Exxon Mobil Corp - Re Agreement

RNS Number:0848J
Exxon Mobil Corporation
13 April 2000

                                    
  COMPANIES ANNOUNCE AGREEMENT FOR NORTH SLOPE PRODUCTION

IRVING, TX, April 13 -- Exxon Mobil Corporation, BP, ARCO and Phillips
Petroleum announced today that they have reached an agreement to resolve
outstanding issues relating to the ownership and operation of the Prudhoe
Bay Unit (PBU) and the Point Thomson Unit (PTU) in Alaska.  The agreement
will optimize operations, reduce costs and facilitate new oil and gas
development in the state for the benefit of the unit owners, the State of
Alaska, and its residents.

The agreement, which is subject to the completion of the BP Amoco-ARCO
merger and assumes Phillips' acquisition of ARCO's Alaskan assets, aligns
the respective equity interests of ExxonMobil, BP and Phillips in the
Prudhoe Bay Unit, and provides for a single operator at the PBU.  The
aligned oil and gas interests among the major owners will be 36.8 percent
for ExxonMobil, 36.5 percent for Phillips, and 26.7 percent for BP.  BP,
current operator of the Western Operating Area in the Prudhoe Bay Unit,
will become the single operator.  The agreement also aligns interests
between ExxonMobil and BP in the Point Thomson field area at 55 percent
and 45 percent, respectively.

In addition, it resolves the issues that resulted in recent legal action
by ExxonMobil relating to North Slope preferential rights and field
operatorship.

According to the companies, the agreement provides key advantages for all
parties involved:

- It will retain three major working-interest owners in the PBU
  (ExxonMobil, BP and Phillips).

- It establishes a single operator at Prudhoe Ray, thus providing cost and
  ultimate recovery advantages.

- It provides a more even distribution of liquids production among the
  three major working-interest owners.  Since today's signing is an
  agreement between the major-interest companies and still must be agreed
  to by the minor-interest owners, final equity percentages have not been
  determined.  However, ExxonMobil's and Phillips' liquids production will
  increase by approximately 30,000 barrels a day respectively, and BP will
  acquire additional interest in the PBU gas cap and at Point Thomson.

- It would remove the need for lengthy and complex agreements between
  parties with different interests.  The elimination of that step may
  contribute to improved timelines for new economic developments within the
  PBU.

Additionally, Phillips will become a major new operator of the North
Slope Kuparuk and Alpine fields, following FTC review and closing of the
ARCO Alaska acquisition.

The companies stated that the agreement will not only help ensure the
efficient and long-term production of the fields, but also will
facilitate future Alaska development, including gas commercialisation.


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