Marathon International Oil Angola Block 31 is selling its 10 per cent working interest in Block 31 offshore Angola to Sonangol Sinopec International (SSI) Thirty-One
The company, a subsidiary of Marathon Oil Corporation, will sell its stake in the production sharing contract and joint operating agreement to SSI Thirty-One Limited for an estimated US$1.5bn. The final figure will exclude any purchase price adjustments at closing.
The companies anticipate closing the transaction in the fourth quarter of 2013, with an effective date of January 1, 2013.
The transaction is subject to government, regulatory and third-party approvals, and pre-emption rights which exist on the block. At present, SSI Thirty-One holds a five per cent working interest in the block.
"This transaction highlights the shareholder value we have created through exploration success in Angola, as well as our commitment to financial discipline and efforts to profitably grow the company," said Clarence P. Cazalot Jr, Marathon Oil chairman, president and CEO.
"We expect to use the proceeds from this sale to repurchase shares, strengthen the balance sheet and for general corporate purposes."
