Ab initio electronic structure approaches in which electron correlation explicitly appears have been the subject of much recent interest. Because these methods accelerate the rate of convergence of the energy and properties with respect to the size of the one-particle basis set, they promise to make accuracies of better than 1 kcal/mol computationally feasible for larger chemical systems than can be treated at present with such accuracy. The linear R12 methods of Kutzelnigg and co-workers are currently the most practical means to include explicit electron correlation. However, the application of such methods to systems of chemical interest faces severe challenges, most importantly, the still steep computational cost of such methods. Here we describe an implementation of the second-order Moller-Plesset method with terms linear in the interelectronic distances (MP2-R12) which has a reduced computational cost due to the use of two basis sets. The use of two basis sets in MP2-R12 theory was first investigated recently by Klopper and Samson and is known as the auxiliary basis set (ABS) approach. One of the basis sets is used to describe the orbitals and another, the auxiliary basis set, is used for approximating matrix elements occurring in the exact MP2-R12 theory. We further extend the applicability of the approach by parallelizing all steps of the integral-direct MP2-R12 energy algorithm. We discuss several variants of the MP2-R12 method in the context of parallel execution and demonstrate that our implementation runs efficiently on a variety of distributed memory machines. Results of preliminary applications indicate that the two-basis(ABS) MP2-R12 approach cannot be used safely when small basis sets (such as augmented double- and triple-zeta correlation consistent basis sets) are utilized in the orbital expansion. Our results suggest that basis set reoptimization or further modifications of the explicitly correlated ansatz and/or standard approximations for matrix elements are necessary in order to make the MP2-R12 method sufficiently accurate when small orbital basis sets are used. The computer code is a part of the latest public release of Sandia's Massively Parallel Quantum Chemistry program available under GNU General Public License. (C) 2004 American Institute of Physics.