Marathon strikes Gulf of Mexico agreement

Marathon has struck a deal to sell most of its assets in the US Gulf of Mexico for $205 million to an undisclosed buyer, the US oil and gas independent announced Monday in a statement.

Marathon will sell off its operated producing interests in the greater Ewing Bank area and its non-operated assets in the Petronius and Neptune fields.  The assets represent a majority of Marathon’s producing and non-producing assets in the US Gulf of Mexico.

Operated by Chevron, the Petronius field is located in 535 metros of water in the Viosca Knoll Block 786 and contains estimated recoverable reserves of 80 to 100 million barrels of oil equivalent. Neptune field is operated by US upstream company Anadarko Petroleum and currently produces 25,000 barrels of oil per day and 3 mcm (100 mcf) of gas per day.

According to the statement, Marathon will continue to retain its stake in other producing assets in the oil-producing Gunflint development located 144 kilometres off the coast of Louisiana and the Shenandoah discovery located the Walter’s Ridge Wilcox formation.

The identity of the buyer has yet to be disclosed. The effective date of the transaction is January 1, 2015 with closing expected before the end of the year.