Cobalt International Energy, Inc.
Notes to Consolidated Financial Statements (Continued)
16. Income Taxes (Continued)
There were no unrecognized tax benefits or accrued interest or penalties associated with
unrecognized tax benefits as of December 31, 2014 and 2013.
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, 2014:
Payments Due By Year
2015
2016
2017
2018
2019 Thereafter
($ in thousands)
Drilling Rig and Related Contracts . . . $544,559 $299,702 $208,104 $17,104 $ — $ —
Operating Leases . . . . . . . . . . . . . . . .
9,755
4,801
2,309 2,369 2,405 5,626
Lease Rentals(1) . . . . . . . . . . . . . . . . .
7,353
5,460
5,007 2,282 1,973 7,223
Social and Work Program Payment
Obligations(2) . . . . . . . . . . . . . . . . .
55,999 84,729
5,714 5,714
— —
Total
. . . . . . . . . . . . . . . . . . . . . . . . .
$617,666 $394,692 $221,134 $27,469 $4,378 $12,849
(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.
(2) Includes the Company’s contractual payment obligations for (i) social projects such as the
Sonangol Research and Technology Center and academic scholarships for Angolan students that
the Company was and is contractually obligated to pay in consideration for the Angolan
government granting it the licenses to explore for and develop hydrocarbons offshore Angola and
(ii) the Company’s remaining work program obligations on Block 9 offshore Angola. Pursuant to
the terms of the Risk Services Agreements for Blocks 9 and 21 and the Production Sharing
Agreement for Block 20, the Company is not required to pay annual rental payments to maintain
the licenses from year to year.
The Company recorded $12.8 million, $6.7 million, and $12.1 million of office and delay rental
expense for the years ended December 31, 2014, 2013 and 2012, respectively.
18. Segment Information
The Company currently has two geographic operating segments for its operations. The operating
segments are focused in the deepwater U.S. Gulf of Mexico and offshore West Africa. The following
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