The transaction, which has a total value of $416 million and an effective date of January 1, 2008, includes a $375 million purchase price plus $41 million in associated Norwegian asset tax pools, but excludes any purchase price adjustments due at closing.
The companies anticipate closing the transaction, which is subject to Norwegian regulatory approval, during the late third quarter or early fourth quarter of 2008.
Under the terms of the agreement, Centrica will acquire Marathon’s 23.8% interest in the Heimdal field, as well as its 46.9% interest in the Vale field, a 20% interest in the Byggve field, a 20% interest in the Skirne field, and a 50% and 20% interest in the Peik and Heimdal East discoveries, respectively.
Marathon’s net proved reserves associated with these assets as of year end 2007 were 4.8 million barrels of oil equivalent (mmboe), and total net risked resources of approximately 17.5mmboe.
Current net production from these operations averages approximately 7,000mmboe per day. None of the assets involved in this agreement are associated with Marathon’s Alvheim-Vilje development or related operations on the Norwegian continental shelf.
David Roberts Jr, Marathon executive vice president for upstream, said: Marathon’s decision to sell its interest in Heimdal and related assets is part of our ongoing efforts to actively manage the company’s global asset portfolio to ensure alignment with our business strategy and to generate sustainable value growth.
