Marathon Oil sells Irish subsidiary for $180M
Wednesday December 17, 3:48 pm ET
Marathon Oil sells Irish subsidiary to Star Energy Group for $180 million
HOUSTON (AP) -- Marathon Oil Corp. on Wednesday said it sold its subsidiary Marathon Oil Ireland Ltd. for $180 million to Star Energy Group, a subsidiary of Petroliam Nasional Berhad.
The deal is expected to close early in the first quarter. The transaction came just one week after Marathon delayed a decision to split the company in two due to volatile economic conditions.
This sale, along with the sale of non-core assets, is part of Marathon's global asset review and has generated nearly $1.2 billion in cash pretax. The company expects this program will generate $2 billion to $4 billion in cash pretax by midyear 2009.
The deal does not include Marathon's 18.5 percent interest in the Corrib natural gas development.
As part of this transaction, Star Energy will retain the 61 Marathon Oil Ireland Ltd. employees in Ireland. Star Energy is a subsidiary of Petroliam Nasional Berhad.
Shares of Marathon rose 66 cents, or 2.5 percent, to $27.14 in afternoon trading.
Source: Solutia Inc.
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