IRVING, Texas and LONDON, Dec. 7 /PRNewswire/ -- BP Amoco p.l.c. and Exxon
Mobil Corporation (NYSE: XOM) announced today that they have mutually agreed
on the principles under which they will dissolve the Mobil-BP Amoco European
fuels and lubricants joint venture in response to the European Commission's
authorization of the Exxon and Mobil merger.
Under the agreement, which is subject to a number of approvals and
appropriate employee consultation, BP Amoco will purchase Mobil's 30 percent
interest in the fuels business for about $1.5 billion, subject to adjustments.
The agreement also includes the transfer of Mobil's interests in certain
pipelines serving Gatwick airport. In addition, the two companies will divide
the assets of the lubricants business broadly in line with their equity stakes
(51 percent Mobil, 49 percent BP Amoco).
"It took a significant amount of dedication and effort on the parts of BP
and Mobil employees to develop and then make this joint venture a success.
However, in this highly competitive industry BP Amoco and ExxonMobil have each
found new opportunities for the next century. This required us to bring the
venture to a mutually beneficial close," said BP Amoco Chief Executive Sir
John Browne and ExxonMobil Chairman and Chief Executive Officer Lee Raymond.
"We will end our relationship in a way that brings fair value to both
companies for the assets involved and allows both of us to continue to provide
our customers with high-quality products and service."
The fuels part of the venture, operated by BP Amoco, currently operates
around 8,500 service stations across Europe, representing about 12 percent of
the market, while the lubricants part of the venture, operated by ExxonMobil,
has a market share of just over 18 percent in Europe.
Under the outline agreement announced today, BP Amoco will receive the
service stations, fuels refineries at Grangemouth and Coryton, UK; Lavera,
France; Nerefco, The Netherlands; and Castellon, Spain; as well as the
shareholdings in the Turkish Mersin, French Reichstett and German Bayernoil
refineries. Mobil will receive the fuels refinery at Gravenchon.
On the lubricants side, ExxonMobil will receive the Dunkirk refinery in
France and the lubricants leg at Gravenchon. BP Amoco will retain the base
oil refinery in Neuhof, Germany, and the lubricants leg of Coryton, together
with the blending plants at Neuhof, Ghent in Belgium, Gemlik in Turkey,
Batsons in the UK and 45 percent share of the Turkish Serviburnu plant. The
remaining 10 lubricant blending plants will be part of the ExxonMobil
portfolio.
The companies have also agreed in principle to the following general
provisions for the marketing of lubricants in Europe. BP Amoco will receive:
-- All the lubricant marketing businesses in Portugal, Spain, Greece,
Gibraltar and Malta, including the Mobil branded business and the
Mobil brand for an interim period,
-- All the direct commercial vehicle lubricants business throughout
Europe, including the Mobil branded business and the Mobil brand for
an interim period,
-- All the BP and Duckhams branded passenger vehicle lubricant business
throughout Europe, and
-- All distributor relationships associated with the BP and Duckhams
brands.
ExxonMobil will receive: (outside of Portugal, Spain, Greece, Gibraltar
and Malta)
-- All the direct industrial lubricants businesses, including the BP and
Duckhams branded businesses,
-- All the Mobil-branded passenger vehicle lubricants business, and
-- All distributor relationships associated with the Mobil brand.
ExxonMobil and BP Amoco said that they do not expect the termination of
the joint venture to have a significant direct impact on staffing levels.
Assuming that all the necessary approvals are received, the effective date
for the implementation of the final agreement, will be January 1, 2000.
Notes to Editors:
Under the European joint venture, announced in February 1996, BP and Mobil
combined their downstream assets establishing operating partnerships for fuels
and for lubricants in each country where the companies were active.
The joint venture excluded the operations of both companies which had
activities in Europe but operated globally, such as international trading,
aviation, marine, shipping and gas marketing. Exploration and production and
chemicals were also excluded.
SOURCE Exxon Mobil Corporation
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http://www.exxon.mobil.com
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http://www.prnewswire.com/comp/143842.html or fax,
800-758-5804, ext. 143842
CONTACT:
Media Relations of Exxon Mobil Corporation,
703-846-2378; or Media Relations of BP Amoco p.l.c.,
011-44-171-496-4358
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