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AMOCO ANNOUNCES AGREEMENT WITH AZERBAIJAN

 HOUSTON, Jan. 29 /PRNewswire/ -- Amoco Caspian Sea Petroleum Company announced today that it has signed an agreement with the State Oil Company of the Azerbaijan Republic (SOCAR) that outlines some of the principles under which Amoco as operator would develop and produce the hydrocarbon reserves from the Azeri field.
 Estimates established in a recently completed technical and economic evaluation indicate that oil reserves in the Azeri field, which is located in the Caspian Sea about 90 miles southeast of the capital city of Baku, are approximately 1.8 billion barrels.
 SOCAR and an international consortium led by Amoco will develop the field. Companies included in the Western consortium are Amoco Caspian Sea as operator, Unocal Azeri, Ltd., McDermott Azerbaijan, Inc., BP Exploration (Azerbaijan) Limited, Den norske stats oljeselskap a.s. (Statoil), and Ramco Oil Services Plc.
 The agreement, which was signed Jan. 26 in Baku, outlines some of the basic principles and concepts to be included in a Joint Development Agreement that will be negotiated by SOCAR and Amoco. Specific commercial terms remain to be negotiated by the parties and will be included in the Joint Development Agreement. That comprehensive development agreement will detail production sharing terms for the Azeri field.
 Robert L. Blanton, chairman of Amoco Caspian Sea Petroleum Company, said that work to complete the Joint Development Agreement will begin immediately.
 "The Principles Agreement is an important step towards the conclusion of a comprehensive development agreement and the establishment of production from the Azeri field," Blanton said. "Azeri field development will significantly benefit the people and economy of Azerbaijan."
 Initial implementation of a Joint Development Agreement will include further delineation drilling and a 3-D seismic survey to better define the extent of the field and ensure the design basis and economic viability of the project, Blanton said. Initial plans call for installation of at least one drilling and one production platform. Depending on results of delineation drilling and field performance, additional platforms may be installed. Amoco and other operators in the area are currently evaluating the possible benefits resulting from shared infrastructure, including an offshore gathering system, onshore processing, an operations base and an export pipeline to transport crude oil to world markets.
 "We expect the Azeri field is capable of producing in excess of 300,000 barrels of oil per day with a field life of more than 30 years," Blanton said. "Once all conditions for implementing the Joint Development Agreement are met, operations will begin with oil production to follow in three to four years."
 The Western participants' interest will be shared by Amoco, 45 percent; Unocal, 25 percent; McDermott, 10 percent; BP, 12 2/3 percent; Statoil, 6 1/3 percent; and Ramco, 1 percent.
 Amoco Caspian Sea Petroleum Company is a subsidiary of Amoco Production Company. Amoco Production Company is the wholly owned worldwide petroleum exploration and production subsidiary of Amoco Corporation (NYSE: AN).
 -0- 1/29/93
 /CONTACT: Margaret Laney, 713-556-7114; or Greg Clock, 312-856-5481; both of Amoco Corporation/
 (AN)


CO: Amoco Corporation ST: Illinois IN: OIL SU: TNM

KK -- CL008 -- 0786 01/29/93 13:10 EST
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Date:Jan 29, 1993
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