Marathon & Alveheim Acquire Statoil's Odin MST

Marathon Oil, through its wholly owned subsidiary Marathon Petroleum Norge A/S, and its Alvheim project partners have signed a purchase and sale agreement with Statoil Marine KS under which the companies will acquire Statoil's Odin multipurpose shuttle tanker (MST), subject to certain conditions. The purchase is contingent upon the partners' approval of the development of the Alvheim area and the subsequent approval of a plan of development and operation by the Norwegian authorities.

The Alvheim area comprises the Kneler and Boa discoveries and the previously undeveloped Kameleon accumulation. Marathon is the Alvheim area operator, holding a 65 percent working interest. ConocoPhillips has a 20 percent working interest, and DNO holds the remaining 15 percent.

Marathon and its partners plan to submit an Impact Assessment to the Norwegian regulatory authorities for the Alvheim development in early March and a plan of development and operation by midyear. Approval of the plan of development and operation is anticipated by the third quarter, and first production is expected during 2006.

The Alvheim group also is competing for additional area tie-backs including the nearby Klegg discovery, in which Marathon holds a 46.9 percent working interest. Alvheim and Klegg are estimated to contain combined gross risked resource of 200 to 250 million barrels of oil equivalent.

Currently, the Alvheim group is taking the preliminary steps that would be required to modify the Odin once a plan of development is finalized and approved, including solicitation of bids for various components of the vessel modification.

Marathon's 2004 Norwegian exploration plan calls for two wells, one of which is in the Alvheim area.

Odin MST Facts

  • Odin overall length is 252.2 meters (827.43 feet)
  • Odin overall breadth is 42 meters (137.8 feet)
  • Double hull
  • Current storage capacity is 530,000 barrels of oil and will increase to 560,000 after vessel modifications are complete
  • Built in 2001 by Izar (formerly Astilleros Espanoles)
  • Odin was the fourth vessel in a series with plans as a floating production, storage and offloading vessel (FPSO) or drill ship