Marathon Oil to sell non-core assets for $950m

US-based petroleum and natural gas exploration and production company Marathon Oil has signed agreements to sell some of its non-core assets for $950m, bringing the total to approximately $1.3bn since last year.

The sale includes all of its Wyoming upstream and midstream assets for $870, excluding closing adjustments.

The upstream properties mainly include waterflood developments in the US’s Big Horn and Wind River basins, and averaged 16,500 barrels of oil equivalent per day in the first quarter of this year.

Expected to be closed by this year, the deal also includes the sale of the 570 mile-long Red Butte pipeline, which is located in the US.

Marathon Oil did not disclose the buyer of its assets.

Separately, Marathon Oil has entered into agreements to sell 10% of its working interest in the outside-operated Shenandoah discovery in the Gulf of Mexico, operated natural gas assets in the Piceance basin in Colorado, US and certain undeveloped acreage in West Texas, US, for a combined total of approximately $80m.

Marathon Oil president and CEO Lee Tillman said: “Since August 2015, we have now announced or closed non-core asset sales of approximately $1.3bn, surpassing our targeted range of $750m to $1bn.

“Ongoing portfolio management continues to drive the simplification and concentration of our portfolio to lower risk, higher return U.S resource plays and support our 2016 objective of balance sheet protection.”

By the end of last year, the company had net proved reserves of 2.2bn barrels of oil equivalent in North America, Europe and Africa.