OSM Operating Statistics for Marathon

Marathon Oil (MRO)

MRO » Topics » OSM Operating Statistics

MRO » Topics » OSM Operating Statistics

EXCERPTS ON THIS PAGE:

EXCERPTS ON THIS PAGE:

RELATED TOPICS for MRO:

Index to Financial Statements

Index to Financial Statements

Index to Financial Statements

Table of Contents

Index to Financial Statements

Table of Contents

Index to Financial Statements

Table of Contents

Index to Financial Statements

Send us Feedback

Marathon Oil (MRO)

	SUMMARY

	BULLS

	BEARS

	TOPICS

	DATA CENTRAL

	STOCK CHART

	SEC FILINGS

	BALANCE

	INCOME

	CASH FLOW

These excerpts taken from the MRO 10-K filed Feb 27, 2009.

OSM Operating Statistics

^(a)	The oil sands mining operations were acquired October 18, 2007. Daily volumes for 2007 represent total volumes since the acquisition date over total days in the period.

^(b)	Bitumen production is before royalties.

Proved reserves can be added as expansions are permitted, funding is approved and certain stipulations of the joint venture agreement are satisfied. The following table sets forth changes in estimated quantities of net proved bitumen reserves for the year 2008.

OSM Operating Statistics

^(a)	The oil sands mining operations were acquired October 18, 2007. Daily volumes for 2007 represent total volumes since the acquisition date over total days in the period.

^(b)	Bitumen production is before royalties.

OSM Operating Statistics

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">

^(a)	The oil sands mining operations were acquired October 18, 2007. Daily volumes for 2007 represent total volumes since the acquisition date over total days in the period.

^(b)	Bitumen production is before royalties.

SIZE="1">

Proved reserves can be added as expansions are permitted, funding is approved and certain stipulations of
the joint venture agreement are satisfied. The following table sets forth changes in estimated quantities of net proved bitumen reserves for the year 2008.

STYLE="margin-top:12px;margin-bottom:0px;padding-bottom:3px;line-height:95%; vertical-align:top">Estimated Quantities of Proved Bitumen Reserves

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">


(Millions of barrels)	2008
Beginning of year	421
Revisions^(a)	(30	)
Extensions, discoveries and additions	6
Production	(9	)

End of year	388

^(a)	Revisions were driven primarily by price and the impact of the new royalty regime discussed below.

The above estimated quantity of net proved bitumen reserves is a forward-looking statement and is based on a number of
assumptions, including (among others) commodity prices, volumes in-place, presently known physical data, recoverability of bitumen, industry economic conditions, levels of cash flow from operations, and other operating considerations. To the extent
these assumptions prove inaccurate, actual recoveries could be different than current estimates. For a discussion of the proved bitumen reserves estimation process, see Item 7. Management’s Discussion and Analysis of Financial Condition
and Results of Operations – Critical Accounting Estimates – Estimated Net Recoverable Reserve Quantities – Proved Bitumen Reserves. Operations at the AOSP are not within the scope of Statement of Financial Accounting Standards
(“SFAS”) No. 25, “Suspension of Certain Accounting Requirements for Oil and Gas Producing Companies (an Amendment of Financial Accounting Standards Board (“FASB”) Statement No. 19),” SFAS No. 69,
“Disclosures about Oil and Gas Producing Activities (an Amendment of FASB Statements 19, 25, 33 and 39),” and Securities and Exchange Commission (“SEC”) Rule 4-10 of Regulation S-X; therefore, bitumen production and reserves are
not included in our Supplementary Information on Oil and Gas Producing Activities. The SEC has recently issued a release amending these disclosure requirements effective for annual reports on Form 10-K for fiscal years ending on or after
December 31, 2009, see Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Accounting Standards Not Yet Adopted for additional information.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:3%">Prior to our acquisition of Western, the first fully-integrated expansion of the existing AOSP facilities was approved in 2006. Expansion 1, which
includes construction of mining and extraction facilities at the Jackpine mine, expansion of treatment facilities at the existing Muskeg River mine, expansion of the Scotford upgrader and development of related infrastructure, is anticipated to
begin operations in late 2010 or 2011. When Expansion 1 is complete, we will have more than 50,000 bpd of net production and upgrading capacity in the Canadian oil sands. The timing and scope of future expansions and debottlenecking opportunities on
existing operations remain under review.

During 2008, the Alberta government accepted the project’s application to have a portion of
the Expansion 1 capital costs form part of the Muskeg River mine’s allowable cost recovery pool. Due to commodity price declines in the year, royalties for 2008 were one percent of the gross mine revenue.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:3%">Commencing January 1, 2009, the Alberta Royalty regime has been amended such that royalty rates will be based on the Canadian dollar
(“CAD”) equivalent monthly average West Texas Intermediate (“WTI”) price. Royalty rates will rise from a minimum of one percent to a maximum of nine percent under the gross revenue method and from a minimum of 25 percent to a
maximum of 40 percent under the net revenue method. Under both methods, the minimum royalty is based on a WTI price of $55.00 CAD per barrel and below while the maximum royalty is reached at a WTI price of $120.00 CAD per barrel and above, with a
linear increase in royalty between the aforementioned prices.

The above discussion of the Oil Sands Mining segment includes
forward-looking statements concerning the anticipated completion of AOSP Expansion 1. Factors which could affect the expansion project include transportation logistics, availability of materials and labor, unforeseen hazards such as weather
conditions, delays in obtaining or conditions imposed by necessary government and third-party approvals and other risks customarily associated with construction projects.

SIZE="2">Refining, Marketing and Transportation

10-K (3 sections)	Feb 27, 2009

(Thousands of barrels per day)

Net bitumen production^(b)

Net synthetic crude sales