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Marathon Oil Sells UK Assets to RockRose Energy

Source: www.gulfoilandgas.com 2/25/2019, Location: Europe

Marathon Oil has entered into a share purchase agreement through its subsidiaries for the sale of its U.K. businesses Marathon Oil U.K. (MOUK) and Marathon Oil West of Shetland (MOWOS). The transaction represents a complete country exit for Marathon Oil.

MOUK holds a 37 to 40 percent operated interest in fields in the Greater Brae Area, and MOWOS holds a 28 percent interest in the outside-operated Foinaven Field unit and 47 percent in Foinaven East. The buyer, RockRose Energy, will assume all obligations associated with MOUK and MOWOS operations in the U.K, including decommissioning liability.

Subject to customary adjustments, the closing consideration payable to Marathon Oil will be approx. $140 million, which reflects the assumption by the buyer of MOUK and MOWOS working capital and cash equivalent balances, which were approx. $350 million on Dec 31, 2018.

'Today's announcement to divest our U.K. business represents our continued commitment to portfolio management and further concentrates our portfolio on high margin, high return U.S. resource plays,' said Lee Tillman, Marathon Oil chairman, president and CEO. 'I'd like to recognize the significant contributions of our U.K. employees – both current and past – who built and have operated the Brae Field for more than 30 years.'

Though there remain certain contractual requirements that must be satisfied, the transaction is expected to close in the second half of 2019, with an effective date of Jan. 1, 2019. At year-end 2018, the Company carried 21.4 million barrels of oil equivalent of proved reserves in the U.K., and 2018 production averaged approx. 13,000 barrels of oil equivalent per day.

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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 


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