From: mtaghavi@magnus.acs.ohio-state.edu (Amir Taghavi)
Subject: ARCO, Sun to receive $130 million each from Iran
Keywords: Iran
Organization: The Ohio State University
Date: Wed, 19 Aug 1992 05:19:31 GMT


	LOS ANGELES (UPI) -- Sun Co. and Atlantic Richfield Co. said Tuesday
they will each receive $130.5 million from Iran and its national oil
company to settle disputes involving the seizure of assets during the
Iranian revolution more than a decade ago.
	The oil companies said the agreement, which resolves disputes with
the Islamic Republic of Iran and the National Iranian Oil Co., remains
subject to approval by the Iran-United States Claims Tribunal at The
Hague in the Netherlands.
	The settlements were reached last Friday at The Hague. ARCO said it
expects to receive payment during the fourth quarter, but a spokesman
said the company has not yet decided when or how it will account for the
funds on its books.
	Sun Senior Vice President Robert Writz Jr., called the settlement 
``fair'' and said the payment will be made in the fourth quarter, with a
positive net after-tax impact on income of approximately $115 million.
	The announcements appeared to have little effect on the company's
stock. ARCO was off 62.5 cents to $114.75 a share in trading on the New
York Stock Exchange, while Sun rose 37.5 cents to $25.625.
	ARCO said the dispute involved its interests and those held by its
subsidiary, ARCO Exploration Inc., in offshore oil operations of the
Lavan Petroleum Co. (LAPCO) in Iran. These interests, as well as other
rights and assets which ARCO had in Iran, had been taken by the
revolutionary government between 1978 and 1980.
	Three ARCO subsidiaries filed claims for these losses with the
Tribunal. One of the units, Anaconda Iran Inc., received a favorable
award in 1986 of $18 million, but the Tribunal must still decide what,
if any, damages should be awarded in respect to a counterclaim filed by
Iran.
	ARCO received $9 million in a second case, which involved oil
interests and was settled by mutual agreement in December 1990.
	``We are pleased that this largest of our claims against Iran has
been resolved,'' said Lodwrick M. Cook, ARCO's chairman and chief
executive officer. ``It has been a long and difficult legal struggle,
and we are satisfied with the outcome.''
	Los Angeles-based ARCO said payment of the settlement amount will
come from a security account established by the 1981 Algiers Accords.
	Philadelphia-based Sun said it had settled all disputes it had with
Iran and the state-run oil company. That agreement calls for Iran to pay
$130.5 million to Sun for its claims brought before the Iran-U.S. Claims
Tribunal.
	The tribunal must also approve the Sun settlement.
	``The settlement affirms Sun's belief that international exploration
agreements can be enforced and that compensation can be obtained when
their terms are disputed,'' Wirtz said.
	ARCO, the nation's seventh biggest oil company, earned $309 million
on sales of $4.52 billion in the second quarter. Sun, the nation's No.
10 oil company, earned $6 million on sales of $2.69 billion.


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