Marathon and Yukos Form Strategic Alliance

Marathon Oil Company, part of the USX-Marathon Group and a unit of USX Corporation, and YUKOS Oil Company, the second largest Russian oil company, announced their plans to develop a strategic alliance. Both companies are looking to grow their respective international businesses and the alliance is expected to consider joint energy investments in different parts of the world. As part of the alliance a joint business development group is planned to be located in London to evaluate international investment opportunities.

"The alliance should create a strategic business relationship with an industry leader that shares our ambitions for international growth," said Clarence Cazalot, president of Marathon Oil Company. "An integral part of our strategy is to develop profitable new core areas in participation with important national oil companies and growth-oriented international players. This proposed alliance with YUKOS is evidence of that strategy as it brings together two companies with complementary technical skills and international relationships. Furthermore, we anticipate that this relationship could lead to investment by Marathon in energy opportunities in Russia."

YUKOS' CEO Mikhail Khodorkovsky said, "The planned alliance with Marathon is aimed at expansion of our international business and is an important step in our strategy of becoming a leading international energy company. We intend to establish mutually beneficial relations with Marathon and these relations, after the corresponding agreements are signed, will become an important factor in the successful development of the international operations of both companies."