RNS No 8065j
ARCO
17th December 1997

ARCO ANNOUNCES ADDITIONAL EXPLORATION SUCCESS IN INDONESIA; MORE GAS FOR 
TANGGUH LNG PROJECT

LOS ANGELES, Dec. 17 /PRNewswire/ -- ARCO (NYSE: ARC) today announced the
results of another successful exploration well, Ubadari No.1, on a separate
structure 30 miles southwest of previous ARCO discoveries offshore Irian Jaya in
eastern Indonesia.

The well, located in 63 feet of water in Berau Bay, flowed at a combined rate of
45 million standard cubic feet per day (mmscfd) from four drill stem tests in
Jurassic and Paleocene age sandstone formations.

The well produced from the same geologic formations that produced a series of
exploration successes in eastern Indonesia for ARCO and its co-venturers in the
Berau and Wiriagar production sharing contracts (PSCs).

Leon Codron, President of Atlantic Richfield Indonesia Inc., stated: "The
results of Ubadari No.2 accentuate the fact that we are developing the next
great gas basin for Indonesia. The year is ending as it began for us in eastern
Indonesia, with a significant new discovery.

"This string of successful exploration wells, in conjunction with a
recently-executed collaboration agreement with BG plc, operator of the Muturi
PSC just north of the Berau and Wiriagar PSCs, continues to add gas to the
reserves base that will support the Tangguh liquefied natural gas project,"
Codron said.

"With continued success in the region, the Tangguh base of proved and probable
reserves will approach the level of Indonesia's giant Arun field. Last
September, ARCO and its partners confirmed discovery of at least 13 trillion
cubic feet of proved and probable reserves in support of the Tangguh LNG
project.

"Tangguh will become the next new multi-train LNG centre for Indonesia. It will
enable Pertamina, the state national oil and gas company, to extend and expand
its premier position and market share in the Asian LNG trade. Because natural
gas is an environmentally preferred fuel, the rate of growth in LNG demand is
expected to outpace competing fuels in the region."

Codron said there is an onging programme to certify more reserves in the Tangguh
area. "We expect the next DeGolyer & MacNaughton certification in July 1998 to
include reserves from the Ubadari gas field and previous discoveries."

Participants in the Berau block are ARCO (48%), Occidental Berau of Indonesia,
Inc. (22.856%), Nippon Oil Exploration (Berau) Ltd. (17.144%) and KG Berau
Petroleum, Ltd. (12%). Participants in the Wiriagar block are ARCO (80%) and KG
Wiriagar Petroleum Ltd. (20%). Participants in the Muturi block are British Gas
Exploration and Production, Ltd. (50%), Cairns (45%) and PT Saptapetra Wisesa
(5%).

For information, contact: Albert Greenstein (213) 486-3384. For a menu of ARCO's
news releases or to retrieve a specific release, visit our Web site at 
http://www.arco.com on the Internet.

END


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