Acquisition

Tullow Oil PLC
2 April 2001

2 April 2001

TULLOW OIL PLC

Completion of first stage of Thames-Hewett Package Acquisition from BP


Tullow Oil plc ('Tullow'), the independent UK oil and gas exploration,
development and production company, announces it has completed the first stage
of the purchase of the Thames-Hewett Package, the second of two packages of
North Sea gas assets and related infrastructure which Tullow agreed to
purchase from BP for a maximum of £201 million following BP's takeover of ARCO
in April 2000. The acquisition of the two packages, which was initially
announced on 31 July 2000, comprises 240 billion cubic feet ('bcf') of
strongly cash generative producing gas assets, potential for 120bcf of
undeveloped discoveries, and substantial low risk appraisal and exploration
upside. The first portion of this acquisition, that of the Murdoch-Boulton
Package, completed on 13 February 2001.

The completion announced today refers to the majority of the principal fields
within the Thames-Hewett Package, namely the Thames and Hewett field complexes
and the Welland field, along with their associated pipeline and infrastructure
interests. The Thames complex also receives gas from other producing fields,
including Orwell and Gawain. The Gawain interest, together with interests in
the surrounding exploration acreage, is expected to be completed in the next
few weeks. Completion of Orwell is anticipated in the next few months, as
final regulatory and other approvals are sought, most notably in relation to
Tullow taking over the operatorship of the field from ARCO.

The Thames-Hewett Package comprises interests in thirteen licences held by BP
in the Southern North Sea, and contains thirteen producing fields, six
discoveries and a number of exploration prospects and leads. The gas from the
Thames field is sold under a long-term contract while the gas from Hewett is
uncontracted and is sold on the open market.



Aidan Heavey, Managing Director of Tullow, commented:

'The completion of the first part of the Thames-Hewett package is a further
major milestone in Tullow's plan to be a long term participant in the Southern
North Sea gas basin. We believe that new investment through a combination of
the innovative application of modern technology and an active exploration and
appraisal programme should lead to the continuation of production from these
assets for many years to come. This acquisition and the related cashflow will
be used as the engine of our future UK and international development and
exploration activities.'



Further Information

Graham Martin

Legal and Commercial Director (020 7389 0304)


Tom Hickey

Finance Director (020 7389 0305)


John Lander

Managing Director (020 7849 5613)

Tullow Exploration Limited