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AMOCO TARGETS $3.2 BILLION CAPITAL SPENDING FOR 1993

 CHICAGO, Dec. 15 /PRNewswire/ -- Amoco Corporation (NYSE: AN) plans to spend $3.2 billion for capital investment and exploration in 1993.
 The 1993 budget is essentially flat with authorized spending for 1992. The largest portion of the budget will go for exploration and production of crude oil and natural gas. About 70 percent of the exploration and production spending will be outside of the United States.
 "This budget reflects our continuing shift to overseas exploration and production," said Amoco Chairman H. Laurance Fuller. "In 1993, we'll complete several major offshore gas projects, including the Central Area Transmission System (CATS) in the United Kingdom, start-up of the P15/18 development in the Netherlands, and start-up of the Immortelle Field in Trinidad. Oil production from the Scott Field in the United Kingdom, also should start in 1993.
 "Although we anticipate flat prices for crude oil and only somewhat higher prices for natural gas, we're confident we can maintain our current level of capital spending," Fuller said. "This is largely true because the cost-cutting program we started earlier this year is yielding significant results."
 Amoco expects to realize $600 million in pre-tax savings in 1993 from the cost-cutting program, Fuller said. However, inflation will partially offset some of that savings.
 "Our efforts to reduce expenses are improving our financial performance," Fuller said. "But we are not satisfied, and will continue efforts to drive down costs."
 Fuller said Amoco expects to drill about 50 exploration wells in 1993, with about 90 percent of them outside the United States. He said the company expects to sell and acquire some producing properties during 1993 in a continuing effort to increase operating efficiency and to reduce costs.
 A significant portion of the capital budget will fund environmental projects that will enable Amoco to maintain a competitive advantage in U.S. refining, marketing, and transportation operations:
 -- Diesel desulfurization projects at the company's Texas City, Texas, and Whiting, Ind., refineries, and other facility environmental projects;
 -- At terminals for air and water emission projects, and for Stage II vapor recovery systems at service stations;
 -- To improve Amoco's pipeline system.
 Fuller said that spending levels would remain flexible, and ultimately will depend on oil and gas prices, as well as the company's cost-reduction efforts.
 -0- 12/15/92
 /CONTACT: Jim Fair, 312-856-5566, or Greg Clock, 312-856-5481, both of Amoco Corporation/
 (AN)


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

BM -- CL024 -- 7378 12/15/92 16:13 EST
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Publication:PR Newswire
Date:Dec 15, 1992
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