Marathon Oil is due to spud an exploration well on the Key Largo prospect, on Walker Ridge Block 578, Gulf of Mexico, in Q3. It will be the first well drilled with a new-build deepwater drillship. Marathon Oil is operator and holds a 60% working interest in the prospect.
The second appraisal well on the outside-operated Shenandoah prospect was spud in late May and is still drilling, said Marathon, announcing its Q2 results. The well is on Walker Ridge Block 52, in which Marathon Oil holds a 10% working interest.
An exploration well is anticipated to spud in the 2H 2014 on the Perseus prospect in Desoto Canyon Block 231. Marathon Oil holds a 30% non-operated working interest.
Announcing its Q2 results, Marathon revealed its UK North Sea production slumped from 22,000 net boe/d in Q2 2013 to an average 14,000 net boe/d in Q2 2014. This was primarily as a result of reliability issues at the BP-operated Foinaven field, in which Marathon has a stake, as well as natural decline within the Brae fields, and planned and unplanned maintenance activities that resulted in lower overall operating availability. Planned maintenance activities on the outside-operated Forties Pipeline System are expected to impact Brae production in the third quarter of 2014.
In June, Marathon Oil announced it is no longer marketing its UK business after agreeing a deal to sell off its Norwegian unit.
Marathon Oil Norge is to be sold to Norway’s Det norske oljeselskap in a US$2.1 billion cash deal. Read more: Marathon to keep UK North Sea assets