Marathon to reduce interest in deepwater exploration block

US oil company Marathon Oil Corp. plans to reduce interest to 55 percent from 70 percent currently in Pasangkayu deepwater exploration block, Makassar Strait.

?We see the opportunity and are actually in negotiations to farm this down and to actually end up with something probably down to around a 55% working interest to get a significant portion of our drilling costs carried over the next few years,? President and CEO Clarence P. Cazalot Jr said on Thursday.

Marathon-the block operator-anticipates drilling up to four wells in the next few years and is the leader of a consortium of six PSC operators who have a rig under contract to drill 12 wells in the area in 2009/2010.

Canadian oil firm Talisman Energy has 30 percent interest in the block.

The company is also conducting a joint study to earn right to get an exploration acreage in undisclosed area in Indonesia. (alex)