Gulf Oil and Gas accountACCOUNT

Marathon Oil Looks to Exit North Sea, Joining other U.S. Rivals

Source: Reuters 10/3/2018, Location: Europe

Marathon Oil has launched the sale of its British North Sea oil and gas fields, a document seen by Reuters showed, the latest U.S. firm to retreat from the basin to focus on onshore shale production at home.

The sale includes stakes in the BP-operated Foinaven fields in the west of Shetland area as well as interests in the Brae complex northeast of Aberdeen, according to a sales document seen by Reuters.

The process, launched this week, is being run by Jefferies and bids are due by December. The assets could fetch up to $200 million, according to two banking sources.

Marathon Oil joins several companies including Chevron, ConocoPhillips and EOG Resources that have sought to pull out of the North Sea in recent years as they focus operations on rapidly expanding shale production.

Marathon Oil spokeswoman Lee Warren declined to comment directly on the sale but said ďportfolio management is an ongoing and integral element of our successful business model as we continue to simplify and concentrate our portfolio to our highest return opportunities with a focus on our differentiated position in the U.S. resource plays.Ē

The company, which produced around 419,000 barrels of oil equivalent per day in the second quarter, will invest over 90 percent of its 2018 capital in U.S. shale production, according to its website.

The North Sea, one of the oldest offshore basins that started production in the 1970s, has undergone a broad change of guard in recent years as veteran producers have been replaced by smaller, often privately-owned companies, which say they can squeeze more oil and gas out of the fields.

According to the sales document, Marathonís North Sea assets have a total production of 15,000 barrels of oil equivalent per day, a resource of 31 million barrels and are expected to produce $85 million of cash flow in 2019.

Marathon holds a 40 percent stake in the Brae Area complex, one of the oldest in the basin, as well as stakes in pipelines. One of the complexís platforms, Brae Bravo, is being dismantled after production ceased in recent years in what is known as decommissioning.

The Foinaven area comprises of two producing fields, Foinaven and Foinaven East, in which Marathon holds 28 percent and 47 percent interests respectively, the document said.

Marathon agreed to sell its Libyan assets to Franceís Total earlier this year for $450 million.

Acquisitions and Divestitures News in Norway >>

Norway >>  10/14/2019 - Neptune Energy has entered into a conditional Sale and Purchase Agreement with Energean Oil and Gas to acquire Edison E&Pís UK and Norwegian producing...
Brazil >>  10/13/2019 - Petrobras has been awarded one offshore block in the 16th ANP Bidding Round under the Concession Regime, held by the National Agency of Petroleum, Na...

Brazil >>  10/11/2019 - In Brazilís 16th Bidding Round for oil and gas exploration blocks, Wintershall Dea was awarded two offshore blocks in the Santos and Campos basins wit...
Brazil >>  10/10/2019 - Total, operator, and its co-venturers Qatar Petroleum and Petronas have won the C-M-541 deep offshore block in the 16th Bidding Round held by Brazilís...

Brazil >>  10/9/2019 - Wintershall Dea farms down a 30% participating interest in its three Potiguar offshore exploration blocks POT-M-857, POT-M-863 and POT-M-865 to the su...
Netherlands Antilles >>  10/9/2019 - Solo (SOLO), is pleased to announce that its wholly owned subsidiary, Scirocco (Netherlands) Energy B.V., has entered into a binding sale and purchase...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Norway Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 |

More News

Related Links

Gulf Oil and Gas
Copyright © 2019 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.