Marathon Oil to Sell Canadian Subsidiary for $2.5 Billion

   By WSJ Staff

Marathon Oil Corp. (MRO) said it would sell its Canadian subsidiary, which includes the company's 20% interest in the Athabasca Oil Sands Project to Royal Dutch Shell PLC (RDSA.LN) and Canadian Natural Resources Ltd. (CNQ) for $2.5 billion in cash.

In a press release Thursday, Marathon Oil also said it would buy about 70,000 net surface acres in the U.S.'s Permian Basin from BC Operating Inc. and other entities for $1.1 billion in cash.

The Permian Basin deal, Marathon Oil said, includes 51,500 acres in the Northern Delaware basin of New Mexico, and current production is about 5,000 net barrels of oil equivalent a day.

Marathon Oil said the Canadian oil sands deal is expected to close in mid-2017, while the Permian Basin deal will close in the second quarter of 2017.

(END) Dow Jones Newswires

March 09, 2017 02:41 ET (07:41 GMT)

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