2009-08-05-2009-08-01

To acquire 20% WI in 5,090 sq. km. offshore Angola PSC Block 32.

Joint-venture partners CNOOC Ltd., Hong Kong, (NYSE: CEO) and Sinopec International Petroleum Exploration and Production Corp., a subsidiary of Sinopec, (NYSE: SNP) plans to acquire a 20% working interest in a production sharing contract and joint-operating agreement in Angola from Marathon International Petroleum Angola Block 32 Ltd., a subsidiary of Marathon Oil Corp., Houston, (NYSE: MRO) for US$1.3 billion. The assets are under Block 32, offshore Angola, with acreage of 5,090 square kilometers. The block features 12 oil discoveries and is about 150 kilometers offshore. The discoveries consist of 12 previously announced discoveries in Block 32 include Gindungo, Canela, Cola, Gengibre, Mostarda, Salsa, Caril, Manjericao, Louro, Cominhos, Colorau and Alho. Marathon will retain a 10% interests in the block. Block 32 is operated by Total SA, which owns 30%. Other owners include Angola state-owned oil company Sonangol, which holds 20%, ExxonMobil Corp. through its subsidiary Esso Exploration and Production Angola with 15% and Galp with 5%. CNOOC president Yang Hua says, "I am glad that we seized the opportunity to acquire this asset. Since our listing, we have stuck to a value driven acquisition strategy to take opportunities. This transaction is a good example of such strategy." Marathon executive vice president, upstream, David E. Roberts Jr. says, "This sale demonstrates the significant amount of value being created through Marathon's exploration success in Angola and elsewhere around the world. With the divestiture of a portion of our Angola interest, we are able to bring better balance to our overall portfolio by capturing the sizable amount of value we have created and redeploying capital into other growth regions for the company. At the same time, maintaining a 10% interest in both Blocks 31 and 32 provides Marathon with exposure to this important resource base." Credit Suisse is financial advisor to CNOOC and Sinopec. Standard Chartered Bank is financial advisor to Marathon. The deal is expected to close by year-end.