ARCO focus on RI exploration

ARCO focus on RI exploration

HONG KONG (Dow Jones): Atlantic Richfield Co. of the U.S. (ARCO) will not renew its remaining exploration lease offshore Myanmar, set to expire in October, the company said in a statement.

ARCO Executive Vice President Ken Thompson said in the statement that the decision was made in light of new investment priorities resulting from the recent acquisition of Union Texas Petroleum Holdings Inc. (UTH) and a partnership with Triton Energy Ltd. in a major Asian gas project.

Production sharing contracts for blocks M-7 and M-9 were signed in 1995 and 1996, and two wells have been drilled on M-9, but none on M-7. ARCO elected not to renew its option on the M-7 block in June, the company said.

"Although one of the two wells drilled on M-9 was a gas discovery, the scope of this play does not warrant our continued participation," said Thompson. The anniversary date for Block M-9 is Oct. 26.

In May, ARCO purchased Union Texas, which had more than one- third of its assets in Indonesia's oil and gas sector, primarily in liquefied natural gas.