Marathon Oil (MRO)

Refined Product Yields

In 2006, we approved an expansion of our Garyville, Louisiana refinery by 180 mbpd to 436 mbpd, at a projected cost of $3.2 billion (excluding capitalized interest). Construction commenced in early 2007 and continues on schedule with additional project construction phases commencing in early 2008. We expect to complete the expansion in late 2009. In 2007, we approved a heavy oil upgrading and expansion project at our Detroit, Michigan refinery, at a projected cost of $1.9 billion (excluding capitalized interest). This project will enable the refinery to process additional heavy, sour crude oils, including Canadian bitumen blends, and will increase its crude oil refining capacity by about 15 percent. Construction is expected to begin in the first half of 2008, subject to obtaining necessary environmental permits, and is expected to be completed in late 2010. When completed, these two expansion projects will increase our current total crude oil refining capacity by 19 percent.

Refined Product Yields

        Planned maintenance activities requiring temporary shutdown of certain refinery operating units, or turnarounds, are periodically performed at each refinery. MAP completed major turnarounds at its Garyville, Catlettsburg and Canton refineries during 2004.

        MAP increased its overall crude oil refining capacity during 2004 from 935,000 bpd to 948,000 bpd after completing the planned turnaround and expansion project at the Garyville refinery. This expansion increased crude oil capacity at Garyville from 232,000 bpd to 245,000 bpd.

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        The Catlettsburg refinery multi-year improvement project was completed during early 2004. At a cost of approximately $440 million, the project improves product yields and lowers overall refinery costs while making gasoline with less than 30 parts per million of sulfur, which allows MAP to meet Tier II gasoline regulations which became effective on January 1, 2004.

        MAP is constructing approximately $300 million in new capital projects for its 74,000 bpd Detroit, Michigan refinery. One of the projects, a $110 million expansion project, is expected to raise the crude oil capacity at the refinery by 35 percent to 100,000 bpd. Other projects are expected to enable the refinery to produce new clean fuels and further control regulated air emissions. Completion of the projects is scheduled for the fourth quarter of 2005.