Marathon Oil to divest Gulf of Mexico assets

Nov. 9, 2015
Marathon Oil Corp. has agreed to sell its operated producing properties in the greater Ewing Bank area and nonoperated producing interests in Petronius and Neptune fields in the Gulf of Mexico for $205 million.

Marathon Oil Corp. has agreed to sell its operated producing properties in the greater Ewing Bank area and nonoperated producing interests in Petronius and Neptune fields in the Gulf of Mexico for $205 million.

The undisclosed buyer will assume all future abandonment obligations for the acquired assets. The assets represent a majority of the Marathon’s operated and nonoperated producing properties in the gulf. The deal is effective Jan. 1 and expected to close before yearend.

Marathon will retain its interests in certain other producing assets and acreage in the gulf, as well as its interests in the Gunflint development (OGJ Online, June 17, 2013); and Shenandoah discovery (OGJ Online, Mar. 19, 2013).

During the third quarter, the company closed noncore asset sales in East Texas, North Louisiana, and Wilburton, Okla., for $100 million, and exited East Africa by agreeing to sell Ethiopian and Kenyan exploration acreage. Following a reported net loss was $749 million in the quarter, Chief Executive Officer Lee M. Tillman said the company is planning “meaningful cost reductions.”