HOUSTON, May 5 /PRNewswire-FirstCall/ -- Marathon Oil Corporation (NYSE: MRO) today announced that its wholly owned subsidiaries, Marathon Indonesia New Ventures Limited and Indonesia Kumawa Energy Limited, entered into a Production Sharing Contract with the Indonesian Government for a combined 49 percent interest in the Kumawa Block offshore Indonesia. Marathon's co-bidder, Komodo Energy LLC, a subsidiary of Black Gold Energy LLC, was awarded the remaining 51 percent interest. Marathon Indonesia New Ventures Limited will serve as the operator.
The Kumawa Block encompasses approximately 1.24 million acres and is located offshore West Papua, Eastern Indonesia, in the Semai region, approximately 180 miles south of the recently commissioned Tangguh liquefied natural gas facility. The Kumawa Block is a high-potential, under-explored area with water depths ranging from 2,400 to more than 4,000 feet.
"Marathon is pleased to further strengthen its exploration program in Indonesia with the award of the Kumawa Block," said Annell R. Bay, Marathon's senior vice president, Worldwide Exploration. "This is an important step in the continued growth of Marathon's portfolio of large-scale, high-potential blocks in the country."
Current exploration plans for the Kumawa Block call for the acquisition of 2D seismic followed by drilling operations.
Another Marathon subsidiary, Marathon International Petroleum Indonesia Limited, holds a 70 percent interest and operatorship in the Pasangkayu Block located predominantly in the Makassar Strait offshore Sulawesi Island and directly east of the prolific Kutei Basin oil and gas production region. The Pasangkayu Block covers 1.2 million acres ranging from onshore Sulawesi to water depths of up to 7,200 feet. Marathon Indonesia (Bone Bay) Limited, a separate Marathon subsidiary, also holds a 49 percent interest and operatorship in the Bone Bay Block which covers 1.23 million acres located 200 miles southeast of the Pasangkayu Block in water depths ranging between 165 and 6,500 feet.
Marathon is an integrated international energy company engaged in exploration and production; oil sands mining; integrated gas; and refining, marketing and transportation operations. Marathon has principal operations in the United States, Angola, Canada, Equatorial Guinea, Gabon, Indonesia, Ireland, Libya, Norway and the United Kingdom. Marathon is the fourth largest U.S.-based integrated oil company and the nation's fifth largest refiner. For more information on Marathon Oil Corporation, visit the Company's Web site at www.Marathon.com.
Media Relations Contacts:
Lee Warren 713-296-4103
Leslie Hiltabrand 713-296-4102
Investor Relations Contacts:
Howard Thill 713-296-4140
Chris Phillips 713-296-3213
This news release contains forward-looking statements concerning the possibility of a significant new resource base and anticipated future exploratory and development drilling activity. These forward-looking statements may be affected by a number of factors or are based on a number of assumptions, including, among others, pricing, supply and demand for petroleum products, amount of capital available for exploration and development, regulatory constraints, timing of commencing production from new wells, drilling rig availability, unforeseen hazards such as weather conditions, presently known data concerning size and character of reservoirs, economic recoverability, future drilling success, production experience, acts of war or terrorist acts and the governmental or military response thereto, and other geological, operating and economic considerations. In accordance with "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Marathon Oil Corporation has included in its Annual Report on Form 10-K for the year ended December 31, 2008, and subsequent Forms 8-K, cautionary language identifying other important factors, though not necessarily all such factors, that could cause future outcomes to differ materially from those set forth in the forward-looking statements.
SOURCE Marathon Oil Corporation
