RNS No 0188n
ATLANTIC RICHFIELD COMPANY
9th October 1997


              VECO Selected as Alaska North Slope Contractor
              For Installation, Completion of 'MIX' Project

ANCHORAGE, Alaska, Oct. 9 /PRNewswire/ -- VECO Construction, Inc. has been
selected as the North Slope construction and installation contractor for the
Prudhoe Bay Miscible Injectant Expansion (MIX) Project, it was announced today
by ARCO Alaska, Inc.

VECO will be responsible for significant modifications to the Prudhoe Bay
Central Gas Facility scheduled to begin in 1998 and for installation of a
2,300-ton compressor module that will be delivered by barge to the North Slope
in August 1999.

The $160 million MIX project will add incremental production of 20,000 barrels
of liquids per day in late 1999 and increase ultimate Prudhoe Bay liquids
recovery by 50 million barrels.

"This project is a key part of our plan for achieving ARCO's North Slope
production goal of "No Decline After '99,'" said Kevin Meyers, senior vice
president of ARCO Alaska's Prudhoe Bay business unit.

ARCO Alaska, a unit of Los Angeles based ARCO (NYSE: ARC), is managing the
project for BP Exploration (Alaska) Inc., Exxon Company USA and the other
Prudhoe Bay owners. The project management team includes personnel from both
ARCO and BP Exploration.

David Woodward, Prudhoe Bay Asset Manager for BP Exploration, said "The MIX
Project is a demonstration of the Prudhoe owners' commitment to continue to
invest in the field to extend its life well into the 21st century."

Terms of the VECO agreement are confidential.

ARCO Alaska will solicit proposals for construction of the 2,300-ton compressor
module and associated facilities in October, with a contract award expected
early 1998. Contracts for the project's truckable components will also be
awarded in early 1998.

"We are using an 'Alaska First' strategy for completion of this project," Meyers
said. "That means Alaskan-owned, Alaska-based companies will have the
opportunity to compete for all of this work. We selected Anchorage-based VECO as
our North Slope construction contractor because of VECO's familiarity with our
facilities and proven ability to deliver quality work at a competitive cost."

"VECO Construction, Inc. and its Alaska employees are pleased to be selected as
the North Slope Installation Contractor on the MIX Project," said Bill Allen,
Chief Executive Officer of VECO Corporation. "They will be working very closely
with their sister companies, VECO Operations and Norcon, to make the
installation a success. We are also very excited about having the opportunity to
bid on the compressor module and truckable components that will be required for
this project, as we feel we can be very competitive doing it in Alaska."

The MIX project will increase the amount of solvent, or miscible injectant, made
at Prudhoe Bay by 20 percent. This solvent will be available for use in the
Prudhoe Bay Miscible Gas Enhanced Oil Recovery Project which is already the
world's largest.


CONTACT: Ronnie Chappell of ARCO Alaska, 907-263-4102
Web site: http://www.arco.com

END

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