Marathon Sakhalin and Shell Sakhalin complete exchange agreement

Dec 06, 2000 01:00 AM

Marathon Sakhalin and Shell Sakhalin Holdings announced completion of the exchange agreement that was signed in October 2000, relating to the transfer of Marathon's 37.5 % interest in Sakhalin Energy Investment to Shell.
In exchange for this, Marathon has acquired:
-- Shell UK's 28 % interest in the BP-operated Foinaven field, located in the Atlantic Margin west of the Shetland Islands in the UK
-- all of Shell UK's interests in discoveries and prospects on license areas adjacent to the Foinaven field
-- a 3.5 % overriding royalty, payable from Shell's working interest, on 100 % of the production from an eight block area in the Gulf of Mexico, which includes the producing Ursa field and the recently announced Princess discoveryIn addition, Marathon has been reimbursed for its expenditures on the Sakhalin project for the year 2000.
The remaining shareholders in Sakhalin Energy have entered into a revised Shareholder Agreement that will govern the future operations of Sakhalin Energy.
Under the new Shareholder Agreement, Sakhalin Energy will act as an integrated operator, with Shell providing both upstream and LNG services to the venture.
Dave Golder, Marathon's senior vice president for Commercialisation and Development said: "Sakhalin is without doubt a world-class project. For Marathon it was the right project, but at the wrong time. High levels of capital investment for several more years without significant near to mid-term returns, simply didn't fit our strategic needs. However, the experience we take with us from the Sakhalin project will be important for Marathon's future international success, an area that we see providing much of our long-term growth. As we move ahead, we're certainly not averse to doing business in Russia and, with the right opportunity, we would be happy to return." Marathon Sakhalin is a subsidiary of Marathon Oil Company, which is part of the USX-Marathon Group, a unit of USX.

Sakhalin Energy Investment was established in April 1994 to carry out the implementation and development of the Sakhalin II Project -- Russia's first project to be realized under the terms of a Production Sharing Agreement (PSA).
-- The project covers two fields, Piltun-Astokhskoye, primarily an oil field, and Lunskoye which is primarily a gas field.
-- Under the Agreement, entered into by the Sakhalin Oblast, the Russian Federation and Sakhalin Energy in 1994, direct investment in the Project will amount to about $ 10 bn.
-- First oil was produced in July 1999, from the Piltun-Astokhskoye (PA) field, with the first export of crude in September 1999.
-- The project will now move to gas field development and LNG plant construction phase, once gas sales agreements are in place.

Source: USX-Marathon Group
Alexander's Commentary

Change of face - change of phase

In the period of July 20 till August 3, 2015, Alexander will be out of the office and the site will not or only irreg

read more ...
« February 2020 »
February
MoTuWeThFrSaSu
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29

Register to announce Your Event

View All Events