Project to Add 400,000 Gallons of Transportation Fuels Daily, Hundreds of
Construction Jobs
HOUSTON, June 20 /PRNewswire-FirstCall/ -- Marathon Oil Corporation
(NYSE: MRO) today announced that construction of the estimated $1.9 billion
heavy oil upgrading project at its Detroit refinery is underway following
issuance of an air quality permit by the Michigan Department of
Environmental Quality (MDEQ).
With expected completion in late 2010, the project will increase the
refinery's total capacity from 102,000 barrels per day (bpd) to 115,000
bpd, which will include an additional 80,000 bpd of heavy oil capacity. The
increased refining capacity will supply more than 400,000 additional
gallons of clean transportation fuels a day to the marketplace.
"The Detroit Heavy Oil Upgrade Project is illustrative of strategic
investments we're making across our downstream business to increase coking
capacity, lower feedstock costs as well as increase efficiency and
flexibility, so we can continue providing competitive returns in a
challenging downstream environment," said Gary R. Heminger, executive vice
president of Marathon and president of the company's refining, marketing
and transportation operations.
Marathon's Detroit Heavy Oil Upgrade Project will require an average of
800 construction workers a day until its completion. In addition, the
expansion will increase the refinery workforce by 135 full-time employees.
There are 480 full-time employees at the refinery today.
"By sourcing additional crude oil from our North American neighbors in
Canada, this important project will provide improved crude oil supply
security for Michigan's only refinery. Since purchasing the refinery in
1959, Marathon has made substantial investments in the facility, including
the completion of a more than $300 million expansion and clean fuels
project in 2005. Safety and environmental stewardship will continue to be
our primary focus during the construction of the Detroit Heavy Oil Upgrade
Project," Heminger said.
In addition to compliance with the stringent environmental requirements
set out by the MDEQ permitting process, Marathon has committed to going
beyond compliance with additional environmental enhancements that include:
-- Retrofitting 150 Detroit Public Schools' buses with diesel emissions
controls;
-- Adding eight additional continuous air emission monitors on process
unit stacks to further monitor compliance with permit requirements;
-- Installing at least four ambient air monitoring stations on the
refinery perimeter to monitor air quality;
-- Capturing emissions from trucks hauling petroleum coke at the
refinery;
-- Enhancing street sweeping of paved roads near the refinery;
-- Collaborating on the city/county emergency notification system; and
-- Sharing emissions data with the refinery's Community Advisory Panel
and community-based organizations near the refinery.
Fluor Corporation (NYSE:FLR) will provide integrated engineering,
procurement and construction services for the refinery project.
In addition, an associated pipeline project in six Monroe County,
Mich., townships and one township in Wayne County will require hundreds of
temporary construction jobs for the duration of the project. Construction
on the 29-mile segment of pipeline is expected to begin in the second
quarter of 2009 with completion in 2010.
For additional details about the project, visit http://www.DetroitHOUP.com.
Marathon is the fourth-largest U.S.-based fully integrated
international energy company engaged in exploration and production;
integrated gas; oil sands mining; and refining, marketing and
transportation operations. The Company has exploration and production
activities in the United States, the United Kingdom, Angola, Canada,
Equatorial Guinea, Gabon, Indonesia, Ireland, Libya and Norway. Marathon is
the fifth largest refiner in the U.S. with 1,016,000 bpd of crude
processing capacity in its seven-refinery system. The Company's retail
marketing system comprises approximately 6,000 locations in 18 states;
nearly three-quarters are Marathon brand locations. Marathon serves the
Midwest and Southeast as a petroleum products marketer with 87 light
product and asphalt terminals and the Company owns, operates, leases or has
an ownership interest in approximately 9,700 miles of pipeline. For more
information, visit the Company's Web site at http://www.marathon.com.
Unlike capital expenditures reported under generally accepted
accounting principles, the estimated costs for the Detroit refinery heavy
oil upgrading project discussed in this release does not include
capitalized interest. Capitalized interest is budgeted at the corporate
level.
This release contains forward-looking statements with respect to the
Detroit Heavy Oil Upgrade Project and a pipeline expansion project. Some
factors that could cause the actual results to be different than expected
include necessary regulatory and third-party approvals, transportation
logistics, availability of materials and labor, unforeseen hazards such as
weather conditions, and other risks customarily associated with
construction projects. The foregoing factors (among others) could cause
actual results to differ materially from those set forth in the
forward-looking statements. In accordance with the "safe harbor" provisions
of the Private Securities Litigation Reform Act of 1995, Marathon Oil
Corporation has included in its Annual Report on Form 10-K for the year
ended December 31, 2007, and subsequent Forms 10-Q and 8-K, cautionary
language identifying other important factors, though not necessarily all
such factors, that could cause future outcomes to differ materially from
those set forth in the forward-looking statements.
Media Relations
Contacts: Chris Fox 419-421-2850
or 419-306-6539
Angelia Graves 419-421-2703
Investor Relations
Contacts: Howard Thill 713-296-4140
Chris Phillips 713-296-3213
Michol Ecklund 713-296-3919
SOURCE Marathon Oil Corporation
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Related links:
http://www.marathon.com
http://www.DetroitHOUP.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20051027/DATH029LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Media Relations: Chris Fox, +1-419-421-2850,
+1-419-306-6539, Angelia Graves, +1-419-421-2703, Investor
Relations: Howard Thill, +1-713-296-4140, Chris Phillips,
+1-713-296-3213, Michol Ecklund, +1-713-296-3919, all of Marathon
Oil Corporation
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