Atlantic Richfield - Re Joint Development Project

RNS No 6115n
ATLANTIC RICHFIELD COMPANY
24th October 1997


   ARCO, Syntroleum Begin Joint Development of Synfuels Reactor Technology;
              ARCO to Build Pilot-Scale Facility on West Coast

PLANO, Texas, Oct. 24 /PRNewswire/ -- ARCO and Syntroleum Corporation today
announced a joint development project in which ARCO will construct a
pilot-scale, natural gas-to-liquids (GTL) conversion facility on the West Coast.

The project, which reflects ARCO's commitment to gas-to-liquids conversion, will
demonstrate a new reactor design that enhances the GTL conversion process
licensed by Syntroleum for large-scale applications.

The project involves testing at a pilot-scale facility at ARCO's Cherry Point
Refinery near Bellingham, Wash., and laboratory-scale development studies to be
done at Syntroleum's laboratories in Tulsa, Okla. Work on the project will begin
immediately.

The pilot plant will test a Fischer-Tropsch reactor to produce synfuels -- a
mixture of hydrocarbons ranging from diesel to heavy waxes. The synfuels will be
blended with refinery streams for final processing into transportation fuels.
Nominal throughput for the pilot plant will be about 70 barrels per day with
expected start-up by the 4th quarter of 1998.

ARCO's efforts will be led by the company's upstream technology unit, ARCO
Exploration and Production Technology, which is based in Plano, Texas. Besides
Syntroleum, other contributors include the engineering contractor, Brown and
Root, which will provide engineering and design. Also, Texaco Inc., which has
its own joint development agreement with Syntroleum, has indicated its intention
to participate in the pilot.

"Development of a lower-cost method for conversion of natural gas to liquid
transportation fuels would make it possible to commercialize stranded natural
gas," said Skip Bilhartz, President of ARCO Exploration and Production
Technology. "Gas conversion fits well into ARCO's global growth strategy and we
are beginning to incorporate it into our exploration and development planning
around the world."

Los Angeles-based ARCO (NYSE: ARC) has major natural gas resources around the
world including 7 trillion cubic feet in the giant Prudhoe Bay field. In Alaska,
ARCO is focusing its gas commercialization efforts on development of a
large-scale liquefied natural gas (LNG) project, with sales to the Far East.
However, continued progress in gas-to-liquids conversion could make GTL an
economic option for commercialization of Alaska North Slope natural gas.

Tulsa-based Syntroleum Corporation licenses its proprietary process for
converting natural gas to synthetic crude and transportation fuels. "This
project is consistent with our strategy of working with partners who can help us
broaden the application and further lower the cost of the Syntroleum Process for
the benefit of all of our licensees," stated Mark Agee, President of Syntroleum
Corporation. Syntroleum's process is designed to be applied in plant sizes
ranging from 2,000 barrels per day to 50,000 barrels per day and larger.
Syntroleum has previously announced license agreements with several oil and gas
companies.


NOTE TO EDITOR: For a menu of ARCO news releases or to retrieve a
specific release, visit ARCO's Web site at http://www.arco.com on the Internet.

CONTACT: Albert Greenstein of ARCO, 213-486-3384; or John Ford of Syntroleum
Corporation, 918-592-7900.

Web site: http://www.arco.com/(ARC)

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