Marathon Oil Company Announces Equatorial Guinea Government Approval of Alba Field Expansion Project

Project Will Substantially Increase Condensate Production



Sep 04, 2002, 01:00 ET from Marathon Oil Company

    HOUSTON, Sept. 4 /PRNewswire-FirstCall/ -- Marathon Oil Company, a wholly
 owned subsidiary of Marathon Oil Corporation (NYSE:   MRO), announced today that
 the Government of Equatorial Guinea has approved the company's Alba Field
 Phase 2A expansion project in Equatorial Guinea.  This element of Marathon's
 Equatorial Guinea expansion plans will increase gross condensate production
 from 17,000 to 46,000 barrels per day.  The project is scheduled to be
 complete by the fourth quarter of 2003.
     The expansion plan consists of the installation of two new platforms and
 the drilling of several new production and gas injection wells offshore, as
 well as the expansion of onshore condensate processing facilities on Bioko
 Island.  More than 800 million cubic feet per day (mmcf/d) of wet gas will be
 produced and processed to extract the condensate.  Two compressors will be
 installed to return all gas not used in methanol production or for fuel to the
 offshore field for re-injection at a rate of approximately 590 mmcf/d.
     According to Dave Golder, Marathon's senior vice president of
 Commercialization and Development, "The Phase 2A expansion is the first major
 step in creating additional value from the Equatorial Guinea assets acquired
 earlier this year.  Quick alignment with the Government of Equatorial Guinea
 and our partners in the Alba Production Sharing Contract (PSC) has allowed us
 to go forward with this project without delay. "
     The existing production facilities under the Alba PSC include two offshore
 platforms, plus an onshore condensate stabilization plant.  Other Alba-related
 facilities on Bioko Island, with differing ownerships, include a liquefied
 petroleum gas (LPG) processing plant and Atlantic Methanol Company's methanol
 plant.  In addition to gas and condensate production within the Alba PSC,
 approximately 2,700 barrels per day of LPG is recovered and processed at the
 Bioko Island LPG facility and approximately 120 mmcf/d of lean gas is
 processed at the methanol plant, which produces an average of 2,500 metric
 tons of methanol per day.
     Marathon is also finalizing Phase 2B plans to increase production through
 the expansion of existing LPG facilities from approximately 2,700 to
 16,000 barrels per day.  Upon approval and completion of both expansion
 projects, Marathon's net proven reserves in Equatorial Guinea will total
 approximately 300 million barrels of oil equivalent (BOE).  The full-cycle
 finding and development cost of these reserves is estimated at $4.60 per BOE.
     Marathon is the operator of the Alba field, as well as the onshore
 facilities associated with this Phase 2A expansion, and holds a 63.2-percent
 equity interest in the Alba Production Sharing Contract.  Remaining equity
 interest holders are Noble Energy, Inc. (NBL) (33.8 percent) and GEPetrol, the
 state-owned oil company of Equatorial Guinea, (3 percent).
     This release contains forward-looking statements with respect to
 completion of the acquisition, estimated proven reserves, potential additional
 reserves and estimated future production rates.  This forward-looking
 information is based on certain assumptions, including, among others,
 presently known physical data concerning size and character of reservoirs,
 economic recoverability, technology development, approval of the expansion
 plan, future drilling success, production experience, industry economic
 conditions (such as supply and demand), levels of company cash flow from
 operations and operating conditions.  This forward-looking information may
 prove to be inaccurate and actual results may differ significantly from those
 presently anticipated.  In accordance with "safe harbor" provisions of the
 Private Securities Litigation Reform Act of 1995, Marathon Oil Corporation
 (formerly known as USX Corporation), has included in its Annual Report on Form
 10-K for the year ended December 31, 2001, and in subsequent Forms 10-Q and
 8-K, cautionary language identifying 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.
 
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SOURCE Marathon Oil Company
    HOUSTON, Sept. 4 /PRNewswire-FirstCall/ -- Marathon Oil Company, a wholly
 owned subsidiary of Marathon Oil Corporation (NYSE:   MRO), announced today that
 the Government of Equatorial Guinea has approved the company's Alba Field
 Phase 2A expansion project in Equatorial Guinea.  This element of Marathon's
 Equatorial Guinea expansion plans will increase gross condensate production
 from 17,000 to 46,000 barrels per day.  The project is scheduled to be
 complete by the fourth quarter of 2003.
     The expansion plan consists of the installation of two new platforms and
 the drilling of several new production and gas injection wells offshore, as
 well as the expansion of onshore condensate processing facilities on Bioko
 Island.  More than 800 million cubic feet per day (mmcf/d) of wet gas will be
 produced and processed to extract the condensate.  Two compressors will be
 installed to return all gas not used in methanol production or for fuel to the
 offshore field for re-injection at a rate of approximately 590 mmcf/d.
     According to Dave Golder, Marathon's senior vice president of
 Commercialization and Development, "The Phase 2A expansion is the first major
 step in creating additional value from the Equatorial Guinea assets acquired
 earlier this year.  Quick alignment with the Government of Equatorial Guinea
 and our partners in the Alba Production Sharing Contract (PSC) has allowed us
 to go forward with this project without delay. "
     The existing production facilities under the Alba PSC include two offshore
 platforms, plus an onshore condensate stabilization plant.  Other Alba-related
 facilities on Bioko Island, with differing ownerships, include a liquefied
 petroleum gas (LPG) processing plant and Atlantic Methanol Company's methanol
 plant.  In addition to gas and condensate production within the Alba PSC,
 approximately 2,700 barrels per day of LPG is recovered and processed at the
 Bioko Island LPG facility and approximately 120 mmcf/d of lean gas is
 processed at the methanol plant, which produces an average of 2,500 metric
 tons of methanol per day.
     Marathon is also finalizing Phase 2B plans to increase production through
 the expansion of existing LPG facilities from approximately 2,700 to
 16,000 barrels per day.  Upon approval and completion of both expansion
 projects, Marathon's net proven reserves in Equatorial Guinea will total
 approximately 300 million barrels of oil equivalent (BOE).  The full-cycle
 finding and development cost of these reserves is estimated at $4.60 per BOE.
     Marathon is the operator of the Alba field, as well as the onshore
 facilities associated with this Phase 2A expansion, and holds a 63.2-percent
 equity interest in the Alba Production Sharing Contract.  Remaining equity
 interest holders are Noble Energy, Inc. (NBL) (33.8 percent) and GEPetrol, the
 state-owned oil company of Equatorial Guinea, (3 percent).
     This release contains forward-looking statements with respect to
 completion of the acquisition, estimated proven reserves, potential additional
 reserves and estimated future production rates.  This forward-looking
 information is based on certain assumptions, including, among others,
 presently known physical data concerning size and character of reservoirs,
 economic recoverability, technology development, approval of the expansion
 plan, future drilling success, production experience, industry economic
 conditions (such as supply and demand), levels of company cash flow from
 operations and operating conditions.  This forward-looking information may
 prove to be inaccurate and actual results may differ significantly from those
 presently anticipated.  In accordance with "safe harbor" provisions of the
 Private Securities Litigation Reform Act of 1995, Marathon Oil Corporation
 (formerly known as USX Corporation), has included in its Annual Report on Form
 10-K for the year ended December 31, 2001, and in subsequent Forms 10-Q and
 8-K, cautionary language identifying 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.
 
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 SOURCE  Marathon Oil Company