Marathon Oil Announces Intent to Sell Interest in Block 32 Offshore Angola for $590M; Announces New $1B Buyback Plan

Marathon Oil Corporation

today announced it is moving forward with plans to repurchase $1 billion of the Company's common stock pursuant to its outstanding share repurchase authorization. Unrelated to the share repurchase, the Company also announced an intent to sell its interest in Block 32 offshore Angola for approximately $590 million and the acquisition of approximately 4,800 net acres in the core of its south Texas Eagle Ford position for approximately $97 million, including carried interest of approximately $23 million. The $1 billion in share repurchases will be completed in two phases. The initial phase of $500 million in common stock repurchases is substantially complete. The second $500 million phase is anticipated to be completed after closing the previously announced sale of its 10 percent working interest in Block 31 offshore Angola. That transaction, with a total value of approximately $1.5 billion, excluding any purchase price adjustments, is anticipated to close in the fourth quarter of 2013, with an effective date of Jan. 1, 2013. Marathon Oil has reached an agreement in principle to sell its 10 percent working interest in the Production Sharing Contract and Joint Operating Agreement in Block 32 offshore Angola to Sonangol E.P. The transaction has a total value of approximately $590 million, excluding any purchase price adjustments. Pending execution of definitive agreements and government approval, the transaction is expected to close in the fourth quarter of 2013, with an effective date of Jan. 1, 2013.