Marathon Oil Company Share Fair

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Marathon Oil CompanyShare Fair

• 9 November 2005

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Forward Looking Statement

• Except for historical information, this
  presentation contains forward-looking information
  with respect to the Alvheim/Vilje development,
  including future exploration, drilling,
  production and development plans. These forward
  looking statements are subject to risks and
  uncertainties that could cause actual results to
  differ materially from those expressed or implied
  from such information. In accordance with the
  safe harbor provisions of the Private
  Securities Litigation Reform Act of 1995,
  Marathon Oil Corporation has included in its
  Annual Report on Form 10-K for the year ended
  December 31, 2004, and in subsequent Forms 10-Q
  and 8-K, cautionary language identifying
  important factors, though not necessarily all
  such factors, that could cause future outcomes to
  differ materially from those set forth in the
  forward-looking statements. 

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Presenters / Contacts

• Chris Cooper
• Brae Operations Manager
• Tel. [phone]
• CSCooper_at_MarathonOil.com
• Bob HillSupply Chain Manager
• Tel. [phone]
• RJHill_at_MarathonOil.com

• Geir Solli Norway Operations Manager
• Tel. [phone]
• GSolli_at_MarathonOil.com
• Peter Oswald
• Project Director
• Tel. [phone]
• PJOswald_at_MarathonOil.com

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Production Core Area Europe

• Operator of Brae platform and pipeline complex in
  Central North Sea
• 3 major platforms
• 7 producing fields
• 19 third-party fields
• Non-Operator at Foinaven
• Increasing position in Norway
• Heimdal gas hub
• Alvheim development
• Exploration programme
• Only producer of natural gas offshore Ireland 2
  producing platforms

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Procurement Strategies

• Procurement for Europe is based in Aberdeen
• Bidding for Ireland and Norway from Aberdeen
• Orders placed by Ireland and Norway
• Committed to PPWG Code of Practice
• All bidders sourced from FPAL
• Also use Achilles JQS system in Norway
• Evaluation criteria and timescale in enquiry
• Use Standard Contracts with few exceptions
• Adopt FPAL Performance Assessment system

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Relationship Strategies

• Prefer long term stable relationships
• Work with suppliers to resolve issues
• Seek solutions from suppliers for obsolescence
  issues, performance and cost improvements
• WHAT ABOUT NEW SUPPLIERS ?
• Contract review points provide opportunity for a
  renewal exercise or bidding scenario
• Ongoing new work is normally bid out
• Synergies with Global Procurement Houston may
  bring in new suppliers

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Our Expectations from Suppliers

• Register on FPAL complete capability profile
  keep details up to date
• Do the same in Achilles JQS for Norway work
• Still need to promote your own business
• WHAT MARATHON NEEDS FROM SUPPLIERS
• Provide innovative solutions for mature platforms
• Demonstrate the advantages in dealing with you
• Seeking new technology and Best Practices
• How can you Add Value to our business

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Marathon BRAE AREA Operations
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Location of Brae Field
Alvheim
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Brae AreaAcreage
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Brae PipelineSystems

• Brae-Forties
• Liquids system
• Cruden Bay Landfall
• SAGE (non-operated)
• Gas system
• St Fergus Terminal Landfall

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Brae Facilities and Production

• Three offshore platforms
• Brae A
• South / Central / West Brae
• Third party processing
• Brae B
• North Brae / Beinn
• Third party processing
• East Brae
• East Brae / Braemar
• Gas Export
• 55,000 bpd of oil
• 500 mmscfd of gas sales
• 300 people offshore

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Brae Area Projects For 2006

• Standard Platform Maintenance ongoing
• Planned Shutdowns on all three platforms
• Projects on Alpha (A), Bravo (B) and East (E)
• Platform modifications to comply with OSPAR (A)
• Low Pressure Operations (B, E and A)
• Enoch development tie-back (A)
• Water injection upgrades (A)
• Engine upgrades - mechanical and control systems
  (A, B and E)
• Fire Gas upgrades (A and B)
• Seawater filtration upgrade (B)
• Refrigeration condenser change-out (B)
• Instrument Air Compressor package change-out (A)

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Materials Equip Procurement Personnel
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Services Procurement Personnel
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Discipline Management Contacts
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Contractors / Suppliers Conducting Procurement on
behalf of Marathon
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Marathon in IRELAND
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CORK CITY
B
A
Kinsale Area
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Marathon Activity in Ireland

• Ongoing Platform Maintenance
• Low maintenance
• Projects
• Underwater inspection work
• preliminary engineering study work
• subsea well tiebacks
• facilities reconfiguration

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Marathon in NORWAY
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Marathon in Norway

• Partner in Heimdal area since 1975
• Existing production from Heimdal, Vale, and
  Skirne
• Operator from 2002
• Awarded 3 licenses in the predefined round in
  2003
• Awarded 5 licenses in the predefined round in
  2004
• Partner in Vilje - discovery 2003
• Operator for Hamsun discovery 2004
• Progressing development of Alvheim field

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Norway Exploration

• Three licenses awarded in the 2003 Pre-Defined
  Areas Round
• Marathon is designated operator for two licenses
• Five licenses awarded in APA 2004
• Marathon is designated operator for four licenses
• Partner in the Gudrun license
• Exploration team in Stavanger working APA awarded
  licenses
• Hamsun Field Development
• Exploration well drilled Mar/April 2004
• An oil and gas discovery
• Development options under consideration
• Potential tie in to Alvheim development

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Location of Alvheim Development
Alvheim
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The Alvheim Area
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Alvheim/Vilje Subsea Layout
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Alvheim Development Project

• Project on schedule for production early 2007
• FPSO with Gas line to SAGE and Oil tanker offload
• Subsea contract with TONOR
• FPSO vessel conversion at Keppel, Singapore
• Topsides Contract to Vetco
• Turret, Mooring and Swivel to APL
• Drilling contracts all awarded, rig Deepsea Bergen

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FPSO Long Term Operations

• Maersk Contractors Norge AS will run the FPSO
  with their personnel, provide all services
  contractors procure materials (list on next
  slide)
• Tendering throughout 2006
• Maersk contact is Tom Sanders, tel [phone]
• Marathon will directly source certain FPSO
  requirements e.g. Logistics
• Marathon will directly contract for all
  subsurface, drilling and intervention work

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FPSO Operations Requirements
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Marathon Europe Business UnitOffice Addresses

• AberdeenMarathon Oil U.K., Ltd.Marathon
  HouseRubislaw Hill, Anderson DriveAberdeen,
  AB15 6FZ
• Tel. [phone]
• LondonMarathon Oil U.K., Ltd. Capital House 25
  Chapel StreetLondon NW1 5DQ
• Tel. [phone]

• CorkMarathon Oil Ireland Ltd.Mahon Industrial
  EstateBlackrockCork, Ireland
• Tel. [phone]
• StavangerMarathon Petroleum Company (Norway)
  Postboks 480 Sentrum 4002 StavangerNorway
• Tel. [phone]

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Questions ?