eQUATORIAL gUINEa LNG PROJECT

On May 24, 2007, Marathon and partners announced the delivery of the first cargo of liquefied natural gas (LNG) from their Train 1 LNG project on Bioko Island, Equatorial Guinea. The $1.5 billion project was completed on-budget and six months ahead of the original schedule of late 2007.

This project will produce clean, abundant energy for world markets, as well as positive economic benefits for the people of Equatorial Guinea.

The LNG plant is located on the northwest side of Bioko Island at Punta Europa, near Equatorial Guinea's capital city of Malabo. Approximately three trillion gross cubic feet of dry gas from the Marathon-operated Alba Field offshore Equatorial Guinea will be processed through the LNG plant.

The first LNG cargo was delivered to the 138,000 cubic meter LNG tanker Gracilis under the terms of an agreement with BG Gas Marketing LTD (BG) to supply 3.4 million metric tons per annum (mmtpa) to BG for 17 years.

The shareholders in EG LNG Co are Marathon, which holds a 60 percent interest; Sonagas, the National Gas Company of Equatorial Guinea, with a 25 percent interest; as well as Mitsui & Co., Ltd. and Marubeni Gas Development Co., Ltd. which hold the remaining 8.5 percent and 6.5 percent interests, respectively.

During 2006, Marathon and the other EG LNG Co shareholders awarded a front end engineering and design (FEED) contract for initial work related to a potential second LNG train on Bioko Island. The FEED work was recently completed and a final investment decision is expected in 2008.