International Petroleum Maintains Fast Track for Bunga Kekwa-A Field with Two Contract "Firsts" for Oil Production Facilities on Block PM3 Offshore Malaysia.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Dec. 5, 1996--International Petrol (TSE IRP., NASDAQ IRPPF.) International Petroleum Corporation ("IPC") is pleased to announce the award of two major contracts for the fabrication and provision of production facilities for the Bunga Kekwa field on Block PM3, offshore Malaysia (also known as the Commercial Arrangement Area between Malaysia and Vietnam). Contracts have been awarded to Malaysian based companies for:

- Fabrication of the 6 slot Bunga Kekwa-A Wellhead Platform (WHP).

- Time charter of a Floating Production, Storage and Offloading (FPSO) system.

Both WHP and FPSO are technology "firsts" in the Malaysia production arena and were placed in a record nine months from field development approval. The contract awards follow IPC's highly successful 1996 appraisal drilling campaign which is on schedule for field installation and first oil in July, 1997.

A U.S. $4.2 million contract was awarded to Sime Sembawang Engineering Sdn Bhd (SSE), on an EPC basis, for the design and fabrication of the Bunga Kekwa-A Wellhead Platform at their Pasir Gudang fabrication yard in Johor Baru. SSE subcontracted the platform conceptual and detailed design to Malaysian design consultants Ranhill Worley. The 6 slot light weight structure, based on existing Worley (Australia) design, is a technology "first" for IPC and Malaysia, comprising a topsides of 200 metric tons sitting on a 3 pile braced monopod substructure weighing 360 metric tons. The normally unmanned topsides facilities include a well control panel for 12 completions, production manifold, test separator, crane, chemical injection skid, boat landing and helideck. The low weight of both topsides and substructure offer the opportunity for another "first" in Malaysia, that of installation by the same jack-up rig that will perform well tie-back and completion services, thereby saving on offshore installation costs.

Bumi Armada Navigation Sdn Bhd (BAN) together with their Geneva based partners, Care Offshore Production Systems (COPS), were successful in winning the award for provision of a Floating Production, Storage and Offloading (FPSO) system for Phase I production operations. The 28 month time charter contract is estimated to be worth U.S. $55.4 million and will provide full operational capability for Bunga Kekwa-A field production, including the WHP, by July, 1997. The 60,000 DWT FPSO "Red Teal" will mobilize to Malaysia early in 1997 for refitting prior to field installation in June. The introduction of an FPSO to produce the Bunga Kekwa-A field is yet another technology "first" for IPC and Malaysia and will further contribute to Malaysia's long and successful oil and gas production history.

IPC holds 26.44 percent, Sands Petroleum AB holds 15 percent, Petronas Carigali Sdn Bhd holds 46.06 percent and PetroVietnam Exploration and Production (PVEP) holds 12.55 percent of the PM3 joint venture. IPC is a Canadian Company, exclusively engaged in international oil and gas exploration and production. IPC's shares are listed on the Toronto Stock Exchange (symbol "IRP"), on NASDAQ (symbol "IRPPF") and on the Stockholm Exchange.

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CONTACT: International Petroleum Corporation

Sophia Shane, 604/689-7842