Presence in Brazil Strengthend Through Two Deals

Enterprise Oil PLC
28 March 2000


Enterprise strengthens presence in Brazil through two deals

Enterprise Oil has today announced the strengthening of its presence in Brazil
through the signing of two key agreements with Petrobras. Both agreements are
subject to ANP approval.

The company has agreed to farm-in to a 25 per cent interest in the BCe-2 block
in the Ceara Basin offshore the north-east of Brazil. This deepwater block
will provide the group with exposure to prospective frontier acreage on which
a seismic acquisition and a drilling programme is planned for completion prior
to August 2001. Petrobras will have a 59 per cent stake and Amerada Hess 16
per cent. 

In addition, Enterprise and Odebrecht have also completed their agreement with
Petrobras to farm-in to the Bijupira-Salema fields in the country's Campos
Basin, 100 kilometres south-east of Rio de Janeiro.

Detailed agreements were signed yesterday and pave the way for work to move
ahead on the evaluation of development scenarios for the Bijupira-Salema
fields. Enterprise will act as operator of the planned development with a 55
per cent interest. The remaining equity will be  held by Odebrecht with 25 per
cent and Petrobras with 20 per cent.

Pierre Jungels, Chief Executive, commented: 'The signing of these two
agreements is an important step in our aim to build a balanced business in
Brazil. In the Campos Basin we have the opportunity to operate a significant
development in a prolific hydrocarbon province, while our acreage will provide
us with opportunities to grow our Brazilian business through exploration
activity in both the Campos and Ceara Basins. I believe the mix of skills both
groups possess will allow us to be highly competitive participants in Brazil's
offshore industry.'




For further information contact:

Patrick d'Ancona, Head of Public Relations                      020 7925 4160
Peter Reilly, Head of Investor Relations                        020 7925 4476
Sucharita Sethi, Public Relations Officer                       020 7925 4160
 

Notes to Editors:

Block BCe-2

Block BCe-2 is located at the north-western end of the offshore continuation
of the Potiguar Basin in north-east Brazil. The onshore Potiguar Basin has had
a long history of exploration and currently produces significant volumes of
oil and gas from a large number of fields. Several discoveries have also been
made in the shallow water offshore Potiguar, but the extension of the basin
into deeper water is largely unexplored. 

The block lies in water depths ranging from 200 to almost 2,500 metres. One
well has been drilled by Petrobras to date in the extreme west of the block in
shallow water, and no drilling has taken place in the deepwater part of BCe-2
where potential exists for large discoveries in the deepwater turbidites. 


Bijupira - Salema

The Bijupira and Salema fields are located in the Campos Basin 50 kilometres
away from the BC-2 block in which Enterprise has a 15 per cent interest and
where drilling is planned later this year.

Both Bijupira and Salema were discovered by Petrobras in 1990 and are
estimated to contain combined remaining reserves of 150 million barrels of oil
equivalent. Both fields have been extensively delineated. A total of 11 wells
have been drilled to date and the field area has 3D seismic coverage. An early
pilot production programme of three wells was operated on the fields from
1994, and has produced 24 million barrels of oil equivalent to date.