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CONOCO ANNOUNCES LETTER OF INTENT WITH BRITISH PETROLEUM

 HOUSTON, Nov. 5 /PRNewswire/ -- Conoco has signed a letter of intent with British Petroleum to exchange its Alaskan assets and interest in some deep-water Gulf of Mexico exploratory blocks for a 33 percent interest in BP's Amberjack field (Mississippi Canyon Blocks 108 and 109) in the Gulf of Mexico.
 If the proposed deal is completed, it would represent a major step in restructuring Conoco's North America asset base.
 "Acquiring an interest in the Mississippi Canyon 108 and 109 producing blocks would provide Conoco with one of its largest and most profitable oil producers in the United States," said T. E. Davis, vice president, upstream, North America. "Additionally, access to Block 109's processing equipment and infrastructure could enhance the economic viability of our oil discovery in the nearby Mississippi Canyon Block 243," Davis said.
 Davis also said the exchange allowed Conoco to obtain maximum value for its Alaskan assets while continuing its program of building a portfolio of assets in established core production areas with the greatest potential for future growth.
 Conoco discovered oil at Milne Point in 1969 and brought the field onstream eight years ago. Milne Point is the smallest of the oil fields on the North Slope and did not provide Conoco the economies of scale that apply to the much larger Prudhoe Bay and Kuparuk River developments.
 "There is always sadness in leaving an area of operations, but the fact is that our prospects for achieving profitable long-term growth in Alaska are more limited than they are in other areas," Davis said.
 Negotiations on formal agreements for the exchange of properties are under way and are expected to be completed before the end of the year.
 Conoco is a subsidiary of Du Pont.
 -0- 11/5/93
 /CONTACT: Carlton Adams of Conoco, 713-293-1043/
 (DD BP)


CO: Conoco; Du Pont; British Petroleum ST: Texas IN: OIL SU: TNM

LG -- NY019 -- 1152 11/05/93 10:17 EST
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Publication:PR Newswire
Date:Nov 5, 1993
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