Marathon Oil (MRO)

2004 Operating Highlights

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We realized continued exploration success with six discoveries including the Deep Luba and Gardenia wells in Equatorial Guinea, the Venus and Canela wells in Angola, the Hamsun well in Norway and the Neptune 7 well in the Gulf of Mexico.



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We strengthened core areas by:



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Receiving approval of the plan of development and operation ("PDO") for the Alvheim project in Norway and reaching agreement to develop Vilje through the Alvheim infrastructure;



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Completing the Equatorial Guinea condensate expansion project and advancing the liquefied petroleum gas ("LPG") expansion project; and



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Receiving planning permission from the Irish authorities for the Corrib development.



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We added net proved reserves of 221 million barrels of oil equivalent ("BOE"), excluding 2 million BOE of dispositions, while producing 122 million BOE of production during 2004. Over the past three years, we have added net proved reserves of 782 million BOE, excluding dispositions of 280 million, while producing 411 million BOE. Three-year amounts include 7 million BOE of net proved reserve additions, 19 million BOE of dispositions and 7 million BOE of production related to equity investees.



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We strengthened MAP assets by:



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Completing the Catlettsburg, Kentucky refinery repositioning project, which has improved product yields, lowered overall refinery costs and allowed MAP to meet the Tier II gasoline regulations;



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Increasing crude oil capacity at our Garyville, Louisiana refinery from 232,000 barrels per day ("bpd") to 245,000 bpd, which allowed us to achieve record crude oil and other feedstock refinery throughputs of 1,110,000 bpd;



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Progressing an expansion project to increase the capacity of the Detroit, Michigan refinery; and



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Increasing same store merchandise sales by 11 percent at Speedway SuperAmerica LLC ("SSA").



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We advanced our integrated gas strategy by:



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Reaching final investment decision and beginning construction on a 3.4 million metric tonnes per year LNG plant in Equatorial Guinea;

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Signing an agreement with BP Energy Company under which BP will supply us with 58 billion cubic feet ("bcf") of natural gas per year, as LNG, for a minimum period of 5 years, beginning in the second half of 2005;



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Securing six cargos of LNG utilizing our Elba Island, Georgia LNG regasification terminal delivery rights; and



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Completing the construction and operation of a gas-to-liquids ("GTL") demonstration plant at the Port of Catoosa, Oklahoma.



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We signed an agreement to acquire Ashland's 38 percent interest in MAP and continue to pursue completion of the transaction.



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We continued our business transformation programs, including implementation of two outsourcing agreements, to achieve further business process improvements and cost reductions.



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We increased the quarterly dividend to 28 cents per share.