Marathon Oil Signs Heads of Agreement to Process Third-Party Volumes Through Existing Equatorial Guinea Infrastructure
May 10 2018 - 8:41AM
Marathon Oil Corporation (NYSE: MRO) and its partners announced
today they have executed a Heads of Agreement with the Government
of the Republic of Equatorial Guinea and necessary third parties
establishing the framework for processing third-party natural gas
volumes through the Alba Plant LLC’s liquefied petroleum gas (LPG)
processing plant and EG LNG’s liquefied natural gas (LNG)
production facility, both located in Punta Europa, EG. Marathon
Oil, through its wholly owned subsidiaries, is the majority
shareholder in both Alba Plant LLC and EG LNG.
With the Punta Europa facilities becoming a hub for the
potential development of local and regional natural gas, the
project will sustain the operating rates of the Alba Gas Plant and
prolong the life of the EG LNG plant, both of which are proven
integrated gas assets with high reliability and low capital
demands. The existing processing facilities require only minor
modifications to accommodate the third-party gas. New volumes from
the third party are anticipated early in the next decade.
The Punta Europa parties include Alba Plant LLC, Alba Unit and
Equatorial Guinea LNG Train 1, S.A. (EGLNG). The interest holders
in Alba Plant LLC include Marathon Oil, Samedan of North Africa,
LLC (a subsidiary of Noble Energy Inc.) and Sociedad Nacional de
Gas de Guinea Ecuatorial (Sonagas G.E. S.A.). The interest holders
in Alba Unit are Marathon Oil, Samedan and Compania Nacional de
Petroleos de Guinea Ecuatorial (GEPetrol). The shareholders of EG
LNG’s holding company include Marathon Oil, Sonagas, Mitsui &
Co. Ltd. and Marubeni Gas Development UK Limited.
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, including without
limitation statements related to the Company’s plans to process
third-party natural gas through the Alba liquid petroleum gas
processing plant and the EG liquefied natural gas production
facility, the expected benefits thereof, timing of third-party
volumes and expected facility modifications. While the Company
believes that its assumptions concerning future events are
reasonable, a number of factors could cause results to differ
materially including, but not limited to: conditions in the oil and
gas industry, including supply/demand levels and the resulting
impact on price; changes in expected supply of natural gas volumes
from third parties; changes in political or economic conditions in
the jurisdictions in which the Company operates; availability of
materials and labor; difficulty in obtaining necessary approvals
and permits; non-performance by third parties of contractual
obligations; unforeseen hazards such as weather conditions, acts of
war or terrorism and the governmental or military response thereto;
cyber-attacks; changes in safety, health, environmental and other
regulations; other geological, operating and economic
considerations; and the risk factors, forward-looking statements
and challenges and uncertainties described in the Company's 2017
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and
other public filings and press releases, available
at www.marathonoil.com. Except as required by law, the Company
undertakes no obligation to revise or update any forward-looking
statements as a result of new information, future events or
otherwise.
Media Relations Contact
Lee Warren: 713-296-4103
Investor Relations Contacts
Zach Dailey: 713-296-4140
John Reid: 713-296-4380
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