Marathon Provides Hurricane Katrina Impact Update

South Pass Louisiana
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Katrina Path August 25, 2005
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Marathon Oil has begun damage assessments of all facilities in areas affected by Hurricane Katrina, and the Company is providing assistance to employees and neighboring communities impacted by the storm.

Activities are focused on the Company's Garyville, Louisiana, refinery, which has 245,000 barrels per day of crude oil processing capacity, as well as the Marathon-operated offshore oil and gas production platforms at South Pass (located 100 miles south of New Orleans) and Ewing Bank (located 130 miles south of New Orleans). Gross production from these facilities of approximately 18,500 barrels of oil per day (bopd) and 25 million cubic feet of natural gas per day (mmcfd), remains shut-in as a result of the storm. Marathon's total net production from these operated facilities, as well as other non-operated properties, is approximately 43,000 bopd and 110 mmcfd and this production remains shut-in as a result of the hurricane.

Marathon has deployed employee teams to assist with recovery and start-up activities. These activities will begin after the condition of all facilities has been assessed, any necessary repairs completed, and related services and infrastructure are available to support the operation of these onshore and offshore facilities. These teams also are determining the well-being of employees and their families and providing assistance to those in need.

     Specific Facility Status:
     *  Refining & Marketing -- Preliminary assessment of the Garyville
        refinery indicates no major structural damage to processing units or
        related facilities.  A detailed inspection of all refinery components
        is underway to ensure their operational integrity and safety prior to
        start-up activities.  The refinery was not flooded during the storm,
        and while power has been restored, the refinery is dependent upon the
        restoration of other utilities and pipeline operations for the
        operation of the facility.  Work has begun to restart the refinery's
        boilers and to charge key processing units with feedstocks.  Assuming
        no unusual start-up delays, the refinery could begin ramping up fuels
        production within the next three-to-five days.
        Marathon refineries in Catlettsburg, Kentucky, and Robinson, Illinois,
        are currently running at reduced rates due to the shutdown of Capline,
        the main crude oil pipeline from the Gulf Coast to the Midwest.
        Marathon's refining, marketing and transportation organization is
        currently supplying contracted volumes to its Brand and contracted
        customers.  However, as a result of Hurricane Katrina and the reduced
        operations at the Garyville refinery and certain Midwest refineries,
        the Company is not able to fully supply non-contracted customers at
        this time.  Recognizing the current strain on the industry's ability
        to supply these fuels, consumers are encouraged to conserve energy
        whenever possible.
     *  South Pass and Ewing Bank Production Platforms -- Assessment teams
        re-boarded the platforms on Wednesday to conduct an initial
        inspection. Based upon this preliminary assessment, damage to the
        three South Pass platforms, which produce an average of 1,500 bopd and
        7.5 mmcfd, ranges from minor to serious.  Ewing Bank, which produces
        an average of 17,000 bopd and 17.5 mmcfd, sustained light damage and
        all critical equipment appears to be functional.  There have been no
        spills or leaks from these facilities.  Recovery teams are now
        planning for necessary repairs and the eventual resumption of
        production operations.  The expected start-up date is not known at
        this time.
     *  Pipeline Operations -- All Marathon operated pipelines along the Gulf
        Coast, as well as those in which the Company holds an interest, are
        being assessed.  The expected startup dates are not known at this

"Our thoughts and prayers are with our employees, their families and our neighbors throughout the region," said Clarence P. Cazalot, Jr., president and CEO of Marathon. "The human toll resulting from Hurricane Katrina is still unfolding and difficult to comprehend. Our Marathon family is committed to providing assistance to those who have been devastated by this horrible tragedy."

Marathon has announced that it will contribute $1.5 million to the American Red Cross to aid in Hurricane Katrina relief efforts. In addition, the Company will also match dollar-for-dollar employee, retiree, dealer and 'jobber' donations to hurricane relief agencies. The Company is also assessing the needs of its employees in the areas devastated by Hurricane Katrina and will be providing assistance to these employees.

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