2009-08-17-2008-08-01

To acquire nonoperated interests in Heimdal offshore, gaining 4.8 MMBOE, 7,000 BOE/d.

Centrica Plc, London, (London: CNA) plans to acquire nonoperated interests in the Heimdal infrastructure offshore Norway from Marathon Oil Corp., Houston, (NYSE: MRO) for $416 million. The deal includes the $375 million purchase price and $41 million in associated Norwegian asset tax pools. The assets include 23.8% interest in Heimdal Field; 46.9% interest in Vale Field; 20% interest in Byggve Field; 20% interest in Skirne Field; and 50% and 20% interest in the Peik and Heimdal East discoveries, respectively. Marathon will maintain its assets in the Alvheim/Vilje development and on the Norwegian Continental Shelf. Net production is approximately 7,000 barrels of oil equivalent per day. Net proved reserves as of Dec. 31 were 4.8 million barrels equivalent and total net risked resources of approximately 17.5 million barrels equivalent. Centrica chief executive Sam Laidlaw says, "This investment is in line with our strategy to reduce the group's exposure to movements in gas prices through securing additional upstream assets. It also increases the level of gas reserves to supply our British Gas customers and gives us our first producing interests in Norway, building on our existing exploration position." Marathon executive vice president, upstream, David E. Roberts Jr. says, "Marathon's decision to sell its interest in Heimdal and related assets is part of our ongoing efforts to actively manage the company's global asset portfolio to ensure alignment with our business strategy and to generate sustainable value growth. This business approach demands that we continually evaluate the value of existing operations against the value of new or emerging opportunities." The deal is expected to close in the late third quarter or early fourth quarter.