Acquisition

Tullow Oil PLC
10 October 2000


Tullow Oil plc ('Tullow' or the 'Company')

PURCHASE OF MAJOR PACKAGE OF NORTH SEA PRODUCTION INTERESTS FROM BP AMOCO ARCO
- END OF PRE-EMPTION PERIOD

TULLOW ANNOUNCES NO SIGNIFICANT PRE-EMPTION ON NORTH SEA PRODUCING ASSETS TO
BE PURCHASED FROM BP AMOCO ARCO



As announced by Tullow on 31 July 2000 and as stated in the prospectus sent to
shareholders on 1 August 2000, the Company entered into conditional agreements
with ARCO and Britoil to acquire a number of production and exploration
interests in licences covering areas in the Southern Gas Basin of the UKCS
together with a share in the ownership of their related infrastructure assets
(the 'Assets').

Most of the principal assets were subject to the exercise of pre-emption or
equivalent rights by co-owners. Therefore, Tullow would only be able to
acquire certain of the licence interests and related infrastructure assets if
the co-owners did not exercise those rights.

As at 7 October 2000, being the last date by which co-owners were able to
exercise pre-emption or equivalent rights over those assets subject to such
rights, co-owners had only pre-empted on two minor interests relating to Block
48/18c (containing the undeveloped Bedevere field) and Block 49/30b. As a
result, the consideration payable by Tullow will reduce by approximately £0.5
million to £200.5 million and Tullow will acquire assets with proven and
probable reserves of approximately 240 bcf as at 1 January 2000.

Completion of the acquisition remains subject to a number of conditions. These
include the requisite approval of Tullow as purchaser by the UK government in
its capacity as licensing authority for the Assets, the approval by the
European Commission of Tullow as the purchaser in the context of the
divestment by BP Amoco/ARCO of the Assets as a necessary step to enable them
to merge, co-owner consents and approvals and the execution of completion
documents by co-owners. The Directors expect these conditions to be satisfied
over the coming weeks and the acquisition to be completed in one or two stages
in November/December 2000.

Aidan Heavey, Chief Executive of Tullow commented:

'We are delighted at the outcome of the pre-emption process. While there are
still conditions to be met, we are confident that they can be satisfied and we
will then have been successful in securing all the material production and
exploration assets as well as a number of exciting undeveloped discoveries and
exploration targets. These assets represent an outstanding platform for Tullow
going forward'