03:22 PM EDT, 06/03/2024 (MT Newswires) -- Marathon Oil's ( MRO ) ownership in the Equatorial Guinea joint venture is not the primary focus of ConocoPhillips' ( COP ) acquisition of the business, RBC Capital Markets said in a note emailed Monday.

The firm was responding to several questions by investors on Marathon Oil's ( MRO ) ownership following the acquisition announcement -- particularly in regards to whether the Equatorial Guinea JV partners will exercise a possible right-of-first-refusal.

RBC Capital said it was not aware of any existing right-of-first-refusal on Marathon's position and that ConocoPhillips ( COP ) felt confident in its potential rights.

The firm said it valued Equatorial Guinea at $2.65 billion, net of taxes, or 11% of Marathon's value.

The firm said questions from investors stemmed from a right-of-first-refusal dispute currently involving Hess' (HES) 30% stake in the Stabroek oilfield in Guyana after Chevron ( CVX ) announced the acquisition of the company.

Hess' ownership in Stabroek is a key focus of Chevron's ( CVX ) purchase of the company, and the oil producer previously warned the merger could collapse if no resolution is reached between the parties.

The Equatorial Guinea JV owns both producing assets and onshore facilities that share ownership between Marathon, Marubeni, Sonagas, and Chevron ( CVX ).

RBC has an outperform rating on Marathon's stock with a price target of $33.

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