This excerpt taken from the MRO 8-K filed Nov 5, 2007.
Turning to slide 12, third quarter domestic upstream expense, excluding exploration expense, was $1.64 per BOE higher than the second quarter primarily as a result of the higher workover expenses already discussed. Domestic upstream income per BOE decreased $2.08 quarter over quarter.
Moving to slide 13, international upstream income for the third quarter increased $105 million over the second quarter as a result of higher volumes and higher realized prices, which were partially offset by higher income taxes, lower revenue associated with storage volumes in Ireland, higher operating costs, primarily from workovers in the UK and Gabon and increased DD&A due to higher EG gas sales to the LNG plant.
As shown on Slide 14, our international liquids realizations increased approximately $9.35 per barrel while Dated Brent increased only $5.99 per barrel. This out performance compared to Dated Brent was primarily due to higher market premiums for our light sweet sales as well as the timing of liftings.
The increase in the international natural gas realizations compared to the second quarter, was a result of higher volumes and higher realized prices in Europe. These gains were partially offset by much higher gas sales volumes to our LNG facility in Equatorial Guinea during the third quarter, which was its first full quarter of operation. Please remember that our LNG business is reported through the Integrated Gas segment, so there is additional uplift in value realized by this facility that is not reported through our upstream business.