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.