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Marathon Oil selling assets, buying $1B in stock

HOUSTON (AP) -- Marathon Oil said Tuesday it is selling assets off the coast of Angola for $590 million and is moving ahead with a plan to repurchase $1 billion in stock.

The company said it is selling its stake in the Angola assets to Sonangol EP. Pending needed approvals, the deal is expected to close by the end of the year, and take effect Jan. 1.

Marathon Oil also said it acquired 4,800 acres in South Texas for $97 million. It said those acres are in the core of its Eagle Ford position, an area of significant oil and gas development.

Unrelated to these transactions, Marathon Oil said it has almost completed the repurchase of the first $500 million in stock. It will buy back another $500 million in stock after it completes the sale of a different set of Angola assets. That sale, which is worth $1.5 billion, is also expected to close during the fourth quarter.

The company said it has now agreed to about $3.5 billion in assets, surpassing a target it set three years ago.

Marathon Oil Corp. shares closed at $36.24 on Monday, up about 18 percent since the start of the year.