Libya

Marathon is a member of the Waha Group (formerly the Oasis Group), which acquired exploration and production rights in Libya in the mid-1950s. Marathon and ConocoPhillips each hold a 16.33 percent interest in the Waha Concessions (formerly the Oasis Concessions), with Hess Corporation holding an 8.16 percent interest and the Libyan National Oil Corporation (NOC) holding the remaining 59.16 percent interest.

Between 1958 and 1961, the Oasis Group discovered fields at Bahi, Dahra, Waha, Defa and Gialo. First oil flowed in 1962 via pipeline to the Es Sider Terminal on the Mediterranean coast. Eight additional fields were discovered and subsequently developed. The Group ceased active participation in the Waha Concessions in 1986 following the imposition of trade sanctions by the U.S. government.

Since 1986, the Waha Concessions have been operated by the Waha Oil Company, a wholly owned subsidiary of the Libyan NOC. In April 2004, the U.S. government lifted sanctions, allowing Marathon and its partners to advance plans to return to production operations in Libya. In late 2005, the Group reached agreement with the Libyan NOC on the terms under which the companies would return to their former oil and gas exploration and production operations in the Waha Concessions.

The concessions, which currently produce approximately 345 gross thousand barrels of oil per day, encompass almost 13 million acres located in the Sirte Basin. This basin is one of the most prolific oil and gas producing areas of Libya, containing sizable undeveloped oil and gas resources. Marathon added approximately 165 million barrels of oil to the Company’s proved reserves as a result of the re-entry into Libya. Subsequently, an additional 69 million barrels of oil equivalent has been added.