Marathon Awards Phase 3 FEED Contract to Bechtel

Marathon has awarded a front-end engineering and design contract to Bechtel Corporation for the company's planned phase 3 expansion project in Equatorial Guinea.

The phase 3 expansion involves the construction of a liquefied natural gas (LNG) liquefaction plant and related facilities that will enable Marathon and its partners to further commercialize the substantial gas resources in the world class Alba field. The target date for the first LNG cargo from the phase 3 expansion project is in the 2006/2007 timeframe.

Phase 3 will complement the phase 2A and 2B expansion projects, which will increase gross condensate production capacity to 54,000 barrels per day (bpd) (30,000 net to Marathon), and liquefied petroleum gas (LPG) capacity to more than 16,000 bpd (8,000 net to Marathon), respectively. Phase 2A is expected to be completed by the fourth quarter of 2003, while projected completion of phase 2B is by October 2004.