Commenting on the acquisition, Marathon President and CEO, Clarence P. Cazalot, Jr., said, "This acquisition provides an excellent strategic fit to Marathon's existing world-class exploration and production portfolio in Equatorial Guinea where we established a new core area earlier this year. These high quality assets will enhance the value of our Equatorial Guinea interests by providing expanded opportunities to commercialize the significant natural gas resources of the region as part of Marathon's integrated gas strategy."
Following the expected approval of an Equatorial Guinea expansion project later this year, Marathon's Equatorial Guinea net proven reserves will total 300 million BOE.
The Alba field, which began producing in 1991, is estimated to contain producible resources of 5 trillion cubic feet of dry gas and 300 million barrels of condensate. Currently, 250 million cubic feet per day (MMCFD) gross of wet gas is produced, from which approximately 17,000 barrels per day (BPD) gross of condensate and 2,400 BPD gross of LPG are recovered through the Bioko Island LPG facility. Approximately 120 MMCFD of the remaining lean gas is then fed to a methanol plant in which Marathon owns a 45-percent interest. This facility produces an average of 2,500 metric tons of methanol per day. With the acquisition of the Globex assets, Marathon's net share of Equatorial Guinea production is expected to average 21,000 BOE per day in 2002.
The Alba PSC Partners have submitted a plan of development to the Government of Equatorial Guinea to increase gross production capacity to approximately 800 MMCFD and approval is anticipated in the third quarter of 2002. This is expected to result in Marathon's net production increasing to 40,000 to 45,000 BOE per day by 2004. Additionally, it is anticipated that a companion plan of development will be submitted to the Government of Equatorial Guinea to expand the condensate recovery and LPG facilities to significantly increase liquids processing capabilities.
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