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1992 SUCCESSES DESCRIBED BY ARCO DURING ANNUAL SHAREHOLDERS MEETING; INTERNATIONAL, ALASKA STRATEGIES HIGHLIGHTED

 LOS ANGELES, May 3 /PRNewswire/ -- ARCO Chairman and Chief Executive Officer Lodwrick M. Cook told the annual meeting of ARCO shareholders today that the company performed extremely well in 1992, despite a harsh economic environment that continues into 1993.
 Citing 1992 income of $1.2 billion, or $7.39 per share before accounting changes, Cook told the meeting that ARCO again led the oil industry in total stockholder return and return on stockholders' equity during the year.
 While ARCO expects a worldwide economic recovery by 1994, "It's certainly not yet obvious that 1993 is a year in which significant earnings growth will be realized by either us or the industry," Cook added.
 Cook said that ARCO's capital spending plans over the next five years are "somewhat difficult to anticipate," largely because of uncertainties in Alaska where recent oil discoveries must still be delineated.
 "We currently are carrying $13.5 billion as our 1993-1997 five- year plan estimate of capital expenditures, with a budget for 1993 of $2.6 billion. The five-year plan includes a completely arbitrary $1.2 billion for development of exploration successes in Alaska. If our hopes there are realized, this will prove to be inadequate, but only time and the drill bit will tell."
 Cook also told shareholders that ARCO's outlook for domestic natural gas and crude oil prices remains close to what it has been for the past several years.
 "Despite the run-up in natural gas prices in 1992, we haven't changed the view expressed here last year that domestic gas prices will continue to be volatile and capped by prices for residual fuel oil. As for crude oil, we continue to look long-term for prices that are $21 to $22 per barrel in 1992 dollars for West Texas Intermediate, and a little lower in the near term."
 In his final address to shareholders prior to retirement, ARCO President and Chief Operating Officer Robert E. Wycoff described the company's changing focus as an international oil and natural gas producer.
 "Our current international production is approximately 120,000 equivalent barrels per day," said Wycoff. "Our goal is to reach the 300,000 barrel per day mark by the year 2000. Over the next five years, our production emphasis will shift from oil to gas. Right now, gas represents less than 35 percent of our foreign production -- but we will pass the 50 percent mark in 1994, and we'll be at 60 percent in 1997 when China's Yacheng gas field comes on- stream. These development projects constitute the foundation of a substantial international oil and gas company of the future."
 Wycoff said that the goal of the international exploration program is to increase proved and potential reserves to 1.5 billion equivalent barrels by the year 2000, with a target finding cost of less than $3 per barrel. "In 1992 we were on target with new proved and potential reserves totaling 160 million barrels of oil equivalent at a finding cost of $1.55 per barrel."
 Wycoff also expressed optimism about ARCO's future in Alaska. "We expect performance of our key Alaskan fields to remain strong for many years to come," he said. "From our existing Alaskan fields, net cumulative production over the next five years should exceed earlier expectations. Net liquids production is estimated at 422,000 barrels per day in 1993 and 360,000 barrels per day in 1997. Net liquid reserves stood at 1.8 billion barrels at year-end 1992, not far off our reserve estimates for Prudhoe Bay when we started up in 1977."
 Calling 1992 "a year of extraordinary success for ARCO Alaska," Wycoff said the company plans to participate in up to 14 exploratory wells this year -- nine on the North Slope and four or five in the Cook Inlet area.
 Closer to home, Wycoff noted that the company is continuing to monitor developments concerning a proposed South Coast Air Quality Management District plan (known as RECLAIM) to reduce refinery and other stationary source emissions in the Los Angeles Basin.
 "When RECLAIM was proposed over a year ago, it was an extremely onerous program which, in our opinion, would have been technically impossible to comply with without shutting down our operations, and would have had a devastating effect on all industry in Southern California. After a very substantial, broad-based effort, the latest staff proposals look more reasonable, and we are optimistic that compliance can be achieved."
 -0- 5/3/93
 /CONTACT: Albert Greenstein of ARCO, 213-486-3384/
 (ARC)


CO: ARCO ST: California IN: OIL SU:

BP-JL -- LA003 -- 3834 05/03/93 13:01 EDT
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Date:May 3, 1993
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