Marathon Oil sells Norway business to Det norske for $2.7 billion
Marathon Oil sells Norway business to Det norske for $2.7 billion
HOUSTON -- Marathon Oil has closed the transaction with Det norske for the sale of Marathon Oil Norge for a total transaction value of $2.7 billion.
After adjustment for debt, net working capital and interest on the net purchase price, Marathon Oil received proceeds of approximately $2.1 billion. The effective date of the transaction is Jan. 1, 2014.
"The sale of the Norway business was one of Marathon Oil's strategic priorities for 2014 and a continuation of our portfolio optimization strategy," said Lee M. Tillman, Marathon Oil's president and CEO. "The successful closing of this transaction simplifies and concentrates our portfolio, and further demonstrates our commitment to rigorous portfolio management. Importantly, organic reinvestment is our first priority for the proceeds, and we have the depth of resource and future drilling inventory to support it.
"This ability to execute on our strategy and deliver industry leading results is the foundation for Marathon Oil becoming the premier independent exploration and production company," he emphasized.
The Norway sale includes the operated Alvheim FPSO, 10-company operated licenses and a number of non-operated licenses on the Norwegian Continental Shelf in the North Sea. Full-year 2013 net production in Norway averaged approximately 80,000 boed.
Marathon Oil is a global exploration and production company. Based in Houston, Texas, the company had net proved reserves at the end of 2013 of 2.2 Bboe in North America, Europe and Africa.
