Marathon Provides Outlook for Long-Term Sustainable Value Growth

Cazalot highlighted a number of factors that will contribute to Marathon's future success:

    -- A resource base of 6.6 billion barrels of oil equivalent (BOE) - the
       largest in company history
    -- Top-quartile production growth, including upstream and oil sands
       mining, through 2012*
    -- Year-end 2012 proved reserves, including oil sands, projected to be
       approximately 15 percent higher than year-end 2007*
    -- A growing portfolio of  upstream growth opportunities beyond 2012
    -- Strengthened refining and midstream asset base
    -- Integrated long-lived asset base
    -- Sound financial position to fund growth
    -- Global asset portfolio review which is underway to enhance shareholder
       value.

    *Excluding acquisitions and divestitures.

At year-end 2001, Marathon had a resource base of 2.1 billion BOE and by year-end 2007, the Company had more than tripled this to 6.6 billion BOE, which includes liquid hydrocarbons, natural gas and bitumen.

"Resource growth drives future reserve additions," Cazalot said, "and we intend to further increase our resource base and convert barrels into proved reserves and production. A major contributor will be our oil sands mining business, which will be ramping up production significantly in the coming years. We're also making strategic investments in our downstream business that will lower feedstock costs as well as increase efficiency and flexibility, so we can continue providing competitive returns in an increasingly challenging market. And, importantly, we will continue to maintain financial discipline and flexibility to fund our profitable growth.

"Across all of our business segments, we will access and deploy critical technologies to differentiate Marathon from our competition. We will strive to attain top-quartile execution on major projects and employ operational excellence to ensure safe, environmentally responsible and highly reliable operations.

"Further enhancing our ability to execute our plans, we have contracts in place for most of our major projects and we have and will continue to increase technical human resources in order to meet future needs," he said.

Projecting forward to 2012, the Company detailed its five-year operational and financial targets for upstream and oil sands mining, excluding acquisitions and divestitures, which include:

    -- Maintaining competitive cash and income per BOE
    -- Compound average production growth, upstream plus oil sands mining, of
       7 percent (2007 - 2012)
    -- Capital and exploration spending of about $18.5 billion (2008 - 2012)
    -- Average annual reserve replacement, including oil sands, of more than
       150 percent (2008 - 2012)
    -- Drilling 8 - 13 significant exploration wells per year with average
       annual resource additions of 150 million BOE at a finding cost of less
       than $3 per BOE.

For 2008, the Company said it expects worldwide net upstream production will be in the range of 380,000 - 420,000 BOE per day, excluding sales and acquisitions. Additionally, net bitumen production from the Canadian oil sands is expected to be about 30,000 barrels per day.

First production from three major development projects is targeted for 2008. Those include Neptune in the Gulf of Mexico, and Alvheim and Vilje in Norway. Two projects slated for sanction in 2008 are: the Droshky development project in the Gulf of Mexico, with first production targeted for the 2010 - 2011 timeframe; and the Angola Block 31 Northeast development, with first production targeted for 2012.

Marathon said its 2007 - 2012 upstream production growth is driven by high confidence in its base asset performance, greater certainty in the contributions from U.S. resource plays, and major development projects that are either already producing or will commence production in 2008.

Marathon's refining, marketing and transportation segment achieved record crude and total refinery throughputs in 2007; and the Company said it is positioned for strong performance across industry cycles. Key strategies outlined for the downstream businesses are:

    -- Feedstock flexibility
    -- Scale efficiency
    -- Operational excellence
    -- Commercial advantage.

Pointing to an example of increasing scale and feedstock flexibility, Marathon said its projected $3.2 billion Garyville, La. refinery expansion project is progressing on time and on budget. With 700 tons of structural steel erected and more than 20,000 cubic yards of concrete poured, the refinery expansion is about 38 percent complete.

Additionally, Marathon expects to more than double its coking capacity by 2011, which will lead to lower feedstock costs and increased margins. There is also emphasis on growing distillate production which will increase by more than 50 percent by 2011, expanding E-10 ethanol market penetration, and leveraging the Company's midstream infrastructure.

The strategic value of the Company's integrated business model is illustrated in the potential sourcing of Canadian bitumen production to the Company's U.S. refineries, in particular the Detroit refinery. The Detroit heavy oil upgrading project will provide a valuable commercial solution for the growing volumes of Canadian production.

Technology was highlighted as a critical element of value creation for Marathon. The Company's three-pronged technology strategy is to:

    -- Deliver technology solutions to maximize the value of existing assets
    -- Create technology differentiation in key areas important for access to
       new resources
    -- Monitor and selectively invest in emerging technologies such as:
       renewable/alternative fuels, energy efficiency, and carbon capture and
       storage.

Offered as an example of technology differentiation, Marathon's proprietary Gas-to-Fuels(TM) technology would convert natural gas directly into clean transportation fuels such as high-octane gasoline and diesel, and could potentially be used to monetize stranded natural gas resources around the world. The Company has proven the technology in the laboratory, and a 10- barrel-per-day demonstration plant is currently under construction in Texas. A commerciality decision is expected to be made in 2008.

Marathon highlighted its priorities around financial discipline which include funding value-accretive growth projects that yield the highest rates of return. Marathon is also active in optimizing its portfolio, controlling costs and maintaining financial flexibility while paying competitive dividends and providing shareholders with long-term sustainable value growth.

For additional detail regarding the Company's strategy and plans, the complete Analyst Meeting webcast and associated presentations can be found on Marathon's website at www.marathon.com, by clicking on the 2008 Analyst Meeting. Replays of the webcast will be available on the Marathon website through Sept. 1, 2008.

Unlike capital expenditures reported under generally accepted accounting principles, the forecasted costs for the Garyville refinery expansion project discussed in this release do not include capitalized interest. Capitalized interest is budgeted at the corporate level.

This release contains forward-looking statements with respect to, the timing and levels of the Company's worldwide liquid hydrocarbon and natural gas production, bitumen production, the Alvheim/Vilje development, the Neptune development, the Droshky development, the Angola Block 31 development, exploration and drilling plans, proved reserves, proved bitumen reserves, the Garyville expansion project, the Detroit heavy oil upgrading project, expected capital and exploration spending, and the gas-to-fuels technology. Factors that could affect the timing and levels of liquid hydrocarbon and natural gas production, bitumen production, the Alvehim/Vilje, Neptune, Droshky and Angola developments, and future exploration and drilling plans include pricing, supply and demand for petroleum products, the amount of a capital available for exploration development, regulatory constraints, timing of commencing production from new wells, drilling rig availability, unforeseen hazards such as weather conditions, acts of war or terrorists acts and the governmental or military response thereto, and other geological, operating and economic considerations. The forward-looking statements related to proved reserves of liquid hydrocarbons and natural gas are based upon certain assumptions, including, among others, presently known physical data concerning size and character of reservoirs, economic recoverability, technology development, future drilling success, production experience, industry economic conditions, levels of cash flow from operations and operating conditions. The forward- looking statements regarding proved bitumen reserves are based on presently known physical data, economic recoverability and operating conditions. Factors that could affect the Garyville expansion project and the Detroit heavy oil upgrading project include transportation logistics, availability of materials and labor, unforeseen hazards such as weather conditions, delays in obtaining or conditions imposed by necessary government and third-party approvals, and other risks associated with construction projects. The expected capital and exploration spending is based on current expectations, estimates and projections and is not a guarantee of future performance. Factors that could affect the gas-to-fuels technology include commerciality of the process, successful completion and performance of the demonstration plant, and the successful negotiation of commercial agreements. The foregoing factors (among others) could cause actual results to differ materially from those set forth in the forward-looking statements. In accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Marathon Oil Corporation has included in its Annual Report on Form 10-K for the year ended December 31, 2007, and subsequent Forms 8-K, cautionary language identifying other important factors, though not necessarily all such factors, that could cause future outcomes to differ materially from those set forth in the forward-looking statements.

Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved oil and gas reserves that have demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Marathon Oil Corporation uses certain terms in this press release, such as resource base that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosures in Marathon's periodic filings with the SEC, available from us at 5555 San Felipe, Houston, Texas 77056 and the Company's Web site at http://www.Marathon.com. You can also obtain this information from the SEC by calling 1-800-SEC-0330.




    Media Relations              Lee Warren          713-296-4103
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    Investor Relations           Howard Thill        713-296-4140
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SOURCE Marathon Oil Corporation