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Marathon Oil's president and CEO Lee M. Tillman. Image courtesy of Marathon Oil.

Houston-based Marathon Oil Corporation closed the sale of its Norway subsidiary to Norway-based Det norske oljeselskap Thursday for a total transaction value of $2.7 billion.

After adjustment for debt, net working capital and interest on the net purchase price, Marathon earned $2.1 billion in proceeds.

The sale includes the Marathon operated Alvheim FPSO vessel as well as 10 operated licenses and a number of non-operated licenses on the Norwegian Continental Shelf in the North Sea.

The Alvehim FPSO receives production from the Alvheim and Volund oil and gas fields.

The FPSO has a production capacity of 150,000 barrels per day, equivalent to 24,000 cubic meters of gas per day.

The gas is routed by pipeline via the British SAGE system (Scottish Area Gas Evacuation) to St. Fergus in Scotland.

Alvheim and Volund have a combined estimated gross reserve of 167 million barrels of oil equivalent.

Marathon’s net production in Norway averaged 80,000 barrels of oil equivalent per day in 2013.

Marathon is the operator of the Alvheim field with a 65 percent ownership interest. Houston-based ConocoPhillips holds a 20 percent stake and Sweden-based Lundin Petroleum holds a 15 percent stake.

Marathon holds a 65 percent operating stake in the Volund field and Lundin holds a 35 percent stake.

The transaction is effective date as of January 1, 2014.

The deal is part of a larger strategic divestment designed to streamline Marathon’s portfolio.

“The successful closing of this transaction simplifies and concentrates our portfolio, and further demonstrates our commitment to rigorous portfolio management,” Marathon Oil’s president and CEO Lee M. Tillman.