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ARCO WILL TAKE CHARGE OF ABOUT $450 MILLION AGAINST FOURTH QUARTER 1993 EARNINGS

 LOS ANGELES, Jan. 10 /PRNewswire/ -- ARCO (NYSE: ARC) announced today that it will take a charge against fourth quarter 1993 earnings of approximately $450 million after tax related to the previously announced reorganization of its Lower 48 oil and gas exploration and production operations.
 Included in the charge are costs related to the severance of approximately 1,300 employees and write-downs for sale or other disposition of certain oil and gas properties and excess office space. The incremental cash cost associated with the charge is approximately $60 million after tax.
 The company recently reorganized ARCO Oil and Gas Co., which comprised all of ARCO's Lower 48 E&P operations, into four discrete business units, each having its own assets, operations and business strategies.
 The reorganization will enable the units to operate with a lower overhead cost profile, flatter organization structure and more focused resource exploitation.
 -0- 1/10/94
 /CONTACT: Albert Greenstein, 213-486-3384/
 (ARC)


CO: ARCO ST: California IN: OIL SU: ERP

JB-JL -- LA020 -- 0903 01/10/94 13:17 EST
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Publication:PR Newswire
Date:Jan 10, 1994
Words:171
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