Transportation Services To Seven Heads Group in Celtic Sea CORK, Ireland, July 4 /PRNewswire-FirstCall/ -- Marathon International Petroleum Ireland Limited, a wholly-owned subsidiary of Marathon Oil Corporation (NYSE: MRO), announced today that it has entered into an agreement with the Seven Heads group to provide gas processing and transportation services, as well as field operating services, to the group through Marathon's existing Kinsale Head facilities in the Celtic Sea. As part of the agreement, the Seven Heads group, led by Ramco Oil & Gas Limited (operator), will share in the costs of operating the Kinsale Head facilities. The agreement is subject to the approval of Ireland's Minister of Communications, Marine and Natural Resources. The Seven Heads field, estimated to contain proven and probable natural gas reserves of approximately 300 billion cubic feet, is located some 35 kilometers to the southwest of Marathon's Kinsale Head field and processing infrastructure in the Celtic Sea off the southern coast of Ireland. Under the terms of the agreement, Marathon will provide firm capacity to process and transport 60 million cubic feet per day (MMCFD) of Seven Heads gas, with the ability to increase that up to 100 MMCFD subject to agreement between the parties. The agreement provides for enhanced utilization of Marathon's infrastructure, while ensuring that both the capital investment required for the Seven Heads field development and the time to first production are minimized. The development also increases Ireland's indigenous gas production capacity. Commenting on the agreement, Fergal Murphy, President of Marathon International Petroleum Ireland Limited, said, "This agreement enhances the value and useful life of Marathon's Kinsale Head infrastructure by providing the means to bring nearby gas fields in the Celtic Sea into commercial production. It also complements Marathon's strategy to utilize existing infrastructure to build an integrated gas business in Ireland and Europe." Marathon's Kinsale Head facilities consist of two production platforms, Alpha and Bravo, located 5 kilometers apart and approximately 50 kilometers southeast of Cork. The facilities are currently capable of processing 220 MMCFD of wet gas and this will be increased to 280 MMCFD as a consequence of the agreement with the Seven Heads group. Dry gas is transported through a 56 kilometer, 24-inch (600 mm) pipeline to a receiving and metering station at Inch, County Cork. From the Inch Terminal, the gas is transferred to the Bord Gais Eireann transportation system for distribution throughout Ireland. The Seven Heads group is comprised of Ramco Oil & Gas Limited, a subsidiary of Ramco Energy plc, Duke Energy Services Ireland Ltd. (in the process of transferring its interest in the Seven Heads Field to Ramco Energy plc), Island Petroleum Developments Limited, Northern Exploration Limited (recently acquired by Ramco) and Sunningdale Oils (Ireland) Ltd. Marathon is a fully integrated energy company engaged in the worldwide exploration, production and transportation of crude oil and natural gas. The company refines, markets and transports petroleum products in the United States through Marathon Ashland Petroleum LLC, a joint venture company between Marathon and Ashland, Inc. formed in 1998. For more information about Marathon, visit the company's website at www.Marathon.com . This release contains forward-looking statements concerning the processing and transportation of third-party natural gas production in the Celtic Sea. This forward-looking information may prove to be inaccurate and actual results may differ significantly from those presently anticipated. Factors but not necessarily all factors that could adversely affect these expected results include, unforeseen problems associated with the production of third-party gas, delay in obtaining necessary government approvals, unanticipated changes in market demand or supply, competition with similar projects, and environmental or permitting issues. 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. MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X35014246 SOURCE Marathon Oil Corporation -0- 07/04/2002 /CONTACT: media relations, Paul Weeditz, +1-713-296-3910, or investor relations, Ken Matheny, +1-713-296-4114, or Howard Thill, +1-713-296-4140, all of Marathon Oil Corporation/ /Company News On-Call: http://www.prnewswire.com/comp/133204.html / /Web site: http://www.marathon.com / (MRO) CO: Marathon Oil Corporation; Marathon International Petroleum Ireland Limited; Ramco Oil & Gas Limited; Ramco Energy plc; Duke Energy Services Ireland Ltd.; Island Petroleum Developments Limited; Northern Exploration Limited; Sunningdale Oils (Ireland) Ltd. ST: Texas, Ireland IN: OIL SU: -0- Jul/04/2002 13:16 GMT
Marathon Oil Company to Provide Gas Processing and
Press spacebar to pause and continue. Press esc to stop.