DOW JONES NEWSWIRES
Marathon Oil Corp. (MRO) agreed to sell its 20% interest in a
production sharing and joint operating agreement in an oil field
offshore Angola for $1.3 billion to Chinese oil companies Cnooc
International Ltd. (CEO) and Sinopec Corp. (SNP).
The announcement comes nine months after The Wall Street Journal
reported that Cnooc and Sinopec, whose formal name is China
Petroleum and Chemical Corp., were within weeks of reaching a $1.8
billion deal for the 20% stake.
Marathon previously has announced 12 successful exploration
wells in an area known as Block 32, in which it will retain a 10%
working interest. The remaining interests are held by others
including French oil major Total SA (TOT), which holds a 30% stake
and is the project's operator. Exxon Mobil Corp. (XOM) has a 15%
stake.
The tract is located some 90 miles off the African country's
coast and the water depth exceeds one mile in spots.
It is the latest asset sale by Marathon, which also has refinery
operations. It has sold several billion dollars worth of assets
during the past several years as the company streamlines it
focus.
The Angola sale is expected to close by year-end and requires
government and regulatory approvals. The other block partners have
rights of first refusal.
Angola is a major supplier of crude oil to China, and has been a
big recipient of loans and investment from China in recent years.
Chinese companies, meanwhile, have been looking to lock up
commodity sources to fuel the country's ongoing economic
growth.
Sinopec and Cnooc are China's second- and third-largest oil
producers by capacity after China National Petroleum Corp.
(CNPC.YY)
China's oil companies have been stepping up their pursuit of
overseas assets as the country's domestic oil output stagnates, and
its supply of natural gas fails to keep pace with the increase in
demand. The global economic slowdown also has depressed the value
of some oil and gas fields, opening up opportunities.
Marathon shares were recently flat at $30.14 while Cnooc and
Sinopec American depositary shares were up fractionally.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com
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