Atlantic Richfield - Investment in Projects

RNS No 6203q
ATLANTIC RICHFIELD CO
18th March 1998



ARCO Alaska Announces $2.5 Billion Five-Year Capital Plan

ARCO Alaska, Inc. today announced that it expects to spend $2.5 billion on oil
field development and exploration projects in Alaska over the next five years,
an $800 million or 47 percent increase over the company's 1997 five-year plan.

The $800 million increase will fund development of the recently discovered Tarn
field, increased development drilling at the Kuparuk River field, and continuing
West Sak field development. The plan also funds development of the Alpine field
and expansion of enhanced oil recovery efforts at Prudhoe Bay and Point
McIntyre.

"This plan designates capital for projects that will make it possible for us to
achieve ARCO Alaska's production goal of 'No Decline After '99,'" said Ken
Thompson, Chairman and CEO of ARCO Alaska, Inc. "Work is already underway on two
new fields, Tarn and Alpine. Our satellite exploration program continues to be
successful and the early results from our West Sak project are very
encouraging."

ARCO has allocated $135 million during the next five years to fully develop
Tarn. The satellite field's discovery was announced in April 1997. Located seven
miles southwest of the existing Kuparuk oil field, Tarn will begin production in
early 1999 with initial production of 15,000 barrels per day.

The plan also allocates an additional $110 million to the West Sak field, where
the first commercial production began in December 1997. The initial 50-well
Phase 1 development has already been approved. To date, the field is meeting its
well rate and cost targets. The 1998 five-year plan will fund additional West
Sak development drilling if Phase 1 is successful. Phase 1 West Sak development
will yield 7,000 barrels per day and reserves of 50 million barrels. Phase 2
development would push production to 11,000 barrels per day in 2001 and 70,000
barrels per day in 2006, yielding reserves of 400 million barrels.

ARCO Alaska, Inc. started construction this winter on the new Alpine oil field,
with anticipated potential reserves of more than 365 million barrels of oil.
Initial production of 30,000 barrels of oil per day is expected in mid 2000,
increasing to 70,000 barrels of oil per day in 2001.

The 1998 five-year capital plan allocates $1 billion to existing assets, such as
Prudhoe Bay, Greater Pt. McIntyre and Kuparuk; $800 million to new developments,
such as West Sak, Tarn and Alpine; and $700 million to exploration.

ARCO is working to stabilize and maintain its Alaska production above 350,000
barrels per day through 2005. ARCO Alaska's 1998 capital budget is $515 million,
an 87 percent increase from the 1997 capital budget of $275 million.


CONTACT: 
Dawn Patience of 
ARCO Alaska, Inc., 
907-265-6134
Web site: http://www.arco.com


END



MSCJPMMBLLBBBFP