B. Gill Clements PRESIDENT Mr. S. Ghozali President & General Manager Sonatrach 80 Avenue A. Ghermout Algiers, Algeria Dear Ghozali: I am deeply concerned about the financial condition and future of our joint venture company, ALFOR. In the twelve years since ALFOR was formed we have successfully solved many problems by maintaining good communications between SEDCO and Sonatrach, but recently we have been unable to meet with the appropriate Sonatrach officials which in itself is disturbing. I would appreciate receiving an audience with you as soon as possible in order to discuss the following: A. Past due receivables from Sonatrach which recently totaled 72,000,000 dinars. B. Establishment of a reasonable policy with regard to dividends, debt repayment, and expansion in relation to cash flow. C. Future role of ALFOR and SEDCO in Sonatrach's drilling program. I greatly appreciate your help in these matters and look forward to my visit. BGC:tr Best wishes, B. Gill Clements Cumberland Hill 1001 North Akard Street Dallas, Texas 75201