Marathon Oil signs LNG sales deal in Equatorial Guinea

MALABO, October 18, 2023 – Marathon Oil Corporation has entered into a five-year LNG sales agreement with global commodities company Glencore for a portion of gas produced at the Alba field in Equatorial Guinea, the American energy company announced on Monday.

The deal will be effective starting on January 1, 2024, and is expected to raise the company’s year-on-year earnings before interest, taxes, depreciation and amortisation by USD 300 million in 2024.

The company also announced that it will be redirecting a portion of the gas sourced from the Alba field from the local methanol facility to the LNG facility.

Marathon Oil holds a 64% stake in the Alba field, a 45% stake in the methanol facility and a 56% stake in the LNG facility.

“I’m excited to announce this new sales agreement linked to the European LNG market, signalling the conclusion of the legacy Henry Hub linked contract,” said Lee Tillman, chairman, president and CEO of Marathon Oil Corporation.

“This success positions us strongly for the next phase of opportunities to advance the Equatorial Guinea gas mega hub, including up to two infill development wells in the Alba unit and the potential tie-in of the third-party Aseng gas cap monetization.”

Cost of the LNG sales agreement was not disclosed.

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