logo
Plus   Neg
Share
Email

Marathon Oil Exits Libya With Sale Of Unit To Total SA For $450 Mln In Cash

Marathon Oil Corp. (MRO) announced Friday that it has signed and closed on the sale of its subsidiary, Marathon Oil Libya Limited, which holds the Company's 16.33 percent non-operated interest in the Waha concessions in Libya, to Elf Aquitaine SAS, a subsidiary of Total S.A., for cash consideration of $450 million.

The divestiture represents a complete country exit for Marathon Oil. The divestiture closed on March 1 with an effective date of January 1.

At year-end 2017, Marathon Oil carried 199 million barrels of oil equivalent of proved reserves in Libya. The divestiture price equates to 9 times Marathon Oil's estimate of its 2018 free cash flow from Libya at strip pricing.

Lee Tillman, Marathon Oil president and CEO, said, "Today's announcement to divest Libya at an attractive valuation continues the simplification and concentration of our portfolio to the high margin, high return U.S. resource plays. Our relentless focus on portfolio management has driven seven country exits since 2013 and generated proceeds of over $4 billion just in the last 2 years."

The company noted that 95 percent of its 2018 development capital allocation and about 70 percent of the Company's total production mix will be associated with the U.S. resource plays, naturally expanding its margins in 2018 and beyond.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

RELATED NEWS
Trade MRO now with 
Follow RTT