CONTRACT AWARDED FOR ENGINEERING, PROCUREMENT AND CONSTRUCTION OF THE NSO 'A' FIELD IN INDONESIA.

FAIRFAX, Va.--(BUSINESS WIRE)--March 3, 1997--Mobil Corporation (NYSE:MOB) announced today that Mobil Exploration Indonesia Inc., a wholly owned affiliate, has confirmed that a Letter of Intent (LOI) has been issued to P.T. Tripatra Engineers and Constructors awarding a lump sum turnkey contract for the engineering, procurement and construction of facilities and a pipeline to develop the North Sumatra Offshore (NSO) "A" gas field. The LOI authorizes Tripatra to commence work immediately in accordance with terms of the proposed contract. The award of this contract for over $300 million, as part of the overall project cost exceeding $500 million, was approved by the appropriate Indonesian government authorities on February 26, 1997.

Mobil is one of the world's leaders in the liquefied natural gas (LNG) business, and has operated the giant Arun field in North Sumatra, which provides feed gas for the P.T. Arun LNG plant, since 1978. Mobil's share of production from the field in 1996 was over 1.5 billion cubic feet per day of gas and 65,000 barrels per day of condensate and liquefied petroleum gas (LPG).

Mobil operates the NSO block, located in the Malacca Strait off the northeast coast of Sumatra, and holds a 100 percent working interest in the Production Sharing Contract with Pertamina, Indonesia's state oil and gas company. The field, located in 354 feet of water and located about 60 miles from the P.T. Arun LNG plant, will produce 450 million standard cubic feet per day of gas which, after treating, will provide LNG plant feed beginning in July 1999.

Mobil is also developing the nearby South Lhok Sukon "A" and "D" and Pase "A" fields, which began supplying gas to the P.T. Arun plant this year. The NSO "A" gas reserves, along with those from South Lhok Sukon, Pase and Arun, will be used to supply existing Pertamina LNG sales agreements with Japanese and Korean LNG buyers. LNG volumes from the P.T. Arun plant, which totaled over 11 million tons in 1996, provide approximately 20 percent of the Asia-Pacific LNG supply and contribute to making Indonesia the number one exporter of LNG in the world. The NSO "A" treating process will also yield 220 tons per day of sulfur which will help meet demand for sulfur requirements in Indonesia.

The NSO "A" development will consist of offshore production facilities, a transmission pipeline and onshore treating facilities located at the P.T. Arun LNG plant site. Under the terms of the proposed contract, Tripatra will be the lead contractor for a consortium that includes Toyo Engineering Corporation and P.T. McDermott Indonesia.

"Mobil has successfully completed projects with each of these organizations in the past and looks forward to continuing this business relationship on the NSO "A" project," said Ron Wilson, President, Mobil Exploration Indonesia, Inc.

CONTACT: Mobil Corporation

Christopher Springham, 703/846-2500