HOUSTON -- Marathon Oil has entered into a definitive agreement to sell its subsidiary Marathon Oil Ireland for $180 million to Star Energy Group. The companies expect to close the transaction, subject to completion of the necessary administrative processes with Irish authorities, in 1Q 2009. This agreement does not include Marathon's 18.5% interest in the Corrib natural gas development.
Marathon Oil Ireland's assets include a 10% operated interest in the Kinsale Head area comprising Kinsale Head, South West Kinsale, and the Ballycotton gas fields, as well as an 86.5% interest in the gas producing Seven Heads field, which is tied back to Kinsale, and a 100% interest in the company's gas storage business with current capacity of 7 bcf. Current net production from these operations is approximately 36 MMcf/d of natural gas
Marathon's total net risked resource associated with these assets as of year-end 2007 was 62 bcf of which 46.2 bcf (7.7 MMboe) were net proved reserves. As part of this transaction, Star Energy will retain the 61 Marathon Oil Ireland employees in Ireland.