Marathon Oil To Sell Norway Business For $2.7 Bln - Quick Facts

(RTTNews) - Marathon Oil Corp. (MRO) said it has entered into a definitive agreement with Det norske oljeselskap ASA under which Det norske would purchase Marathon Oil's wholly owned subsidiary, Marathon Oil Norge AS, for a total transaction value of $2.7 billion.

After adjustment for debt, net working capital and interest on the net purchase price, Marathon Oil expects net proceeds of $2.1 billion at closing. The effective date of the transaction is January 1.

The companies expect to close the transaction in the fourth quarter of this year.

The sale includes the Marathon Oil-operated Alvheim floating production, storage and offloading vessel, 10 company-operated licenses and a number of non-operated licenses on the Norwegian Continental Shelf in the North Sea.

Full-year 2013 net production in Norway averaged approximately 80,000 barrels of oil equivalent or BOE per day.

After careful consideration of all bids, the company received no acceptable offer for its U.K. North Sea business and has elected to retain those assets.