Integrated Gas. The Company's expertise in integrated gas, coupled with investments in potentially game-changing technology, has propelled Marathon into a competitive position to improve returns through the value chain.

Marathon reached a milestone in mid-2007, delivering the first cargo from our Bioko Island, Equatorial Guinea, LNG production facility. The 3.7 million metric tonnes per annum LNG Train 1 project, in which Marathon holds a 60 percent interest, was completed on budget and six months ahead of schedule.

In 2007, Marathon completed those portions of the front-end engineering and design required to support the near-term efforts related to a potential second LNG production facility on Bioko Island. The Company expects to make progress toward an investment decision in 2008.

Gas Utilization Technology. Reflecting Marathon's position as an industry innovator, the Company invests in natural gas technology research, including proprietary Gas-to-Fuels™ (GTF) technology that offers the ability to convert natural gas into premium fuels while bypassing conventional intermediate synthetic gasification technology. The base patent for this technology was awarded in 2007. In addition to GTF, we continue to evaluate the application of other natural gas technologies, including LNG technology enhancements, gas hydrates and gas-to-liquids technology. These innovative solutions in technology are critical steps that support the Company's focus on increasing the supply of energy along with protecting the environment.