FOR IMMEDIATE RELEASE                                          AT
WEDNESDAY, APRIL 23, 1997                          (202) 616-2771
                                               TDD (202) 514-1888


      JUSTICE DEPARTMENT APPROVES PETROLEUM EXPLORATION AND
        PRODUCTION JOINT RESEARCH AND DEVELOPMENT PROPOSAL


       Amoco, Arco, Exxon, Mobil, Shell, Texaco, Texas A&M
            University, Initial Members of Cooperative


     WASHINGTON, D.C. -- The Department of Justice approved today
a proposal by six major oil companies and a Texas university to
form the Petroleum E&P Cooperative--a joint venture that would
engage in research and development relating to oil exploration
and production.  

     The Department's Antitrust Division said that the
cooperative agreement did not appear to be designed to restrict
price, output or research competition amongst its members, and
that the joint venture may even have the procompetitive effect of
promoting innovation.

     The initial members of the cooperative are Amoco, Arco,
Exxon, Mobil, Shell, Texaco and Texas A&M University.  Membership
will be open to any oil exploration and production firm, other
than oil field service firms.  

     Joel I. Klein, Acting Assistant Attorney General in charge
of the Department's Antitrust Division stated that the formation
of the joint venture in the manner proposed "would not create any
risks to competition."

     Klein also said that "to the extent that the cooperative in
fact engages in research efforts that would not be undertaken by
individual firms, the joint venture may have the procompetitive
effect of promoting innovation."

     Under the proposal, individual oil services firms will
participate in specific research projects of the cooperative.  A
unit of Texas A&M University will develop the cooperative's
annual research plan, coordinate its implementation, furnish
support staff for the research undertaken, and inform the federal
antitrust authorities, under the National Cooperative Research
and Development Act, of the cooperative's specific research
projects and any changes in its membership.
     All members will retain the right to engage in independent
research and to retain any intellectual property rights derived
from such independent research.  Members will continue to engage
in independent research that far exceeds the scope of the
cooperative, whose initial annual budget is expected to be less
than $5 million.

     According to the applicants, in 1996 there were at least 61
entities pursuing petroleum exploration and production research,
with total research budgets in excess of $1 billion.  

     The Department's position was stated in a business review
letter from Klein to counsel for the group.

     Under the Department's Business Review Procedure, an
organization may submit a proposed action to the Antitrust
Division and receive a statement as to whether the Division will
challenge the action under the antitrust laws.

     A file containing the business review request and the
Department's response may be examined in the Legal Procedure Unit
of the Antitrust Division, Suite 215, Liberty Place, 325 7th
Street, N.W., Department of Justice, Washington, D.C. 20004. 
After a 30-day period, the documents supporting the business
review will be added to the file.
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