Marathon Oil said on Monday it has entered into a five-year liquefied natural gas (LNG) sales agreement with a unit of Glencore for a portion of its natural gas produced from the Alba Field in Equatorial Guinea, boosting its presence in the European LNG market.
The Houston-based firm, which has a 64% working interest in the Alba Unit, said the sales deal is effective Jan. 1, 2024.
The company's shares were up about 1% in after-market trade.
The oil and gas exploration firm said the pricing structure for the deal is linked to the Dutch Title Transfer Facility (TTF) index, ending the legacy Henry Hub-linked contract.
"We expect to realize an approximate year-on-year EBITDA increase of over $300 million next year across our E.G. integrated gas business," said Marathon CEO Lee Tillman.
(Reuters - Reporting by Tanay Dhumal in Bengaluru; Editing by Devika Syamnath and Shailesh Kuber)