BP Amoco & SINOPEC Sign Joint Framework Agreement

BP AMOCO PLC
20 October 1999


BP Amoco p.l.c. and China Petrochemical Corporation (SINOPEC) officials today
in London signed a framework agreement to undertake a joint feasibility study
for a world-scale ethylene cracker and derivatives complex in Shanghai, China.

This month, the 650,000 tonne per year ethylene and derivatives Project
Proposal was approved by the Chinese government will full support from the
Shanghai municipal and Zhejiang provincial governments.

In 1996, SINOPEC and its affiliate Shanghai Petrochemical Company (SPC) signed
a letter of intent with The British Petroleum Company p.l.c. and its affiliate
BP Chemicals Limited to consider the 50/50 share joint venture.  In July 1997,
both companies completed a project pre-feasibility study and submitted the
US$2.5 billion project proposal to the government.

BP Amoco Chemicals Chief Executive Bryan Sanderson said today's agreement will
pave the way for the largest investment made by BP Amoco in China since the
company's major investment in the BP Chemicals Limited-SINOPEC/Sichuan Vinylon
Works Yangtze River Acetyls Company Ltd. (YARACO) acetic acid joint venture in
Chongqing.

'This agreement further strengthens the BP Amoco-SINOPEC partnership,'
Sanderson said.  'It is also in line with BP Amoco's strategy of pursuing
major opportunities in China.'

'Today's signing of the agreement further develops the co-operative
relationship between SINOPEC and BP Amoco, based on the successful
co-operation in the Yangtze River Acetyls Company Ltd. (YARACO) acetic acid
joint venture,' SINOPEC Vice President Wang Jiming said.  'The Shanghai
cracker project will contribute significantly to SINOPEC's aim of building
several million tonne ethylene sites in China in stages after year 2000 and to
the economic development of both Shanghai municipality and the Yangtze River
Delta.'

Under the terms of the framework agreement, the companies will accelerate the
project and endeavour to complete a joint feasibility study report and the
negotiation of a joint venture contract and other commercial agreements by the
end of 2000.  Both companies intend to establish the joint venture before the
end of 2001.  Construction of the ethylene cracker and derivative plants is
expected to be completed by 2005.

The UK Minister for Trade, the Rt. Hon. Richard Caborn MP, said today's
agreement demonstrates the commitment and confidence that companies like BP
Amoco have in China as an important market for the 21st century.  'I hope it
will serve as an example for other UK businesses in every sector to maximise
their investment opportunities so that Britain continues to be Europe's
leading investor in China,' Caborn said.

Notes to editors:

Prior to the signing ceremony, Minister of State Development and Planning
Commission of the People's Republic of China Zeng Peiyan, who is on an
official visit to the United Kingdom met with Peter Sutherland, co-chairman of
BP Amoco p.l.c., and SINOPEC vice president Wang Jiming.  Madame Jiang,
secretary general of the State Economic and Trade Commission, representatives
from the Ministry of Foreign Affairs and the Chinese Embassy in London were
also present.  SINOPEC vice president Wang Jiming and BP Amoco Chemicals chief
executive Bryan Sanderson were the signing representatives of both parties at
today's ceremony.

Further enquiries:

Scott Dean, BP Amoco, London, Tel: [phone]
Yi Min, BP Amoco, Beijing, Tel: [phone]