Marathon’s Western Siberia Assets – Expectations and Challenges

Marathon’s presence in Russia dates back to the late 1980s, most significantly in their lead role with the Sakhalin II project throughout the 1990s. While Marathon left that venture in 2001 for strategic reasons, a Business Development office was maintained in Moscow to continue evaluating Russian opportunities.

In May of 2003, Marathon acquired Khanty Mansiysk Oil Corporation (KMOC) and its Western Siberia assets. This new Marathon core area contains an estimated 900 million barrels of un-risked resource and net proved and probable reserves of approximately 250 million barrels of oil equivalent.

Mr. Cazalot’s presentation will focus on Marathon’s Western Siberia assets including future expectations and challenges Marathon faces to grow production from the current rate of 16,000 bopd to over 60,000 bopd in 2008. Mr. Cazalot will discuss plans to improve HES practices, drilling and completion practices, and reservoir development and management practices.