Marathon completes Norwegian asset sale

Marathon Oil Corp. has sold its nonoperated interests in Norway for $416 million to Centrica PLC.

Nov 4th, 2008

Uchenna Izundu
International Editor

LONDON, Nov. 4 -- Marathon Oil Corp. has sold its nonoperated interests in Norway for $416 million to Centrica PLC.

The deal was completed Oct. 31 for the Heimdal infrastructure, related producing fields, and associated undeveloped acreage off Norway. The price includes a $375 million purchase price and $41 million in associated Norwegian asset tax pools having an effective date of Jan. 1.

Marathon sold the acreage because these were not crucial to its global asset portfolio. It plans to raise $2-4 billion in gross proceeds by midyear 2009.

According to the sale, Centrica will have Marathon's 23.8% interest in Heimdal field as well as its 46.9% interest in Vale field; a 20% interest in the Byggve field; a 20% interest in Skirne field; and 50% and 20% interest in the Peik and Heimdal East discoveries, respectively.

Marathon's net proved reserves as of yearend 2007 were 4.8 million boe and its total net risked resources, 17.5 million boe. Current net production from these operations averaged 7,000 boe/d during the first three quarters of 2008.

Marathon is not selling its Alvheim-Vilje development or related operations on the Norwegian continental shelf.

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