Cobalt International Energy danced its way onto my radar screen back in 2007, when the private E&P made a big splash at a Gulf of Mexico lease sale. The company again surfaced as a big bidder last March, placing second to Hess
With backers reading like a who's-who of private equity (First Reserve, for example, is the most eminent energy player), Cobalt's deep pockets have given it instant credibility in the deepwater exploration business. The management team is equally formidable, and stacked with veterans of BP
Cobalt sports an outsourcing model that I've argued is an attractive path to upstream profits. So far, the company has participated in two exploratory successes operated by Anadarko Petroleum
We got the answer Monday, with a major partnership announcement between Cobalt and France's Total SA
Of course, Cobalt is losing the upside inherent in retaining 100% ownership, but that's the classic compromise in a joint venture. The benefits are pretty clear. Not only does Total foot part of the bill, but it also brings deepwater rigs to the table. Cobalt's use of the Ensco