Oil & Gas Production
The Ewing Bank platform (130 miles south of New Orleans) is operating at full production capacity (17,000 gross barrels of oil per day and 17.5 gross million cubic feet of gas per day) as of Monday morning. The platform sustained only minor damage and was returned to production over the weekend due to the efforts of Marathon's dedicated employees.
The Company's three South Pass platforms (1,500 gross barrels of oil per day and 7.5 gross million cubic feet of gas per day), have sustained major damage, including structural damage throughout two of the three facilities. Assessment teams have estimated that the South Pass platforms (100 miles south of New Orleans) will require several weeks and possibly months to repair. This production will remain shut in until further notice.
While repairs are proceeding at South Pass, shore-based receiving facilities at Venice, Louisiana, which are operated by others but utilized by South Pass, have also been seriously affected by the storm. As such, the restart of oil and gas production at South Pass will be dependent upon not only the completion of necessary repairs to the platforms, but also on the availability of shore-based facilities.
Employee and Community Relief Efforts
Marathon continues to assist its more than 650 employees and their families in Louisiana, Mississippi and Alabama who were affected by the storm. The Company has accounted for all its employees and is happy to report that they are all safe. The Company is providing assistance, including food, water, generators and other household items, as well as temporary housing for those whose homes were seriously damaged or destroyed. The Company is also providing employees in these three states with interest-free loans of up to $10,000 to assist in their recovery efforts.
General Information About Marathon Operations and Relief Efforts
* Marathon's Ewing Bank platform produces an average of 17,000 gross barrels of oil per day (bopd) and 17.5 gross million cubic feet of natural gas per day (mmcfd). Ewing Bank's net production averages 13,527 bopd and 10.1 mmcfd per year.
* The company's South Pass platforms produce an average of 1,500 gross bopd and 7.5 gross mmcfd. South Pass's net production averages 325 bopd and 1.95 mmcfd per year.
* Marathon has received approval for a loan of 1.5 million barrels of oil from the Strategic Petroleum Reserve. This oil will assist in providing crude oil supply to the Company's Midwest refineries. * Marathon's total net production from its operated Gulf of Mexico facilities, as well as other non-operated properties, is approximately 43,000 bopd and 110 mmcfd.
* Currently, the Company has deferred 34,500 net bopd and 46 net mmcfd of outside operated production.
* Hurricane response and recovery efforts will continue to be addressed as part of ongoing operations.
* Marathon also is providing assistance to other Hurricane Katrina victims through a $1.5 million contribution to the American Red Cross. In addition, the company is matching dollar-for-dollar employee, retirees, and wholesale Brand, asphalt and special products customer's donations to hurricane relief agencies.
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