LOS ANGELES, March 25, 1999 (PRIMEZONE) - ARCO (NYSE: ARC) confirmed today that U.S. Commerce Secretary William Daley selected ARCO Executive Vice President and Chairman of ARCO Alaska, Ken Thompson, to accompany him on his trade missions to Korea and China, which started today and runs through April 1.
"ARCO's participation reflects our long-standing commitment to Asia and to the development of natural gas resources for use in their economies. We expect to become a leader in clean energy throughout the world, as we have in Asia," said Thompson. ARCO is the only integrated oil and gas company that will be represented in the U.S. business leaders delegation.
"Air quality is a growing concern throughout Asia, and natural gas is the fuel of choice to replace more carbon-laden fuels."
In considering the concerns for clean energy, Thompson said these issues add to the growing importance of Asian nations to the future of U.S. companies and U.S. workers. In particular, he said "we must take a pragmatic approach to the annual debate over the renewal of normal trade relations authorization for China.
"Engagement is needed on all fronts and on all issues," Thompson said. "Sound policy can endure through periodic crises that will inevitably arise. Companies like ARCO must take the world economy and its impact on our operations and workforce seriously. That's why it is critical for us to gain exposure to these markets and build confidence that we are there for the long term."
ARCO has taken a leadership role in advancing the Asian Pacific Economic Cooperation Council's natural gas initiative and is one of the largest U.S. energy investors in China. ARCO was the first U.S. oil and gas company to sign an exploration contract with the People's Republic of China and the first to discover and develop a large offshore gas field, the Yacheng field in the South China Sea. Today, Yacheng provides the fuel to meet power generation requirements at Hong Kong and Hainan Island. Thousands of U.S. petroleum industry workers played a role in the Yacheng discovery and ultimate development, Thompson noted.
On the downstream side in China, ARCO has developed the most successful LPG business through a 49% stake in a business that is the No. 1 importer of Liquid Petroleum Gas (LPG) into China, and has an interest in Zhuhai Power. ARCO also has a 9.9% equity interest plus convertible bonds in Zhenhai Refining and Chemical Company, and through a joint venture operates two retail stations and plans to build another eight this year in South China.
ARCO has worked in partnership with Indonesia for three decades, discovering and developing both oil and natural gas resources. Last year, the company was able to confirm that its Tangguh discovery in eastern Indonesia has more than 21 trillion cubic feet of proved, probable and possible gas resources. ARCO is already a leading LNG exporter to several countries including Japan, and Korea, through its 38% interest in the Sanga Sanga joint venture, which supplies the Indonesian-owned LNG plant at Bontang Bay.
ARCO's share of Alaska North Slope natural gas resources, which overlays the existing oil fields, also may be a long-term supply source for Asia while helping boost Alaska's economy. "We're very serious about working to monetize North Slope gas," said Thompson. Both the Tangguh LNG project and the work to bring North Slope gas will create additional jobs in the U.S. while helping the Asia Pacific region meet its needs for clean energy, Thompson added.
ARCO is a worldwide integrated hydrocarbons corporation with operations encompassing all aspects of the oil and gas business: exploration, production, refining, and marketing of crude oil, natural gas and natural gas liquids. ARCO has significant operations on the North Slope of Alaska and in the United States, Gulf of Mexico, China, Indonesia, and the North Sea.
CAUTIONARY NOTE TO INVESTORS - The Securities and Exchange Commission (SEC) only permits oil and gas companies to disclose in their filings with the SEC those reserves classified as proved, i.e., reserves that are economically and legally producible under existing economic and operating conditions. In this press release we use the term "probable and possible" which SEC guidelines strictly prohibit us from using in our SEC filings. Investors are urged to consider the reserve disclosure in our 1998 report on Form 10-K. Some of the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. Actual results could differ materially based on numerous factors, including the realized level of crude oil and natural gas production and other risks detailed from time to time in the company's reports to the SEC, including the 1998 report on Form 10-K.
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