Marathon Oil acquires interest in Africa Oil’s exploration blocks

Marathon acquired an interest in two of Africa Oil’s Kenyan exploration blocks. The terms of the farmout agreement stated that Marathon had taken a 50 per cent interest in Block 9 and a 15 per cent interest in Block 12A both in Kenya. 

"The consideration to be received from Marathon Oil will allow us to both accelerate the exploration in the blocks that Marathon Oil is farming into as well as provide additional funding to the company for the accelerated exploration programme on the Tertiary rift trend being executed in partnership with Tullow Oil," said Africa Oil president and CEO Keith Hill. 

Marathon Oil made an entry payment of US$32mn to Africal Oil and agreed to fund expenditures of US$25mn. Africa Oil would operate in Block 9, but Marathon Oil has the right to continue operations if commercial findings are made.