Marathon Oil Corp. will exit the UK with a sale of its UK businesses Marathon Oil UK LLC (MOUK) and Marathon Oil West of Shetland Ltd. (MOWOS) to RockRose Energy PLC to further concentrate on its high margin, high return US resource plays (OGJ Online, Feb. 18, 2019).
MOUK holds a 37-40% operated interest in fields in the Greater Brae Area, and MOWOS holds a 28% interest in the BP PLC-operated Foinaven field unit and 47% in Foinaven East. The deal includes interests in the SAGE, Brae-Forties, and WASPS infrastructure. At yearend 2018, Marathon Oil carried 21.4 million boe of proved reserves in the UK. Anticipated production is 13,000 boe/d in 2019, taking RockRose’s total net anticipated production to 24,000 boe/d for the year.
Subject to adjustments, closing consideration payable to Marathon Oil will be $140 million, which reflects the assumption by RockRose of MOUK and MOWOS working capital and cash equivalent balances of some $350 million as of Dec. 31, 2018.
The MOUK and MOWOS assets and teams in Aberdeen, Peterhea, and offshore will transfer with MOUK and MOWOS to RockRose upon the deal’s completion—expected in this year’s second half with an effective date of Jan. 1, subject to the satisfaction of certain contractual requirements.
