BP Amoco Sells Alliance Refinery to Tosco

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July 13th 2000

BP Amoco (NYSE: BPA) announced today that it has entered into a definitive agreement to sell its Alliance refinery in Belle Chasse, Louisiana to Tosco Corporation for $660 million. In addition to the refinery, Tosco will purchase the petroleum inventories maintained by BP Amoco at the Alliance refinery. The Alliance crude pipeline and products pipeline interests will be sold in separate transactions to other purchasers, who will enter into agreements with Tosco to provide for the transportation of feedstocks to and products from the Alliance refinery. The total proceeds to BP Amoco from the sale of the refinery and pipeline interests are expected to be approximately $1.1 billion.

Completion of the Alliance refinery sale is subject to the satisfaction of certain conditions, including regulatory approvals. The sale is expected to close prior to year-end.

The Alliance refinery is a technically sophisticated 250,000 barrels per day crude oil refinery which BP acquired from Gulf Oil Company in the mid - 1980s. In addition to its crude processing capabilities, the refinery has catalytic cracking, coking, catalytic reforming, aromatics and refinery grade propylene units. The facility currently has approximately 300 employees and Tosco has agreed to make job offers to the preponderance of these employees.

Commenting on the sale, BP Amoco's Chief Executive, Refining and Marketing, Doug Ford said: "The Alliance Refinery is one of the best sweet crude refineries in the US and therefore attracted a considerable amount of
interest from potential purchasers. We are particularly delighted that the deal with Tosco ensures continued employment for most of the current workforce. We will, of course, be working hard to assist the few employees who may be affected by the transition to find new employment and providing eligible employees with severance benefits."

The sale of the Alliance Business Unit was originally announced by BP Amoco's Group Chief Executive Sir John Browne in July, 1999 as part of a strategic plan to reduce BP Amoco's ownership of refining assets in the United States and elsewhere, and place a greater focus on exploration and production, chemical and marketing activities.

The Alliance Business Unit consists of three major components, including the Alliance refinery itself. The other two components include 140 miles of crude oil pipeline interests linking the refinery with Louisiana Offshore Oil Port (LOOP) and other nearby sources of crude oil feedstocks for the refinery, as well as a 150 mile petroleum products pipeline linking the refinery with the Colonial and Plantation products pipelines at Collins, Mississippi and BP Amoco's Collins products terminal.

BP Amoco today stated that it is in an advanced stage of negotiations with potential purchasers of the Alliance crude and products pipeline interests, and expects to announce agreements providing for the sales of those interests over the upcoming weeks.


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