Marathon farm-in deal is sealed with Africa Oil

New move: Marathon Oil chief executive Clarence Cazalot

ANTHONY GUEGEL

By Barry Morgan

 26 July 2012 22:59 GMT

MARATHON Oil will farm in to two blocks on Kenya that are currently operated by TSX-listed Africa Oil Corporation in a deal that also provides for joint exploration of acreage in neighbouring Ethiopia.

Marathon will pick up 50% of Block 9 with the right to assume operatorship if a commercial discovery is declared, and 15% of Block-12T, where a 65% operating stake is held by Tullow Oil. This move leaves Africa Oil with a 20% interest in the licence.

Conditional to government approvals, all net working interests are subject to state back-in rights or carries, if any of the sovereign partners requires them.

In return for the assignment and previous expenditure, Marathon will pay Africa Oil a $35 million entry payment and fund its share of…

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