BLOCK 32 GETS $ 1.3 BILLION FROM CHINESE OIL COMPANIES
Marathon announced that its subsidiary, Marathon International Petroleum Angola Block 32 Limited, has began of agreement with Sinopec International Petroleum Exploration and Production Corporation (SINOPEC) and CNOOC International Limited (CNOOC), and it will purchase an undivided 20 percent participating interest in the Production Sharing Contract and Joint Operating Agreement in Block 32 offshore Angola. The companies expect to close the transaction by year-end 2009, subject to Government and regulatory approvals. For transfer of working interests in Angola, the concessionaire and the other Block 32 partners have rights of first refusal.
The transaction has a total value of $1.3 billion, excluding any purchase price adjustments at closing, with an effective date of Jan. 1, 2009. Marathon will retain a 10 percent working interest
Definition of interest:
The amount paid by a borrower to a lender above the amount (the principal) that has been borrowed.
in Block 32.
David E. Roberts, Jr. Marathon Executive vice-President said: "This sale demonstrates the significant amount of value being created through Marathon's exploration success in Angola and elsewhere around the world. With the divestiture of a portion of our Angola interest, we are able to bring better balance to our overall portfolio
Definition of portfolio:
The entirety of the financial assets (and usually also liabilities) that an economic agent or group of agents owns.
by capturing the sizable amount of value we have created and redeploying capital
Definition of capital:
1. The plant and equipment used in production.
2. One of the main primary factors, the availability of which contributes to the productivity of labor, comparative advantage, and the pattern of international trade.
3. A stock of financial assets.
into other growth
Definition of growth:
See economic growth.
regions for the Company. At the same time, maintaining a 10 percent interest in both Blocks 31 and 32 provides Marathon with exposure
Definition of exposure:
See exchange rate exposure.
to this important resource
Definition of resource:
1. An input to be used in an activity, especially production.
2. A natural resource.
base,"
"Our worldwide exploration success rate of over 60 percent with 48 significant discoveries over the past seven years - and a very attractive portfolio of global opportunities yet to come - further illustrates Marathon's value creation
Definition of creation:
See trade creation.
capability and places us well on track for continued growth," Roberts said.
The concessionaire of Block 32 is Sonangol, Angola's state-owned oil company. The operator is TOTAL Exploration and Production Angola (Block 32 Ltd) with 30 percent interest. Sonangol P&P holds a 20 percent interest; Esso Exploration and Production Angola (Block 32) holds a 15 percent interest; and Petrogal holds a 5 percent interest.
Marathon's financial advisor for this transaction is Standard
Definition of Standard:
Rule and/or procedure specifying characteristics that must be met for a product to be sold in a country's domestic market, typically to protect health and safety. When a standard puts foreign producers at a disadvantage, it may constitute an NTB.
Chartered Bank.
The transaction total excluded any purchase price adjustments at closing and has an effective date of Jan. 1, 2009. Marathon will retain a 10% working interest in the block.
The companies expect to close the transaction by yearend, subject to government and regulatory approvals. For transfer of working interests in Angola, the concessionaire and the other Block 32 partners have rights of first refusal.
Angola state-owned oil firm
Definition of firm:
An organization, possibly as small as a single person or as large as many thousands, that produces a good and/or provides a service that it sells to the public, the government, or other firms, using the proceeds to cover its costs. Also a business, a company, or an enterprise.
Sonangol serves as concessionaire of Block 32. Block operator Total E&P Angola (Block 32) Ltd. holds 30% interest. Other partners are Sonangol P&P 20%, Esso E&P Angola (Block 32) 15%, and Petrogal 5%.
Shares of Chinese energy majors CNOOC Ltd. and China Petroleum and Chemical Corp. (Sinopec) gained in Hong Kong trading Monday, helped by news
Definition of news:
Unexpected information. In an efficient market, as the exchange market is supposed to be, price reflects all available information. It can change, therefore, only in response to news.
that their joint venture
Definition of joint venture:
An undertaking by two parties for a specific purpose and duration, taking any of several legal forms. Two corporations, for example, perhaps from two different countries, may undertake to provide a product or service that is distinct, in kind or location, from what the companies do on their own.
will acquire a 20% stake in an Angolan oil block from a subsidiary
Definition of subsidiary:
A firm that is owned and ultimately controlled by another firm. Thus a multinational corporation has a parent in once country and one or more subsidiaries in others.
of U.S.-based Marathon Oil Corp.
The two Chinese state-owned firms will together pay Marathon $1.3 billion to acquire the stake in the so-called Angola Block 32, which has 12 previously announced discoveries.
The oil field "is a significant resource base with estimated recoverable light crude
Definition of crude:
Crude oil.
oil reserves
Definition of reserves:
1. International reserves of a government or central bank.
2. Amounts held by commerical banks in their vaults or on deposit with the central bank as backing for deposits.
of 1.5 billion barrels," Goldman Sachs analysts wrote in a report. "The $1.3 billion consideration compares with our valuation of $1.4 billion to $1.65 billion and Marathon's publicly disclosed offer of $1.8 billion to $2 billion."
They said the acquisition would build on CNOOC's "growing deepwater exposure" and values the recoverable reserves at $4.30 a barrel. CNOOC's share of the proven reserves from the field, at 150 million barrels, compares with its 2008 proven reserves of 2.5 billion barrels.
Source: http://www.asiaecon.org
The transaction has a total value of $1.3 billion, excluding any purchase price adjustments at closing, with an effective date of Jan. 1, 2009. Marathon will retain a 10 percent working interest
Definition of interest:
The amount paid by a borrower to a lender above the amount (the principal) that has been borrowed.
in Block 32.
David E. Roberts, Jr. Marathon Executive vice-President said: "This sale demonstrates the significant amount of value being created through Marathon's exploration success in Angola and elsewhere around the world. With the divestiture of a portion of our Angola interest, we are able to bring better balance to our overall portfolio
Definition of portfolio:
The entirety of the financial assets (and usually also liabilities) that an economic agent or group of agents owns.
by capturing the sizable amount of value we have created and redeploying capital
Definition of capital:
1. The plant and equipment used in production.
2. One of the main primary factors, the availability of which contributes to the productivity of labor, comparative advantage, and the pattern of international trade.
3. A stock of financial assets.
into other growth
Definition of growth:
See economic growth.
regions for the Company. At the same time, maintaining a 10 percent interest in both Blocks 31 and 32 provides Marathon with exposure
Definition of exposure:
See exchange rate exposure.
to this important resource
Definition of resource:
1. An input to be used in an activity, especially production.
2. A natural resource.
base,"
"Our worldwide exploration success rate of over 60 percent with 48 significant discoveries over the past seven years - and a very attractive portfolio of global opportunities yet to come - further illustrates Marathon's value creation
Definition of creation:
See trade creation.
capability and places us well on track for continued growth," Roberts said.
The concessionaire of Block 32 is Sonangol, Angola's state-owned oil company. The operator is TOTAL Exploration and Production Angola (Block 32 Ltd) with 30 percent interest. Sonangol P&P holds a 20 percent interest; Esso Exploration and Production Angola (Block 32) holds a 15 percent interest; and Petrogal holds a 5 percent interest.
Marathon's financial advisor for this transaction is Standard
Definition of Standard:
Rule and/or procedure specifying characteristics that must be met for a product to be sold in a country's domestic market, typically to protect health and safety. When a standard puts foreign producers at a disadvantage, it may constitute an NTB.
Chartered Bank.
The transaction total excluded any purchase price adjustments at closing and has an effective date of Jan. 1, 2009. Marathon will retain a 10% working interest in the block.
The companies expect to close the transaction by yearend, subject to government and regulatory approvals. For transfer of working interests in Angola, the concessionaire and the other Block 32 partners have rights of first refusal.
Angola state-owned oil firm
Definition of firm:
An organization, possibly as small as a single person or as large as many thousands, that produces a good and/or provides a service that it sells to the public, the government, or other firms, using the proceeds to cover its costs. Also a business, a company, or an enterprise.
Sonangol serves as concessionaire of Block 32. Block operator Total E&P Angola (Block 32) Ltd. holds 30% interest. Other partners are Sonangol P&P 20%, Esso E&P Angola (Block 32) 15%, and Petrogal 5%.
Shares of Chinese energy majors CNOOC Ltd. and China Petroleum and Chemical Corp. (Sinopec) gained in Hong Kong trading Monday, helped by news
Definition of news:
Unexpected information. In an efficient market, as the exchange market is supposed to be, price reflects all available information. It can change, therefore, only in response to news.
that their joint venture
Definition of joint venture:
An undertaking by two parties for a specific purpose and duration, taking any of several legal forms. Two corporations, for example, perhaps from two different countries, may undertake to provide a product or service that is distinct, in kind or location, from what the companies do on their own.
will acquire a 20% stake in an Angolan oil block from a subsidiary
Definition of subsidiary:
A firm that is owned and ultimately controlled by another firm. Thus a multinational corporation has a parent in once country and one or more subsidiaries in others.
of U.S.-based Marathon Oil Corp.
The two Chinese state-owned firms will together pay Marathon $1.3 billion to acquire the stake in the so-called Angola Block 32, which has 12 previously announced discoveries.
The oil field "is a significant resource base with estimated recoverable light crude
Definition of crude:
Crude oil.
oil reserves
Definition of reserves:
1. International reserves of a government or central bank.
2. Amounts held by commerical banks in their vaults or on deposit with the central bank as backing for deposits.
of 1.5 billion barrels," Goldman Sachs analysts wrote in a report. "The $1.3 billion consideration compares with our valuation of $1.4 billion to $1.65 billion and Marathon's publicly disclosed offer of $1.8 billion to $2 billion."
They said the acquisition would build on CNOOC's "growing deepwater exposure" and values the recoverable reserves at $4.30 a barrel. CNOOC's share of the proven reserves from the field, at 150 million barrels, compares with its 2008 proven reserves of 2.5 billion barrels.
Source: http://www.asiaecon.org
Source...