Marathon Oil Corp., through its wholly owned subsidiary Marathon Petroleum Norge A/S, and its Alvheim project partners has signed a purchase and sale agreement with Statoil Marine KS under which the companies will acquire Statoil'sOdin multipurpose shuttle tanker, subject to certain conditions. The purchase is contingent upon the partners' approval of the development of the Alvheim area and the subsequent approval of a plan of development and operation by the Norwegian authorities.

The Alvheim area comprises the Kneler and Boa discoveries and the undeveloped Kameleon accumulation. Marathon operates the Alvheim area with 65% interest. ConocoPhillips has 20% and DNO 15%.

Marathon and its partners plan to submit an impact assessment to the Norwegian regulatory authorities for the Alvheim development in early March and a plan of development and operation by midyear. Approval of the plan of development and operation is expected by 3Q 2004, and first production is expected during 2006.

The Alvheim group also is competing for additional area tie-backs including the nearby Klegg discovery, in which Marathon holds a 46.9% working interest. Alvheim and Klegg are estimated to contain 200 - 250 MMboe.

(02/23/04)