Marathon sells 20-per cent stake in Angola to Sinopec, CNOOC for $1.3 billion

Marathon Oil Corporation, an oil and natural gas exploration and production company in the US has sold a stake in the oil block 32 offshore Angola to Sinopec and CNOOC of China for $1.3 billion yesterday.

Houston, Texas-based Marathon, the fourth-largest integrated oil company in the US and its fifth largest refiner, has sold a 20-per cent stake to China's second and third largest oil companies but retained a 10-per cent working interest in Block 32.

Block 32, with acreage of 5,090 square kilometers, is an oil rich deepwater exploration block with 12 oil discoveries in the past. The block is located about 150 kilometers off the coast of Angola in a water depth of 1,400 to 2,200 meters.

Sinopec and CNOOC have formed a 50:50 joint venture to acquire the 20 per cent working interest in the production sharing contract and joint operating agreement in Block 32, which will be effective from 1 January 2009.

Total SA of France, which owns a 30-per cent stake and acts as the operator, operates Block 32. Sonangol, Angola's state-owned oil company owns 20 per cent, while Texas-based Exxon Mobil holds 15 per cent and Portuguese oil and gas company Galp 5 per cent.
The sale is subject to the approval of other partners in the block, who have rights of first refusal. Any of the partners could if they so desire, acquire the 20 per cent from Marathon at $1.3 billion, the same price offered by Sinopec and CNOOC.

''This sale demonstrates the significant amount of value being created through Marathon's exploration success in Angola and elsewhere around the world. With the divestiture of a portion of our Angola interest, we are able to bring better balance to our overall portfolio by capturing the sizable amount of value we have created and redeploying capital into other growth regions for the company, said David Roberts, Jr., Marathon executive vice president, Upstream.