DealBook: Marathon 0il to Sell Norwegian Business for $2.1 Billion

LONDON – Marathon Oil, the American oil exploration and production company, said on Monday that it will sell its Norwegian business to Det norske oljeselskap for $2.1 billion in cash.

Marathon, based in Houston, also said that it has called off the sale of its British business after failing to receive what it deemed an acceptable offer.

The Norwegian sale is the latest move in an ongoing effort by Marathon to streamline its portfolio of assets.

The sale includes a Marathon-operated floating production, storage and offloading vessel and various production licenses in the North Sea, Marathon said. In 2013, Marathon's production in Norway averaged the equivalent of about 80,000 barrels of oil a day.

Det norske said that the transaction will complement its existing production plans in Norway and that it will have 202 million barrels of oil equivalent in proven reserves and probable deposits after the transaction.

The deal is subject to regulatory approval and is expected to close in the fourth quarter.

Det norske's strategy has been to create a strong Norwegian exploration and production company, said Sverre Skogen, the Det norske chairman. "With this transformational transaction we have achieved our goal well ahead of schedule."

Lee M. Tillman, the Marathon president and chief executive, said the company has divested assets totaling $6.2 billion since 2011, when Marathon split into Marathon Oil, an exploration and production company, and Marathon Petroleum, a refiner.

"The disciplined allocation of capital to opportunities that can deliver long-term growth at higher returns and improved margins is a strategic imperative," Mr. Tillman said in a statement.

Separately, Marathon said that it was dropping plans to sell its British business after considering several bids for those assets.

Mr. Tillman said that Marathon had intended to sell only if it "received an offer that appropriately valued these assets."

Now, he said, the company "will continue to operate this business as we always have — with a focus on our company's long-held values and commitment to safe and responsible operations, and in a manner that maximizes shareholder value."

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