July 23 Oil and natural gas company Marathon Oil
Corp said it will expand into Kenya by acquiring an
interest in two onshore exploration blocks licensed to Africa
Marathon will pay $35 million to buy a 50 percent working
interest in Block 9 and a 15 percent stake in Block 12A in
Marathon Oil said it could operate Block 9, which covers 7.5
million gross acres, if any commercial discovery is made.
Block 12A is about 3.8 million gross acres. Tullow Oil Plc
, which owns a 65 percent interest, operates the block.
Africa Oil holds a 20 percent interest.
Marathon will spend upto $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
Marathon Oil and Africa Oil have also agreed to pursue
exploration activities in Ethiopia, subject to necessary
Marathon Oil shares, which have fallen about 25 percent in
the past 5 months, were down 3 percent at $25.75 on Monday
morning on the New York Stock Exchange.