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MARATHON, MCDERMOTT, MITSUI SELECTED FOR SAKHALIN ISLAND PROJECT

MARATHON, MCDERMOTT, MITSUI SELECTED FOR SAKHALIN ISLAND PROJECT
 HOUSTON, Jan 28 /PRNewswire/ -- A consortium composed of subsidiaries of Marathon Oil Company, McDermott International, Inc., and Mitsui & Co., Ltd., announced today that their MMM Group had been selected to do a detailed feasibility study for the development of the Piltun-Astohskoye and Lunskoye oil and gas fields lying on the continental shelf off Sakhalin Island in the Russian Far East, and to conduct further exploration work in the tender area.
 The Sakhalin Island Governmental Tender Commission, chaired by Victor Danilov-Danilian, minister of Ecology and Natural Resources and chairman of the commission, announced the selection of the MMM Group on behalf of the Russian Federation.
 The members of the consortium and the Russian Federation have executed a letter of intent regarding a formal feasibility study agreement, which they expect to be signed by March 31, 1992. Work on the feasibility study will begin immediately thereafter, as will negotiations regarding appropriate structures and agreements for the actual development within the tendered area.
 Consortium members expressed extreme pleasure over the commission's selection. The MMM Group looks forward to working closely with the local production organization, Sakhalinmorneftegas, as well as Sakhalin Island administration and other Russian Federation parties on the successful completion of the feasibility study and, ultimately, on the development of the oil and gas reserves.
 The Piltun-Astohskoye and Lunskoye fields have estimated reserves of over 750 million barrels of oil and 14 trillion cubic feet of natural gas. Given the extremely harsh conditions of weather and pack ice, this will be one of the largest and most complex hydrocarbon development projects ever attempted and will require an estimated capital investment of several billion U.S. dollars.
 Marathon is a leading producer of oil and gas resources worldwide with major facilities and over 20 years of operating experience in the cold weather and ice-prone Cook Inlet region of Alaska, which has physical and climatic conditions similar to those offshore Sakhalin Island. McDermott designed the Marathon-operated Steelhead platform in the Cook Inlet (which is the largest and newest ice and earthquake resistant platform in the world) and is a world leader in marine construction and operations. Mitsui is one of the world's largest trading companies with considerable existing experience in constructing and financing major projects.
 Marathon Oil Company is a wholly-owned subsidiary of USX Corporation, Pittsburgh.
 /delval/
 -0- 1/28/92
 /CONTACT: William P. Ryder of USX Corporation, in Pittsburgh, 412-433-6880/
 (MRO X) CO: Marathon Oil Company; McDermott International, Inc.;
 Mitsui & Co., Ltd.; MMM Group ST: Texas, Pennsylvania IN: OIL SU:


DM -- PG012 -- 4341 01/28/92 15:04 EST
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Publication:PR Newswire
Date:Jan 28, 1992
Words:434
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Exploring Russian oil deals.
Sak it to 'em.

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