Marathon Oil has completed the spin-off of its downstream business, making Marathon Oil an independent upstream company and Marathon Petroleum the fifth-largest US crude oil refiner, the companies said on Friday.
Marathon Oil has a portfolio of assets leveraged to crude oil production, and will continue to be based in Houston.
"This is an exciting day and a major milestone in the nearly 125-year history of Marathon Oil Corporation," said Clarence P. Cazalot Jr., Marathon Oil's CEO.
"As an independent upstream company, we have the capacity to perform at a higher level by focusing on strategic priorities while providing greater transparency for investors. Operationally, we're poised to capitalize on a broad base of opportunities by exhibiting the speed, agility and flexibility of an independent and retaining our proven ability to accomplish large and technologically challenging projects.
With this change and effective July 1, Cazalot becomes chairman of the board of Marathon Oil in addition to his responsibilities as president and CEO.
Additionally, David E. Roberts Jr. takes on the newly established role of executive vice president and chief operating officer. Janet F. Clark will continue in her role as executive vice president and chief financial officer.
Meanwhile, Marathon Petroleum (MPC) becomes the fifth-largest crude oil refiner in the US and the largest in the Midwest, it said, with headquarters in Findlay, Ohio.
MPC's fully integrated strategy provides operational flexibility to move crude oil, feedstocks and petroleum-related products efficiently through the company's distribution system with approximately 4,500 miles of pipeline and 83 terminals, it said.
The transaction was first announced in January.