Bad week for big firm

Marathon oil posted a £1.7billion net loss for 2016, despite “living within its means”.

The US oil giant’s chief executive Lee Tillman said: “We executed on our objectives of living within our means inclusive of non-core asset sales, while lowering costs and strengthening our balance sheet.

“We're entering 2017 with a simplified portfolio more concentrated on our high-return, lowcost opportunities in the US resource plays.”

Marathon reduced its

“We enter 2017 with a simplified portfolio”

production costs in North America by 33% and its international production costs, including the North Sea but excluding Libya, by 15%.

It shaved 18% off its annual expenses and had £4.6billion in cash including an undrawn £ 2.6billion revolving credit facility.

UK production rose 1,000 net barrels of oil per day to an average of 19,000 in fourth quarter of 2016.

The results came as Marathon Oil was hit with two improvement notices over its Brae Alpha platform.

Inspectors found they had failed to show that the temporary refuge used for emergencies was maintained in “good repair".

In a statement Marathon said the required remedial actions were “well under way”.