Disposal

Soco International PLC
20 August 2001



                            SOCO International plc

                          ('SOCO' or 'the Company')

Sale of Russian Assets



SOCO is an international oil and gas exploration and production company,
headquartered in London.  The Company has exploration activities in Vietnam,
Mongolia, Yemen, Thailand and North Korea with production operations in Yemen,
Tunisia and Mongolia.



SOCO announces that it has today entered into an agreement to dispose of its
50% interest in the Russian joint venture, Permtex, which holds various
production and development licences in the Volga-Urals Basin of European
Russia.  SOCO holds its interests through its wholly owned subsidiary SOCO
Perm Russia, LLC (SOCO Perm).  The interests have been acquired by Acont
Enterprises Limited, a wholly owned subsidiary of Lukoil Overseas BVI Ltd, a
subsidiary of OJSC Lukoil, one of Russia's largest oil and gas companies.
Acont has acquired the whole of SOCO's interest for a total cash consideration
of US$50.0 million payable on completion. Additionally, Acont assumes all
obligations of SOCO as guarantor regarding SOCO's share of long term debt
associated with the European Bank for Reconstruction and Development amounting
to approximately US$11 million.  Following completion, OJSC Lukoil will
indirectly own the entire issued share capital of Permtex.



Completion is to take place following the satisfaction of the conditions
contained in the disposal agreement including, the approval of the disposal by
SOCO's shareholders in general meeting.  The shareholders' meeting is expected
to be held on 6 September.



The transaction adds further strength to SOCO's debt free balance sheet
bringing its free cash balances to approximately £64 million, approximately
three quarters of its total market capitalisation of £86 million as at 15
August 2001.



As at 31 December 2000, SOCO's share of Permtex's net assets was approximately
£22.3 million .  For the year ended 31 December 2000, SOCO's share of
Permtex's profit before tax was £5.7 million representing approximately 23% of
SOCO's total pre-tax profit of £24.1 million.



Working interest production to the Company from its Russian interests averaged
approximately 3,212 barrels of oil per day (BOPD) during the first half of
2001 (approximately one third of SOCO's total working interest production of
9,362 BOPD during this six month period), up from a 2000 year average of
approximately 2,665 BOPD (8,810 BOPD total).



At the time of the Company's flotation in May 1997, the Company stated that it
intended to investigate other exploration and development opportunities.  In
view of the current oil price environment the Directors believe that the
disposal is an excellent opportunity to realize value and raise funds for
application in other projects currently under appraisal.



In addition to seeking new investment opportunities, following the disposal of
its Russian assets SOCO will continue to develop and exploit its remaining
asset base in Vietnam, Mongolia, Yemen, Tunisia, Thailand.



Ed Story, CEO and President of SOCO, said:



'This transaction with Lukoil is mutually beneficial as it provides SOCO
additional capital to deploy toward other more advantageous exploitation and
development projects and places these assets with Lukoil, a group who have the
expertise to maximise the value of the assets while continuing to consolidate
its former joint ventures.'



                                                                20 August 2001


Enquiries:


SOCO International plc                               Tel: [phone]
Ed Story, Chief Executive
Roger Cagle, Chief Financial Officer

College Hill                                         Tel: [phone]
Archie Berens
Peter Rigby