Associated Press – July 31, 2007 10:25 AM ET
HOUSTON (AP) – Marathon Oil has agreed to buy Western Oil Sands for $5.5 billion in cash and stock.
The deal announced today would give Houston-based Marathon a stake in Canada’s oil sands market.
As part of the deal, Western is required to spin off WesternZagros, its wholly-owned subsidiary with interests in Kurdistan.
The closing is expected in the fourth quarter of this year.
Marathon says the agreement will give it a 20% interest in the Athabasca Oil Sands Project in Alberta — currently held by Western Oil.
Shell Canada and Chevron Canada hold the remaining 60% and 20% stake, respectively.
Canada’s western region is home to vast reserves of sands rich in oil, bitumen-tar or other thick petrochemicals.
Copyright 2007 The Associated Press. All rights reserved.
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