Monday, October 20th11.6°C
23836
23671

Marathon Oil selling Norwegian business in deal valued at about $2.7 billion

HOUSTON - Marathon Oil is selling its Norwegian business to Det Norske Oljeselskap ASA in a deal valued at about $2.7 billion as it streamlines operations and hones its focus on the U.S.

Det Norske is buying the subsidiary Marathon Oil Norge AS, which comes with the Alvheim floating production, storage and offloading vessel, 10 company-run licenses and some non-operated licenses on the Norwegian Continental Shelf in the North Sea. Last year's net production in Norway averaged approximately 80,000 barrels of oil equivalent per day.

Marathon anticipates approximately $2.1 billion in net proceeds from the sale, after adjusting for debt, net working capital and interest.

ConocoPhillips and Marathon, both one-time oil majors, have made sizeable changes due to both the difficulty in which new energy sources can be found abroad, and changes in drilling technology that has made more gas and oil available at home.

ConocoPhillips completed a spin-off of its refining business in 2012 a year after Marathon effectively split in two by doing the same.

ConocoPhillips plans to spend as much as $3 billion over the next several years in the Bakken and Eagle Ford oil and gas fields in the U.S.

Marathon CEO Lee Tillman said the company has conducted $6.2 billion of strategic divestitures, ramped up share buybacks, and increased activity in lucrative U.S. oil and gas plays in Eagle Ford, Bakken and Oklahoma Woodford formations, areas that have boomed due to new drilling techniques.

The company plans to use proceeds from the Norwegian sale to accelerate activity in the U.S. and for additional stock buybacks, Tillman said Monday.

Marathon had been shopping its U.K. North Sea business as well, but said Monday that it had not receive an acceptable offer, and would hold on to those assets.

The sale of the Norwegian assets is expected to close in the fourth quarter.

Shares of Marathon Oil Corp. are up almost 4 per cent over the last year and at Friday's closing price of $36.66, they are approaching all-time highs reached in 2007, when energy prices were streaking toward record levels.

The Canadian Press


Read more Business News

20759


Recent Trending




Today's Market
S&P TSX14301.42+73.74
S&P CDNX811.151.02
DJIA16353.31-27.10
Nasdaq4293.994+35.556
S&P 5001896.11+9.35
CDN Dollar0.8864-0.0001
Gold1244.80+5.80
Oil81.45-0.17
Lumber330.80-3.80
Natural Gas3.671-0.095

 
Okanagan Companies
Pacific Safety0.10-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.110.00
Cantex0.055-0.025
Anavex Life Sciences0.1995+0.0095
Metalex Ventures0.05+0.005
Russel Metals32.12-0.23
Copper Mountain Mining1.95+0.01
Colorado Resources0.15+0.005
ReliaBrand Inc0.0111-0.0019
Sunrise Resources Ltd0.060.00
Mission Ready Services0.46+0.01

 





FEATURED Property
2089611995 Graf Rd
4 bedrooms 2 baths
$439,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Keep it rubber side down

This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...


Big bank predicts rate hike

Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...


Experts share strategies in Kelowna

The third week in October is “Small Business Week”, a week dedicated to supporting local, small businesses. The week was designed to bring awareness to Canadians about the role small busin...

_





23803


Member of BC Press Council


23691