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Marathon Oil (NYSE:MRO) said Monday it agreed to sell a portion of the liquid natural gas it produces from its Alba Field in Equatorial Guinea to Glencore’s U.K. subsidiary in a five-year deal; financial terms were not disclosed.
Marathon Oil (MRO) said the agreement, which takes effect January 1, will have a pricing structure linked to the benchmark Dutch TTF index, providing significant incremental exposure to the European LNG market.
“At recent forward curve pricing, we expect to realize an approximate year-on-year EBITDA increase of over $300M next year across our [Equatorial Guinea] integrated gas business, reflecting our differentiated and increasing exposure to the global LNG market, [which] positions us strongly for the next phase of opportunities to advance the [Equatorial Gas] Gas Mega Hub,” Marathon Oil (MRO) Chairman, President and CEO Lee Tillman said.
Marathon (MRO) has a 64% working interest in the Alba field.
