HOUSTON, July 9 /PRNewswire-FirstCall/ -- Marathon Oil Corporation
(NYSE: MRO) announced today that it has entered into a definitive agreement
with Centrica plc, the parent company of British Gas, under which Centrica
will purchase Marathon's non-operated interests in the Heimdal
infrastructure, related producing fields and associated undeveloped acreage
offshore Norway. The transaction, which has a total value of $416 million
and an effective date of January 1, 2008, includes a $375 million purchase
price plus $41 million in associated Norwegian asset tax pools, but
excludes any purchase price adjustments due at closing. The companies
anticipate closing the transaction, which is subject to Norwegian
regulatory approval, during the late third quarter or early fourth quarter
of 2008.
Under the terms of the agreement, Centrica will acquire Marathon's 23.8
percent interest in the Heimdal field, as well as its 46.9 percent interest
in the Vale field; a 20 percent interest in the Byggve field; a 20 percent
interest in the Skirne field; and a 50 and 20 percent interest in the Peik
and Heimdal East discoveries, respectively. Marathon's net proved reserves
associated with these assets as of year end 2007 were 4.8 million barrels
of oil equivalent (mmboe), and total net risked resources of approximately
17.5 mmboe. Current net production from these operations averages
approximately 7,000 barrels of oil equivalent per day. None of the assets
involved in this agreement are associated with Marathon's Alvheim/Vilje
development or related operations on the Norwegian Continental Shelf.
"Marathon's decision to sell its interest in Heimdal and related assets
is part of our ongoing efforts to actively manage the Company's global
asset portfolio to ensure alignment with our business strategy and to
generate sustainable value growth," said David E. Roberts, Jr., Marathon
executive vice president, Upstream. "This business approach demands that we
continually evaluate the value of existing operations against the value of
new or emerging opportunities."
Marathon is an integrated international energy company engaged in
exploration and production; oil sands mining; integrated gas; and refining,
marketing and transportation operations. Marathon, which is based in
Houston, has principal operations in the United States, Angola, Canada,
Equatorial Guinea, Gabon, Indonesia, Ireland, Libya, Norway and the United
Kingdom. Marathon is the fourth largest United States-based integrated oil
company and the nation's fifth largest refiner.
This release contains forward-looking statements with respect to the
anticipated disposition of interests in the Heimdal area and related
assets. Some factors that could adversely affect the anticipated
disposition of these interests and related assets include the inability or
delay in obtaining necessary government and third party approvals and other
customary closing conditions. 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.
Cautionary Note to U.S. Investors - The United States Securities and
Exchange Commission (SEC) permits oil and gas companies, in their filings
with the SEC, to disclose only proved oil and gas reserves that have
demonstrated by actual production or conclusive formation tests to be
economically and legally producible under existing economic and operating
conditions. Marathon Oil Corporation uses certain terms in this press
release, such as total net risked resources that the SEC's guidelines
strictly prohibit us from including in filings with the SEC. U.S. Investors
are urged to consider closely the disclosures in Marathon's periodic
filings with the SEC, available from us at 5555 San Felipe, Houston, Texas
77056 and the Company's Web site at http://www.Marathon.com . You can also
obtain this information from the SEC by calling 1-800-SEC-0330.
Media Relations Contacts: Lee Warren 713-296-4103
Paul Weeditz 713-296-3910
Investor Relations Contacts: Howard Thill 713-296-4140
Chris Phillips 713-296-3213
Michol Ecklund 713-296-3919
SOURCE Marathon Oil Corporation
 back to top
Related links:
http://www.marathon.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 Contacts: Lee Warren,
+1-713-296-4103, Paul Weeditz, +1-713-296-3910, Investor
Relations Contacts: Howard Thill, +1-713-296-4140, Chris
Phillips, +1-713-296-3213, Michol Ecklund, +1-713-296-3919, all
of Marathon Oil Corporation
|
