Marathon Completes Sale of Russian Businesses to LUKOIL

Marathon Oil has completed the sale of its Russian oil exploration and production businesses in the Khanty-Mansiysk Region of Western Siberia to OAO LUKOIL, acting through its subsidiary OOO "LUKOIL - Western Siberia". Under the terms of the agreement, signed and announced on May 15, 2006, LUKOIL has paid Marathon $787 million for these businesses, plus preliminary working capital and other closing adjustments of approximately $66 million, for a total transaction value of $853 million.