Proposed Acquisition

BP Amoco PLC
26 May 2000

                            
    BP AMOCO TO ACQUIRE BAYER'S STAKE IN ERDOELCHEMIE

Bayer and BP Amoco announced today that they have reached a common 
understanding in principle that Deutsche BP  AG  will acquire Bayer's 50   
per cent shareholding in their petrochemicals joint venture, Erdoelchemie.

Final agreement will be subject to approval by European regulatory 
authorities  and the management  boards  of  both companies.

At this stage it is anticipated that the final agreement will
be  completed  early in 2001, after which full ownership  and
control  of  Erdoelchemie and its petrochemical manufacturing
site near Cologne, Germany, will transfer to Deutsche BP AG.

Bryan   Sanderson,  Chief  Executive  Officer  of  BP   Amoco
Chemicals,   said:  'Our  proposed  acquisition  of   Bayer's
shareholding  clearly underlines the strategic importance  of
Erdoelchemie to BP Amoco. We believe this will now create  an
exciting opportunity for Erdoelchemie to continue growing  as
a  strategic  site  within BP Amoco's  global  petrochemicals
business.'

Sanderson  added that the site's location fits well  with  BP
Amoco's petrochemical derivatives plants at Geel and Feluy in
Belgium and Marl in Germany.

In  the  recent  past, BP Amoco and Bayer have  sanctioned  a
number   of  major  expansions  at  Erdoelchemie's   Cologne-
Worringen  site,  most  recently a 200,000  tonnes  per  year
ethylene  cracker  expansion announced in  April  2000.  This
investment  programme  is expected to continue  under  single
ownership.

On completion of the deal, Erdoelchemie will account for over
ten   per   cent  of  BP  Amoco  Chemicals'  total  worldwide
petrochemical   capacity.  The  addition  of   Erdoelchemie's
ethylene production capacity will make BP Amoco Chemicals one
of the top three European olefins producers.

Notes to editors:

Erdoelchemie  is  a  joint venture petrochemical  company  in
which  Deutsche  BP AG and Bayer AG each hold  50  per  cent.
Located  in  Worringen, near Cologne,  Germany,  the  company
employs some 2,200 people and had a turnover in 1999 of  more
than  DM  2.5 billion. Erdoelchemie produces over 4.2 million
tonnes  of petrochemicals annually: its main products include
ethylene (900,000 tonnes per year), propylene (560,000 tonnes
per  year)  and polyethylene (540,000 tonnes per year).  More
information  on  Erdoelchemie is available on  the  company's
website: http://www.erdoelchemie.de

Deutsche  BP  AG  is  the operating company  for  the  German
business  activities  of  BP  Amoco  p.l.c.,  including  oil,
chemicals and other business operations.

BP  Amoco Chemicals manufactures and markets a wide range  of
petrochemicals, intermediates, polymers and specialities.  In
1999,  it  had  a turnover of $9.4 billion, selling  over  26
million tonnes of product world-wide.

Further enquiries:

David Nicholas, BP Amoco, London, tel: [phone]