Marathon Oil Corporation says that its wholly owned subsidiaries, Marathon Indonesia New Ventures Limited and Indonesia Kumawa Energy Limited, entered into a Production Sharing Contract with the Indonesian Government for a combined 49 percent interest in the Kumawa Block offshore Indonesia. Marathon's co-bidder, Komodo Energy LLC, a subsidiary of Black Gold Energy LLC, was awarded the remaining 51 percent interest. Marathon Indonesia New Ventures Limited will serve as the operator.

The Kumawa Block encompasses approximately 1.24 million acres and is located offshore West Papua, Eastern Indonesia, in the Semai region, approximately 180 miles south of the recently commissioned Tangguh liquefied natural gas facility. The Kumawa Block is a high-potential, under-explored area with water depths ranging from 2,400 to more than 4,000 feet.

"Marathon is pleased to further strengthen its exploration program in Indonesia with the award of the Kumawa Block," said Annell R. Bay, Marathon's senior vice president, Worldwide Exploration. "This is an important step in the continued growth of Marathon's portfolio of large-scale, high-potential blocks in the country."

Current exploration plans for the Kumawa Block call for the acquisition of 2D seismic followed by drilling operations.

Tags: Marathon Oil Corporation