From: Michael Novick <[EMAIL PROTECTED]>

Monday, February 22, 1999

Exxon Acquires Additional Interest in Azerbaijan

IRVING, TX, -- Exxon Corporation announced today that its affiliate Exxon
South Caspian Limited has signed an agreement with the State Oil Company of
the Azerbaijan Republic (SOCAR) to participate in the development of the
Alov exploration block.
Under the terms of the agreement, Exxon South Caspian Limited will acquire
a 15 percent participating interest from SOCAR under an Exploration,
Development, and Production Sharing Agreement.

Terry Koonce, president of Exxon South Caspian Limited said, "We are
pleased to join SOCAR in this project. It is Exxon's desire to be a
long-term, significant participant with the Azerbaijan Republic in the
exploration and development of hydrocarbon resources in the Azerbaijan
sector of the Caspian Sea."

The Alov exploration block, formerly referred to as the Abikh Trend, is
located about 110 miles (180 kilometers) south-southeast of Baku. The block
is located in water depths ranging from about 400 meters to about 900
meters and covers an area of about 550 square miles (1,400 square
kilometers).

"Under this agreement, SOCAR will retain a 40 percent interest, BP Amoco
will have a 15 percent interest and serve as operator, Exxon will have a 15
percent interest, Statoil will retain a 15 percent interest, TPAO will
retain a 10 percent interest and Alberta Energy Company will retain a 5
percent interest," Koonce said. "This structure is very prospective
geologically, but it is coupled with significant investment risk and
technological challenges. We look forward to drilling the first wildcat
well to test this trend."

Koonce said Exxon is committed to expanding its business presence in
Azerbaijan. "Exploration and development activities in this area will
provide long-term mutual economic and employment benefits to the Azerbaijan
Republic and Exxon," Koonce said. "We will continue to pursue involvement
in other attractive oil and gas prospects with SOCAR and the Azerbaijan
Republic."
Also in Azerbaijan, a separate Exxon affiliate owns an 8 percent interest
in the joint development and production sharing agreement covering the
estimated five billion barrel Azeri, Chirag, and deep water Guneshli fields
complex, sometimes referred to as the "Megastructure." The Megastructure is
being operated by the Azerbaijan International Operating Company (AIOC),
which is owned by a consortium of 11 companies.

SOCAR and Exxon each own a 50 percent interest in the exploration,
development, and production sharing agreement for the Nakhchivan
Prospective Structure. An Exxon affiliate serves as operator on behalf of
the contractor parties.
Exxon's involvement in Azerbaijan contributes state-of-the-art technology
and experience in all aspects of the petroleum industry, including
particular expertise in deep-water operations. Exxon is currently exploring
in about 30 countries around the world.

_________________________________

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