Marathon Oil Corporation (NYSE:MRO) has entered into a definitive agreement with Det norske oljeselskap ASA for the purchase of Marathon Oil’s 100 percent owned subsidiary, Marathon Oil Norge AS, for $2.7 billion. After adjustment for debt, net working capital and interest on the net purchase price, Marathon Oil anticipates net proceeds from the transaction to be approximately $2.1 billion at closing.
As quoted in the press release:
The sale includes the Marathon Oil-operated 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 (BOE) per day.
Marathon CEO, Lee M. Tillman, said:
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. Since becoming an independent E&P company in 2011, Marathon Oil has executed $6.2 billion of strategic divestitures repositioning the portfolio for future growth and profitability. The disciplined allocation of capital to opportunities that can deliver long-term growth at higher returns and improved margins is a strategic imperative.