re Grangemouth site

BP PLC
13 November 2001

November 13, 2001                                                         50/01


                     BP EMBARKS ON MAJOR DRIVE TO MAKE
                         GRANGEMOUTH SITE COMPETITIVE

BP announced today that it will restructure operations at the company's
Grangemouth refining and petrochemical complex in Scotland. The move is part
of a series of initiatives and investments to radically improve the plant's
ability to compete in an increasingly difficult international refining and
chemicals environment. It will lead to the loss of up to 1,000 jobs.

The decision follows a fundamental ten-week review of the site's organisation,
asset structure and, most particularly, its financial performance, which has
been severely impacted by the economic downturn, unprecedentedly depressed
chemicals markets, and a series of operational problems.

'This is a very difficult time for everyone working at Grangemouth, and we are
committed to handling it as openly and sensitively as possible,' said Colin
Maclean, director of the complex.

'However, we have no choice but to move ahead with this transformation if we
are to ensure that Grangemouth remains safe, modern and equipped to prosper in
an increasingly competitive global marketplace so that we can safeguard its
long-term future.'

The reorganisation will streamline Grangemouth's three main businesses -
refining, petrochemicals and the Forties pipeline terminal - into a single
organisation, designed to simplify site operations while increasing
reliability and efficiency.

As part of the plan, the company will also shut down an older polyethylene
production unit, Rigidex 2, within the chemicals plant, and the oldest and
smallest of the three crude distillation units, CDU1, in the refinery.

The plant closures and simplification of the site's organisational structure
are expected to result in the reduction of up to 1,000 jobs at Grangemouth
over the next two years.

BP said today that consultations were already underway with employees, unions
and other representatives to ensure people are aware of their status by early
next year. The company pledged to make every effort to relocate people with
the appropriate skills to other BP locations, or to provide re-training,
job-search assistance and severance packages. The company is also in
discussion with Falkirk Council and Scottish Enterprise (Forth Valley) to
address actions in support of people and in support of broadening and
enhancing the local economy.

BP has also held initial discussions with the Health and Safety Executive and
the Scottish Environmental Protection Agency about the planned changes at
Grangemouth.

The restructuring is fully consistent with the recommendations of the special
BP task force that carried out a major safety review of the site's assets and
operations following a series of incidents last year. The company said most of
the recommendations from that review had already been implemented and the rest
would be completed by the end of the year. As a result of the review the
company is investing some $115 million a year at Grangemouth to enhance the
site's overall safety and reliability.

Notes to editors:

*    BP's Grangemouth complex comprises operations of three of the BP Group's
core businesses: exploration (the Forties pipeline system), refining and
petrochemicals manufacture.  At present there are around 2,500 BP employees
working on the site.

*    The BP-operated Forties pipeline system, which supplies crude oil to the
site, is the North Sea's biggest oil transportation and processing system,
carrying around one million barrels of oil a day.

*    The refinery has an annual capacity of around ten million tonnes of crude
oil. Its major products include liquefied petroleum gas (LPG), petrol, diesel,
jet fuel, kerosene, fuel oil and heating oil. It is Europe's leading producer
of environmentally friendlier fuels such as low sulphur diesel and petrol.

*    The petrochemicals plants produce over 1.5 million tonnes of chemicals a
year. Products range from ethylene to derivative and intermediate products
including ethanol, polyethylene, polypropylene, aerosol propellants, benzene
and butadiene.

*    In recent years BP has invested some £500 million in Grangemouth in a
series of projects including expansion of the site's ethylene and polyethylene
capacity, new polypropylene and ethanol production units and new plant to
improve the quality of petrol and diesel fuel.

*    BP already works in close partnership with SEFV, Falkirk Council and
other local agencies. Enterprising Falkirk was created in 1999 principally to
stimulate new business start-up in the area. To date it has triggered an
e-business incubator for 15 start-up companies, funded an e-business suite at
the local Business Gateway and its BP Grangemouth Loan scheme has given
assistance to 60 young companies. BP's commitment to Enterprising Falkirk is
in addition to its on-going social investment programmes in the area which
include a very active schools' link scheme, a Matching Gifts programme to
support the work of its employees and retirees in the community, support for a
day care sister at Strathcarron Hospice and support for the Scottish Forest
Alliance.

Further enquiries:

Bill Moore, BP Grangemouth:  01324 476863

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