Enterprise development update

Enterprise Oil PLC
16 August 2001


                   Enterprise update on Corrib development

Enterprise Oil continues to move ahead with its Corrib gas field development
offshore the west coast of Ireland, with recent progress on three fronts.

In July, Enterprise and its co-venturers, Statoil Exploration (Ireland) Ltd
and

Marathon International Petroleum Hibernian Ltd, completed the drilling of the
latest appraisal well, which tested at rates of 30 million standard cubic feet
of gas per day. This is the fifth appraisal well drilled on the field since
its discovery in 1996.

Enterprise has also agreed key terms with the trading arm of Bord Gais Eireann
for sales of approximately 60 per cent of its share of Corrib gas, and is
actively discussing opportunities with other major gas users to place its
remaining uncontracted gas into the Irish market.

Most recently, the company and its co-venturers have been granted planning
permission by Mayo County Council for the building of an onshore terminal at
Bellanaboy Bridge to process gas transported from the offshore Corrib field.
This notice comes after an extensive and wide-ranging consultation process in
the region. The grant of planning permission is subject to appeal during the
month following the decision.

Brian O'Cathain, Managing Director Enterprise Energy Ireland, commented: 'We
are pleased to be making significant progress on Corrib following our award of
contracts for the development in June, and remain committed to the
consultative process that has brought the project to this point. We have
gained much from our discussions with stakeholders, particularly in County
Mayo, and we welcome their input to our plans for Corrib. This is an important
development for both the region and Ireland as a whole, and we will continue
to work with all relevant stakeholders to ensure a successful outcome to this
project.'



Ends.

For further information, please contact:
Patrick d'Ancona, Head of Public Relations              [phone]
Rosemary Steen, Head of Public Affairs, Dublin          [phone]

Notes to Editors

Corrib was discovered in 1996 and is the first commercial hydrocarbon
discovery in Ireland since Kinsale Head was found and developed in the 1970s.
First gas is anticipated from the field in the second half of 2003.