USA: Marathon Refining & Marketing to be Set up Independently

While the company's exploration and production income rose, low margins slashed refining profit to $158 million, down from $1.25 billion in the second quarter of 2007 when margins were high. The company said its wholesale marketing gross margin per gallon was 8.35 cents, compared to 39.25 cents in the year-ago period.

The Board of Directors of Marathon Oil Corporation announced today that as part of its continuing focus to enhance shareholder value, they are evaluating the potential separation of Marathon into two strong independent publicly traded companies, each focused on its own set of business opportunities.

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.

While this evaluation has been underway internally for several months, the Company has taken the additional step of engaging financial advisors Morgan Stanley, and the law firms of Baker Botts LLP and McKee Nelson LLP as external advisors. It is anticipated that the results of this effort will be reviewed by the Board of Directors and a decision will be made during the fourth quarter 2008. Should the decision be made to separate, the separation would likely occur during the first quarter 2009.

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 Editors Note: Petrol Retail brands inlcude Marathon Service Stations, Speedway SuperAmerica  and Pilot Travel Centers.