Globex goes for millions
18 Jun 2002
Marathon Oil Corporation has signed a definitive agreement to acquire Houston-based Globex Energy in a transaction valued at $155 million.
The acquisition will strengthen Marathon's exploration and production asset base, primarily in Equatorial Guinea, with the addition of 38 million barrels of oil equivalent (BOE) in proven reserves.
The acquisition is subject to the approval of the Australian Foreign Investment Review Board and closing of the sale, which are expected before the end of June.
Of the 38 million BOE of proven reserves, 35 million are located offshore Equatorial Guinea in the Alba Field, with the remaining in the Stag Field on the Northwest Shelf offshore Australia.
Following the expected approval of an Equatorial Guinea expansion project later this year, Marathon's Equatorial Guinea net proven reserves will total 300 million BOE.
The Alba field, which began producing in 1991, is estimated to contain producible resources of 5 trillion cubic feet of dry gas and 300 million barrels of condensate. Currently, 250 million cubic feet per day (MMCFD) gross of wet gas is produced, from which approximately 17,000 barrels per day (BPD) gross of condensate and 2,400 BPD gross of LPG are recovered through the Bioko Island LPG facility.
Approximately 120 MMCFD of the remaining lean gas is then fed to a methanol plant in which Marathon owns a 45% interest. This facility produces an average of 2,500 metric tons of methanol per day. With the acquisition of the Globex assets, Marathon's net share of Equatorial Guinea production is expected to average 21,000 BOE per day in 2002.
