course of business, including employment, commercial, environmental, safety and health matters. It is not presently possible to
determine whether any such matters will have a material adverse effect on the Company’s consolidated financial position, results of
operations, or liquidity.
19. Other Matters
As previously disclosed, in November 2011 a formal order of investigation was issued by the SEC related to the Company’s
operations in Angola. In August 2014, the Company received a Wells Notice from the SEC related to this investigation. In
January 2015, the Company received a termination letter from the SEC advising it that the SEC’s FCPA investigation has concluded
and the Staff does not intend to recommend any enforcement action by the SEC. This letter formally concluded the SEC’s
investigation. The Company continues to cooperate with the Department of Justice (“DOJ”) with regard to its ongoing parallel
investigation. The Company is unable to predict the outcome of the DOJ’s ongoing investigation or any action that the DOJ may
decide to pursue.
