Marathon Oil To Buy Western Oil Sands |
| CNNMoney.com - Jul 31, 2007 |
Marathon Oil Corp. (MRO) said it agreed to acquire Canada's Western Oil Sands Inc. (WTO.T) for $5.56 billion plus assumed debt of $650 million, gaining access to Western's 20% stake in the Athabasca Oil Sands Project, one of the world's largest crude oil reservoirs.
Upon completion of the transaction, oil producer and refiner Marathon will gain access to more than 300,000 gross acres of oil sands, of which more than 200,000 acres are expected to be developed by mining.
With their proximity to the U.S. market, the Canadian oil sands have garnered billions of dollars in new investments amid instability in the Middle East and concerns about other leading oil producers. Alberta's massive, gunky oil-sands deposits - which yield a heavy oil that is dirtier and more difficult to turn into gasoline - are about the same size as Saudi Arabia's but cost more to process and turn into fuel. The oil sands currently produce about 1.2 million barrels a day, but are expected to churn out 3.7 million barrels a day by 2020. Much of this new supply is expected to be exported to the U.S.
Read Full Article from CNNMoney.com
- Posted: 2007-07-31 10:30:25
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