Marathon Oil to sell conventional assets as part of cost-reduction strategy

Marathon Oil Corp. plans to sell conventional assets as part of the company’s cost-reduction strategy, according to various media outlets. The asset sales will include approximately $500 million in traditional exploration assets.

The conventional asset divestments will enable Marathon to focus on its most cost-effective shale play operations. In September, Marathon said that the company planned to suspend new venture funding for conventional exploration in order to focus on the Gulf of Mexico and offshore West Africa.

In Marathon’s third-quarter earnings report, the company’s 2015 capital, investment, and exploration program spending is now approximately 30% less than originally estimated. Spending for 2015 has been reduced to as low as $3.1 billion from $4.3–$4.5 billion. Spending for 2016 is expected to be reduced to approximately $2.2 billion.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...