Marathon Acquires Interests in Equatorial Guinea
Marathon Oil Company has completed the acquisition of CMS Energy interests in Equatorial Guinea, West Africa, for a total cash consideration of $993 million. The acquisition is part of Marathon's plans for profitable growth through the creation of a number of new core business areas.
Through this transaction Marathon has acquired:
- 52.4% interest in, and operatorship of, the offshore Alba Block, which contains the currently producing Alba gas field as well as undeveloped oil and gas discoveries, and several undrilled exploration prospects;
- 37.6% interest in the adjacent offshore Block D;
- 52.4% interest in a condensate separation facility, onshore Bioko Island;
- 45% interest in a joint venture onshore methanol production plant; and
- 43.2% interest in an onshore Liquefied Petroleum Gas (LPG) processing plant.
"This is a great start to a new era for Marathon, which became a standalone energy business at the beginning of this year," said Marathon President and CEO, Clarence P. Cazalot Jr. "Closing this acquisition establishes a profitable new core business area for Marathon that will immediately enhance our reserve replacement and production volumes for 2002, all at very competitive acquisition and development costs. Furthermore, the upside potential of these assets presents an opportunity for Marathon to become a significant regional player in West Africa. We look forward to working with the people and Government of Equatorial Guinea as we develop this major gas resource."
Marathon regards this acquisition as an important new step in growing its integrated gas business where the application of gas commercialization technologies would deliver added-value products for local, U.S. and European markets.