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Marathon Oil Corporation Sells Irish Subsidiary
A recent press release from Marathon Oil Corporation announced that the Company has completed the sale of one of its wholly owned subsidiaries, Marathon Oil Ireland Limited (MOIL). The subsidiary was sold to PSE Ireland Limited, a subsidiary of Petroliam Nasional Berhad (Petronas). Marathon reported that the transaction has a total value of $180 million with an effective date of December 31, 2007. The Company noted that this sale does not include its 18.5 percent interest in the Corrib natural gas development.
According to the terms of the sale, PSE Ireland Limited will take over Marathon's 100 percent operated interest in the Kinsale Head Area, which comprises Kinsale Head, South West Kinsale, and the Bally cotton gas fields. PSE will also acquire an 86.5 percent interest in the gas producing Seven heads Field, and a 100 percent interest in Marathon's gas storage business, which has a current capacity of 7 billion cubic feet. PSE Ireland Limited will retain the 61 MOIL employees in Ireland.
During the first quarter of 2009, the net production from the operations in question averaged approximately 30 million cubic feet of natural gas per day. Marathon reported that its total net risked resource associated with the sold assets was 62 billion cubic feet at the end of 2007. Out of that, 46.2 billion cubic feet were net proved reserves; this equates to 7.7 million barrels of oil.
This transaction is part of an estimated $2 to $4 billion sale in assets that Marathon announced in March of 2008. They have now reached approximately $1.3 billion in sales of assets. Official announcements about Marathon's asset review and disposal program are expected in mid-2009.
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