RNS No 1771p
TEXACO INC
18th September 1998



             ARCO, Texaco Sign Contract With CNOOC To
        Develop China's Second Largest Offshore Oil Field

ARCO China, Inc., a wholly-owned subsidiary of Los Angeles-based ARCO (NYSE:
ARC), and Texaco China B.V., a wholly owned subsidiary of Texaco Inc. (NYSE:
TX), have entered into a new petroleum contract with the Chinese National
Offshore Oil Corp. (CNOOC) to develop China's second largest offshore oil field,
the Qinhuangdao (QHD) 32-6 field in Bohai Bay.

Discovered bv CNOOC in 1995, the QHD 32-6 field is located approximately
250 kilometers (155 miles) southeast of Beijing in Bohai Bay.  The field lies
20 kilometers (12 miles) offshore in 20 meters (65 feet) of water.  CNOOC will
be operator of the field with a 51 percent interest.  ARCO and Texaco each has
a 24.5 percent interest.

The three companies expect to complete the formal development plan by year
end.  Startup of the field is planned for mid-year 2001, with production
reaching a sustainable rate of 60,000 barrels per day in 2002. Oil in place
at QHD 32-6 is estimated to exceed one billion barrels.

"We are pleased to participate in this development," said ARCO China
President Jim Weeks. "Texaco has been in the Bohai Bay since 1990 and brings
a wealth of experience to this partnership.  Both Texaco and ARCO have
successfully cooperated with CNOOC on many ventures in China over the years."

"Both Texaco and ARCO are very pleased with the complementary strengths
and core competencies that each party brings to this major commercial
venture, added Texaco China B.V. President Sam Snyder. "This contract
represents a new age of cooperation with China."

ARCO China currently operates China's largest offshore natural gas field,
Yacheng 13-1, near Hainan Island in the South China Sea.  Texaco China is part
of the CACT Operators Group which operates the Huizhou oil fields in the Pearl
River Mouth area of the South China Sea.

CONTACT: Paul E. Weeditz of Texaco, 713-752-6475; or
         Albert Greenstein of ARCO, 213-486-3384

Web site: http://www.arco.com/

END

CNTALLLSALITLAT
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.