Acquisition

Tullow Oil PLC
29 August 2001

Embargo for 8.00 a.m.

29 August 2001

Tullow Oil plc ('Tullow')

Tullow becomes operator of Orwell Gas Field

Southern North Sea Acquisition now entirely complete

Tullow Exploration Limited, the UK North Sea Operating subsidiary of Tullow
Oil plc, has today been granted formal approval by the Department of Trade and
Industry (DTI) to assume the operatorship of the Orwell field in Block 50/26a
in the Southern North Sea. Tullow Exploration holds a 50% interest in this
field with Texaco holding the remainder. Gas from the Orwell field is piped
via the Thames production complex and landed at the Phillips operated Bacton
Terminal for processing and onward transmission into the National Transmission
System. Tullow's share of the gas production is not subject to any long-term
contractual sales arrangements.

In conjunction with the assumption of operatorship, Tullow has also completed
the acquisition of the Orwell field and the associated production licence from
ARCO British Limited. This means that all elements of the Southern North Sea
Acquisition from BP/ARCO, originally announced on 31 July 2000, have now been
completed. The operatorship of the remaining Thames Area fields, comprising
the Thames, Yare, Bure and Wensum fields and the satellite Gawain and Welland
fields, has today been assumed by Mobil North Sea Limited, a subsidiary of
Exxon-Mobil.

Aidan Heavey, Tullow Oil plc Managing Director commented:

'We are delighted to have completed on Orwell and to have concluded all
aspects of Tullow's Southern North Sea acquisition from BP/ARCO. The
assumption of an offshore production operatorship is a major milestone in the
evolution of any oil and gas company and is a testament to the experience,
professionalism and commitment of the team we have assembled. Tullow looks
forward to working with its partners in the North Sea Assets with the aim of
enhancing reserves and production from this area for many years to come.'



Enquiries:

Aidan Heavey

Managing Director                              Tel: [phone]

Tullow Oil plc


John Lander                                    Tel: [phone]

Tullow Exploration


Judith Parry/Simon Rothschild                  Tel: [phone]

Millham Communications


Emma Mcaffrey/Simon Ellis                      Tel: [phone]

Binns & Co