Major Boost to UK Pension

BP Amoco PLC
4 November 1999


BP AMOCO GIVES MAJOR BOOST TO UK PENSION

BP Amoco today announced a change to its pension rules which will
significantly boost the incomes of many of its UK retirees.

From May 1, 2000, the company will no longer take account of the basic state
pension when calculating retirement benefits from the BP Pension Fund.

The rule change, which is subject to the approval of the BP Pension Fund
Trustee Board, will apply not only to future retirees but also to most of the
35,000 existing pensioners and dependants in more than 30 UK schemes operated
under the BP Pension Fund.

The change also means that where UK pensioners have already had the basic
state pension taken into account, their pensions will be recalculated and the
increase paid from next May.

Incorporating the state pension, known as 'integration', is a normal
convention for large 'defined benefit' occupational pension schemes in the UK.
The decision to discontinue the practice will make the BP Pension Fund one of
the first to fully sever the link with state benefits.

BP Amoco said the capital cost of the change would be some £600 million -
expected to be met from the current surplus in the BP Pension Fund.

BP Amoco chief executive Sir John Browne said:  'While the BP Pension Fund
already guarantees inflation proof pension increases of up to five per cent
each year, the board has decided that the well-resourced position of the BP
Pension Fund and the financial strength of BP Amoco can support this
additional improvement.  It will give a significant boost to the incomes of
many of our pensioners, enabling them to share in the ongoing success of the
company.'