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BP TO ACQUIRE ALASKA NORTH SLOPE, GULF OF MEXICO PROPERTIES IN DEALS WITH CONOCO, CHEVRON

 HOUSTON, Nov. 5 /PRNewswire/ -- BP Exploration has signed a letter of intent to exchange exploration and production assets in Alaska and the Gulf of Mexico with Conoco Inc.
 Under the terms of the deal, BP will acquire all of Conoco's interests on the North Slope of Alaska, comprising 64 percent of the Milne Point field and related pipeline interest and 40 percent of the Badami discovery, as well as interests in 54 mainly deepwater blocks in the Gulf of Mexico.
 In exchange, BP will assign Conoco at 33 percent stake in its wholly-owned Gulf of Mexico Amberjack field.
 BP also separately has agreed in principle to buy Chevron U.S.A. Production Co.'s 27 percent interest in the Milne Point field and related pipeline interest. Sales price was not disclosed.
 As a result of the two transactions, BP will own 91 percent of Milne Point and become operator of the field. It already is in the process of earning a 35 percent stake in Badami by appraising the discovery.
 Negotiations of formal agreements are under way for both the exchange with Conoco and the purchase from Chevron, and both deals are expected to be completed before the end of the year.
 "These transactions will provide clear benefits to all parties," said John Browne, chief executive of BP Exploration. "For BP's part, we are extending further our strong position in Alaska by gaining access to two promising areas on the North Slope where economies of scale resulting from our other operations provide cost advantages to develop and produce more oil. We will also add significantly to our strategic acreage in the deepwater Gulf of Mexico."
 BACKGROUND NOTES
 The Amberjack field, in block MC109, is currently producing some 22,000 barrels of oil a day. The platform is situated in 1,030 feet of water, 20 miles offshore Louisiana.
 Milne Point (operated by Conoco) began production in 1985. The field ceased production for about 27 months when operations became unprofitable following the 1986 oil price collapse (January 1987-April 1989). Production currently averages about 19,000 barrels of oil a day. Chevron holds 27 percent, and Occidental the remaining 9 percent.
 The Badami discovery is about 60 miles east of Prudhoe Bay. With the interest it acquires from Conoco and the 35 percent being earned through its appraisal of the discovery, BP's stake in Badami will be 75 percent. The remaining 25 percent is held by Petrofina Delaware Inc.
 The 54 Gulf of Mexico blocks, in which Conoco's interest averages 50 percent, are located primarily in the Mars fairway in water depths of some 4,000 feet. BP already has interests in 314 federal leases in the Gulf of Mexico, 282 in deepwater. Conoco will retain an overriding royalty interest in four of the 54 blocks.
 -0- 11/4/93
 /CONTACT: Paul Laird (Alaska), 907-564-5404; or Hugh Depland (Houston), 713-560-5196, both of BP Exploration/


CO: BP Exploration; Conoco Inc.; Chevron U.S.A. Production Co. ST: Texas, Alaska IN: OIL SU: TNM

SH -- NY032 -- 1202 11/05/93 11:42 EST
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Publication:PR Newswire
Date:Nov 5, 1993
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