UNITED KINGDOM

Marathon has been producing oil and natural gas in the United Kingdom for more than 20 years. The Company's current holdings in the U.K. include the Brae Complex and the Foinaven Field. The company's European operations are based in Aberdeen, Scotland.

Brae Complex

Marathon is operator and owns a 42 percent working interest in the South, Central, North and West Brae fields; a 38 percent working interest in the East Brae Field; and a 27.8 percent working interest in the Braemar Field. The Brae Alpha platform and facilities act as host for the underlying South Brae Field, as well as the adjacent Central Brae and West Brae fields. The North Brae Field and the East Brae Field are gas-condensate fields.

The export of Brae Field liquids is via the Marathon-operated Brae-Forties pipeline, in which the Company has a 42 percent interest, and via the BP-operated Forties pipeline systems to Cruden Bay in Scotland. Stabilized crude liftings are made at the Firth of Forth loading terminal near Edinburgh, Scotland.

On East and North Brae, low pressure operations projects are helping to maximize gas recovery and maintain high gas deliverability rates into the U.K. market. The strategic location of the Brae platforms and connecting pipeline infrastructure continues to support significant third-party processing and transportation business. There are 28 agreements in place with third-party fields to use the Brae system.

SAGE

The Brae group owns a 50 percent interest in the outside-operated SAGE pipeline, which provides transportation for Brae and Beryl area gas and has a total wet gas capacity of approximately 1.1 billion cubic feet per day (bcfd). The SAGE terminal at St. Fergus provides processing for gas from the SAGE pipeline and processing for 1 bcfd of third-party gas.

Foinaven

Marathon holds a non-operated working interest in the Foinaven area, west of the Shetland Islands in water depths between 1,300 and 1,900 feet. The Company's working interests comprise a 28 percent stake in the main Foinaven Field, 47 percent of East Foinaven and 20 percent of the T35 and T25 accumulations.

The export of Foinaven liquids is via shuttle tanker direct from FPSO to market. All gas sales are to the non-operated Magnus platform for use as injection gas. Current upgrading of the FPSO will extend the life of this project through 2021.

Marathon Oil UK Ltd.
Marathon House
Rubislaw Hill, Anderson Drive
Aberdeen, AB15 6FZ, Scotland
Phone: +44 1224-80-3000
Fax: +44 1224-80-3190