August 1, 2008
Marathon and Partners Announce First Oil From Vilje Field Offshore Norway
HOUSTON, Aug. 1 /PRNewswire-FirstCall/ -- Marathon Oil Corporation and its partners announced today that production has begun at the partner operated Vilje development offshore Norway, through a subsea tie-back to the Marathon operated Alvheim floating production, storage and offloading (FPSO) vessel.
Vilje is being developed with two production wells in block 25/4 on the Norwegian Continental Shelf, and will be a significant contributor to the Alvheim FPSO reaching its maximum production capacity.
"We are delighted to have the Vilje development onstream, providing another stage in the Company's defined production growth," said Kristin Farovik, managing director, Marathon Petroleum Company (Norway), a wholly owned subsidiary of Marathon. "The combined Alvheim/Vilje development is expected to reach a rate of 75,000 net (120,000 gross) barrels of oil equivalent per day by the first quarter 2009. We are currently developing the nearby Marathon operated Volund discovery and expect to tie this into the Alvheim FPSO during 2009, as capacity becomes available. In addition, we have several exploration prospects in the area with the potential to sustain a longer peak production for the Alvheim FPSO."
Marathon holds a 46.9 percent interest in Vilje, along with StatoilHydro Petroleum AS (operator) which holds a 28.9 percent interest, and TOTAL E&P Norge AS which holds a 24.2 percent interest.
Marathon holds a 65 percent operated interest in Alvheim field, and associated FPSO, which began operations in June and has already shown strong production performance. The Alvheim FPSO has a nameplate capacity of 120,000 barrels per day of oil and 125 million cubic feet per day of natural gas with total storage capacity of 560,000 barrels of oil. Throughput capacity is expected to reach as much as 134,000 barrels per day. Located about 140 miles (224 kilometers) from Stavanger, Norway, the Alvheim development includes subsea infrastructure consisting of four drill centers and associated flow lines. The development provides for the transportation of produced oil by shuttle tanker, and transportation of produced natural gas to the existing U.K. SAGE system using a new 14-inch, 24-mile cross border pipeline. The Alvheim purpose-designed FPSO vessel takes advantage of the latest technology for low emission gas turbines -- a first for the Norwegian Continental Shelf.
Marathon has a 65 percent interest in Volund and serves as operator, while Lundin Norway AS holds the remaining 35 percent interest.
Marathon is an integrated international energy company engaged in exploration and production; oil sands mining; integrated gas; and refining, marketing and transportation operations. Marathon, which is based in Houston, has principal operations in the United States, Angola, Canada, Equatorial Guinea, Gabon, Indonesia, Ireland, Libya, Norway and the United Kingdom. Marathon is the fourth largest United States-based integrated oil company and the nation's fifth largest refiner.
This release contains forward-looking statements with respect to the Alvheim/Vilje development and expected production from these fields. Some factors that could potentially affect these forward-looking statements include pricing, supply and demand for petroleum products, the amount of capital available for exploration and development, regulatory constraints, timing of commencing production from new wells, drilling rig availability, unforeseen hazards such as weather conditions, acts of war or terrorist acts and the governmental or military response thereto, and other geological, operating and economic considerations. In accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Marathon Oil Corporation has included in its Annual Report on Form 10-K for the year ended December 31, 2007, and subsequent Forms 10-Q and 8-K, cautionary language identifying other important factors, though not necessarily all such factors, that could cause future outcomes to differ materially from those set forth in the forward- looking statements.
Media Relations Contacts: Paul Weeditz 713-296-3910 Emma White +44 1224 803020 Hanne Forssell +47 51506315 Investor Relations Contacts: Howard Thill 713-296-4140 Chris Phillips 713-296-3213 Michol Ecklund 713-296-3919
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Marathon Oil Corporation
CONTACT: Media Relations: Paul Weeditz, +1-713-296-3910, Emma White,+44 1224 803020, or Hanne Forssell, +47 51506315; Investor Relations: HowardThill, +1-713-296-4140, Chris Phillips, +1-713-296-3213, or Michol Ecklund+1-713-296-3919
Web site: http://www.marathon.com/