Marathon Oil Corporation Acquires Third Indonesian Offshore Exploration Block

A recent press release from Marathon Oil Company announced that two of its wholly owned subsidiaries entered a Production Sharing Contract with the Indonesian Government. Marathon's subsidiaries, Marathon Indonesia New Ventures Limited and Indonesia Kumawa Energy Limited, will be awarded a combined 49 percent interest in the Kumawa block offshore Indonesia, while the other 51 percent will go to Komodo Energy LLC, subsidiary of Black Gold Energy LLC. Marathon Indonesia New Ventures Limited will serve as the operator.

The offshore Kumawa Block includes approximately 1.24 million acres and is located off West Papua, Eastern Indonesia, and the Semai area. It lies about 180 miles south of the Tangguh liquefied natural gas facility. The Kumawa Block is an exciting prospect because it is an under-explored area with high potential and water depths from 2,400 to over 4,000 feet. According to current exploration plans, drilling operations will commence after the acquisition of 2D seismic.

This contract will increase Marathon's presence in the area. Another subsidiary, Marathon International Petroleum Indonesia Limited, holds a 70 percent interest and operatorship in the Pasangkayu Block in the Makassar Strait offshore Sulawesi Island, near the prolific Kutei Basin oil and gas production region. Yet another subsidiary, Marathon Indonesia (Bone Bay) Limited, holds a 49 percent interst and operatorship in the 1.23 million acre Bone Bay Block, 200 miles southeast of the Pasangkayu Block.