Marathon and Naftogaz Ukrainy Sign Cooperation Agreement

Marathon International Petroleum, Ltd., a wholly-owned subsidiary of Marathon Oil Corporation, and National Joint Stock Company Naftogaz Ukrainy (NAK) have signed a cooperation agreement to carry out technical studies that could lead to the joint exploration for, and production of, hydrocarbons in an area of interest in the Dnieper-Donets Basin located in North Central Ukraine.

According to the agreement, NAK and Marathon will embark on a joint study of an agreed area of joint interest, covering approximately 26,000 square kilometers. The study will be conducted over the next three years during which time decisions will be made concerning further activities the Companies may undertake. Marathon is opening an office in Kyiv to manage these activities.

Commenting on the announcement, Philip G. Behrman, senior vice president of Worldwide Exploration for Marathon said, "This cooperation agreement with Naftogaz Ukrainy is consistent with Marathon's efforts to seek out and access new resources that could lead to profitable growth opportunities. We are hopeful that this will lead to a joint effort to explore the resource potential of the Dnieper-Donets Basin and the formation of a long-term, mutually beneficial relationship between Marathon and Naftogaz Ukrainy."

The Dnieper-Donets Basin is believed to contain significant remaining undiscovered resources of crude oil and natural gas. However, the recovery of these undiscovered resources is subject to considerable subsurface challenges and is dependent on the application of unique technologies.

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Posted 06/06/07

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