Naperville, IL -- (SBWIRE) -- 10/12/2012 -- Summary: Marathon Oil Corporation (Marathon Oil) has agreed to acquire equity interest in two exploration blocks, located in Kenya, from Africa Oil Corporation (Africa Oil). As a consideration, Marathon Oil will pay an entry payment of $35m, which includes prior expenditures, and has agreed to fund Africa Oil's working interest share of future joint venture expenditures, anticipated to be spent over the next three years up to a maximum of $43.5m. Under the terms of the agreement, Marathon Oil will acquire a 50% interest in Block 9 and a 15% interest in Block 12A. In addition, Africa Oil and Marathon Oil have agreed to jointly pursue exploration activities on an additional exploration area in Ethiopia.
- Rationale behind Marathon Oil's plan to acquire Block 9 and 12A in Kenya
- Rationale benhind Africa Oil divesting its stake in favor of Marathon Oil
- Geography Covered- Kenya
Reasons to buy
- Develop a sound understanding of Marathon Oil's investment in Africa
- Rationale behind Marathon Oil's plan to acquire Block 9 and 12A
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