RockRose Energy buys Marathon Oil UK assets in £107m deal

Output is expected to average around 13,000 barrels of oil equivalent per day this year

Big Zero Report 2022

RockRose Energy has signed a share purchase agreement to buy Marathon Oil UK’s (MOUK) assets as part of a deal worth £107 million.

The sale gives RockRose 37% to 40% operated interest in fields in the Greater Brae Area, a 28% stake in the BP-operated Foinaven field and 47% of Foinaven East.

Output from the assets is expected to average around 13,000 barrels of oil equivalent per day (boepd) this year, bringing the company’s estimated total to 24,000 boepd.

The acquisition represents a complete country exit for Marathon Oil Corporation, which is headquartered in Texas, US.

Lee Tillman, Marathon Oil Chairman, President and CEO said: “Today’s announcement to divest our UK business represents our continued commitment to portfolio management and further concentrates our portfolio on high margin, high return US resource plays.

“I’d like to recognize the significant contributions of our UK employees – both current and past – who built and have operated the Brae Field for more than 30 years.”

The deal is expected to close in the second half of 2019.

Oil & Gas UK said the acquisition is a “further signal of confidence” in the industry.

Upstream Policy Director Mike Tholen added: “The multi-million-pound transaction is a fitting illustration of how the hard work to improve the attractiveness of the UK Continental Shelf is enabling a diverse range of investors to play into the basin.

“While we cannot comment on the commercial decisions of our members, we commend the contribution Marathon Oil has made to the success story of the UK North Sea. The sale and indeed purchase of assets, is a natural part of the commercial life of the UKCS and presents new opportunities to maximise recovery.”

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