For immediate release

5 January 2004

                            Northern Petroleum Plc                             

                         New Licences Awarded in Italy                         

Northern Petroleum Plc is delighted to announce that its wholly owned
subsidiary Northern Petroleum (UK) Limited ("Northern") has been awarded two
further exploration licences in Italy by the Italian authorities.

The licences are Nibbia, in the Po Valley and Cesera on the Adriatic Coast.

Nibbia is situated in the central region of the Po Valley close to
Villafortuna, the second largest onshore oil field in Europe. Northern believes
that the Nibbia licence, adjacent to the Vercelli licence (50% owned by the BG
Group), has the potential for a significant oil or gas condensate accumulation
in addition to the normal Po Valley shallow gas plays. This is similar to our
Savio Licence, in the Lower Po Valley, adjacent to the San Marco permit, where
it is reported the Abaddesse Gas prospect is to be drilled during the first
quarter of this year.

On the northern Adriatic coast, the Cesara Licence covers three abandoned
shallow gas fields which will now be studied for their gas storage potential.

The awards are subject to presentation of a satisfactory environmental impact
study.

Derek Musgrove, Managing Director of Northern Petroleum Plc, commented,

"This is great progress and brings Northern's total number of Italian licence
awards to six, all of which are operated by Northern, with four applications
outstanding.

Two of our existing Italian licences and three of the applications cover an oil
prone area offshore the south of Sicily with many old undeveloped oil
discoveries. They are close to Libya, Tunisia and Malta but have, in our
opinion, considerable advantages of being in EU territory and under a benign
Italian hydrocarbon tax system.

Northern Petroleum now holds a position of considerable strength in Italian oil
and gas exploration. This has been achieved with patience and should now be
recognized as a significant value to Northern Petroleum Plc."

ITALIAN LICENCES AND APPLICATIONS OPERATED BY NORTHERN PETROLEUM (UK) LIMITED

LICENCE                                        PERCENTAGE OWNED
                                                               
PO VALLEY                                                      
                                                               
Savio                                                       70%
                                                               
Nibbia                                                      70%
                                                               
OFFSHORE SICILY                                                
                                                               
d343C.R.-.NP (Canale di Sicilia)                            70%
                                                               
d344C.R.-.NP (Canale di Sicilia)                            70%
                                                               
ADRIATIC COAST                                                 
                                                               
Cesara                                                      70%
                                                               
ROMA - LAZIO                                                   
                                                               
d92E.R.-.NP (Offshore near Rome)                         33.34%
                                                               
APPLICATIONS                                                   
                                                               
d18G.R.-.NP (Canale di Sicilia)                             70%
                                                               
d19G.R.-.NP (Canale di Sicilia)                             70%
                                                               
d20G.R.-.NP (Canale di Sicilia)                             70%
                                                               
Longastrino (Po Valley)                                     70%

For further information please contact,

Derek Musgrove, Managing Director,

Northern Petroleum Plc - Tel. 020 7743 6080

Gillian Hunt, Director,

Northern Petroleum (UK) Limited - Tel. 020 7743 6080

Chris Roberts / Ben Simons,

Hansard Communications - Tel. 020 7245 1100 / 0771 309 0135



END