Acquisition

Enterprise Oil PLC
17 July 2000

Enterprise Oil announces US asset acquisition

Enterprise Oil today announced the acquisition of all of R&B Falcon Corp's
('R&B') E&P interests in the US Gulf of Mexico.  The deal enhances
Enterprise's US portfolio and is a further step in implementing the strategy
of elevating the Gulf of Mexico to a core business area for Enterprise.

Under the terms of the agreement, effective 1 July 2000, Enterprise has
acquired R&B's 50% interest in the Boomvang field development and subject to
final closing consents, will acquire a 100% interest in, and operatorship of,
the Gyrfalcon field and interests in 19 other deepwater Gulf of Mexico
exploration blocks. The total cash consideration for this deal is  $127.25
million.

The Boomvang field development is operated by Kerr-McGee Corp. who estimate
reserves to be between 70-100 million barrels of oil equivalent.  The field is
expected to begin producing in the first half of 2002, using a SPAR platform
designed for daily production of 30,000 barrels of oil and 200 million
standard cubic feet of gas.  Gyrfalcon is a gas field with reserves of three
million barrels of oil equivalent.  The field is produced through a single
well tied back to Shell's nearby Boxer platform.

The acquisition of R&B's interests follows an agreement to farm-in to a 25%
interest in a further 12 exploration blocks operated by Texaco, located in the
Green Canyon and Walker Ridge areas of the Gulf of Mexico.  An exploration
well (Catahoula) operated by Texaco will be drilled on this acreage later in
the year.  Exploration acreage has also been increased with the award of nine
new leases in the Atwater Valley and Mississippi Canyon obtained during the
OCS Gulf of Mexico Lease Sale 175 in March 2000.
 
Pierre Jungels, Chief Executive, commented: 'We are committed to building the
US business into a core area for Enterprise and the R&B deal will add value
through current and near-term production. In addition the increase in
exploration acreage complements and strengthens our existing portfolio, and
will lead to exciting future exploration opportunities.'


For further information contact:

Peter Reilly, Head of Investor Relations                     020 7925 4229
Sucharita Sethi, PR Officer                                  020 7925 4160
Peter Jackson, President Enterprise Oil Gulf of Mexico Inc.  00 1 713 970 2818

Notes to Editors

Enterprise's activities are currently focused in three core areas comprising
the UK and Ireland; Norway and Denmark; and Italy. In each of these areas the
company has built a portfolio with the quality and breadth of assets required
to allow access to all phases of the development cycle: including exploration,
appraisal, sanctioned developments, near-term development and production.
 
Boomvang 

The Boomvang field covers five blocks including East Breaks 641, 642, 643, 688
and 732 and is located 160 kilometres south of Galveston. The blocks lie in
approximately 3,450 feet of water. 

Partners in the field are:

Enterprise Oil           50 per cent
Kerr McGee               30 per cent (operator)
Ocean Energy             20 per cent

Gyrfalcon

The Gyrfalcon gas field is located 130 kilometres offshore Louisiana and lies
in the Green Canyon 20 block. The field came on stream in December 1999 and
currently produces 10 mmscf per day.

Texaco farm-in

Licence blocks acquired include:

Area/Block     Interest

Green Canyon 952                        25%
Green Canyon 993                        25%
Green Canyon 994                        25%
Green Canyon 995                        25%
Green Canyon 996                        25%
Walker Ridge 26                         25%
Walker Ridge 27                         25%
Walker Ridge 28                         25%
Walker Ridge 29                         25%
Walker Ridge 70                         25%
Walker Ridge 71                         25%
Walker Ridge 72                         25%

Lease Sale 175

Licence blocks awarded in OCS Lease Sale 175 in March 2000.

Area/Block     Interest

Mississippi Canyon 531     25%
Mississippi Canyon 532     25%
Mississippi Canyon 575     25%
Mississippi Canyon 619     25%
Mississippi Canyon 664     25%
Atwater Valley 49         100%
Atwater Valley 93         100%
Atwater Valley 225        100%
Atwater Valley 226        100%