href=”marathonoil.com” target=”_blank”>Marathon Oil Corp has expanded into the African market with an exploration deal in Kenya via the acquisition of interests in two onshore exploration blocks licensed to Africa Oil Corp.
As contained in a report by Reuters, Marathon will pay $35 million to buy a 50 percent working interest in Block 9 and a 15 percent stake in Block 12A in northwest Kenya. It also reported that it could operate Block 9, which covers 7.5 million gross acres, if any commercial discovery is made.
Block 12A which is about 3.8 million gross acres is 65 percent owned by Tullow Oil Plc which operates it; with Africa Oil holding 20 percent interest.
Marathon will spend up to $43.5 million to fund Africa Oil’s share of expenditures in the blocks over the next three years.
The companies expect the farm-out agreement to close in the third quarter.
Marathon Oil and Africa Oil have also agreed to pursue exploration activities in Ethiopia, subject to necessary Government approvals.