Atlantic Richfield - Re Tarn Oil Field

RNS No 0145n
ATLANTIC RICHFIELD COMPANY
24th August 1998


      Production Started From New Oil Field On Alaska's North Slope

ANCHORAGE, Alaska, Aug. 24 /PRNewswire/ -- ARCO Alaska, Inc. and
BP Exploration Alaska, Inc. have announced that commercial production has
started from the Tarn oil field nine miles southwest of the Kuparuk oil field
on Alaska's North Slope.

Tarn is producing 18,000 barrels of 38-degree API gravity oil per day from
five wells and will reach production rates of approximately 25,000 barrels per
day from 20 wells (12 producers, 8 injectors) by year-end 1998.

The field is expected to reach peak production of more than 30,000 barrels
per day by late 1999, ranking it in the top 30 producing domestic oil fields.

Tarn is a 50 million barrel oil accumulation and the second satellite
accumulation to begin production in the Kuparuk River Unit since December 1997.
ARCO, BP and their partners previously announced the start-up of the West Sak
oil field. 

"For the industry and the state these new satellite fields will mean new
reserves, new production and new state revenue," said Kevin Meyers, President of
ARCO Alaska, Inc.  "For ARCO, Tarn is one more step toward achieving our Alaska
production goal of 'No Decline After '99." 

"Satellite developments like Tarn play an important role in BP's plans to grow
our Alaskan production over the next few years and sustain it at more than
half-a-million barrels a day into the future," said Richard Campbell, President
of BP Exploration Alaska. "They're also an important new source of jobs and
business opportunities for Alaskans. 

"Full development of the Tarn oil field will include 40 wells from two drill
sites.  The field was first deemed a commercial discovery in March 1997. Field
development is estimated to cost about $150 million. 

"These new oil fields have Been brought quickly on production because the
Kuparuk Alignment Agreement allows production from satellite oil accumulations
like West Sak and Tarn to be processed through existing Kuparuk facilities,
"Kuparuk Senior Vice President Frank Brown explained. 

David Blackwood, Manager of BP's Western North Slope business unit, said:
"Technologies used at Tarn reflect ARCO's and BP's commitment to minimize
environmental impacts.  It has a small surface 'footprint' and it virtually
eliminates new emissions into the environment." 

ARCO Alaska, Inc., a wholly-owned subsidiary of Los Angeles-based ARCO (NYSE:
ARC), holds an approximate 55.29% interest in the Tarn field.  BP Exploration
Alaska, Inc., a wholly-owned subsidiary of BP America, holds an approximate
39.28% interest.  Other owners are: Unocal (4.95%), Mobil (.36%), and Chevron
(.108%). ARCO Alaska, Inc. is operator. 

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

SOURCE ARCO Alaska, Inc.
CONTACT: Ronnie Chappell of ARCO Alaska, 907-263-4102/
Web site: http://www.arco.com/
(ARC)

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