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Office of the Press Secretary

For Immediate Release September 28, 1994
                        TIMAN PECHORA PROJECT

The Presidents of the United States and Russia express support for the early completion of the negotiations between the Russian Federation and the Timan Pechora Company L.L.C. (TPC) toward the Timan Pechora production sharing agreement. The two sides will exert all possible efforts to support successful conclusion of the negotiations by the coming meeting of the Joint Commission for Economic and Technological Cooperation, which will be held before the end of year 1994.

The Timan Pechora project is designed to explore, appraise, and develop viable oil fields in the Timan Pechora Basin. According to available estimates, potential oil resources of the basis total more than two billion barrels. TPC will act as the operating company for the project, located 1,771 kilometers (1,100 miles) northeast of Moscow above the Arctic Circle on the Barents Sea. TPC is owned jointly by U.S. companies Texaco, Exxon, Amoco, and the Norwegian company Norsk Hydro.

President Clinton and President Yeltsin agreed at their meeting in Naples to give the Timan Pechora project top priority in the oil and gas sector. Vice President Gore and Prime Minister Chernomyrdin, through the Joint Commission for Economic and Technological Cooperation, will continue their efforts to ensure successful completion of negotiations and implementation of the project, including early adoption of production sharing agreement legislation in Russia.

It is anticipated that the Overseas Private Investment Corporation (OPIC), among others, may provide substantial assistance for the project through their financing and insurance support.