Marathon Oil Business to Be Sold Off for $2.1 Billion

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Jan 17, 2017 // By:admin // No Comment

Marathon Oil, which is a big Norwegian oil exploration and production business made an announcement that it would be selling Norway’s North Sea oil business to a Norwegian oil producer for a good $2.1 bln.

Marathon, a Houston based company also stated that it declined its British business sale after not receiving what it actually demand, as an acceptable offer. This sale is indeed Marathon’s latest effort to get back the profit it was hoping for.

The sale is inclusive of “Marathon-operated floating production, storage and offloading vessel and various production licenses in the North Sea,” Marathon said. In the year 2013, the production of Marathon in Norway was about 80,000 barrels of oil on daily basis.

Det Norske stated – “The transaction would complement its planned production in the IvarAasen and Johan Sverdrup fields in the North Sea and that it would have 202 million barrels of oil equivalent in proven reserves and probable deposits after the transaction.”

The deal is expected to be finalized in fourth quarter. SverreSkogen, the Det Norske chairman said that its strategy has always been to make a powerful Norwegian exploration along with a production company. “With this transformational transaction we have achieved our goal well ahead of schedule.”

Lee M. Tillman, the Marathon president and chief executive stated that the company has dispossessed assets worth $6.2 billion since the year 2011, when Marathon disintegrated into Marathon Petroleum, which is a refiner and Marathon Oil, an exploration and production company.

“The disciplined allocation of capital to opportunities that can deliver long-term growth at higher returns and improved margins is a strategic imperative” stated Mr. Tillman.

Marathon further stated that it was discussing plans to sell its British firm after taking into consideration all the bids on the assets. Mr. Tillman explained that Marathon was hoping to sell the business only if it received an offer, which matched its current assets, and market valuation.

He added – the company “will continue to operate this business as we always have — with a focus on our company’s long-held values and commitment to safe and responsible operations, and in a manner that maximizes shareholder value.”

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