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ARCO TO RECEIVE $130 MILLION IN SETTLEMENT AGREEMENT WITH IRAN

 ARCO TO RECEIVE $130 MILLION IN SETTLEMENT AGREEMENT WITH IRAN
 LOS ANGELES, Aug. 18 /PRNewswire/ -- ARCO (NYSE: ARC) announced today it has signed a settlement agreement resolving disputes with the Islamic Republic of Iran and the National Iranian Oil Co. over expropriation of ARCO oilfield interests in Iran more than a decade ago.
 The agreement remains subject to approval by the Iran-United States Claims Tribunal at The Hague in the Netherlands.
 The settlement, reached Aug. 14 at The Hague, requires payment to ARCO of $130,450,000. Payment is expected during the fourth quarter of 1992.
 The dispute revolved around interests held by ARCO and its subsidiary, ARCO Exploration Inc., in offshore oil operations of the Lavan Petroleum Co. (LAPCO) in Iran.
 These interests, as well as other rights and assets which ARCO had in Iran, had been taken by the revolutionary government between 1978 and 1980. Three ARCO subsidiaries filed claims for these losses with the Tribunal.
 In one case, the Tribunal rendered an interlocutory award in 1986 in favor of Anaconda Iran Inc. for approximately $18 million. The Tribunal must still decide what, if any, damages should be awarded in respect to a counterclaim filed by Iran. A second case, involving oil interests, was settled by mutual agreement in December 1990. ARCO received payment of $9 million. Today's announcement relates to ARCO's third and final case.
 "We are pleased that this largest of our claims against Iran has been resolved. It has been a long and difficult legal struggle, and we are satisfied with the outcome," said Lodwrick M. Cook, ARCO chairman and chief executive officer.
 Payment of this settlement amount will come from a security account established by the 1981 Algiers Accords.
 -0- 8/18/92
 /CONTACT: Scott Loll of ARCO, 213-486-2562/
 (ACO) CO: ARCO ST: California IN: OIL SU:


TS-KJ -- LA002 -- 0795 08/18/92 08:07 EDT
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Date:Aug 18, 1992
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