Marathon Oil Buys Assets in Africa
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Marathon Oil Co. agreed to buy CMS Energy Corp.’s production and refining interests in Equatorial Guinea, a tiny nation on Africa’s Atlantic coast, for $993 million in cash.
The purchase will give Houston-based Marathon large stakes in several offshore production blocks and a condensate separation facility, a 45% interest in a methanol production plant and a 43% stake in a liquefied petroleum gas processing plant.
Marathon, a unit of steel giant USX Corp., intends to more than triple production from the gas-rich Alba field by 2004, pending approval by the government and existing venture partners.
Marathon said it will net142 million barrels of liquid reserves and 646 billion cubic feet of gas reserves with the acquisition.
Dearborn, Mich.-based CMS Energy said last week that it planned to sell many of its overseas assets.
On the NYSE, USX Marathon shares fell $1.02 to $27.34, and CMS shares rose 25 cents to $22.00.
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