AGTA Agriterra Ld

By Angel Gonzalez

HOUSTON--Marathon Oil Corp. (MRO) said Wednesday it is beginning to look for oil and gas in Ethiopia, after buying a 20% interest in a concession there from Agriterra Ltd. (AGTA.LN)

Marathon will pay Agriterra $40 million, and an additional $10 million in case there is a discovery of oil that has commercial value.

The concession, dubbed South Omo, is operated by Tullow Oil Plc (TLW.LN), which owns a 50% stake. The deal is expected to close before the end of the year, and will have an effective date of Aug. 17, 2012.

Write to Angel Gonzalez at angel.gonzalez@dowjones.com

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