Full Description

Marathon Oil Corporation is engaged in exploration, development and production activities in ten countries: United States, Angola, Canada, Equatorial Guinea, Gabon, Indonesia, Ireland, Libya, Norway and the United Kingdom. The Company’s operations consist of four segments: exploration and production, oil sands mining, refining, marketing and transportation and integrated gas. Exploration and production explores for, produces and markets liquid hydrocarbons and natural gas. Oil sands mining mines, extracts and transports bitumen from oil sands deposits and upgrades the bitumen to produce and market synthetic crude oil and by-products. Refining, marketing and transportation, refines, markets and transports crude oil and petroleum products. Integrated gas, markets and transports products manufactured from natural gas, such as liquefied natural gas and methanol. Its wholly owned subsidiary include Speedway SuperAmerica LLC and Western Oil Sands Inc. (Western), Marathon Pipe Line LLC (MPL). In April 2009, the Company announced the completion of the sale of its wholly owned subsidiary, Marathon Oil Ireland Limited (MOIL) to PSE Ireland Limited, a subsidiary of Petroliam Nasional Berhad (Petronas).

Exploration and Production

The Company conducts exploration, development and production activities in 10 countries: the United States, Angola, Canada, Equatorial Guinea, Gabon, Indonesia, Ireland, Libya, Norway and the United Kingdom. In the United States, during the year ended December 31, 2008, the Company drilled 71 gross exploratory wells, of which 60 gross wells encountered commercial quantities of hydrocarbons. Offshore Angola, holds a 10% outside-operated interest in Block 31 and a 30% outside-operated interest in Block 32. The Company produces natural gas in the Cook Inlet and adjacent Kenai Peninsula of Alaska. It also has domestic natural gas operations in Oklahoma, east Texas and north Louisiana.

Oil Sands Mining

The Company holds outside operated interest in Athabasca Oil Sands Project (AOSP), an oil sands mining joint venture located in Alberta, Canada. The joint venture produces bitumen from oil sands deposits in the Athabasca region and upgrades the bitumen to synthetic crude oil. These operations use established processes to mine oil sands deposits from an open-pit mine, extract the bitumen and upgrade it into synthetic crude oils. Bitumen production from the mine is taken by pipeline to the Scotford upgrader.

Refining, Marketing and Transportation

The Company owns and operates seven refineries in the Gulf Coast, Midwest and upper Great Plains regions of the United States. During 2008, its refineries processed 944 mbpd of crude oil. The refineries include crude oil atmospheric and vacuum distillation, fluid catalytic cracking, catalytic reforming, desulfurization and sulfur recovery units. The refineries process a variety of crude oils and produce numerous refined products, ranging from transportation fuels, such as reformulated gasolines, blend-grade gasolines intended for blending with fuel ethanol and ultra-low sulfur diesel fuel, to heavy fuel oil and asphalt. Additionally, the Company manufactures aromatics, cumene, propane, propylene, sulfur and maleic anhydride. Its refineries are integrated with each other via pipelines, terminals and barges. Its refined product lines include the Cardinal products pipeline and the Wabash pipeline. The Cardinal products pipeline delivers refined products from Kenova, West Virginia, to Columbus, Ohio. The Wabash pipeline system delivers product from Robinson, Illinois, to various terminals in the area of Chicago, Illinois. Other significant refined product pipelines owned and operated by MPL extend from: Robinson, Illinois, to Louisville, Kentucky; Garyville, Louisiana, to Zachary, Louisiana; and Texas City, Texas, to Pasadena, Texas.

Integrated Gas

The Company’s integrated gas operations include natural gas liquefaction and regasification operations and methanol production operations. Atlantic Methanol Production Company LLC owns a methanol plant located in Malabo, Equatorial Guinea. Feedstock for the plant is supplied from our natural gas production from the Alba field. During 2008, the Company developed a range of natural gas conversion technologies that connect stranded natural gas to both conventional and transportation fuel markets.