By OGJ editors
HOUSTON, Apr. 23 -- Marathon Oil Corp. agreed Tuesday to acquire Khanty Mansiysk Oil Corp. (KMOC) for $275 million , including Marathon's assumption of all of KMOC's outstanding debt obligations.
The agreement calls for a wholly owned Marathon subsidiary to be merged into KMOC, with KMOC continuing as the surviving corporation and a wholly owned subsidiary of Marathon.
The New York-based Khanty Mansiysk Oil is a private US company focused on oil production in Russia. KMOC is developing nine oil fields in the Khanty-Mansiysk region of western Siberia.
The transaction remains subject to approval by KMOC stockholders.
Royal Dutch/Shell Group units Enterprise Oil Overseas Holdings Ltd. and Enterprise Oil Exploration Ltd. collectively own 45% of the outstanding KMOC common stock and have until May 6 to either make a matching offer for the common stock they do not own or approve the transaction.
Currently, a majority of non-Enterprise stockholders have committed to approve the transaction. The transaction is expected to close by May 13.
Marathon said it would provide new reserves and future production estimates upon completion of the transaction.
