Marathon Oil selling Norway ops in $2.7B deal

Source: AP-EXCITE

HOUSTON (AP) — Marathon Oil is selling its Norwegian business to Det Norske Oljeselskap ASA in a deal valued at about $2.7 billion as it streamlines operations and hones its focus on the U.S.

Det Norske is buying the subsidiary Marathon Oil Norge AS, which comes with the Alvheim floating production, storage and offloading vessel, 10 company-run licenses and some non-operated licenses on the Norwegian Continental Shelf in the North Sea. Last year's net production in Norway averaged approximately 80,000 barrels of oil equivalent per day.

Marathon anticipates approximately $2.1 billion in net proceeds from the sale, after adjusting for debt, net working capital and interest.

In 2011, Marathon spun off its refining operations, effectively splitting the company in two. Since then, CEO Lee Tillman said the company has conducted $6.2 billion of strategic divestitures, ramped up share buybacks, and increased activity in lucrative U.S. oil and gas plays.

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