AMOCO TO EXPLORE ONSHORE BLOCK IN CHINA

Amoco Orient Petroleum Co. has become the first major western petroleum company to receive an onshore exploration contract in China. The Amoco Corp. unit and China National Oil Development Corp. (Cnodc) signed the contract, which covers 1.27 million acres in the Fuyang basin of Anhui Province, 373 miles northwest of Shanghai. The agreement calls for Amoco to acquire seismic data and conduct exploratory drilling. Amoco has the option to extend its exploration program beyond the initial

May 25, 1992

Amoco Orient Petroleum Co. has become the first major western petroleum company to receive an onshore exploration contract in China.

The Amoco Corp. unit and China National Oil Development Corp. (Cnodc) signed the contract, which covers 1.27 million acres in the Fuyang basin of Anhui Province, 373 miles northwest of Shanghai.

The agreement calls for Amoco to acquire seismic data and conduct exploratory drilling. Amoco has the option to extend its exploration program beyond the initial obligation.

Cnodc has the option to acquire as much as 51% working interest in a commercial discovery.

Amoco Production Co.'s David F. Work, group vice-president, said the area is a possible southern extension of the North China oil basin, one of most prolific oil producing areas in China.