Marathon Oil (MRO)

Elba Island LNG

        In April 2004, we began delivering LNG cargoes at the Elba Island, Georgia LNG regasification terminal pursuant to an LNG sales and purchase agreement. Under the terms of the agreement, we have the right to deliver and sell up to 58 bcf of natural gas (as LNG) per year, through March 31, 2021 with a possible extension to November 30, 2023.

        In September 2004, we signed an agreement under which we will be supplied with 58 bcf of natural gas per year, as LNG, for a minimum period of five years. The agreement allows for delivery of LNG at the Elba Island LNG regasification terminal with pricing linked to the Henry Hub index. This supply agreement enables us to fully utilize our rights at Elba Island during the period of this agreement, while affording us the flexibility to commercialize other stranded natural gas resources beyond the term of this contract. The agreement commenced in 2005.

Elba Island LNG

        During 2004, we began delivering LNG cargoes as part of our Elba Island, Georgia LNG regasification terminal capacity rights agreement. Under the terms of the agreement, we can supply up to 58 billion cubic feet of natural gas (as LNG) per year, for up to 22 years.

        Also during 2004, we signed an agreement with BP Energy Company ("BP") under which BP will supply us with 58 bcf of natural gas per year, as LNG, for a minimum period of five years beginning in the second half of 2005. We will

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take delivery of LNG at the Elba Island LNG regasification terminal with pricing linked to the Henry Hub index. This supply agreement with BP enables us to fully utilize our capacity rights at Elba Island during the period of this agreement, while affording us the flexibility to access this capacity to commercialize other stranded gas resources beyond the term of the BP contract. We continue to actively seek additional cargoes prior to the start of deliveries from BP.

        The above discussion of the integrated gas segment contains forward looking statements with respect to the estimated construction and startup dates of a LNG liquefaction plant and related facilities. Factors that could affect the estimated construction and startup dates of the LNG plant and related facilities include, without limitation, unforeseen problems arising from construction, inability or delay in obtaining necessary government and third-party approvals, unanticipated changes in market demand or supply, environmental issues, availability or construction of sufficient LNG vessels, and unforeseen hazards such as weather conditions. The foregoing factors (among others) could cause actual results to differ materially from those set forth in the forward-looking statements.