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.