Exhibit 99 (a)
[BP LOGO] [AMOCO LOGO]
PRESENTATION TO THE
FINANCIAL COMMUNITY & PRESS
LONDON & NEW YORK
AUGUST 1998
The following statements, particularly those regarding synergies,
performance, debt, costs, dividends, returns, share buy-backs,
divestments, reserves and growth are or may be forward looking
statements and actual results may differ materially from the
statements made depending on a variety of factors, including
successful integration of BP and Amoco. Additional information
concerning factors that could cause the actual results to differ
materially from those in the forward looking statements are
contained in BP's Annual Report on Form 20-F and Amoco's Annual
Report on Form 10-K filed with the US Securities and Exchange
Commission.
[BP LOGO] [Amoco LOGO]
SCALE AND REACH
[Graph containing the following data:]
Reserves Market Capitalisation
(bn boe) ($bn)
BP + Amoco 15 119
Exxon 14 172
Shell 19 181
Amoco 6 38
Arco 4 23
BP 9 81
Chevron 6 53
Elf 3 37
ENI 5 54
Mobil 7 56
Texaco 4 32
["boe" denotes barrels of oil equivalents.]
INTENT
- - Creation of a new global `super-major'
- Top trio oil & gas reserves
- Global R&M business
- World class petrochemicals company
- - Identified synergies of $2bn pre-tax p.a.
- - Financial Strength
- - Sustainable long term growth
STRATEGIC FRAMEWORK
- - Distinctive assets
- - Organisational capability
- - Global reach
- - Strongly competitive returns
DISCIPLINED FINANCIAL FRAMEWORK
- - Prudent capital structure
- 30% gearing ceiling
- - Dividend policy
- Payout 50% of underlying earnings
KEY FEATURES
- - Simple structure
- UK holding company
- - Accounting & Reporting
- As a merger
- Reporting in $
- - Global integration of management, assets, operations
- - Value generation for shareholders
- $2bn of pre-tax synergies by 2001
BOARD
- - Two Co-Chairmen
- - One CEO
- - Two Deputy CEOs
- - One CFO
- - Majority of non-executives
SENIOR MANAGEMENT
CEO
John Browne
/
/
/
EVP Chief of Staff --------/--------General Counsel
Stephen Gates / Peter Bevan
/
/
CFO ------------/-------EVP Policies & Technology
John Buchanan / Chris Gibson-Smith
/
/
/
--------------------------------------
/ \
/ \
President & Deputy CEO President & Deputy CEO
Rodney Chase Bill Lowrie
E&P R&M and Chemicals
/ / /
/ / /
/ / /
EVP Int'l Refining & Marketing Chemicals
Dick Olver EVP Int'l Chairman
Peter Backhouse Bryan Sanderson
EVP New Business
Richard Flury EVP USA President
Douglas Ford Enrique Sosa
EVP W Hemisphere
Byron Grote
MANAGEMENT
- - London - Global headquarters
- - Chicago - American headquarters
- - Integrated team
- - Global business streams
- - Business Unit structure
PEER GROUP
1997 BP Amoco Shell Exxon
- ----------------------------------------------------------
Net Income* $bn 6.4 8 8.2
Production mmboe/d 2.9 3.7 2.7
Oil:Gas ratio 65:35 63:37 59:41
Reserves (bn bbls) 14.8 19.4 14.1
Refinery t'put mmb/d 2.6 4.3 4
Capital Employed ($bn) 53 73 56
Staff (000) 100 105 80
- ----------------------------------------------------------
*US GAAP
["mmboe/d" denotes millions of barrels of oil equivalents per
day.]
INCOME BY BUSINESS SECTOR
[Bar Graph showing the following information, in $bn:]
Chevron Mobil BP / Amoco Shell Exxon
E&P 1.99 1.93 4.12 4.29 4.39
R&M 0.94 1.18 1.41 2.73 2.01
Chems 0.21 0.32 1.01 1.02 1.33
Other 0.04 0.00 0.00 0.00 0.42
Total 3.18 3.43 6.54 8.04 8.15
Source: 1997 Annual Reports and company estimates
["E&P" denotes exploration and production. "R&M" denotes
refining and marketing.]
INCOME BY REGION
[Bar Graph showing the following information, in $bn:]
Chevron Mobil BP / Amoco Shell Exxon
USA 1.71 1.43 3.19 1.70 2.97
Europe 0.00 0.90 2.17 3.02 2.46
Rest of 1.47 1.10 1.21 3.34 2.73
World
Total 3.18 3.43 6.57 8.06 8.16
Source: 1997 Annual Reports and company estimates
UPSTREAM: BP AMOCO
[Map of the world showing the locations of upstream operations of
Amoco, BP and overlap between the two, as follows:]
Amoco: 2 sites in North America
2 sites in South America
1 site in Africa
1 site in Middle East
BP: 1 site in North America
1 site in South America
1 site in Europe
1 site in Middle East
1 site in Asia
1 site in Australia
Overlap: 1 site in Caribbean
1 site in South America
1 site in Europe
2 sites in Africa
1 site in Asia
UPSTREAM PRODUCTION
[Bar graph containing the following information concerning
upstream production, in mmboe/d:]
Chevron Mobil Exxon BP Amoco Shell
Oil 1.07 0.93 1.6 1.89 2.33
Gas 0.42 0.78 1.09 1 1.38
Total 1.49 1.71 2.69 2.89 3.71
["mmboe/d" denotes millions of barrels of oil equivalents per
day.]
UPSTREAM: PERFORMANCE
[Bar Graph showing the following information:]
BP / Shell Exxon Mobil Chevron
Amoco
R:P ratio 14 14.3 13.9 11.2 11.4
Finding $/bbl 1.64 1.85 1.72 1.92 2.52
F&D $/bbl 4.19 2.88 4.61 6.81 4.59
Lifting $/bbl 3.05 3 2.9 n/a 3.8
["R:P" denotes reserves:production. "F&D" denotes finding and
developing.]
US DOWNSTREAM: BP
[Map of the US illustrating the market share of BP (as provided
below) and BP's refineries in Toledo, Ohio and Alliance,
Louisiana:]
No. 1 or 2
Georgia
Ohio
No. 3-5
Indiana
Kentucky
Pennsylvania
Tennessee
North Carolina
South Carolina
Mississippi
Alabama
Below 5
Michigan
West Virginia
Virginia
Arkansas
Louisiana
Florida
US DOWNSTREAM: AMOCO
[Map of the US illustrating the market share of Amoco (as
provided below) and Amoco's refineries In Whiting, IN; Yorktown,
VA; Texas City, TX; Mandan, ND; and Salt Lake City, UT:]
No. 1 or 2
North Dakota
South Dakota
Minnesota
Iowa
Wisconsin
Illinois
Indiana
Kansas
Missouri
North Carolina
Georgia
Florida
No. 3-5
Idaho
Nebraska
Colorado
Michigan
New York
Pennsylvania
Connecticut
Delaware
New Jersey
Maryland
Virginia
Tennessee
South Carolina
Below 5
West Virginia
Arkansas
Mississippi
Utah
Ohio
Kentucky
Alabama
US DOWNSTREAM: BP AMOCO
[Map of the US illustrating the market share of BP Amoco (as
provided below) and BP Amoco's refineries In Toledo, OH; Whiting,
IN; Yorktown, VA; Texas City, TX; Mandan, ND; Salt Lake City, UT;
and Alliance, Louisiana:]
No. 1 or 2
North Dakota
South Dakota
Minnesota
Iowa
Wisconsin
Illinois
Indiana
Ohio
Kansas
Missouri
Kentucky
Tennessee
Virginia
North Carolina
South Carolina
Georgia
Alabama
Mississippi
Florida
No. 3-5
Idaho
Nebraska
Colorado
Michigan
New York
Pennsylvania
Connecticut
Delaware
New Jersey
Maryland
Below 5
West Virginia
Arkansas
Louisiana
Utah
GLOBAL DOWNSTREAM: BP AMOCO
[Map of the world showing the locations of emerging markets and
established markets of downstream operations for BP Amoco, as
follows:]
Emerging markets: 1 site in Central America
1 site in South America
1 site in Europe
3 sites in Asia
Established markets: 1 site in North America
1 site in Europe
1 site in Africa
1 site in Southeast Asia
1 site in Australia
1 site in New Zealand
[List indicating that International Businesses include Trading,
Shipping, Marine and Aviation.]
DOWNSTREAM: ROACE
[Graph illustrating the following information, in %:]
1993 1994 1995 1996 1997
Minimum of 8.7 7.7 8.2 5.6 10.1
Competitors*
Maximum of 12.9 10.9 9.3 8.9 13.2
Competitors*
BP + Amoco 11.5 9.5 7.8 9.6 13
* Shell, Exxon & Mobil
Source: 1997 Annual Reports and company estimates
["ROACE" denotes return on average capital employed.]
CHEMICALS: BP AMOCO
[Map of the world showing the locations of chemical operations of BP
and Amoco as follows:]
Amoco: 8 sites in North America
1 site in South America
1 site in Europe
3 sites in Asia
3 sites in Southeast Asia
BP: 2 sites in North America
7 sites in Europe
2 sites in Asia
2 sites in Southeast Asia
PETROCHEMICAL SCALE
[Bar graph providing the following
information:]
1997 Sales -
Petchem segments
$bn
UCC 6.5
Dow 10.18
Exxon 12.2
BP / Amoco 12.8
BASF 13.42
Shell 14.27
Leading Positions & Proprietary Technologies:
- Acetyls (1st)
- Nitriles (1st)
- PTA (1st)
- Aromatics (1st)
- PIB (1st)
- Polypropylene (2nd)
- Polyethylene
- Solvents
- ---------------------------
- - Scale
- - Integration
- - Balanced portfolio
- - High demand growth
Chemicals: ROACE
[Graph illustrating the following information, in %:]
1993 1994 1995 1996 1997
Minimum of -1.2 8.2 16.8 8.4 9.2
Competitors*
Maximum of 6.9 13.9 29.6 16.1 17.4
Competitors*
BP + Amoco 2.5 14.9 29.2 16 14.9
*Shell, Exxon & Mobil
Source: 1997 Annual Reports and company estimates
["ROACE" denotes return on average capital employed.]
SYNERGIES
Annual Pre-Tax ($m)
Cost Savings by 2001
--------------------
Organisational efficiency 1,000
Focussed exploration 300
Business process 200
Procurement 250
Operational rationalisation 250
-----
2,000
DELIVERING SHAREHOLDER VALUE
- - $2bn extra pretax income by 2001
- - Revenue synergies not included
- - More upside after 2001
- - Management compensation linked to delivery
TIMETABLE
By end 1998
- - Regulatory approvals
- - Shareholder approval
- - Target final agreement
SECTOR LEADING PERFORMANCE
- - Strong base founded in US and Europe
- - Blend of the best of two companies into a new super-major
- - Momentum, capacity and confidence to deliver accelerated growth
[BP LOGO] [Amoco LOGO]