Purchase of 7.5% of KMOC

ENTERPRISE OIL PLC
19 October 1999


Enterprise and KMOC announce completion of investment

Enterprise Oil today announced the completion of an investment in the
US-registered Khanty Mansiysk Oil Corporation (KMOC), an independent oil
exploration and production company with assets in West Siberia, Russia.

Under the terms of the agreement, Enterprise has invested $20 million to
acquire a 7.5 per cent common stock holding in KMOC, together with a right to
acquire a further 3 per cent as a result of financial and technical support
given to KMOC to date. 

Enterprise also has an option to acquire $20 million of common stock in the
future. Consequently Enterprise will be represented through a seat on the KMOC
Board. The investment follows a period of joint technical work between the two
companies through a Technical Services Agreement signed in 1998. 

John Shute, General Manager, New Business, Enterprise Oil, commented: 'We have
had a small team working on Russia over the past two years. We believe this
agreement now provides us with an excellent opportunity to gain further
experience of, and a managed exposure to, Russia and West Siberia in
particular.'

John Fitzgibbons, President and CEO of KMOC commented: 'We are pleased with
the transaction and look forward to continuing our strong track record of
growth in Siberia both through the drillbit and asset acquisitions. We welcome
the involvement of Enterprise and its considerable experience in global
exploration and production.'

For further information contact:      

For Enterprise

Patrick d'Ancona, Head of Public Relations                      0171 925 4160
Peter Reilly, Head of Investor Relations                        0171 925 4476

www.entoil.com

For KMOC

John Fitzgibbons, President and CEO, KMOC                   00 1 212 245 5544

www.kmoc.com
 

Notes to Editors:

KMOC

The Khanty Mansiysk Oil Corporation (KMOC) is a privately owned oil
exploration and production company registered in Delaware, USA with a strong
Russian and western shareholder base. 

KMOC has an integrated and experienced Russian and western management team.
The company employs internationally accepted management controls, including
compliance with US GAAP financial reporting requirements, and is committed to
transparency and shareholder accountability. KMOC's shareholder base includes
large financial investors including The Beacon Group, Wellington Management,
AIG, and Brunswick.

KMOC has corporate offices in both Moscow and New York together with
operational offices in Khanty Mansiysk and other Western Siberian centres.

Assets

KMOC's assets are focused on the West Siberian Basin, ranked No.1 in the world
(on the basis of known hydrocarbon volumes) by the United States Geological
Survey (USGS). The company has title to licences for 11 fields as well as
equity in one production joint-venture. KMOC's fields are primarily
concentrated in an area to the west of the city of Khanty Mansiysk, the
administrative and industrial centre of the region. 

Through its production licences the company currently controls significant
proven, probable and possible reserves. Current production of approximately
7,450 bopd is generated from development and early appraisal wells in four
fields only. A further 45 well appraisal drilling programme will be initiated
this winter to increase production and delineate key reservoirs and associated
reserves. Appraisal of other key fields will also be instigated.