Atlantic Richfield - Trading Statement

RNS No 4081d
ATLANTIC RICHFIELD CO
13th May 1998

ARCO RECONFIRMS GROWTH PLANS, EXPECTS TO EXCEED PRODUCTION, RESERVES TARGETS:
MERGER WITH UNION TEXAS PROMISES FURTHER BOOST

NEW YORK - ARCO (NYSE: ARC) expects to exceed targets for growth in its
worldwide oil and gas businesses primarily as a result of its progress to date
augmented by the pending merger with Union Texas Petroleum (NYSE: UTH), ARCO
Chairman and Chief Executive Officer Mike R Bowlin told financial analysts here
today.

"We have made tremendous strides in our base program to increase our annual
production on average by 4 to 5% between 1997 and 2001 and replace more than
120% of our oil and gas reserves every year", Bowlin said.  The base program was
first outlined last year and features stable production in Alaska with increases
in Lower 48 levels and substantial international growth.

ALASKA DECLINE HALTED
"You can quit talking about the decline in production in Alaska - we have solved
that problem with additions from the new Alpine field, development of the West
Sak formation, enhanced oil recovery projects and numerous satellite field
developments", Bowlin said.   "The production goal of 'No Decline After '99' is
being achieved.   In addition, ARCO has moved decisively on a number of fronts
around the glove so that we have a portfolio of known resources that will begin
to produce income for us by 2000 and 2001."

PROGRESS ON GLOBAL GROWTH

Bowlin and other senior ARCO executives cited a number of factors that have
improved the outlook for ARCO's global growth plans that were introduced in
early 1997.

* ARCO's net Alaskan oil production is expected to level off at more than
360,000 barrels per day (b/d) after 1999, up from an expected level of about
350,000 b/d just a year ago.  This latest forecast is 80,000 b/d higher than the
production outlook for 2001 predicted just four years ago.  ARCO Alaska is also
setting a new stretch target called "Incline After '99" for increasing Alaskan
production.

* A series of discoveries in eastern Indonesia resulted in a new liquefied
natural gas (LNG) project named Tangguh, which already has confirmed proved and
probable reserves exceeding 13 trillion cubic feet (about 2.2 billion barrels of
oil equivalent).  With final confirmation in mid-1998, Tangguh gas reserves are
expected to be comparable with those of the giant Arun LNG project in Sumatra.
ARCO expects production form the project as early as 2003 or 2004 with net
deliveries equivalent to almost 60,000 b/d.

* Already the primary supplier of natural gas to Hong Kong and other parts of
south China from its Yacheng field in the South China Sea, ARCO and its partner
Texaco are now negotiating for the right to develop an oil field offshore
northeast China.  It could mean additional net reserves of 50 million barrels of
oil and net production of 15-20,000 b/d by 2001.

* Countries in South America including Ecuador and Venezuela are expected to
produce about 70,000 b/d net for ARCO by 2001.  The company, which has just
initiated production in Latin America, gained interests in four Venezuelan
fields with known reserves in 1997 and received Venezuelan government approval
of an oil production and upgrading project.  In addition, development of the
Villano oil discovery in Ecuador has started.

* In the United Kingdom North Sea, the Shearwater development is moving toward
startup in 2000.  This should give ARCO about 40,000 barrels of oil equivalent
production per day.

* Vastar Resources, Inc. (NYSE: VRI), in which ARCO holds an 82.2% interest, has
developed a strong position in the emerging deepwater Gulf of Mexico area where
it has interests in over 100 exploration blocks.  Vastar's first deepwater
discovery, on the King prospect, was announced earlier this year.

UNION TEXAS PETROLEUM IMPACT

ARCO executives outlined the company's plans exclusive of the Union Texas
acquisition, which could be completed as early as the third quarter of this
year. They said that the acquisition will contribute to ARCO's major
initiatives.  Those initiatives focus on increasing ARCO's international
presence and its oil and natural gas production and reserves.

Most of Union Texas' assets are located overseas and over 90% of its proven
reserves are in ARCO's core areas, predominantly Venezuela, Indonesia, the North
Sea and Alaska.  The acquisition is expected to boost ARCO's daily worldwide
production by about 155 and increase ARCO's proved reserves by 14% by year's
end.

SIGNIFICANT COST SAVINGS

Bowlin told analysts, "At the same time as we are growing our oil and natural
gas business, we have expanded our refining and marketing operation on the West
Coast and moved to improve its profitability through planned cost reductions."

ARCO reported that companywide cost reduction programs underway in its current
base operations will save more than $300 million before tax.  The cost
reductions to be realized this year include a $150 million program at ARCO
Chemical Company, in which ARCO holds an 82.3% interest; over $100 million in
cost reductions in ARCO's refining and marketing unit, ARCO Products Company;
and other programs encompassing global procurement and shared services
initiatives.

Cost savings also will be a key element in the success of the combined ARCO-UTP
operations, with reductions in combined overhead and exploration costs expected
to exceed $85 million after tax per year.

CAPITAL SPENDING TO TOTAL $16 BILLION

To accomplish the growth program outlined through 2001, ARCO said capital
spending for its pre-acquisition base program from 1998 through 2001 will total
about $16 billion with most of the expenditures, about $10 billion, targeted for
the upstream oil and natural gas businesses worldwide.  Of the $10 billion, $7.4
billion is designated for development projects with the remainder set for
exploration programs.  ARCO said the merger with Union Texas may result in some
modifications of these capital-spending plans, but no major changes are
expected.

For information call:  (Media) Albert Greenstein (213 486-3384
                       (Investors) Dennis Schiffel [phone]       

(Some of the matters discussed in this news release are forward-looking
statements that involve risks and uncertainties.  Actual results could differ
materially based on numerous factors, including the realised 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.)

END

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