STAVANGER, NORWAY, Aug. 31, 2009
Marathon Petroleum Company (Norway) LLC, a wholly-owned subsidiary of Marathon Oil Corporation (NYSE: MRO), and Maersk announced today that they have agreed to terminate their existing service agreement under which Maersk provides management and staffing for the operation of the Alvheim floating, production, storage and offloading (FPSO) vessel offshore Norway. Marathon expects to directly staff and operate the Alvheim FPSO in the second half of 2010.
The Alvheim field began producing oil and gas on June 8, 2008. Maersk has managed the operation of the Alvheim FPSO since its start up and has also played an important role in the preceding project phase. After more than a year of successful operations, the production on Alvheim has stabilised at approximately 140,000 barrels per day (gross).
“Maersk has been a good partner during the start up of the Alvheim development and in the initial operations phase, but Marathon and Maersk have now agreed to transfer the responsibility to Marathon,” said Kristin Færøvik, managing director of Marathon Petroleum Company (Norway) LLC.
Færøvik said she sees this transfer of operations as part of Marathon’s growth strategy for Norway and a confirmation of the Company’s long term commitment to this core area. Færøvik also points out that Maersk’s contributions to the Alvheim project in the development and start-up phases have been very important to Marathon’s success in Norway.
In line with regulations for the Transfer of Undertakings, all offshore employees working for Maersk on the Alvheim FPSO will be offered a position with Marathon. In the same manner, such an offer also will be given to the Maersk onshore based personnel linked to the Alvheim development. Maersk has highly qualified employees working on the Alvheim project and Marathon hopes that as many staff as possible will continue in their current positions.
“The transfer of operations to Marathon is a natural evolution of the contract and the high production achieved from Alvheim. Maersk considers the Alvheim project to be a great success. We are proud to have contributed in the development and start-up phases and we are pleased to have had a positive influence on this exciting oil project,” said Finn Rosner, managing director, Maersk Drilling Norge AS.
Following this transfer of operations, Maersk wishes to focus on ongoing Maersk FPSO projects where Maersk both owns and operates the facility. Experienced resources that will become available following the transfer are important for future Maersk FPSO projects. The experience Maersk has gained through the Alvheim project will now be used on such projects.
Marathon Contacts
Media Relations:
(In Norway) Ingvar Solberg +47-51-50-6300
(In Houston) Paul Weeditz 713-296-3910 or Leslie Hiltabrand 713-296-4102
Investor Relations:
Howard Thill 713-296-4140
Chris Phillips 713-296-3213
Maersk Contact
Finn Rosner, Managing Director Maersk Drilling Norge AS
+47-52-01-7010