Norway

Norway is a strategic and growing core area for Marathon. The Alvheim Field started production on June 8, 2008. The Alvheim FPSO (floating, production, storage and offloading vessel) is currently producing up to 140,000 barrels per day (bpd) of oil, with a total storage capacity of 560,000 bpd. Marathon also produces 125 million cubic feet per day of natural gas. The Field is located approximately 140 miles from Stavanger.

Marathon was approved for its first operatorship on the Norwegian Continental Shelf in 2002, and now operates eight licenses.

Alvheim

Marathon holds a 65 percent working interest in, and serves as operator of, the Alvheim Field. Marathon's partners in Alvheim are Norske ConocoPhillips AS, with a 20 percent working interest, and Lundin Norway AS, with the remaining 15 percent working interest.

  • The Alvheim area is comprised of the Kneler, Boa and Kameleon fields and is estimated to contain risked resources of approximately 130 mmboe.
  • Kneler was drilled into the prolific Heimdal formation to a total depth of 7,425 feet below sea level, encountering a net oil column of 115 feet.
  • Boa was drilled to a total depth of 7,531 feet below sea level and encountered a 174-foot gross hydrocarbon column, with 82 gross feet of gas on top of 92 gross feet of oil in high-quality sands.
  • There will be 10 producing wells and two water disposal wells in the Phase 1 drilling program.
  • A Phase 2 drilling program is planned in 2010/2011 for three further production wells.
  • The development provides for the transportation of produced oil by shuttle tanker, and transportation of produced natural gas to the existing U.K. Scottish Area Gas Evacuation (SAGE) system.
  • The development provides for the transportation of produced oil by shuttle tanker, and transportation of produced natural gas to the existing U.K. Scottish Area Gas Evacuation (SAGE) system.

Vilje

Marathon holds a 46.9 percent working interest in the nearby Vilje Field, with partners StatoilHydro (operator) holding a 28.9 percent working interest and Total E&P Norge AS with a 24.2 percent working interest.

  • Vilje has two production wells and is tied back to the Alvheim FPSO.
  • Production commenced in August 2008.
  • Drilled into the Heimdal formation in 2003, Vilje reached a total depth of 7,446 feet and encountered a gross oil column of approximately 223 feet and is estimated to contain risked resources of approximately 34 mmboe.

Volund

The Volund Field, on the Norwegian Continental Shelf, is approximately six miles south of the Alvheim Field. Marathon holds a 65 percent working interest in Volund and serves as operator, while Lundin Norway AS holds the remaining 35 percent working interest.

  • Initial production from Volund was achieved on September 9, 2009 from one production well, which flowed for approximately 3 days to test performance.
  • The field is being developed by three production wells and one water injection well and has estimated reserves of 30 million barrels of oil equivalent (net to Marathon).
  • Currently the first production and water injection well are completed, with the second and third production wells currently being drilled and expected to be completed and available by mid-2010.
  • Volund crude oil is part of Alvheim Blend being transported to market by shuttle tankers. Associated gas will be transported via Alvheim-to-SAGE pipeline to St Fergus.

Gudrun

Development plans are underway for the North Sea Gudrun Field, which contains both oil and natural gas. The development concept, announced by the operator StatoilHydro in January 2009, includes a fixed processing platform with seven production wells that would be tied back to StatoilHydro's existing facilities at Sleipner. A final decision on the development is expected in 2009. Marathon holds a 28.2 percent working interest in Gudrun.  

Exploration

Marathon holds interests in more than 700,000 gross acres offshore Norway, and has a dedicated Norway exploration team within the Stavanger office. The Company is an active participant in the Norway Licensing Rounds and has rig capacity secured through 2012 for its near-term exploration program.

In 2009, Marathon and its partners announced the Marihøne (PL 340) discovery, the first of several prospects near the Alvheim FPSO with tieback potential. The major growth focus in 2010
will be to drill several additional Alvheim area nearfield prospects, as well as to evaluate existing acreage in the Barents Sea on the PL 531 and PL 438 licenses for future drilling.

Marathon Petroleum Company (Norway)
Visiting address: Kanalpiren, Laberget 26 - Hinna Park
Mailing Address: Postboks 480 Sentrum, 4002 Stavanger, Norway
Phone: +47 51 90 70 00
Fax: +47 51 90 70 01