Dispositions

9 Months Ended

Sep. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Dispositions

Dispositions

United States Segment

In the second quarter of 2018, we entered into separate agreements to sell non-core, non-operated conventional properties, primarily in the Gulf of Mexico. These transactions closed during the third quarter of 2018.

International Segment

On July 1, 2019, we closed on the sale of our U.K. business (Marathon Oil U.K. LLC and Marathon Oil West of Shetlands Limited), for proceeds of $95 million which reflects the assumption by RockRose Energy PLC (“RockRose”) of the U.K. business’ working capital and cash equivalent balances of approximately $345 million on December 31, 2018. During the third quarter of 2019, we recognized a pre-tax gain of $14 million. As of September 30, 2019, we continue to have surety bonds outstanding that guarantee our decommissioning liabilities related to the Marathon Oil U.K. LLC (“MOUK”) assets and recognized a liability and corresponding expense of approximately $6 million related to the estimated fair value of our exposure to these surety bonds (see Note 23 for further detail). Income before taxes relating to our U.K. business for the three months ended September 30, 2019 and 2018, was nil and $132 million; and for the nine months ended September 30, 2019 and 2018, was $37 million and $239 million.

In the second quarter of 2019, we closed on the sale of our 15% non-operated interest in the Atrush block in Kurdistan for proceeds of $63 million, before closing adjustments. This property was classified as held for sale in the consolidated balance sheet at December 31, 2018, with total assets of $58 million and total liabilities of $17 million.

In the first quarter of 2018, we closed on the sale of our subsidiary, Marathon Oil Libya Limited, which held our 16.33% non-operated interest in the Waha concessions in Libya, to a subsidiary of Total S.A. (Elf Aquitaine SAS) for proceeds of approximately $450 million, excluding closing adjustments, and recognized a pre-tax gain of $255 million.