Wednesday, July 25, 2012

Marathon Oil acquires exploration blocks in Kenya

Marathon Oil Corporation has struck a deal worth an initial US $35 million with Africa Oil Corporation to acquire two onshore exploration blocks in northwestern Kenya.

Houston-based, Marathon Oil will start their exploration work in the two exploration blocks in the coming months and has further plans to acquire 15 per cent stake on block 12A in the Rift Valley presently controlled by Africa Oil and Tullow Oil.

"With this transaction Marathon Oil gains entry into an emerging onshore oil play in Kenya that offers potential across a vast acreage position and fits with our liquids-rich strategic focus," said Marathon Oil's senior Vice-President of Global Exploration, Annell R. Bay.

Marathon Oil makes an initial payment of $35 million that include prior expenses and fund Africa Oil’s working interests up to a maximum of $43.5 million during the next three years.

Keith Hill, Africa Oil President and Chief Executive Officer said he was pleased to work with Marathon, adding Kenya is set to become a major oil and natural gas producer.

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