HOUSTON: Marathon Oil Corp. (NYSE: MRO) completed the sale of its wholly-owned subsidiary, Marathon Oil Ireland Ltd.
‘(MOIL) to PSE Ireland Ltd., a subsidiary of Petronas. The transaction has a total value of US$180 million with an effective date of Dec. 31, 2007. This sale does not include Marathon’s 18.5 percent interest in the Corrib natural gas development.Under the terms of the sale, PSE Ireland acquired Marathon’s 100 percent operated interest in the Kinsale Head Area comprising Kinsale Head, South West Kinsale and the Ballycotton gas fields, as well as an 86.5 percent interest in the gas producing Seven Heads field, which is tied back to Kinsale, and a 100 percent interest in the company’s gas storage business with current capacity of 7 Bcf. As part of the transaction PSE Ireland retains the 61 MOIL employees in Ireland.Net production from these operations averaged approximately 30 MMcf/d of natural gas for the first quarter of 2009. Marathon’s total net risked resource associated with these assets as of the end of 2007 was 62 Bcf, of which 46.2 Bcf, or 7.7 million BOE, were net proved reserves.