According to Marathon Oil, the companies expect to close the transaction, subject to completion of the administrative processes with Irish authorities, early in the first quarter of 2009. This agreement does not include Marathon’s 18.5% interest in the Corrib natural gas development.
Marathon Oil Ireland’s assets include a 100% operated interest in the Kinsale Head Area comprising Kinsale Head, South West Kinsale and the Ballycotton gas fields, as well as an 86.5% interest in the gas producing Seven Heads field which is tied back to Kinsale, and a 100% interest in the company’s gas storage business with capacity of seven billion cubic feet. Current net production from these operations is approximately 36 million cubic feet of natural gas per day.
David Roberts Jr, Marathon’s executive vice president of upstream operations, said: “With the sale of Marathon Oil Ireland, our asset portfolio review and sale of non-core assets has generated nearly $1.2 billion in cash pretax. We anticipate that this program will generate $2 billion to $4 billion in cash pretax by mid-year 2009.”
Marathon is an integrated international energy company engaged in exploration and production; oil sands mining; integrated gas; and refining, marketing and transportation operations. Based in Houston, the company has principal operations in the United States, Angola, Canada, Equatorial Guinea, Gabon, Indonesia, Ireland, Libya, Norway and the United Kingdom.
