EO and Innogy Gas Alliance

Enterprise Oil PLC
5 February 2002


             Enterprise and Innogy Agree Hand in Glove Gas Alliance

Enterprise Oil plc and Innogy Plc have today announced an outline agreement for
a natural gas market alliance in North-West Europe. In an initial three-year
deal, the majority of Enterprise's current and future uncommitted gas production
from its operations in the North West European region, will be purchased and
marketed by Innogy. Gas production supplied is expected to reach over 2 million
therms per day, around 50 per cent of the group's gas production in the region
by mid decade, with first deliveries by October 2002. Increasing synergies will
develop between Enterprise's national supplies from these countries and between
Enterprise and Innogy's supply positions, as the UK increasingly becomes a net
importer of gas over the next decade.

This is an exclusive deal between two well-matched companies. Enterprise and
Innogy will work together from their respective strong positions in the upstream
and downstream gas markets to create further shared value.

Sam Laidlaw, Chief Executive of Enterprise said, 'We see Enterprise's gas
position in NW Europe growing substantially, not only through developments such
as Skene in the UK, Corrib in Ireland and most notably Skarv in Norway, but also
through our strong exploration position, especially in Norway'

'This alliance enables us to bring these volumes to market with full value,
exploiting the growing links between the national markets and, together,
capturing regional gas opportunities through the value chain. Innogy is an ideal
partner for us. Its strengths complement our own. Innogy's focus on the
downstream, energy trading and transmission, power generation and gas and power
marketing, allows us to focus on exploiting our growing strengths in upstream
gas in the region.'

Brian Count, Chief Executive of Innogy said, 'This deal plays to Innogy's
strength in asset-backed trading. It will support our UK position in both retail
and generation, and provide a platform for our trading and risk management
services to other parts of Europe'.

Ends.

For further information please contact:
Alison Cairns, Senior External Affairs Advisor, Enterprise Oil plc  [phone]
John Wilkinson: Head of Media and External Relations, Innogy Plc    [phone]



Notes to Editors:


    1.     The Agreement:

  • The Heads of Agreement have been negotiated for the UK with deliveries
    expected to commence by October 2002.
  • Agreements for Ireland (including provision of back-up gas from the UK)
    and Norway will be negotiated this year.
  • Prices for commodity gas and provision of swing and entry capacity will
    ensure Enterprise receives a market price.
  • Price risk management and administration services will be provided by
    Innogy.


    2.     Enterprise NW Europe sales gas supplies:

  • Gas sales are expected to be around 4 million therms per day from the
    North West European region by mid decade, of which over 2 million therms per
    day is currently uncommitted to long term contracts. UK uncommitted volumes
    this year are expected to be around 1 million therms per day with the recent
    startup of Skene.


    3.     Supply/Demand Balances:

  • The UK is expected to form one of the largest markets for new Norwegian
    gas supplies over the next decade. The DTI estimates that existing and
    potential UK pipelines could give a potential capacity of around 26 bcm of
    gas per year from Norway from 2005/6, 25 per cent of projected UK gas
    demand.
  • Through the Enterprise Operated Corrib field is expected to supply a
    significant proportion of Irish gas demand in the mid years of this decade,
    Ireland is expected to continue to be a net importer from the UK.




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