Marathon considering split of businesses

Marathon Oil is considering a plan to split the corporation into two independent companies, one focused on upstream activities and one focused on downstream activities.

Marathon said it has been considering the idea for several months, but probably won’t make a final decision until the fourth quarter of this year. If the board of directors chooses to continue with the plan, the separation would take place early next year.

The company announced the proposal with second-quarter financial figures on July 31, but company executives declined to elaborate on the proposal.

According to a press release, “One entity would consist of the Company’s Exploration and Production, Integrated Gas, and Oil Sands Mining businesses; and the other entity would consist of the Company’s Refining, Marketing and Transportation business.”

Marathon is one of the larger producers of natural gas in the Cook Inlet, as well as a part owner of a liquefied natural gas facility on the Kenai Peninsula and several pipelines.

—Petroleum News