WASHINGTON (dpa-AFX) - Marathon Oil Corp. (MRO) announced that its subsidiary, Marathon International Oil Angola Block 31 Limited, has entered into a definitive agreement to sell its 10 percent working interest in the Production Sharing Contract and Joint Operating Agreement in Block 31 offshore Angola to SSI Thirty-One Limited. The transaction has a total value of about $1.5 billion, excluding any purchase price adjustments at closing.
The companies anticipate closing the transaction in the fourth quarter of 2013, with an effective date of Jan. 1, 2013.
The company said that the transaction is subject to government, regulatory and third-party approvals, and pre-emption rights which exist on the block. SSI Thirty-One Limited currently holds a 5 percent working interest in the block.
With this transaction, the company has agreed upon or closed on nearly $2.9 billion in divestitures, at the upper end of its targeted $1.5 billion to $3 billion of divestitures over the period of 2011 through 2013.
Copyright RTT News/dpa-AFX