2010-01-12-2009-12-11-2010-02-09

Purchased 20% stake in 5,090 sq. km. offshore Angola PSC Block 32.

A subsidiary of Angola's national oil company, Sonangol EP, has closed its acquisition of an additional 20% working interest in Angola Block 32 from Marathon Oil Corp., Houston, (NYSE: MRO) for US$1.3 billion, raising its interest to 40%.

In December 2009, Sonangol exercised its right of first refusal to block Marathon's sale of the asset to Chinese E&P firms CNOOC Ltd. and Sinopec.

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 including Gindungo, Canela, Cola, Gengibre, Mostarda, Salsa, Caril, Manjericao, Louro, Cominhos, Colorau and Alho.

Marathon retained a 10% working interest in Block 32. Total SA operates the block with a 30% interest. Other participants in the joint venture are ExxonMobil Corp. through its subsidiary Esso Exploration and Production Angola (Block 32), with 15%; Petrogal, with 5%, and parent company Sonangol, with the remaining 20%.

"Through this sale, Marathon has been able to capture exploration value and bring better balance to our overall portfolio by redeploying capital into other growth regions for the company," says Dave Roberts, Marathon executive vice president, upstream. "At the same time, maintaining a 10% interest in both blocks 31 and 32 provides Marathon with exposure to this important resource base."

Standard Chartered Bank was financial advisor to Marathon.