RNS No 4644a
ATLANTIC RICHFIELD COMPANY
17th July 1998


ARCO Acquires 25% Interest in Natural Gas Development Area in Gulf of Thailand

LOS ANGELES, July 17 /PRNewswire/ -- ARCO (NYSE: ARC) announced today it
has acquired a 25% interest in a major natural gas project in the Malaysia-
Thailand Joint Development Area in the Gulf of Thailand.

The acquisition came through a definitive agreement signed by ARCO with
Triton Energy Limited (NYSE: OIL) in which ARCO will acquire 50% of the
subsidiary holding Triton's interest in the Joint Development Area.  Upon
closing, Triton and ARCO will each hold a 25% interest in the Joint
Development Area through their holdings in the subsidiary.  The remaining 50%
will continue to be owned by the Malaysian state oil company, Petronas.

Gross resources are estimated to exceed 10 trillion cubic feet equivalent.
Under the terms of the agreement, ARCO will pay $150 million to Triton
upon closing.  ARCO has also agreed to fund half of the project development
costs until first commercial production, up to a maximum of $377 million.
ARCO will recover these development costs under the terms of the production
sharing contract once production commences.

In addition, ARCO has agreed to make incentive payments of up to $65
million in 2002 and again in 2005 if specific development objectives are met
over the life of the project.

Development of the Joint Development Area is the responsibility of CTOC,
an operating company formed between Triton and Caragali, the exploration and
production arm of Petronas.

Commenting on the agreement, ARCO Chairman and Chief Executive Officer
Mike R. Bowlin said: "This project is very attractive for ARCO and consistent
with our strategy of emphasizing exploration and production in our core focus
areas.  We view the Joint Development Area as a world-class asset with
significant reserves strategically located in a high-potential gas market.
ARCO has extensive experience in pipeline gas projects in Asia, as evidenced
by our long-standing presence in Indonesia and our more recent Yacheng-13
project in China."

"We have the greatest respect for Triton and look forward to working with
them as partners to develop this important asset.  We are also very excited to
have the opportunity to continue to build our relationship with Petronas
Caragali."

Triton Chief Executive Officer Bob Holland added: "We are looking forward
to working with ARCO, which has well-established and extensive project
management experience.  This, in turn, should enhance the value of the overall
project."

ARCO is a Los Angeles-based energy company focused on hydrocarbons.
Worldwide operations include all aspects of exploration, production and
marketing of crude oil, natural gas, and natural gas liquids, as well as
refining, marketing and transportation of petroleum products.

Triton Energy Limited is a Dallas-based international oil and gas
exploration and production company primarily focused on large-scale projects
and exploration opportunities around the world.  The company has major
projects underway in Latin America and Southeast Asia.

Some or the matters discussed in this news release are forward-look
statements that involve risks and uncertainties.  Actual results could differ
materially based on numerous factors, including the realized level of crude
oil and natural gas production and other risks detailed from time to time in
the company's SEC reports, including the 1997 report on Form 10-K.

CONTACT: Albert Greenstein of ARCO, 213-486-3384/
Web site: http://www.arco.com/
(ARC OIL)

END

ACQNFLXXFEAPEFN
Atlantic Coal (LSE:ATC)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Atlantic Coal Charts.
Atlantic Coal (LSE:ATC)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Atlantic Coal Charts.