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UNITED KINGDOMMarathon has been producing oil and natural gas in the United Kingdom for more than 20 years. The Company's current holdings in the U.K. include the Brae, Braemar and Foinaven fields. The company's European operations are based in Aberdeen, Scotland. Brae ComplexMarathon is operator and owns a 42 percent working interest in the South, Central, North and West Brae fields; a 38 percent working interest in the East Brae Field; and a 27.8 percent working interest in the Braemar Field. The Brae Alpha platform and facilities act as host for the underlying South Brae Field, as well as the adjacent Central Brae and West Brae fields. The North Brae Field and the East Brae Field are gas-condensate fields. In 2006, Brae was the third-largest gas producing complex in the U.K. The export of Brae Field liquids is via the Marathon-operated Brae-Forties pipeline, in which the Company has a 42 percent interest, and via the BP-operated Forties pipeline systems to Cruden Bay in Scotland. Stabilized crude liftings are made at the Firth of Forth loading terminal near Edinburgh, Scotland. In 2007, Marathon and its partners conducted a $32 million seismic survey with the aim of extending the life of the Brae Complex. On East and North Brae, low pressure operations projects are helping to maximize gas recovery and maintain high gas deliverability rates into the U.K. market. The strategic location of the Brae Alpha, Brae Bravo and East Brae platforms and connecting pipeline infrastructure continues to support transportation business. There are 29 agreements in place with third-party fields to use the Brae system. In 2007, new third-party business has included Enoch, Brenda and Nicol. Currently, approximately 200 thousand barrels of oil per day are processed and/or transported through the Brae infrastructure. SAGEThe Brae group owns a 50 percent interest in the outside-operated SAGE pipeline. The SAGE pipeline provides transportation for Brae and Beryl area gas and has a total wet gas capacity of approximately 1.1 billion cubic feet per day (bcfd). The SAGE terminal at St. Fergus provides processing for gas from the SAGE pipeline and processing for 1 bcfd of third-party gas. Marathon has two long-term sales contracts with utility companies, which obligate us to supply 125 bcf of natural gas through the remaining lives of these contracts, which terminate in 2009. FoinavenMarathon acquired an interest in the Foinaven Field in late 2000. Marathon has a non-operated interest averaging approximately 30 percent in the Foinaven area, west of the Shetland Islands in water depths between 1,300 and 1,900 feet. The Company's interests comprise a 28 percent stake in the main Foinaven Field, 47 percent of East Foinaven and 20 percent of the T35 and T25 accumulations. Sales of Foinaven-associated gas via the West of Shetland pipeline system commenced in April 2002. All sales are to the non-operated Magnus platform for use as an injection gas. Coal Bed MethaneMarathon has recently acquired a 45 percent interest in three exploratory U.K. onshore coal bed methane licenses. Drilling has been completed in three exploration wells in two of the licenses. One production test is planned during the second half of 2007.
Marathon Oil UK Ltd. |
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