Marathon Oil Corp.’s (NYSE: MRO) latest subsidiary erased from the ledger is Marathon Oil Norge AS, based in Norway, which will sell for a total transaction value of $2.7 bllion, the company announced June 2.
After adjustments for debt, net working capital and interest on the net purchase price, Houston’s Marathon expects net proceeds of about $2.1 billion at closing. Det norske oljeselskap ASA agreed to purchase the subsidiary.
Since becoming an independent E&P in 2011, Marathon has executed $6.2 billion in strategic divestitures, repositioning its portfolio for future growth and profitability, said Lee M. Tillman, Marathon Oil's president and CEO.
"The sale of our Norway assets advances one of our key 2014 priorities and further demonstrates our commitment to rigorous portfolio management to simplify and concentrate our business," he said.
The sale includes the Marathon’s Alvheim floating production, storage and offloading (FPSO) vessel, 10 Company-operated licenses and a number of non-operated licenses on the Norwegian Continental Shelf in the North Sea. Full-year 2013 net production in Norway averaged approximately 80,000 barrels of oil equivalent per day (boe/d).
Marathon also said it received no acceptable offer for its U.K. North Sea business and will retain those assets.
The Norwegian transaction should close in the fourth quarter of this year.
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