RNS No 4171j
ATLANTIC RICHFIELD COMPANY
2nd September 1998


          Successful Testing of Temane-3 Well in Mozambique Confirms
              Potentially Significant Natural Gas Accumulation

MAPUTO, Mozambique, Sept. 2 /PRNewswire/ - The successful testing of the
Temane-3 exploration well has confirmed a potentially significant natural gas
accumulation in the Temane region of the Republic of Mozambique, it was
announced today by a consortium of international oil and gas companies.

Temane-3 tested gas at a rate up to 25 million cubic feet per day from the
Cretaceous Grudja G-9 horizon.  The successful well confirms earlier 
indications of a gas accumulation in the region made by Gulf Oil with its
Temane-1 and 2 wells drilled in 1956 and 1967 respectively.

The government of Mozambique and the government-owned company ENH (Empresa
Nacional de Hidrocarbonetos de Mocambique, E.P.) signed a Production Sharing
Agreement on May 15, 1998, with an international group made up of ARCO
Mozambique (Temane) Ltd., a subsidiary of Los Angeles-based ARCO (NYSE: ARC) and
operator with a 47.62% interest;   Sasol Petroleum Temane Limitada of South
Africa (47.62%); and Zarara Petroleum Resources Limited of Dubai (4.76%).

The Nabors 235 drilling rig has been moved to the Temane-4 location
approximately 11 kilometers southwest of Temane-3 for the first of up to five
appraisal wells.  Drilling on Temane-4 commenced August 24.  The consortium
partners expect to spend up to US$50 million in drilling, seismic and
engineering activities on the Temane prospect over the next 18 months.

Discussions are ongoing for the possible sale of natural gas to Sasol in South
Africa and to JCI Projects for use in its proposed Hot Briquetted Iron plant in
the Beira area of Mozambique.  Additional markets are expected to develop in the
Maputo and Maputo Corridor regions and the Beira Corridor area. 

The same group of companies has signed Production Sharing Agreements for two
additional blocks in Mozambique -- Sofala and M-10.

For more information, contact:  Albert Greenstein (213) 486-3384.  For a menu of
ARCO news releases or to retrieve a specific release, visit ARCO's Web site at
http://www.arco.com on the Internet.

END

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