Marathon Completes Acquisition of CMS Interests in Equatorial Guinea
Marathon Oil Company announced today that it has completed the acquisition of CMS Energy (NYSE: CMS) interests in Equatorial Guinea, West Africa, for a total cash consideration of $993 million. The acquisition is part of Marathon's plans for profitable growth through the creation of a number of new core business areas.
Through this transaction Marathon has acquired: -- 52.4% interest in, and operatorship of, the offshore Alba Block, which contains the currently producing Alba gas field as well as undeveloped oil and gas discoveries, and several undrilled exploration prospects; -- 37.6% interest in the adjacent offshore Block D; -- 52.4% interest in a condensate separation facility, onshore Bioko Island; -- 45% interest in a joint venture onshore methanol production plant; and -- 43.2% interest in an onshore Liquefied Petroleum Gas (LPG) processing plant.
"This is a great start to a new era for Marathon, which became a standalone energy business at the beginning of this year," said Marathon President and CEO, Clarence P. Cazalot Jr. "Closing this acquisition establishes a profitable new core business area for Marathon that will immediately enhance our reserve replacement and production volumes for 2002, all at very competitive acquisition and development costs. Furthermore, the upside potential of these assets presents an opportunity for Marathon to become a significant regional player in West Africa. We look forward to working with the people and Government of Equatorial Guinea as we develop this major gas resource."
Marathon regards this acquisition as an important new step in growing its integrated gas business where the application of gas commercialization technologies would deliver added-value products for local, U.S. and European markets.
Marathon Oil Company, a wholly-owned subsidiary of Marathon Oil Corporation, (NYSE: MRO) is an energy company engaged in the worldwide exploration, production and transportation of crude oil and natural gas. Through Marathon Ashland Petroleum LLC, the Company also refines, markets and transports petroleum products in the United States. For more information about Marathon, visit the Company's Web site at www.marathon.com .
This release contains forward-looking statements based on certain assumptions, including, among others, presently known physical data concerning size and character of reservoirs, economic recoverability, technology development, future drilling success, production experience, industry economic conditions (such as supply and demand), levels of company cash flow from operations and operating conditions. This forward looking information may prove to be inaccurate and actual results may differ significantly from those presently anticipated. In accordance with "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Marathon Oil Corporation (formerly USX Corporation), has included in its Annual Report on Form 10-K for the year ended December 31, 2000, as amended by Form 10-KA and in Form 10-Q for the quarter ended September 30, 2001, and in subsequent Forms 10-Q and 8- K, cautionary language identifying other important factors, though not necessarily these such factors, that could cause future outcomes to differ from those set forth in forward-looking statements.
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SOURCE: Marathon Oil Company
Contact: Roger Holliday of Marathon Oil Company, +1-713-296-3911