Document:

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                                                                     EXHIBIT 4.1

                        BP AMOCO p.l.c. AND SUBSIDIARIES

           THE BP AMOCO EXECUTIVE DIRECTORS' LONG TERM INCENTIVE PLAN

   (Adopted by shareholders at the Annual General Meeting on 13th April 2000)

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           THE BP AMOCO EXECUTIVE DIRECTORS' LONG TERM INCENTIVE PLAN

PREAMBLE

The Plan has three Elements which comprise the tools  available to the Committee
to construct Executive Directors' long-term incentive arrangements:

   The Share  Option  Element  This  Element  permits  Options  to be granted to
   Executive  Directors  at an Option  Exercise  Price no lower  than the Market
   Value of a Share.  All  Options  will be subject to a  demanding  performance
   condition,  which the  Committee  may apply  before grant (to  determine  the
   number of Shares  granted  under the Option) or after grant (to determine the
   number of Shares over which the Option is exercisable);

   The Share  Element This Element  permits the  Committee to award  Performance
   Units or other rights to Executive Directors, which may result in an award of
   Shares  (without   payment  by  the  Executive   Directors)  if  a  demanding
   performance  condition  imposed  by the  Committee  is  met.  In  exceptional
   circumstances,  Shares may be awarded which are subject to a  requirement  of
   continued  service  over  a  specified   period,   rather  than  a  corporate
   performance condition; and

   The Cash Incentive Element This Element (which shall only be capable of grant
   under the Schedule to the Plan) enables the Committee to introduce  long-term
   cash-based  incentives  into the  remuneration  package.  The Committee  only
   intends to use this Element in special circumstances.

In  operating  the Plan,  the  Committee  shall at all times have  regard to the
following key objectives and principles:

(a)   to segregate  Executive  Directors'  long-term  remuneration  from that of
      other executives by establishing a plan in which only they are eligible to
      participate;

(b)   to ensure that all Executive  Directors  participate in similar  long-term
      remuneration arrangements, irrespective of their home country;

(c)   to provide a framework for long-term  remuneration for Executive Directors
      which  enables  the Company to retain and  recruit  world-class  executive
      talent;

(d)   to ensure that Executive  Directors only achieve exceptional rewards under
      long-term incentive plans upon the achievement of outstanding  performance
      by the Company;

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(e)   to  ensure  that  full  and   transparent   information   is  provided  to
      shareholders  each year on the manner in which the  Committee has operated
      the Plan;

(f)   to ensure  that  where  Executive  Directors'  long-term  remuneration  is
      determined  on a  comparative  basis under the Plan,  it is  appropriately
      balanced  between  Elements which test the Company's  performance  against
      that of  competitors  in the oil  industry,  and  Elements  which test the
      Company's performance against that of the leading global companies; and

(g)   to ensure that the  interests  of  Executive  Directors  and  shareholders
      continue  to be aligned by  requiring  Executive  Directors  to build up a
      significant  shareholding  in the Company,  as specified by the  Committee
      from time to time.

DEFINITIONS

1.1 In this Plan, unless the context otherwise requires, the following words and
expressions shall have the following meanings, namely:

Adoption  Date  means the date of the  adoption  of the Plan by the  Company  in
general meeting;

Award  means a right  granted  under  the  rules of the Plan in  relation  to an
Element;

Cause means material breach by a Participant of his contract of employment;

the Committee means the Remuneration  Committee of the board of directors of the
Company;

the Company means BP Amoco plc;

Control has the meaning given to that word by section 840 of the Taxes Act;

Date of Grant means the date on which an Award is granted;

Dealing Day means any day on which the London Stock  Exchange (or in relation to
an Option  Exercise Price in US dollars the New York Stock Exchange) is open for
business;

Element means, as appropriate,  the Share Option Element,  the Share Element, or
the Cash Incentive Element;

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Executive Director means any executive director of the Company;

Grant Letter means the document setting out the rights and obligations attaching
to an Award and which may include or  incorporate  by  reference  the rules of a
sub-Plan;

Grant Period means the period of 42 days commencing on any of the following:

(a)   the Adoption Date;

(b)   the day on which the Company makes an  announcement of its results for the
      last preceding financial year, half year, quarter or other period; or

(c)   any day on which the  Committee  resolves that  exceptional  circumstances
      exist which justify the grant of Awards;

the Group means the Company and the  Subsidiaries  and member of the Group shall
be construed accordingly;

Market Value means, in relation to a Share on any Dealing Day, the middle market
quotation  for a Share as  derived  from the Daily  Official  List of The London
Stock  Exchange  (or if  applicable  the  closing  price on the New  York  Stock
Exchange);

Option means a right granted under the Plan to purchase Shares;

Option  Exercise  Price  means the price per Share (in  Sterling  or US dollars)
payable on the exercise of an Option as determined by the Committee  (subject to
adjustment under rule 8);

Participant means any individual who holds a subsisting Award (including,  where
the  context  permits,   the  legal  personal   representatives  of  a  deceased
Participant);

Performance Period means, in relation to the Share Element,  the period of three
years (or such longer period as the Committee may specify) over which  corporate
performance is measured;

Performance  Unit  means,  in  relation to the Share  Element,  a notional  unit
granted  under the Share Element  conferring  on a  Participant  the right to be
considered for an award of Shares at the end of a Performance Period;

the Plan means this Plan as amended from time to time;

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Shares  means  fully  paid  ordinary  shares in the  capital  of the  Company or
American Depository Shares (or, in either case, shares representing those shares
following any reorganisation of the share capital of the Company);

Subsidiary means any subsidiary of the Company within the meaning of section 736
of the Companies Act 1985 over which the Company has Control;

Taxes Act means the Income and Corporation Taxes Act 1988; and

Trustee  means the  trustee  from time to time of any  employee  trust which the
Committee selects to satisfy Awards.

1.2 Where the context  permits the  singular  shall  include the plural and vice
versa and the masculine shall include the feminine. Headings shall be ignored in
construing the Plan.

1.3 References to any act shall include any statutory modification, amendment or
re-enactment thereof.

GRANT OF AWARDS

2.1 The  Committee  may,  during  a Grant  Period,  grant  Awards  to  Executive
Directors  selected  by  the  Committee  in its  absolute  discretion.  For  the
avoidance of doubt, no Executive Director shall have the right or expectation to
participate in the Plan.

2.2 Each  Award  shall  comprise  such  Elements,  and shall be  subject to such
performance conditions,  as the Committee determines at its absolute discretion.
In determining the Elements and setting  performance  conditions,  the Committee
shall consider a range of internal and external factors affecting the Company.

2.3 The grant of an Award  and/or the delivery of Shares upon  exercise  thereof
shall be  conditional  on the  Executive  Director  agreeing  to comply with any
arrangements  specified  by the Company  for the payment of taxation  and social
security  contributions  (including  without limitation the right to sell on his
behalf   sufficient   Shares  to  satisfy  any   taxation  or  social   security
contributions  liability  on his part for which  any  member of the Group may be
liable) in respect of an Award.

2.4 As soon as practicable  after the Date of Grant the Committee  shall procure
the issue to a Participant of a Grant Letter in respect of the Elements  granted
to him.

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2.5 An Executive  Director to whom an Award is granted may, by notice in writing
to the Company  given within 30 days after the Date of Grant,  renounce in whole
or in part his rights under the Award.

2.6 No Award shall be granted under the Plan later than the fifth anniversary of
the Adoption Date.

2.7 Every Award  granted  hereunder  shall be personal to the  Participant  and,
except to the extent necessary to enable a personal  representative  to exercise
the  Award  following  the  death of a  Participant,  neither  the Award nor the
benefit thereof may be transferred,  assigned,  charged or otherwise  alienated.
Any transfer of an Award  otherwise than as permitted  under this rule 2.7 shall
cause the Award to lapse.

PLAN LIMITS

3.1 Awards may only be satisfied using existing  issued Shares,  and the Company
shall  provide (and shall  procure,  where  appropriate,  that any member of the
Group which employs  Participants shall provide) sufficient monies to enable the
Trustee to acquire sufficient Shares to satisfy all Awards. Such monies shall be
provided  to the  Trustee  no  later  than  the  date  on  which  the  Award  is
exercisable.

3.2 The total number of Shares that may be transferred  pursuant to Awards under
the Plan  (ignoring  Shares  comprised  in Awards  which  have  been  cancelled,
renounced pursuant to rule 2.5 or have lapsed) shall not exceed 0.5 per cent. of
the issued ordinary share capital of the Company as at the Adoption Date.

3.3  There  is no limit  on the  value  of  Awards  which  may be  granted  to a
Participant  in any year or over the life of the  Plan.  However,  (a) the total
combined  value of Awards  granted under all Elements in any year will be set by
the Committee at a level designed to reflect global market practice, and (b) for
the purposes of regulation 162 of the Internal  Revenue Code, no Participant who
is resident in the United States will be granted  Awards under either the Option
Element  or the Share  Element  in any year over more than 0.1 per cent.  of the
issued ordinary share capital of the Company as at the Adoption Date.

SPECIFIC PROVISIONS RELATING TO OPTIONS

4.1 The Committee  may, at its absolute  discretion,  grant  Options  during any
Grant Period.  The Option  Exercise Price of such Options shall be determined by
the Committee at its absolute discretion,  but shall not be less than the Market
Value of a Share on the Dealing Day  preceding  the Date of Grant or the average
of the Market  Values of a Share on the three  Dealing Days prior to the Date of
Grant.

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4.2 All Options will be subject to a demanding performance condition,  which the
Committee  may apply before  grant (to  determine  the number of Shares  granted
under the Option) or after grant (to  determine  the number of Shares over which
the Option is exercisable).

4.3 The  Committee  will not grant  Options  unless it considers  that an Option
grant is supported by the underlying performance of the Company's business.

4.4   The Grant Letter  issued  under rule 2.4 shall  specify,  inter alia,  the
      following:

(a)   the date or dates on which the Option shall normally become exercisable;

(b)   the date or dates on which the Option shall lapse  PROVIDED THAT no Option
      shall be capable of exercise  after the tenth  anniversary  of its Date of
      Grant;

(c)   the  circumstances,  if any, and the proportions in which the Option shall
      become  exercisable  in the  event  that  a  Participant  ceases  to be an
      employee of the Group;

(d)   whether and to what extent,  the Option shall  become  exercisable  in the
      event of the death of the Participant;

(e)   that all the Option will automatically lapse in the event that:

      (i)   the Participant is dismissed for Cause; and

      (ii)  the  Participant  is  declared  bankrupt  or enters into any general
            composition with or for the benefit of his creditors; and

(f)   the procedure for the exercise of an Option (including  whether the Option
      may be exercised in whole or in part).

4.5 Any Grant  Letter  issued  pursuant to rule 4.4 shall  ensure  that  legally
enforceable rights are created in favour of the Participant.

SPECIFIC PROVISIONS RELATING TO THE SHARE ELEMENT

5.1 The  Committee  may, at its  absolute  discretion,  grant the Share  Element
during  any Grant  Period.  The Share  Element  will  normally  be  subject to a
demanding corporate performance  condition.  The performance condition attaching
to Awards  under this  Element  will be  specified at the time of grant and will
require a sustained  improvement in the Company's performance over a Performance
Period.

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5.2 The Shares awarded on maturity of this Element will normally be subject to a
compulsory  retention period determined by the Committee which will not normally
be less  than  three  years.  Shares  will  only be  released  at the end of the
retention period if the Company's minimum shareholding guidelines (as determined
by the Committee from time to time) have been met.

5.3   The Grant Letter  issued  under rule 2.4 shall  specify,  inter alia,  the
      following:

(a)   the  circumstances,  if any, and  proportions in which, an award of Shares
      will be made  under this  Share  Element  in the event that a  Participant
      ceases to be an employee of the Group prior to the end of the  Performance
      Period;

(b)   whether any retention period will apply to any award of Shares pursuant to
      sub-paragraph  (a) of this rule 5.3 and the  length of any such  retention
      period;

(c)   whether any award of Shares  will be made under this Share  Element in the
      event of the death of the Participant; and

(d)   that any  entitlement  to an award of Shares under the Share  element will
      automatically lapse in the event that:

      (i)   the Participant is dismissed for Cause; and

      (ii)  the  Participant  is  declared  bankrupt  or enters into any general
            composition with or for the benefit of his creditors; and

5.4 In exceptional circumstances,  the Committee may make Awards under the Share
Element which are subject to a requirement of continued service over a specified
period, rather than a corporate performance condition.  Such Awards will only be
made as an element in a  recruitment  or retention  incentive or as a reward for
exceptional achievement of projects.

CORPORATE TRANSACTIONS AND OTHER EVENTS

6.1   Save as provided in rules 6.2 and 6.3, if:

(a)   any company obtains Control of the Company as a result of making a general
      offer to acquire all the Shares  (other than those which are already owned
      by him and/or any person acting in concert with him);

(b)   any company,  having such  Control,  makes a general  offer to acquire the
      Shares  (other than those which are already owned by him and/or any person
      acting in concert with him);

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(c)   any company  obtains  Control of the Company in  pursuance  of a scheme of
      arrangement sanctioned by the Court under section 425 of the Companies Act
      1985; or

(d)   notice is duly given of a resolution  for the voluntary  winding-up of the
      Company;

then the  following  provisions  shall  apply  (unless the  Committee  specifies
otherwise in the Grant Letter at the time of grant):

(i)   any Option  granted  prior to the date on which the relevant  event occurs
      shall become  exercisable in full  (irrespective  of whether it is already
      exercisable   and   irrespective   of   satisfaction  of  any  performance
      conditions)  and the  Option  will  lapse  on such  date as the  Committee
      specifies;

(ii)  if the  relevant  event  occurs  before  the end of a  Performance  Period
      relating  to  an  Award  under  the  Share  Element,  the  Committee  will
      immediately  determine the award of Shares to be made to each Participant,
      taking  account of the  proportion  of the  Performance  Period  which has
      elapsed  and the  degree  to  which  the  performance  condition  has been
      satisfied.

6.2 For the  avoidance  of doubt,  Awards  shall not  without the consent of the
Committee be exercisable  under rule 6.1 in the event of a scheme of arrangement
(referred  to in rule  6.1(c))  if the  purpose  and  effect  of the  scheme  of
arrangement  is to create a new holding  company for the  Company,  such company
having  substantially the same  shareholders and proportionate  shareholdings as
those of the Company  immediately  prior to the scheme of  arrangement.  In that
event,  the Committee  shall  endeavour to procure that an exchange of Awards is
effected under rule 6.3.

6.3 If any company (the Acquiring  Company)  obtains Control of the Company as a
result of an event referred to in rules 6.1, each  Participant  may, at any time
within one month of the change of Control,  with the  agreement of the Acquiring
Company,  release any Award (or Element  thereof)  which has not lapsed (the Old
Right) in consideration of the grant to him of a new award, which in the opinion
of the Committee  and the  Acquiring  Company is equivalent to the Old Right but
relates to shares in a different  company (whether the Acquiring  Company itself
or another company its group).

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ADJUSTMENT OF AWARDS

7.    In the event of:

(i)   any variation in the share capital or reserves of the Company  (including,
      without  limitation,  by way of  capitalisation  or  rights  issue  or any
      consolidation, sub-division or reduction); or

(ii)  the  implementation  by the  Company of a demerger  or the  payment by the
      Company of a super-dividend  which would otherwise  materially  affect the
      value of an Award,

then the terms of Awards  (including,  if relevant,  the performance  conditions
applicable  thereto)  shall be adjusted in such  manner as the  Committee  shall
determine in its absolute  discretion  provided that no adjustment shall be made
pursuant  to this rule unless and until the  auditors  for the time being of the
Company  (acting as experts  not  arbitrators)  shall  confirm in writing to the
Committee that such adjustment is in their opinion fair and reasonable.

TRANSFER OF SHARES ON EXERCISE OF AWARDS

8.1 Subject to any necessary consents,  to payment being made for the Shares and
to compliance by the  Participant  with the terms of the Plan, not later than 30
days after  receipt of any valid notice of exercise,  the Company  shall procure
the transfer of Shares to the Participant (or to his nominee). The Company shall
(unless  the  Shares  are to be  issued  in  uncertificated  form)  as  soon  as
practicable  deliver to the  Participant  (or his  nominee) a  definitive  share
certificate or other evidence of title in respect of such Shares.

8.2 The Company  shall not be  obligated  to procure  the  transfer of Shares in
connection  with  any  Award  or take  any  other  action  under  the  Plan in a
transaction  subject to the  requirements of any applicable  securities law, any
requirement  under any listing  agreement between the Company and any securities
exchange  or  automated  quotation  system  or  any  other  law,  regulation  or
contractual  obligation of the company until the Company is satisfied  that such
laws, regulations,  and other obligations of the Company have been complied with
in full. The Company may require any  Participant  to make such  representations
and furnish such  information as it may consider  appropriate in connection with
the transfer of Shares under the Plan. Certificates  representing Shares will be
subject to such stop-transfer orders and other restrictions as may be applicable
under such laws,  regulations and other obligations of the Company, and a legend
or legends may be placed thereon to reflect such restrictions.

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RIGHTS ATTACHING TO SHARES TRANSFERRED PURSUANT TO AWARDS

9.1 All Shares  transferred  upon the exercise of an Award shall rank pari passu
in all respects with the Shares in issue at the date of exercise save as regards
any rights  attaching  to such Shares by reference to a record date prior to the
date of exercise.

9.2 Any Shares  acquired on exercise of Awards  shall be subject to the articles
of association of the Company from time to time.

ADMINISTRATION AND AMENDMENT

10. The  decision  of the  Committee  shall be final and  binding in all matters
relating  to the Plan and it may at any time  discontinue  the grant of  further
Awards  or amend  any of the  provisions  of the Plan in any way it  thinks  fit
provided that:

(a)   the Committee shall not make any amendment that would materially prejudice
      the  interests of existing  Participants  except with the prior consent or
      sanction of Participants; and

(b)   no amendment to the advantage of Executive  Directors or Participants  may
      be made to the basic structure of the Plan (as determined by the Committee
      but including,  without limitation, the definition of Executive, the limit
      under rule 3.2, the terms of Shares to be provided  under the Plan and the
      adjustment provisions of rule 8 of the Plan) without the prior approval of
      the  Company  in general  meeting  except in the case of an  amendment  to
      benefit the administration of the Plan.

GENERAL

11.1 The Plan constitutes an employees' share scheme for the purposes of section
743 of the Companies Act 1985 (being a scheme for  encouraging  or  facilitating
the holding of Shares),  save in respect of rights  granted  under the  Schedule
hereto.  Any member of the Group may provide  money to the trustees of any trust
or any other  person to enable them or him to acquire  Shares to be held for the
purposes  of the  Plan,  or enter  into any  guarantee  or  indemnity  for those
purposes, to the extent not prohibited by section 151 of the Companies Act 1985.

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11.2 The rights and obligations of a Participant  under the terms and conditions
of his office or employment  shall not be affected by his  participation  in the
Plan or any expectation or right which (notwithstanding rule 2.1) he believes he
may have to participate in the Plan. An individual who  participates in the Plan
waives all and any rights to  compensation  or  damages  in  consequence  of the
termination  of his  office  or  employment  with  any  company  for any  reason
whatsoever insofar as those rights arise, or may arise, from his ceasing to have
rights  under or be entitled to exercise any Award under the Plan as a result of
such  termination  or from the loss or  diminution  in value of such  rights  or
entitlements.  If necessary,  the  Participant's  terms of  employment  shall be
deemed to be varied accordingly.

11.3 Any notice or other  document  required to be given under or in  connection
with the Plan may be  delivered to a  Participant  or sent by post to him at his
home  address  according to the records of his  employing  company or such other
address as may appear to the  Company to be  appropriate.  Notices  sent by post
shall be deemed to have been given on the day following the date of posting. Any
notice  or  other  document  required  to be given  to the  Company  under or in
connection  with  the  Plan  may be  delivered  or  sent  by  post  to it at its
registered  office (or such other place or places as the Committee may from time
to time determine and notify to Participants).

11.4  Benefits under the Plan shall not be pensionable.

11.5 The Company,  or where the Committee so directs any  Subsidiary,  shall pay
the appropriate  stamp duty on behalf of Participants in respect of any transfer
of Shares on the exercise of Awards.

11.6 These rules shall be governed by, and  construed in  accordance  with,  the
laws of England.

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                                  SCHEDULE

Those matters  covered by this Schedule do not form part of an employees'  share
scheme for the purposes of section 743 of the Companies  Act 1985,  because they
involve or may involve payment of cash amounts to Participants.

Specific Provisions relating to Cash Incentive Element

1.1 The  Committee  may, at its absolute  discretion,  grant the Cash  Incentive
Element during any Grant Period.

1.2 The  Cash  Incentive  Element  shall be  subject  to such  terms  (including
performance  conditions) as the Committee shall impose at the time of grant. The
Remuneration   Committee   only   intends  to  grant  this  Element  in  special
circumstances.

1.3 If an event  within  rule 7  occurs,  any Cash  Incentive  Element  shall be
treated  in such  manner  as the  Committee  specifies  at the  time of grant or
subsequently.

Payment of cash equivalent amounts

2.1 The Committee  may, at its absolute  discretion,  permit a Participant to be
paid a cash  equivalent  to the value of the  Shares to which he would have been
entitled under the Share Option Element or the Share Element of the Plan.

                                       12<PAGE>
                                                                     EXHIBIT 4.2

                        BP AMOCO p.l.c. AND SUBSIDIARIES

                          DIRECTORS' SERVICE CONTRACTS

                                  E J P Browne
                                 J G S Buchanan
                                   R F Chase
                                    W D Ford
                                C S Gibson-Smith
                                   B E Grote
                                   R L Olver

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DATED November 11, 1993

                      THE BRITISH PETROLEUM COMPANY p.l.c.

                                     - and -

                            EDMUND JOHN PHILIP BROWNE

                                SERVICE AGREEMENT

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THIS AGREEMENT is made on November 11, 1993

BETWEEN

(I)  THE  BRITISH  PETROLEUM  COMPANY  p.l.c.  whose  registered  office  is  at
     Britannic House, 1 Finsbury Circus, London EC2M 7BA (the `Company'); and

(2)  EDMUND  JOHN  PHILIP  BROWNE  of 21  South  Eaton  Place  London  SW1  (the
     `Executive')

WHEREBY IT IS AGREED as follows:-

INTERPRETATION

1.   In this Agreement (including the Schedule attached):

     (A)  (i) `associated  company' means any company whose equity share capital
              (as defined in Section 744 of the  Companies  Act 1985) is owned
              as to twenty  per cent  (20%) or more but less than fifty per cent
              (50%) by the Company;

          (ii) `Board of Directors'  means the Board of Directors of the Company
               as the same may be constituted from time to time or any committee
               of the Board of Directors duly appointed by it;

          (iii)`Group  Company'  means the Company or any company  which is from
               time to time a holding  company of the Company or a subsidiary or
               associated company of the Company or any such holding company and
               the expression `Group Companies' shall be deemed to mean each and
               every Group Company;

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          (iv) `holding  company'  has the  meaning  given in Section 736 of the
               Companies Act 1985;

          (v)  `subsidiary'  has  the  meaning  given  in  Section  736  of  the
               Companies Act 1985;

     (B)  reference  to an Act of  Parliament  shall be  deemed to  include  any
          statutory modification or re-enactment whenever made.

THE EMPLOYMENT

2.   The Company HEREBY AGREES to employ the Executive and the Executive  HEREBY
     AGREES to serve as a Managing  Director  pursuant  to Article  80(A) of the
     Company's Articles of Association and subject to and in accordance with the
     terms of this Agreement.

DURATION OF EMPLOYMENT

3.   (A)  This  Agreement shall be deemed to have  commenced on November 1, 1993
          (the  `Commencement  Date') and shall continue, subject as hereinafter
          provided,  until terminated at any time by either the  Company  giving
          to the Executive  not less than twenty-four (24) months written notice
          or the Executive  giving the Company not less than twelve (12)(or such
          lesser  number  as  the  Company  and  the Executive may agree) months
          written notice.

     (B)  This  Agreement   shall   automatically   terminate  (if  not  already
          terminated) upon the day immediately  before the Executive's  sixtieth
          (60th)  birthday or such other date as the  Company and the  Executive
          may agree in writing.

     (C)  This  Agreement  shall further be subject to  termination  pursuant to
          Clause 10 hereof.

 DUTIES OF THE EXECUTIVE

4.   (A)  Except as otherwise approved by the Board of Directors,  the Executive
          will devote all his time and energies to  the  business of the Company
          and its subsidiaries and such of the associated companies as the Board
          of Directors may require.

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     (B)  The  Executive  shall not during  the  continuance  of this  Agreement
          (except as a  representative  of the  Company  or with the  consent in
          writing  of the  Board of  Directors)  (i)  become a  director  of any
          corporate body or (ii) be directly or indirectly  engaged or concerned
          in the conduct of any business,  trade, profession or other occupation
          (whether as an employee,  consultant,  agent,  director or  otherwise)
          provided  that this  restriction  (ii) shall not prevent the Executive
          from holding or acquiring by way of bona fide investment,  investments
          whether  or not listed or quoted  representing  not more than five per
          cent  (5%) of the  investments  of any  class of any one  company.  If
          requested to do so, the Executive  shall disclose  promptly in writing
          to the Board of Directors all his interests in any business other than
          that of the Company or any other Group Company.

     (C)  The Executive shall comply with all rules and regulations from time to
          time  issued  by the  Company  to its  employees  and  shall  obey all
          reasonable  and  lawful  directions  given  to  him  by or  under  the
          authority of the Board of Directors.  The Executive shall use his best
          endeavours to promote the interest and reputation of Group Companies.

     (D)  As and when  requested by the  Chairman or the Deputy  Chairman of the
          Company the Executive  shall keep the Board of Directors  promptly and
          fully  informed  (in  writing if so  requested)  of his conduct of the
          business, finances or affairs of Group Companies.

     (E)  The Company may  reasonably  require the  Executive at any time during
          his  engagement  to move from one part or  section  of the  Company to
          another and/or change the location of his employment.  The Company may
          also from time to time ask the Executive to work for any subsidiary or
          associated  company  of the  Company  and in such  cases the terms and
          conditions  of this  Agreement  will remain  unchanged  except for any
          expatriate  allowances  and for any other  changes which are otherwise
          agreed between the Executive and the company in question.

                                       4
<PAGE>

     (F)  The Executive  shall at any time if requested to do so by the Board of
          Directors undergo a medical  examination by a medical  practitioner of
          the  Company's  choice  and  at  its  expense.  The  Executive  hereby
          authorizes (such  authorization to be deemed to include the consent of
          the  Executive  for the purposes of Section 3 of the Access to Medical
          Reports Act 1988) such medical practitioner to disclose the results of
          such  examination  (whether in a medical  report or  otherwise) to the
          Company's medical  representative who may then give advice, based upon
          the  results  of  such  examination,  to  the  Company  provided  that
          professional confidence is maintained.

CONFIDENTIALITY

5.   Without prejudice to any other  confidentiality  duties owed to the Company
     or any other Group Company,  the Executive  will,  during the period of his
     appointment  hereunder  and  thereafter  without  limit  in  point  of time
     (howsoever  the expiry or  termination  of this  Agreement be  occasioned),
     treat as confidential all information relating to:

     (i)  the trade secrets and the commercial,  technical and financial affairs
          of the Company,  or any other Group Company,  and any matter connected
          therewith; and

     (ii) any person  whether or not such  person is  employed by the Company or
          any other Group Company where such  information  is of a  confidential
          personal or business nature.

     to which the Executive may have access or of which he may become aware as a
     consequence of his appointment,  which information shall, for the period of
     his  appointment  and  thereafter as  aforesaid,  without limit in point of
     time, not be used by him or disclosed by him to any third party save (A) as
     is necessary for the proper performance of the duties of his appointment or
     (B) with the prior written  consent of, or pursuant to guidelines  provided
     by, the Board of  Directors or (C) as required by law,  provided  that such
     restrictions  on use or  disclosure  shall  cease to  apply to  information
     within the public domain otherwise than through unauthorized  disclosure by
     the Executive.

                                      5
<PAGE>

     If the Executive has any doubts about whether he might be in breach of this
     Clause 5 he should consult the Chairman or Deputy Chairman of the Company.

REMUNERATION OF THE EXECUTIVE, BENEFITS AND EXPENSES

6.   (A)  (i)  The Company shall pay to the  Executive  during the period of his
               appointment hereunder a salary at the rate of  three hundred  and
               three  thousand  pounds ((pound)3O3,OOO)  per  annum.  The salary
               shall  be  payable  by  equal monthly payments in arrears. Salary
               shall be reviewed during the continuance of this Agreement at the
               Board of Directors discretion.

          (ii) All fees (if any)  payable to the  Executive  for services on the
               Board of  Directors  of the Company or the board of  directors of
               other  companies on which he may be  permitted to serve  (whether
               subsidiaries or associated companies of the Company or not) shall
               be  returned to the Company  except that the  Executive  shall be
               permitted to retain fees payable in respect of services  rendered
               as a director of one or more overseas  subsidiaries or associated
               companies of the Company outside the UK and Ireland not exceeding
               ten per cent (10%) of the  Executive's  gross UK  salary.  To the
               extent that the  Executive  does retain such fees,  his UK salary
               will be pro tanto reduced.

     (B)  The Company intends to establish  incentive bonus arrangements for the
          Executive in respect of each calendar year during the  subsistence  of
          this Agreement but the Executive shall have no right to participate in
          any such  arrangements  (notwithstanding  any other  verbal or written
          communication  from the Company to the Executive) unless and until the
          Executive has received  written  notice from the Board of Directors to
          the effect that the Executive  will  participate  in the  arrangements
          that are  referred  to in the  notice and that  notice  refers to this
          Clause 6(B). For the avoidance of doubt any reference in such a notice
          to  incentive  bonus  arrangements  shall  mean  the  incentive  bonus
          arrangements  for the calendar  year in question and receipt of such a
          notice  shall not entitle the  Executive to  participate  in incentive
          bonus arrangements for any other calendar year.

                                       6
<PAGE>
     (C)  The  Executive  is and may  remain a member of the BP  Pension  Scheme
          subject to and in accordance  with the normal terms and  conditions of
          the Scheme  (for the time  being and from time to time in force)  save
          for the  following.  The yearly accrual rate of pension shall from the
          date of his  appointment  as, and whilst the  Executive is, a Managing
          Director  of the  Company  be one  thirtieth  (1/30th)  (and  not  one
          sixtieth  (1/60th) or one forty fifth  (1/45th) as would  otherwise be
          appropriate)  together with a proportionate  amount for any additional
          part year (subject  always to Inland  Revenue  limits and to a maximum
          pension  from the BP Pension  Scheme of two thirds  (2/3rds)  of Final
          Salary). For the purpose of this sub-Clause 6(C), `Final Salary' is as
          defined in the Rules of the BP Pension Scheme.

     (D)  The Company  shall provide a motor car for the use of the Executive in
          the United  Kingdom.  The Company shall bear the cost of  maintaining,
          repairing,  insuring,  testing and taxing the same.  The Company shall
          reimburse all reasonable  running  expenses  properly  incurred by the
          Executive in relation to the use of the car in the  performance of his
          duties  under  this  Agreement  provided  that the  Company  shall not
          reimburse  petrol costs  related to private  motoring.  The  Executive
          shall  comply with all  statements  of policy,  rules and  regulations
          which  the  Company  may  from  time to  time  issue  applying  to the
          provision and use of the motor car.

     (E)  There shall be refunded to the Executive all  reasonable out of pocket
          expenses  properly  incurred and defrayed by him in the performance of
          his duties under this Agreement  including  expenses of entertainment,
          subsistence and travelling. The Executive shall produce to the Company
          all supporting vouchers and documents in respect of such expenses.

     (F)  The Executive  shall conform to such hours of work as may from time to
          time  reasonably  be  required  of him to carry out his  duties to the
          satisfaction  of the Board of  Directors  and shall not be entitled to
          receive any additional  remuneration  for work outside normal business
          hours.

                                       7
<PAGE>
ANNUAL LEAVE AND PUBLIC HOLIDAYS

7.   (A)  The  Executive's leave  entitlement  in any full calendar year will be
          twenty eight (28) working days on full  salary,  of which  entitlement
          the Company will be able to nominate up to three (3) specified days to
          be taken as leave. If the Executive  serves  part  only of a  calendar
          year, his entitlement will be in direct proportion to his  service  in
          that  year, rounding up any fractions to the nearest day.

     (B)  The Executive will also be entitled to eight (8) days additional leave
          per annum which will be either Government  declared Public Holidays or
          days taken in lieu.

ABSENCE FROM WORK THROUGH SICKNESS

8.   During  any  period of  absence  from work due to  sickness  or injury  and
     subject  to the  deductions  in  respect  of  Statutory  Sick  Pay or State
     Sickness Benefit,  the Executive's salary will be paid in full for a period
     of six (6) months,  followed if  necessary by a period of six (6) months of
     half-payment. These periods of payment may be extended at the discretion of
     the Chairman,  in consultation  with the Company's General Medical Services
     Unit, taking into account the Executive's expected date of return to work.

INVENTIONS

9    Any invention made by the Executive in the course of his employment as part
     of his  duties  belongs to the  Company  or as the case may be other  Group
     Company. It is the policy of the Company to encourage employees  (including
     the Executive) to make  inventions  which are or could be of benefit to the
     Company and, if the  Executive  makes an invention  directly or  indirectly
     relating to the  business of the  Company or any other  Group  Company,  he
     shall submit particulars to Patents and Agreements Division.

                                       8
<PAGE>
TERMINATION AND SUSPENSION

10.  (A)  Notwithstanding  any other  provision of this  Agreement,  the Company
          shall (without  prejudice  to  the  other  rights  and remedies of the
          Company  or  other  Group  Company)  be  entitled  to  terminate  this
          Agreement  forthwith  by  written  notice  to  the  Executive  if  the
          Executive:

          (i)  is found to have committed a serious act or omission such as:

               (a)  serious infringement of safety regulations and requirements;

               (b)  serious default or misconduct;

               (c)  serious damage to Company or other Group Company property;

               (d)  the  unauthorised  disclosure  of  confidential  information
                    relating to the commercial,  technical or financial  affairs
                    of the  Company  or any other  Group  Company  or any person
                    whether or not such a person is  employed  by the Company or
                    any other  Group  Company,  where  this is  damaging  to the
                    interests of the Company or other Group Company;

               (e)  a criminal  offence which makes him  unsuitable for his type
                    of work;

               (f)  conduct prejudicial to the Company or other Group Company or
                    tending  to bring the  Company  or other  Group  Company  or
                    himself into disrepute;

               (g)  wilful   disregard   of  Company  or  other  Group   Company
                    regulations;

               (h)  falsification of information or references in the context of
                    the work environment;

               (i)  assault on another person at work;

                                       9
<PAGE>
               (j)  accepting bribes; or

          (ii) becomes of unsound mind,  bankrupt or has a receiving  order made
               against him or makes any general  composition with his creditors;
               or

          (iii)becomes prohibited by law from being a director of a company; or

          (iv) resigns as a director of the  Company  without the consent of the
               Board of Directors; or

          (v)  neglects,  refuses,  fails or for any  reason  becomes  unable to
               perform in any material respect any of this duties or obligations
               under or pursuant to this Agreement

          whereupon  the  Executive  shall have no claim against the Company for
          pay in lieu of  notice  or  damages  or  otherwise  by  reason of such
          termination.  Any  termination  of  this  Agreement  will  be  without
          prejudice to the continuing  obligations  of the Executive  under this
          Agreement.

     (B)  Without prejudice to the Executive's  rights to remuneration and other
          benefits  hereunder,  the  Company  shall  have the  right at any time
          (whether or not a notice of termination  of this Agreement  shall then
          have been given) to require the  Executive  not to attend at any place
          of work or otherwise to suspend the Executive from the  performance of
          any duties under this Agreement  provided that no such action shall be
          taken  without  the  express  prior  authorization  of  the  Board  of
          Directors. During the period of such suspension the Company may assign
          the Executive's tides, powers or duties to another.

EVENTS UPON TERMINATION

11.  Upon the  termination of the Agreement  howsoever  occasioned the Executive
     shall unless otherwise agreed by the Company:

     (i)  return all  property,  documents  and  correspondence  relating to the
          affairs of the  Company or other  Group  Company,  including  books of
          instruction and reference and identity passes;

                                       10
<PAGE>

     (ii) at any time or from time to time  thereafter  upon the  request of the
          Company, resign from office as a director of the Company and all other
          offices  held by him in any other Group  Company and should he fail to
          do so the Company is hereby  irrevocably  authorized  to appoint  some
          person in his name and on his behalf to sign and do any  documents  or
          things necessary or desirable to give effect thereto; and

     (iii)the  Company  shall be  entitled  to deduct from any monies due to the
          Executive  any sums due from the Executive to the Company or any other
          Group Company.

RESTRICTIONS AFTER TERMINATION OF EMPLOYMENT

12.  (A)  The Executive  hereby  agrees with the Company that in addition to the
          other  terms  of  and  restrictions  contained  in  this Agreement and
          without prejudice to other restrictions imposed  upon  him by law,  he
          will not without the prior written consent of the Company for a period
          of twelve (12) months commencing with the date of termination  of this
          Agreement,  howsoever  the  termination shall be occasioned, either on
          his own behalf or for any other person, firm or organization:-

          (i)  be  directly  or  indirectly  engaged  in or  concerned  with any
               business  which shall be in  competition  with,  in  countries in
               which  operations are carried on or interests held by, any of the
               upstream,  downstream  or chemicals  businesses of the Company or
               any  other  Group  Company  at the  date of  termination  of this
               Agreement  provided  that this  provision  shall not restrict the
               Executive   from  holding  or  acquiring  by  way  of  bona  fide
               investment  only,  investments  whether  or not  listed or quoted
               representing  not  more  than  five  percent  (5%) of the  issued
               investments of any class of any one company;

          (ii) directly or  indirectly  solicit or endeavour to entice away from
               the  Company  or  any  Group  Company  any  person  who is to his
               knowledge an employee, director or officer of such Company at the
               date of termination of this Agreement.

                                       11
<PAGE>
     (B)  While the  restrictions  contained in this Clause 12 and  elsewhere in
          this  Agreement are  considered by the parties to be reasonable in all
          the  circumstances,  it is  agreed  that  if such  restrictions  taken
          together  shall be adjudged to go beyond what is reasonable in all the
          circumstances  for the  protection of the interests of the Company but
          would be adjudged  reasonable if part or parts of the wording  thereof
          were  deleted then the said  restrictions  shall apply with such words
          deleted.

DIRECTORSHIPS

13.  (A)  Without  prejudice  to  any  other  rights  and   obligations  of  the
          Executive  under this  Agreement,  the  Executive's  appointment  as a
          Managing Director will be determined if he for any reason ceases to be
          a director of the Company and the Executive undertakes in the event of
          his appointment as a Managing  Director being terminated to tender his
          resignation from the Board of Directors.

     (B)  Notwithstanding any other provisions in this Agreement the Executive's
          appointment  as a director of the  Company or any other Group  Company
          shall be subject to the Articles of  Association  from time to time of
          the relevant company.

DIRECTORS' AND OFFICERS' LIABILITY INSURANCE

14.  The Company shall maintain insurance in respect of directors' and officers'
     liabilities in such manner,  for such a period,  and on such terms,  as may
     from time to time be determined by the Board of Directors.

REORGANISATION

15.  If the Company shall undergo any process of  reconstruction or amalgamation
     (including an administrative  reorganization)  whether or not involving the
     liquidation of the Company and the Executive shall be offered employment by
     the  successor  or  proposed  successor  to the  Company or any other Group
     Company on terms no less  favourable  overall to those under this Agreement
     but the  Executive  shall have failed to accept  such offer  within one (1)
     month,  then the Company may terminate  this Agreement  forthwith.  In such
     event,  the  Executive  shall have no claim for  compensation  against  the
     Company  in  respect  of  such  termination  save  as  provided  under  the
     provisions of the Employment Protection (Consolidation) Act 1978.

                                       12
<PAGE>
STATUTORY PARTICULARS

16.  The written particulars of employment required to be given to the Executive
     under the provisions of Part I of the Employment Protection (Consolidation)
     Act 1978 are,  unless  otherwise  previously  set out above,  stated in the
     Schedule attached (which shall be deemed to form part of this Agreement).

MISCELLANEOUS

17.    (A)   This Agreement shall not be assignable by the Executive and may
             only be modified by the written agreement of the parties hereto.

       (B)   The Company  reserves the right to pay  compensation in lieu of any
             notice of termination  of appointment  which it is required to give
             under this Agreement.

       (C)   This Agreement  shall be governed by and  interpreted in accordance
             with the laws of England.

IN WITNESS  whereof this  document has been  executed as a Deed the day and year
first above written.

The Common Seal of                             )
THE BRITISH PETROLEUM COMPANY p.l.c.           )
was hereunto affixed                           )
in accordance with its                         )
Articles of Association                        )
in the presence of:                            )

Director

Assistant
Secretary

SIGNED AS A DEED
by the said EDMUND JOHN PHILIP BROWNE in the presence of:-

Name

Address

Occupation

November 26, 1993

                                       13
<PAGE>
                                    SCHEDULE

CONTINUOUS EMPLOYMENT

1.   The Executive's period of continuous  employment with the Company is deemed
     to have begun on 1st September, 1966.

PENSIONS

2.   There  is in  force  a  Contracting-out  certificate  in  relation  to  the
     Executive's employment.

DISCIPLINARY RULES AND PROCEDURES

3.   The Executive will be notified as to the Company's  disciplinary  rules and
     procedures from time to time applicable to the Executive.

GRIEVANCE PROCEDURE

4.   If the  Executive has any  grievance  relating to his  employment he should
     raise it with the Chairman of the Board of Directors.

OTHER TERMS

5.   Except as otherwise stated in the Agreement (including this Schedule) there
     are no other terms or conditions of  employment  relating to  remuneration,
     hours of work,  normal  working hours,  entitlement to holidays  (including
     public  holidays and holiday pay),  incapacity  for work due to sickness or
     injury or to pensions or pension schemes.

                                       14
<PAGE>
DATED OCTOBER 21, 1998

                      THE BRITISH PETROLEUM COMPANY p.l.c.

                                       and

                         JOHN GORDON ST. CLAIR BUCHANAN

                                SERVICE AGREEMENT

                                       15
<PAGE>
THIS AGREEMENT is made on 21 October, 1998 BETWEEN:

(1)  THE BRITISH  PETROLEUM  COMPANY  p.l.c.  (registered  number  102498) whose
     registered office is at Britannic House, 1 Finsbury Circus, London EC2M 7BA
     (the Company'): and

(2)  JOHN GORDON ST. CLAIR BUCHANAN of Fernshaw,  Rockfield Road, Oxted,  Surrey
     RH8 OHA (the `Executive')

IT IS AGREED as follows:

1.   EMPLOYMENT

     The Company shall continue to employ the Executive and the Executive  shall
     assume the position of Chief Financial  Officer of the Company on the terms
     set  out in this  agreement  (the  `Employment').  The  Employment  in this
     position shall take effect from 6th October, 1998.

     2.   SALARY

     (1)  The  Company  shall  pay to the  Executive  a  salary  at the  rate of
          (pound)340,000 per annum.

     (2)  The  Executive's  salary  shall be reviewed at the  discretion  of the
          Company.

     (3)  The Executive's  salary shall accrue from day to day and be payable by
          equal instalments in arrear on the last day of every month.

3.   PENSIONS

     The  Executive  is  entitled  to  continue to be a member of The BP Pension
     Scheme  (the  `Pension  Scheme')  subject to its terms.  The  Executive  is
     entitled  to  benefits  under the  Pension  Scheme in  accordance  with the
     separate  arrangements  made  between the  Company and the  trustees of the
     Pension Scheme for the benefit of the Executive and as notified to him from
     time to time by the Company.

4.   TERMINATION OF EMPLOYMENT

     (1)  The Company or the Executive may terminate the Employment by giving to
          the other party at least 12 months  notice in writing  expiring at any
          time.

     (2)  The Company may at any time  terminate the  Employment  with immediate
          effect by giving  notice in writing to the Executive on terms that the
          Company  shall pay to the  Executive,  in lieu of the remainder of the
          term of the Employment or, as the case may be, notice under  subclause
          (1) above, an amount equal to 12 months salary or the amount of salary
          that  would  have  been  paid  to  the  Executive  if  the  Employment
          terminated  on the expiry of the  remainder  of any notice given under
          subclause (1) above as the case may be provided  that the  Executive's
          entitlement  to the payment  shall be  conditional  on him agreeing to
          comply with his  obligations to the Company  following the termination
          of the Employment (which include,  but without limiting the generality
          of the foregoing his  obligations not to use or disclose the Company's
          or the Group's  confidential  information  under the General Terms and
          Conditions of Employment).

                                       16
<PAGE>
     (3)  Subclause (1) above does not limit the Company's rights to suspend any
          of the  Executive's  duties and powers  under  this  agreement  or the
          General   Terms  and   Conditions  of   Employment.   In  addition  or
          alternatively,  the  Company  may  during the whole or any part of any
          period of notice  require the Executive to perform  duties  (including
          any  modified  duties  rising  from an  exercise by the Company of its
          rights under the General Terms and  Conditions of  Employment) at such
          locations as the Company may reasonably  require.  Throughout any such
          period of  suspension  the  Executive's  salary and other  benefits to
          which he is entitled under this agreement shall continue to be paid or
          provided by the Company.

5.   GENERAL

     (I)  Each  of  the  provisions  in  this  agreement  shall  be  enforceable
          independently  of each of the  others  and its  validity  shall not be
          affected if any of the others is invalid.  If any of the provisions of
          this  agreement  is void but would be valid if some part of the clause
          were   deleted,   the  clause  in  question   shall  apply  with  such
          modification as may be necessary to make it valid.

     (2)  The General  Terms and  Conditions  of Employment (a copy of which are
          attached to this  agreement)  as amended by the  Company  from time to
          time  shall  form  part of the  Executive's  terms and  conditions  of
          employment and the definitions and other  provisions  contained in the
          interpretation   clause  in  the  General  Terms  and   Conditions  of
          Employment shall apply to this agreement.

     (3)  The terms set out in the Schedule in accordance with the  requirements
          of the Employment Rights Act 1996 form part of this agreement.

     (4)  As from the effective date of the  Employment all other  agreements or
          arrangements  between the Executive and any Group Company  relating to
          the employment of the Executive shall cease to have effect.

     (5)  This agreement  shall be governed by and construed in accordance  with
          English law.

AS WITNESS the hands of the Executive and of a duly authorized representative of
the Company on the date which appears first on page 1.

SIGNED by E.J.P. BROWNE                 )
on behalf of THE BRITISH PETROLEUM      )
COMPANY p.l.c.                          )
in the presence of:                     )

SIGNED by                               )
JOHN GORDON ST. CLAIR BUCHANAN          )
in the presence of:                     )

                                       17
<PAGE>
                                  THE SCHEDULE

The following  constitutes  the statement of the  particulars of the Executive's
employment  issued  pursuant to the Employment  Rights Act 1996. The particulars
are those which apply on the date of this agreement:

       Name of employer - the Company as defined on page 1 above.

       Name of employee - the Executive as defined on page 1 above.

       Date of commencement of employment - see clause 1.

       Date of commencement of continuous period of employment - 4th
       January. 1970.

       Scale or rate of remuneration or method of calculating remuneration - see
       clause 2.

       Intervals at which remuneration is paid - monthly - see clause 2.

       Hours of work - there are no fixed  hours of work - see also the  General
       Terms and Conditions of Employment

       Holidays  (including  public  holidays)  and holiday pay - the  Executive
       shall be entitled to 28 Working Days' holiday with pay in every  calendar
       year. In addition see the General Terms and Conditions of Employment

       Sickness or injury and sick pay - see the General Terms and Conditions of
       Employment.

       Pension - see clause 3. A contracting out certificate  within the meaning
       of Part Ill of the Pension Schemes Act 1993 is in force.

       Notice - see clause 4.

       Job title - Chief Financial Officer.

       Place of work - the  duties of the  Employment  relate  primarily  to the
       United Kingdom. The Executive shall he based at the Group's Headquarters,
       which for the time being are at the employer's  address as stated on page
       1 above.

       Collective  agreements  - the  Company  is not a party to any  collective
       agreement which affects the Executives employment.

       Working  overseas - the  Executive  is not under any  obligation  to work
       overseas for periods  exceeding  one month and  accordingly  there are no
       particulars to be entered in this regard.

       Discipline and grievance  procedure - there are no specific  disciplinary
       rules  applicable  to the  Executive's  employment.  If the  Executive is
       dissatisfied  with any  disciplinary  decision  or seeks to  redress  any
       grievance relating to his employment he should raise this with the CEO.

                                       18
<PAGE>

                          GENERAL TERMS AND CONDITIONS
                                  OF EMPLOYMENT
                            ON EXECUTIVE APPOINTMENTS

                                       19
<PAGE>

                                    CONTENTS
CLAUSE                                                                 PAGE

1.     Interpretation                                                      1
2.     Duties                                                              1
3.     Place of Work of the Executive                                      2
4.     Incentives                                                          2
5.     Travelling Expenses                                                 3
6.     Car                                                                 3
7.     Pensions                                                            3
8.     Medical and Sickness                                                3
9.     Holidays                                                            4
10.    Confidential Information                                            4
11.    lntellectual Property                                               4
12.    Termination of Employment                                           5
13.    General                                                             7
14.    Notices                                                             7

                                       20
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             GENERAL TERMS AND CONDITIONS ON EXECUTIVE APPOINTMENTS

1.   INTERPRETATION

     (1)  In these terms and conditions:

          `Employment'  means the  employment  of the  Executive  by the Company
          under the terms of a service  agreement  between the Executive and the
          Company;

          `Associated Company' means:

          (a)  a company  which is not a  Subsidiary  of the  Company  but whose
               issued  equity  share  capital  (as defined in section 744 of the
               Companies  Act  1985)  is owned as to at least 20 per cent by the
               Company or one of its Subsidiaries; and

          (b)  a Subsidiary of a company within (a) above;

          `CEO' means the chief executive officer of the Company and it includes
          his  delegate  or  delegates  where the chief  executive  officer  has
          delegated his authority to manage the Executive or the business of the
          Group in which the Executive is performing his duties;

          `Group'  means  the  Company  and  its   subsidiaries  and  Associated
          Companies  for the time  being and  `Group  Company'  means any one of
          them;

          `Recognized  Investment  Exchange'  has the same meaning as in section
          207 of the Financial Services Act 1986;

          `Subsidiary'  means a subsidiary  within the meaning of section 736 of
          the Companies Act 1985; and

          `Working  Day'  means a day other than a  Saturday,  Sunday or bank or
          other public  holiday in England (or if the Executive  works on a bank
          or  other  public  holiday  a  day's  holiday  taken  in  lieu of that
          holiday).

     (2)  References in these terms and  conditions  to a person  include a body
          corporate and an unincorporated  association of persons and references
          to a company include any body corporate.

     (3)  Any reference in these terms and  conditions to a statutory  provision
          includes any statutory modification or re-enactment of it for the time
          being in force.

     (4)  Subclauses  (1) to (3)  above  apply  unless  the  contrary  intention
          appears.

     (5)  The  headings  in these  terms  and  conditions  do not  affect  their
          interpretation.

     (6)  Where  appropriate,  references to the Executive  include his personal
          representatives.

2.   DUTIES

     (1)  The Executive shall use his best endeavours to promote and protect the
          interests  of the Group and shall not do anything  which is harmful to
          those interests.

                                       21
<PAGE>

     (2)  The Executive shall diligently and faithfully  perform such duties and
          exercise such powers as may from time to time be assigned to or vested
          in him in relation to the conduct and management of the affairs of the
          Group  by  the  CEO.  The  CEO  may  also  suspend  all  or any of the
          Executive's duties and powers for such periods and on such terms as be
          considers  expedient  (including a term that the  Executive  shall not
          attend at the Company's premises).

     (3)  The  Executive  shall give to the CEO such  information  regarding the
          affairs of the Group as he shall  require  and shall  comply  with all
          proper instructions of the CEO.

     (4)  The  Executive  shall  have  the  power  and the  authority  to act in
          accordance with the  instructions of and within the limits  prescribed
          by the CEO.

     (5)  The Executive shall comply with all codes of conduct from time to time
          adopted by the Company and with all applicable  rules and  regulations
          of the London Stock Exchange including (without  limitation) the model
          code on directors' dealings in securities.

     (6)  The  Executive  shall  (unless  prevented by ill-health or accident or
          otherwise  directed  by the CEO)  devote the whole of his time  during
          normal  business  hours  to the  duties  of the  Employment  and  such
          additional  time as is necessary  for the proper  fulfilment  of those
          duties.

     (7)  The  Executive's  salary shall be inclusive of any fees  receivable by
          him as a director of any Group Company and if the  Executive  receives
          any such  fees in  addition  to his  salary  he shall  pay them to the
          Company.

     (8)  The  Executive  shall not  accept  any  appointment  to any  office in
          relation to any body,  whether  corporate or not,  (other than a Group
          Company) or directly or  indirectly be interested in any manner in any
          other business except:

          (a)  as holder or beneficial  owner (for investment  purposes only) of
               any class of  securities  in a company  if those  securities  are
               listed or dealt in on a Recognized Investment Exchange and if the
               Executive  (together  with  his  spouse,  children,  parents  and
               parents' issue) neither holds nor is  beneficially  interested in
               more than five per cent. of the securities of that class; or

          (b)  with the  consent in writing  of the  Company  which may be given
               subject to any terms or conditions which the Company requires.

3.   PLACE OF WORK OF THE EXECUTIVE

     The duties of the Employment  shall relate  primarily to the United Kingdom
     at such  places  as the  Company  may from time to time  require  but shall
     extend to travel abroad when required by the Company.

4.   INCENTIVES

     The  Executive  agrees  that his  participation  in any bonus or  incentive
     arrangements shall be at the Company's sole discretion;  that he is subject
     to the  Company's  procedures  as  notified  to him  from  time to time for
     setting and assessing any bonus or incentive  payments  under any scheme in
     which he participates;  and that he is subject to the procedures for making
     any  payments  that  may be due to him  under  the  terms  of any  bonus or
     incentive scheme in which he participates.

                                       22
<PAGE>
5.   TRAVELLING EXPENSES

     The Company shall  reimburse the Executive (on  production of such evidence
     as it may  reasonably  require)  the  amount  of all  travelling  and other
     expenses  properly and  reasonably  incurred by him in the discharge of his
     duties,

6.   CAR

     (1)  The Company shall provide the Executive with a car  appropriate to his
          status for his use in the  performance  of his duties and,  subject to
          any  restrictions  or  conditions  from  time to time  imposed  by the
          Company, the Executive may use the car for his private purposes.

     (2)  The  Company  shall pay all normal  servicing,  insurance  and running
          expenses in relation to the car and all fuel expenses  incurred by the
          Executive in the performance of his duties.

     (3)  The  Executive  shall take good care of the car and shall  observe the
          terms and  conditions of the insurance  policy  relating to it and the
          terms of the Company's car policy from time to time.

7.   PENSIONS

     The  Executive  is entitled to become or as the case may be remain a member
     of the BP Pension Scheme (the `Pension  Scheme')  subject to its terms. The
     full terms are set out in the trust deeds and rules  governing  the Pension
     Scheme;  copies  of those  documents  are  available  to the  Executive  on
     request.   The  Company  shall  deduct  from  the  Executive's  salary  any
     contributions payable by him from time to time to the Pension Scheme or any
     other pension scheme of the Group of which he becomes a member.

8.   MEDICAL AND SICKNESS

     (1)  The Company may from time to time require the Executive to be examined
          by a  medical  adviser  nominated  by the  Company  and the  Executive
          consents  to  the  medical  adviser  disclosing  the  results  of  the
          examination  to the  Company and shall  provide the Company  with such
          formal consents as may be necessary for this purpose.

     (2)  The Executive  shall be paid in full during any period of absence from
          work due to sickness or injury of 120 Working  Days and at the rate of
          half of his salary for a further period of 120 Working Days subject to
          the  provisions  of clause 13 and to the  production  of  satisfactory
          evidence  from a  registered  medical  practitioner  in respect of any
          period of  absence in excess of five  consecutive  Working  Days.  The
          periods during which the Executive receives payment may be extended by
          the CEO in his discretion  following  consultation  with the Company's
          medical adviser.  The Executive's  salary during any period of absence
          due to sickness or injury shall be inclusive of any statutory sick pay
          to which he is entitled and the Company may deduct from his salary the
          amount of any social security benefits he may be entitled to receive.

     (3)  If the  Executive is incapable of  performing  his duties by reason of
          injury sustained wholly or partly as a result of negligence,  nuisance
          or breach of any  statutory  duty on the part of a third party and the
          Executive  recovers  any  amount  by way of  compensation  for loss of
          earnings  from that  third  party,  he shall pay to the  Company a sum
          equal to the amount  recovered or, if less,  the amount paid to him by
          the  Company  under  subclause  (2) above in respect  of the  relevant
          period of absence as a result of that injury.

                                       23
<PAGE>

9.   HOLIDAYS

     (1)  The Executive shall take his holiday  entitlement at times agreed with
          the Company.

     (2)  Any  entitlement to holiday  remaining at the end of any calendar year
          may be carried  forward to the next calendar year but no further.  The
          entitlement  to holiday (and on  termination  of employment to holiday
          pay in lieu of holiday) accrues pro rata throughout each calendar year
          (disregarding fractions of days).

10.  CONFIDENTIAL INFORMATION

     (1)  The  Executive  shall not make use of or  divulge to any  person,  and
          shall use his best  endeavours  to  prevent  the use,  publication  or
          disclosure to any information of a confidential or secret nature:

          (a)  concerning  the business of the Company or any Group  Company and
               which  comes  to  his  knowledge  during  the  course  of  or  in
               connection  with his  employment or his holding any office within
               the  Group  from any  source  within  the  Company  or any  Group
               Company: or

          (b)  concerning  the business of any person  having  dealings with the
               Company or any Group  Company and which is  obtained  directly or
               indirectly  in  circumstances  in which the  Company or any Group
               Company is subject to a duty of  confidentiality  in  relation to
               that information.

     (2)  This clause shall not apply to information which is:

          (a)  used or disclosed in the proper  performance  of the  Executive's
               duties or with the prior written consent of the Company; or

          (b)  ordered to be disclosed by a court of competent  jurisdiction  or
               otherwise required to be disclosed by law.

     (3)  This  clause  shall  continue to apply  after the  termination  of the
          Employment (whether terminated lawfully or not) without limit of time.

     (4)  Each of the restrictions in each paragraph or subclause above shall be
          enforceable independently of each of the others and its validity shall
          not be  affected  if any of the  others  is  invalid.  If any of those
          restrictions  is  void  but  would  be  valid  if  some  part  of  the
          restriction were deleted, the restruction in question shall apply with
          such modification as may be necessary to make it valid.

     11.  INTELLECTUAL PROPERTY

          (1)  In this clause  `Intellectual  Property  Right'  means a formula,
               process,  invention,  improvement,  utility  model,  trade  mark,
               service mark,  business name,  copyright,  design right,  patent,
               know-how,  trade secret and any other intellectual property right
               of any nature whatsoever throughout the world (whether registered
               or  unregistered  and  including all  applications  and rights to
               apply for the same) which:

                                       24
<PAGE>
               (a)  relates to or is useful in  connection  with the business or
                    any product or service of a Group Company; and

               (b)  is invented, developed, created or acquired by the Executive
                    (whether  alone or jointly with any other person) during the
                    period of the Employment.

(2)  Subject to the provisions of the Patents Act 1977,  the entire  interest of
     the  Executive in any  Intellectual  Property  Right shall,  as between the
     Executive  and the Company,  become the property of the Company as absolute
     beneficial owner without any payment to the Executive for it.

(3)  The Executive shall promptly  communicate in confidence to the Company full
     particulars of any Intellectual Property Right (whether or not it is vested
     in the  Company  pursuant  to  subclause  (2) above or  otherwise)  and the
     Executive shall not use, disclose to any person or exploit any Intellectual
     Property Right  belonging to the Company  without the prior written consent
     of the Company.

(4)  The Executive shall, at the request and expense of the Company, prepare and
     execute  such  instruments  and do such  other  acts and  things  as may be
     necessary  or  desirable to enable the Company or its nominee to obtain the
     protection of any Intellectual Property Right vested in the Company in such
     parts of the world as may be specified by the Company or its nominee and to
     enable the Company to exploit any Intellectual Property Right vested in the
     Company to best advantage.

(5)  The  obligations of the Executive  under  subclauses (2) to (4) above shall
     continue  to  apply  after  the  termination  of  the  Employment  (whether
     terminated  lawfully  or not).  Each of those  obligations  is  enforceable
     independently  of each of the others and its validity shall not be affected
     if any of the others is unenforceable to any extent.

12.  TERMINATION OF EMPLOYMENT

(1)  If not previously  terminated the Employment shall automatically  terminate
     at the end of the day  immediately  before  the day on which the  Executive
     attains age 60 or any other  retirement  age applicable to the employees of
     the Company generally.

(2)  If the Executive:

     (a)  becomes  of  unsound  mind or is,  or may be,  suffering  from  mental
          disorder and either:

          (i)  he is admitted to hospital for treatment  under the Mental Health
               Act 1983; or

          (ii) an order is made by any competent  court for his detention or for
               the  appointment of a receiver,  curator bonis or other person to
               exercise powers with respect to his property or affairs; or

     (b)  is unable  properly  to perform  his  duties by reason of  ill-health,
          accident or otherwise for a period of 12 consecutive months; or

     (c)  fails or neglects  efficiently  and diligently to discharge his duties
          or is guilty of any  serious  or  repeated  breach of his  obligations
          under this agreement (including any consent granted under it); or

                                       25
<PAGE>
     (d)  is guilty of serious  misconduct or any other conduct which affects or
          is likely to affect  prejudicially the interests of the Company or the
          Group or is  convicted  of an  arrestable  offence  (other than a road
          traffic offence for which a non-custodial penalty is imposed); or

     (e)  becomes  bankrupt or makes any  arrangement  or  composition  with his
          creditors; or

     (f)  is  disqualified  from being a director of any company by reason of an
          order made by any competent court,

     the Company may (whether or not any notice of  termination  has been given)
     by written notice to the Executive  terminate the Employment with immediate
     effect but a notice under  paragraph  (b) above may be given by the Company
     to the Executive only within 90 days after the end of any period or periods
     of disability referred to in that paragraph.

(3)  During any period of notice of termination  of the  Employment  (whether or
     not such notice has been given by the Company or the Executive) the Company
     may require the  Executive  to take any holiday to which the  Executive  is
     entitled at such time or times as the Company may decide.

(4)  If the Executive is appointed as a director or officer of the Company or of
     any Group Company and the  Executive  ceases to be a director or officer of
     the Company or of that Group Company (for any reason whatsoever) that shall
     not terminate the Employment.

(5)  On the  termination  of the  Employment  in any way  (whether  lawfully  or
     otherwise) the Executive shall immediately:

     (a)  return  the car and its keys to the  Company at such place as it shall
          nominate for the purpose; and

     (b)  deliver to the Company's Group Human Resources Department all property
          in his possession, custody or under his control belonging to any Group
          Company  including  (but not limited to)  business  cards,  credit and
          charge  cards,  security  and  computer  passes,   original  and  copy
          documents  or  other  media  on  which  information  is  held  in  his
          possession  relating to the business or affairs of any Group  Company;
          and

     (c)  resign all offices held by him in any Group Company (without prejudice
          to the  rights  of any party  arising  out of the  termination  of the
          Employment).

(6)  The  Executive  hereby  authorizes  the  Company to deduct from any amounts
     payable  by  the  Company  to  the  Executive  on  the  termination  of the
     Employment any sums due to the Company from the Executive.

(7)  With effect from the date of termination of the Employment,  all the rights
     and  obligations  of the  parties  shall  cease  except for those which are
     expressed to continue  after that date and except in relation to any breach
     of any  provision  of these  terms and  conditions  or any other  agreement
     between the Company and the Executive before that date.  Termination of the
     Employment shall not prejudice any other rights of the Company.

                                       26
<PAGE>
13.  GENERAL

     These terms and conditions shall be governed by and construed in accordance
     with English law.

14.  NOTICES

     (1)  Any notice or other document to be served under any agreement  between
          the Company and the  Executive  may,  in the case of the  Company,  be
          delivered or sent by first class post or telex or facsimile process to
          the  Company at its  registered  office for the time being and, in the
          case of the Executive,  may be delivered to him or sent by first class
          post to his usual or last known place of residence.

     (2)  Any such notice or other document shall be deemed to have been served:

          (a)  if delivered, at the time of delivery;

          (b)  if posted,  at 10.00 am. on the second  Working  Day after it was
               put into the post; or

          (c)  if sent by telex or facsimile  process,  at the expiration of two
               hours after the time of despatch,  if despatched before 3.00 p.m.
               on any  Working  Day,  and in any other  case at 10.00 am. on the
               Working Day following the date of despatch.

     (3)  In proving such service it shall be  sufficient to prove that delivery
          was made or that the envelope containing such notice or other document
          was properly  addressed and posted as a pre-paid first class letter or
          that  the  telex or  facsimile  message  was  properly  addressed  and
          despatched as the case may be.

                                       27
<PAGE>
DATED November 30, 1993

                      THE BRITISH PETROLEUM COMPANY p.l.c.

                                     - and -

                               RODNEY FRANK CHASE

                                SERVICE AGREEMENT

                                       28
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THIS AGREEMENT is made on November 30, 1993

BETWEEN

(1)  THE  BRITISH  PETROLEUM  COMPANY  p.l.c.  whose  registered  office  is  at
     Britannic House, 1 Finsbury Circus, London EC2M 7BA (the `Company'); and

(2)  RODNEY FRANK CHASE of 4 Eaton Terrace, London SW1W 8EZ. (the `Executive')

WHEREBY IT IS AGREED as follows:

INTERPRETATION

1.   In this Agreement (including the Schedule attached):

     (A)  (i) `associated  company' means any company whose equity share capital
              (as defined in Section 744 of the Companies Act 1985) is owned  as
              to  twenty  per  cent (20%) or  more  but less than fifty per cent
             (50%) by the Company;

          (ii) `Board of Directors'  means the Board of Directors of the Company
               as the same may be constituted from time to time or any committee
               of the Board of Directors duly appointed by it;

          (iii)`Group  Company'  means the Company or any company  which is from
               time to time a holding  company of the Company or a subsidiary or
               associated company of the Company or any such holding company and
               the expression `Group Companies' shall be deemed to mean each and
               every Group Company;

                                       29
<PAGE>

          (iv) `holding  company'  has the  meaning  given in Section 736 of the
               Companies Act 1985;

          (v)  `subsidiary'  has  the  meaning  given  in  Section  736  of  the
               Companies Act 1985;

     (B)  Reference  to an Act of  Parliament  shall be  deemed to  include  any
          statutory modification or re-enactment whenever made.

THE EMPLOYMENT

2.   The Company HEREBY AGREES to employ the Executive and the Executive  HEREBY
     AGREES to serve as a Managing  Director  pursuant  to Article  80(A) of the
     Company's Articles of Association and subject to and in accordance with the
     terms of this Agreement.

DURATION OF EMPLOYMENT

3.   (A)  This  Agreement shall be deemed to  commence  on  January 1, 1994 (the
          `Commencement  Date')  and  shall  continue,  subject  as  hereinafter
          provided, until terminated at any time by either the Company giving to
          the Executive not less than twenty-four  (24)  months  written  notice
          or the  Executive giving the Company not less than twelve (12)(or such
          lesser  number  as  the  Company  and  the Executive may agree) months
          written notice.

     (B)  This  Agreement   shall   automatically   terminate  (if  not  already
          terminated) upon the day immediately  before the Executive's  sixtieth
          (60th)  birthday or such other date as the  Company and the  Executive
          may agree in writing.

     (C)  This  Agreement  shall further be subject to  termination  pursuant to
          Clause 10 hereof.

DUTIES OF THE EXECUTIVE

4.   (A)  Except  as  otherwise  approved  by the Board of  Directors,  the
          Executive will devote all his time and energies to the business of the
          Company and its subsidiaries  and such of the associated  companies as
          the Board of Directors may require.

                                       30
<PAGE>
      (B)   The Executive  shall not during the  continuance  of this  Agreement
            (except as a  representative  of the  Company or with the consent in
            writing of the Board of  Directors)  (i)  become a  director  of any
            corporate  body  or  (ii)  be  directly  or  indirectly  engaged  or
            concerned in the conduct of any business, trade, profession or other
            occupation (whether as an employee,  consultant,  agent, director or
            otherwise) provided that this restriction (ii) shall not prevent the
            Executive from holding or acquiring by way of bona fide  investment,
            investments  whether or not listed or quoted  representing  not more
            than five  percent (5%) of the  investments  of any class of any one
            company.  If  requested  to do  so,  the  Executive  shall  disclose
            promptly in writing to the Board of Directors  all his  interests in
            any  business  other  than that of the  Company  or any other  Group
            Company.

     (C)  The Executive shall comply with all rules and regulations from time to
          time  issued  by the  Company  to its  employees  and  shall  obey all
          reasonable  and  lawful  directions  given  to  him  by or  under  the
          authority of the Board of Directors.  The Executive shall use his best
          endeavours to promote the interest and reputation of Group Companies.

     (D)  As and when  requested by the  Chairman or the Deputy  Chairman of the
          Company the Executive  shall keep the Board of Directors  promptly and
          fully  informed  (in  writing if so  requested)  of his conduct of the
          business, finances or affairs of Group Companies.

     (E)  The Company may  reasonably  require the  Executive at any time during
          his  engagement  to move from one part or  section  of the  Company to
          another and/or change the location of his employment.  The Company may
          also from time to time ask the Executive to work for any subsidiary or
          associated  company  of the  Company  and in such  cases the terms and
          conditions  of this  Agreement  will remain  unchanged  except for any
          expatriate  allowances  and for any other  changes which are otherwise
          agreed between the Executive and the company in question.

                                       31
<PAGE>
     (F)  The Executive  shall at any time if requested to do so by the Board of
          Directors undergo a medical  examination by a medical  practitioner of
          the  Company's  choice  and  at  its  expense.  The  Executive  hereby
          authorizes (such  authorization to be deemed to include the consent of
          the  Executive  for the purposes of Section 3 of the Access to Medical
          Reports Act 1988) such medical practitioner to disclose the results of
          such  examination  (whether in a medical  report or  otherwise) to the
          Company's medical  representative who may then give advice, based upon
          the  results  of  such  examination,  to  the  Company  provided  that
          professional confidence is maintained.

CONFIDENTIALITY

5.   Without prejudice to any other  confidentiality  duties owed to the Company
     or any other Group Company,  the Executive  will,  during the period of his
     appointment  hereunder  and  thereafter  without  limit  in  point  of time
     (howsoever  the expiry or  termination  of this  Agreement be  occasioned),
     treat as confidential all information relating to:

     (i)  the trade secrets and the commercial,  technical and financial affairs
          of the Company,  or any other Group Company,  and any matter connected
          therewith; and

     (ii) any person  whether or not such  person is  employed by the Company or
          any other Group Company where such  information  is of a  confidential
          personal or business nature.

     to which the Executive may have access or of which he may become aware as a
     consequence of his appointment,  which information shall, for the period of
     his  appointment  and  thereafter as  aforesaid,  without limit in point of
     time, not be used by him or disclosed by him to any third party save (A) as
     is necessary for the proper performance of the duties of his appointment or
     (B) with the prior written  consent of, or pursuant to guidelines  provided
     by, the Board of  Directors or (C) as required by law,  provided  that such
     restrictions  on use or  disclosure  shall  cease to  apply to  information
     within the public domain otherwise than through unauthorised  disclosure by
     the Executive.

                                       32
<PAGE>
     If the Executive has any doubts about whether he might be in breach of this
     Clause 5 he should consult the Chairman or Deputy Chairman of the Company.

REMUNERATION OF THE EXECUTIVE, BENEFITS AND EXPENSES

6.   (A ) (i)  The  Company  shall  pay  to  the  Executive  during  the  period
               of his appointment  hereunder a salary at the rate of two hundred
               and seventy  five  thousand  pounds  ((pounds)275,000) per annum.
               The salary shall be payable by equal monthly payments in arrears.
               Salary shall be reviewed during the continuance of this Agreement
               at the Board of Directors' discretion.

          (ii) All fees (if any)  payable to the  Executive  for services on the
               Board of  Directors  of the Company or the board of  directors of
               other  companies on which he may be  permitted to serve  (whether
               subsidiaries or associated companies of the Company or not) shall
               be  returned to the Company  except that the  Executive  shall be
               permitted to retain fees payable in respect of services  rendered
               as a director of one or more overseas  subsidiaries or associated
               companies of the Company outside the UK and Ireland not exceeding
               ten per cent (10%) of the  Executive's  gross UK  salary.  To the
               extent that the  Executive  does retain such fees,  his UK salary
               will be pro tanto reduced.

     (B)  The Company intends to establish  incentive bonus arrangements for the
          Executive in respect of each calendar year during the  subsistence  of
          this Agreement but the Executive shall have no right to participate in
          any such  arrangements  (notwithstanding  any other  verbal or written
          communication  from the Company to the Executive) unless and until the
          Executive has received  written  notice from the Board of Directors to
          the effect that the Executive  will  participate  in the  arrangements
          that are  referred  to in the  notice and that  notice  refers to this
          Clause 6(B). For the avoidance of doubt any reference in such a notice
          to  incentive  bonus  arrangements  shall  mean  the  incentive  bonus
          arrangements  for the calendar  year in question and receipt of such a
          notice  shall not entitle the  Executive to  participate  in incentive
          bonus arrangements for any other calendar year.

                                       33
<PAGE>
     (C)  The  Executive  is and may  remain a member of the BP  Pension  Scheme
          subject to and in accordance  with the normal terms and  conditions of
          the Scheme  (for the time  being and from time to time in force)  save
          for the  following:  The yearly accrual rate of pension shall from the
          date of his  appointment  as, and whilst the  Executive is, a Managing
          Director  of the  Company  be one  thirtieth  (1/30th)  (and  not  one
          sixtieth  (1/60th) or one forty fifth  (1/45th) as would  otherwise be
          appropriate)  together with a proportionate  amount for any additional
          part year (subject  always to Inland  Revenue  limits and to a maximum
          pension  from the BP Pension  Scheme of two thirds  (2/3rds)  of Final
          Salary). For the purpose of this sub clause 6(C), `Final Salary' is as
          defined in the Rules of the BP Pension Scheme.

     (D)  The Company  shall provide a motor car for the use of the Executive in
          the United  Kingdom.  The Company shall bear the cost of  maintaining,
          repairing,  insuring,  testing and taxing the same.  The Company shall
          reimburse all reasonable  running  expenses  properly  incurred by the
          Executive in relation to the use of the car in the  performance of his
          duties  under  this  Agreement  provided  that the  Company  shall not
          reimburse  petrol costs  related to private  motoring.  The  Executive
          shall  comply with all  statements  of policy,  rules and  regulations
          which  the  Company  may  from  time to  time  issue  applying  to the
          provision and use of the motor car.

     (E)  There shall be refunded to the Executive all  reasonable out of pocket
          expenses  properly  incurred and defrayed by him in the performance of
          his duties under this Agreement  including  expenses of entertainment,
          subsistence and travelling. The Executive shall produce to the Company
          all supporting vouchers and documents in respect of such expenses.

     (F)  The Executive  shall conform to such hours of work as may from time to
          time  reasonably  be  required  of him to carry out his  duties to the
          satisfaction  of the Board of  Directors  and shall not be entitled to
          receive any additional  remuneration  for work outside normal business
          hours.

                                       34
<PAGE>
ANNUAL LEAVE AND PUBLIC HOLIDAYS

7.  (A)   The  Executive's  leave  entitlement  in  any  full calendar year will
          be twenty eight (28) working days on full salary, of which entitlement
          the Company will be able to nominate up to three (3) specified days to
          be taken as leave.  If the  Executive  serves  part only of a calendar
          year, his  entitlement will be in direct  proportion to his service in
          that year, rounding up any fractions to the nearest day.

     (B)  The Executive will also be entitled to eight (8) days additional leave
          per annum which will be either Government  declared Public Holidays or
          days taken in lieu.

ABSENCE FROM WORK THROUGH SICKNESS

8.   During  any  period of  absence  from work due to  sickness  or injury  and
     subject  to the  deductions  in  respect  of  Statutory  Sick  Pay or State
     Sickness Benefit,  the Executive's salary will be paid in full for a period
     of six (6) months,  followed if  necessary by a period of six (6) months of
     half-payment. These periods of payment may be extended at the discretion of
     the Chairman,  in consultation  with the Company's General Medical Services
     Unit, taking into account the Executive's expected date of return to work.

INVENTIONS

9    Any invention made by the Executive in the course of his employment as part
     of his  duties  belongs to the  Company  or as the case may be other  Group
     Company. It is the policy of the Company to encourage employees  (including
     the Executive) to make  inventions  which are or could be of benefit to the
     Company and, if the  Executive  makes an invention  directly or  indirectly
     relating to the  business of the  Company or any other  Group  Company,  he
     shall submit particulars to Patents and Agreements Division.

                                       35
<PAGE>
TERMINATION AND SUSPENSION

10.  (A)  Notwithstanding  any  other  provision  of this Agreement, the Company
          shall  (without  prejudice  to the other  rights and  remedies  of the
          Company  or  other  Group  Company)  be  entitled  to  terminate  this
          Agreement  forthwith  by  written  notice  to  the  Executive  if  the
          Executive:

          (i)  is found to have  committed a serious  act or  omission  such
               as:

               (a) serious    infringement   of   safety   regulations   and
                   requirements;

               (b) serious default or misconduct;

               (c) serious   damage  to  Company  or  other  Group   Company
                   property;

               (d) the  unauthorized  disclosure  of  confidential   information
                   relating to the commercial, technical or financial affairs of
                   the Company or any other Group Company or any person  whether
                   or not such a person is  employed by the Company or any other
                   Group Company, where this is damaging to the interests of the
                   Company or other Group Company;

               (e) a criminal  offence  which makes him  unsuitable  for his
                   type of work;

               (f) conduct  prejudicial to the Company or other Group Company or
                   tending  to bring  the  Company  or other  Group  Company  or
                   himself into disrepute;

               (g) wilful  disregard  of  Company  or  other  Group  Company
                   regulations;

               (h) falsification   of   information  or  references  in  the
                   context of the work environment;

               (i) assault on another person at work;

               (j) accepting bribes; or

                                       36
<PAGE>
               (ii) becomes of unsound mind,  bankrupt or has a receiving  order
                    made against him or makes any general  composition  with his
                    creditors; or

               (iii)becomes  prohibited  by  law  from  being  a  director  of a
                    company; or

               (iv) resigns as a director of the Company  without the consent of
                    the Board of Directors; or

               (v)  neglects, refuses, fails or for any reason becomes unable to
                    perform  in any  material  respect  any of  this  duties  or
                    obligations under or pursuant to this Agreement

               whereupon the  Executive  shall have no claim against the Company
               for pay in lieu of notice or  damages or  otherwise  by reason of
               such  termination.  Any  termination  of this  Agreement  will be
               without prejudice to the continuing  obligations of the Executive
               under this Agreement.

     (B)  Without prejudice to the Executive's  rights to remuneration and other
          benefits  hereunder,  the  Company  shall  have the  right at any time
          (whether or not a notice of termination  of this Agreement  shall then
          have been given) to require the  Executive  not to attend at any place
          of work or otherwise to suspend the Executive from the  performance of
          any duties under this Agreement  provided that no such action shall be
          taken  without  the  express  prior  authorization  of  the  Board  of
          Directors. During the period of such suspension the Company may assign
          the Executive's titles, powers or duties to another.

EVENTS UPON TERMINATION

11.  Upon the  termination of the Agreement  howsoever  occasioned the Executive
     shall unless otherwise agreed by the Company:

     (i)  return all  property,  documents  and  correspondence  relating to the
          affairs of the  Company or other  Group  Company,  including  books of
          instruction and reference and identity passes;

                                       37
<PAGE>
     (ii) at any time or from time to time  thereafter  upon the  request of the
          Company, resign from office as a director of the Company and all other
          offices  held by him in any other Group  Company and should he fail to
          do so the Company is hereby  irrevocably  authorized  to appoint  some
          person in his name and on his behalf to sign and do any  documents  or
          things necessary or desirable to give effect thereto; and

     (iii)the  Company  shall be  entitled  to deduct from any monies due to the
          Executive  any sums due from the Executive to the Company or any other
          Group Company.

RESTRICTIONS AFTER TERMINATION OF EMPLOYMENT

12.  (A)  The  Executive  hereby  agrees  with  the  Company that in addition to
          the other terms of and  restrictions  contained in this  Agreement and
          without  prejudice to other  restrictions  imposed upon him by law, he
          will not without the prior written consent of the Company for a period
          of twelve (12) months  commencing with the date of termination of this
          Agreement,  howsoever the termination  shall be occasioned,  either on
          his own behalf or for any other person, firm or organization:-

          (i)  be  directly  or  indirectly  engaged  in or  concerned  with any
               business  which shall be in  competition  with,  in  countries in
               which  operations are carried on or interests held by, any of the
               upstream,  downstream  or chemicals  businesses of the Company or
               any  other  Group  Company  at the  date of  termination  of this
               Agreement  provided  that this  provision  shall not restrict the
               Executive   from  holding  or  acquiring  by  way  of  bona  fide
               investment  only,  investments  whether  or not  listed or quoted
               representing  not  more  than  five  percent  (5%) of the  issued
               investments of any class of any one company;

          (ii) directly or  indirectly  solicit or endeavour to entice away from
               the  Company  or  any  Group  Company  any  person  who is to his
               knowledge an employee, director or officer of such Company at the
               date of termination of this Agreement.

                                       38
<PAGE>
     (B)  While the  restrictions  contained in this Clause 12 and  elsewhere in
          this  Agreement are  considered by the parties to be reasonable in all
          the  circumstances,  it is  agreed  that  if such  restrictions  taken
          together  shall be adjudged to go beyond what is reasonable in all the
          circumstances  for the  protection of the interests of the Company but
          would be adjudged  reasonable if part or parts of the wording  thereof
          were  deleted then the said  restrictions  shall apply with such words
          deleted.

DIRECTORSHIPS

13.  (A)  Without   prejudice  to   any  other  rights  and  obligations  of the
          Executive  under this  Agreement,  the  Executive's  appointment  as a
          Managing Director will be determined if he for any reason ceases to be
          a director of the Company and the Executive undertakes in the event of
          his appointment as a Managing  Director being terminated to tender his
          resignation from the Board of Directors.

     (B)  Notwithstanding any other provisions in this Agreement the Executive's
          appointment  as a director of the  Company or any other Group  Company
          shall be subject to the Articles of  Association  from time to time of
          the relevant company.

DIRECTORS' AND OFFICERS' LIABILITY INSURANCE

14.  The Company shall maintain insurance in respect of directors' and officers'
     liabilities in such manner,  for such a period,  and on such terms,  as may
     from time to time be determined by the Board of Directors.

REORGANISATION

15.  If the Company shall undergo any process of  reconstruction or amalgamation
     (including an administrative  reorganization)  whether or not involving the
     liquidation of the Company and the Executive shall be offered employment by
     the  successor  or  proposed  successor  to the  Company or any other Group
     Company on terms no less  favourable  overall to those under this Agreement
     but the  Executive  shall have failed to accept  such offer  within one (1)
     month,  then the Company may terminate  this Agreement  forthwith.  In such
     event,  the  Executive  shall have no claim for  compensation  against  the
     Company  in  respect  of  such  termination  save  as  provided  under  the
     provisions of the Employment Protection (Consolidation) Act 1978.

                                       39
<PAGE>
STATUTORY PARTICULARS

16.  The written particulars of employment required to be given to the Executive
     under the provisions of Part I of the Employment Protection (Consolidation)
     Act 1978 are,  unless  otherwise  previously  set out above,  stated in the
     Schedule attached (which shall be deemed to form part of this Agreement).

MISCELLANEOUS

17.  (A)  This  Agreement  shall not be  assignable by the Executive and may
          only be modified by the written agreement of the parties hereto.

     (B)  The  Company  reserves  the right to pay  compensation  in lieu of any
          notice of  termination  of  appointment  which it is  required to give
          under this Agreement.

     (C)  This Agreement shall be governed by and interpreted in accordance with
          the laws of England.

IN WITNESS whereof this document has been executed as a Deed on the day and year
first above written.

The Common Seal of                               )
THE BRITISH PETROLEUM COMPANY p.l.c.             )
was hereunto affixed                             )
in accordance with its                           )
Articles of Association                          )
in the presence of:                              )

Director

Assistant
Secretary

SIGNED AS A DEED
by the said RODNEY FRANK CHASE

in the presence of:-

Name

Address

Occupation

                                       40
<PAGE>

                                    SCHEDULE

CONTINUOUS EMPLOYMENT

1.   The Executive's period of continuous  employment with the Company is deemed
     to have begun on November 30, 1964.

PENSIONS

2.   There is in force a  Contracting-out  certificate  in  relation  to the
     Executive's employment.

DISCIPLINARY RULES AND PROCEDURES

3.   The Executive will be notified as to the Company's  disciplinary  rules and
     procedures from time to time applicable to the Executive.

GRIEVANCE PROCEDURE

4.   If the  Executive  has any  grievance  relating  to his  employment  he
     should raise it with the Chairman of the Board of Directors.

OTHER TERMS

5.   Except as otherwise stated in the Agreement (including this Schedule) there
     are no other terms or conditions of  employment  relating to  remuneration,
     hours of work,  normal  working hours,  entitlement to holidays  (including
     public  holidays and holiday pay),  incapacity  for work due to sickness or
     injury or to pensions or pension schemes.

                                       41
<PAGE>
DATED JUNE 23, 2000

                               BP AMOCO COPORATION

                                       and

                              WILLIAM DOUGLAS FORD

                              EMPLOYMENT AGREEMENT

                                       42
<PAGE>
                                    CONTENTS

CLAUSE                                                                 PAGE

1.     Employment                                                         1
2.     Term                                                               1
3.     Salary                                                             1
4.     Termination of Employment                                          1
5.     Termination Payment                                                1
6.     Benefits                                                           2
7.     General                                                            2

                                       43
<PAGE>
THIS AGREEMENT is made on June 23, 2000 BETWEEN:

(1)   BP AMOCO  CORPORATION  an Indiana  corporation  of 200 East Randolf Drive,
      Chicago, Illinois 60601 (the `Company'); and

(2)   WILLIAM  DOUGLAS FORD of 3654 Highland  Avenue,  Downers  Grove,  Illinois
      60515, USA (the `Executive')

IT IS AGREED as follows:

1.    EMPLOYMENT

      The Company shall employ the Executive and the Executive shall be employed
      as a  senior  executive  of the  Company  on the  terms  set  out in  this
      Agreement (the `Employment').

2.    TERM

      The Employment took effect from January 1, 2000. The period of time during
      which the Executive is employed by the Company under this  Agreement  will
      be referred to herein as the `Term'.

3.    SALARY

      The  Company  shall pay to the  Executive a salary at the rate of $620,000
      per annum, (less applicable deductions).

4.    TERMINATION OF EMPLOYMENT

4.1   The  Employment  shall  be at will  and may be  terminated  at any time by
      either  party  giving to the  other two  month's  notice in  writing.  The
      Employment shall in any event terminate automatically on January 21, 2004.

4.2   Nothing contained herein limits the Company's rights to suspend any of the
      Executive's duties and powers under this Agreement.

5.    TERMINATION PAYMENT

5.1   On the  termination  of the Employment by the Company other than for cause
      (as  defined  in clause 5.5 below ) the  Executive  shall be  entitled  to
      receive a payment of $ one  million  for  ($1,000,000)  each year from the
      date on which the  Employment  terminates  until January 21, 2004 or a pro
      rated portion of $1 million for part years (the `Termination Payment').

5.2   The Termination Payment shall be subject to a maximum amount of $3
      million.

5.3   In the event that the Executive  terminates  the Employment or the Company
      terminates the Employment for cause at any time the Executive shall not be
      entitled to the Termination Payment or to any part of it and he shall only
      be  entitled to his salary  earned up to the date on which the  Employment
      terminates.

                                       44
<PAGE>
5.4   Upon the termination of the Employment  (howsoever  arising) the Executive
      will only be entitled or eligible to receive the  payments set out in this
      clause 5 and he will not receive any other payments whatsoever.

5.5   For the purpose of this agreement `cause' shall mean that the Executive:

      (i)    commits  an  act   constituting  a  misdemeanour   involving  moral
             turpitude  or a felony  under the laws of the United  States or any
             state or political subdivision thereof;

      (ii)   commits an act  constituting a breach of fiduciary duty,  gross
             negligence or wilful misconduct;

      (iii)  engages in conduct  that  violates  the  Company's  policies or
             procedures  or  the  standing  of  the  Company  or  any of its
             affiliates;

      (iv)   commits an act of fraud,  dishonesty or misrepresentation  that
             is  detrimental to the business,  reputation,  character of the
             Company or any of its affiliates;

      (v)    engages in a conflict of interest or self-dealing; or

      (vi)   breaches his obligations as set forth in this agreement or he fails
             to perform his duties as an employee of the Company (including as a
             result of his death or permanent  disability  whereby the Executive
             is unable to perform the  essential  functions  of his job for four
             (4) consecutive months).

6.    BENEFITS

      The Executive  shall be entitled to  participate  in such benefit plans as
      the  Company  may  from  time to time  provide  in  respect  of him,  such
      participation  to be on the terms or subject to the rules or the Company's
      policies as may apply to such benefits from time to time.

7.    GENERAL

7.1   Each  of  the   provisions  in  this   agreement   shall  be   enforceable
      independently of each of the others and its validity shall not be affected
      if any of the  others  is  invalid.  If  any  of the  provisions  of  this
      agreement  is void but  would be valid  if some  part of the  clause  were
      deleted,  the clause in question shall apply with such modification as may
      be necessary to make it valid.

7.2   During  the  Employment  the  Executive  will be  bound  by the  Company's
      policies and procedures applicable to employees.

7.3   This agreement  shall be governed by and construed in accordance  with the
      laws of the State of Illinois.

                                       45
<PAGE>
7.4   As from the  effective  date of the  Employment  all other  agreements  or
      arrangements  between  the  Executive  and  the  Company  or  any  of  its
      affiliates  relating to the employment of the Executive will cease to have
      effect. It is acknowledged and agreed that the Company has no liability to
      make any payments to the Executive  other than salary and benefits  earned
      up to the effective date of the Employment. In particular, it is confirmed
      and agreed that the Company has no  liability  to make any payments to the
      Executive  on  the   termination  of  his  previous   service   agreements
      (including, without limitation, any payments under clause 6 of the service
      agreement between the Executive and the Company dated 3rd September 1998).

7.5   This Agreement contains the entire understanding of the parties and may be
      modified only in a document signed by the parties and referring explicitly
      hereto.

AS WITNESS the hands of the Executive and of a duly authorized representative of
the Company on the date which appears first on page 1.

SIGNED by BP AMOCO CORPORATION         )
in the presence of:                    )

SIGNED by                              )
WILLIAM DOUGLAS FORD                   )
in the presence of:                    )

                                       46
<PAGE>
THIS AGREEMENT is made on June 23, 2000

BETWEEN:-

(1)    BP AMOCO  CORPORATION  an Indiana  corporation of 200 East Randolf Drive,
       Chicago, Illinois, 60601 (the `Company'); and

(2)    BP AMOCO plc an English registered company of 1 Finsbury Circus,  London,
       EC2M 7BA (the `Parent').

WHEREAS the Company has agreed that it will supply to the Parent  assistance  by
seconding its employee  WILLIAM DOUGLAS FORD (the  `Secondee') to the Company in
accordance with the terms and conditions of this Agreement.

NOW IT IS HEREBY AGREED AS FOLLOWS:

1.    TERM

      This Agreement  shall  commence on and with effect from 1st January,  2000
      and shall continue  thereafter  subject to termination in accordance  with
      Clause 7 below.

2.    SECONDMENT

2.1.  The Company shall second the Secondee to the Parent in accordance with the
      terms and conditions of this Agreement (the `Secondment').  The Secondment
      shall be on a full time basis.

2.2   The Secondee shall be supplied to perform the services that are reasonably
      required by the Parent.

2.3   The Company shall procure that the Secondee enters into undertakings as to
      confidentiality and as to compliance with policies  corresponding to those
      normally  obtained by the Parent from its employees and shall procure that
      the Secondee  accepts that he is bound by the Parent's  General  Terms and
      Conditions of Employment on Executive  Expatriate  Secondments  (a copy of
      which are attached to this Agreement) during the Secondment.

3.    OBLIGATIONS OF THE COMPANY

      The Company shall ensure that it performs all  obligations  and discharges
      all  liabilities  which may be  imposed on it by law or  otherwise  in its
      capacity as employer of the Secondee.

4.    REPORTING AND STATUS

      For the avoidance of doubt,  the Secondee shall at all times be and remain
      an employee of the Company but shall  during the course of any  secondment
      pursuant to this Agreement, report to and act upon the instructions of the
      Chief  Executive  Officer  of the  Parent  or  such  person  as the  Chief
      Executive Officer shall from time to time nominate.

                                       47
<PAGE>
5.    INTELLECTUAL PROPERTY RIGHTS

5.1   If at any time during the course of  providing  services to the Parent the
      Secondee  either alone or jointly, discovers  or acquires  any  invention,
      development, improvement  process or design  whatsoever  or any  interests
      therein which shall relate to or concern the activities of the Parent, the
      Company shall use reasonable endeavours to procure that the Secondee shall
      forthwith in writing  communicate  full details  thereof to the Parent and
      any such invention made or discovered as aforesaid  shall belong to and be
      the absolute property of the Parent.

5.2   The Company  shall assign or cause to be assigned to the Parent all rights
      of copyright or similar rights in all material made,  developed,  written,
      granted or  otherwise  created by the  Secondee in the course of providing
      services  to the  Parent and will hold the same to the order of the Parent
      absolutely.

6.    PAYMENT LIABILITY AND INDEMNITY

6.1   The Parent  shall  reimburse  to the Company an amount  equal to the costs
      incurred by the Company in paying the Secondee's  salary and providing his
      other benefits during the course of the Secondment. These amounts shall be
      payable by the Parent to the Company monthly in arrears.

6.2   The Company shall have no liability for any loss or damage (whether direct
      or indirect,  physical,  economic,  consequential or otherwise)  howsoever
      arising  from  or in  connection  with  the  provision  of the  Secondee's
      services  to the Parent and the Parent  agrees and  acknowledges  it shall
      bear full and sole  responsibility  for  supervising the activities of the
      Secondee during the course of the Secondment.

6.3   The Parent agrees to hold the Company fully and effectively indemnified in
      respect  of all and any  liabilities  which the  Company  may incur to any
      third party for claims, losses,  liabilities or damages or loss of profit,
      savings, goodwill, business trade or other economic loss howsoever arising
      in  connection  with the  provision  of any  services to the Parent by the
      Secondee.

7.    TERMINATION

7.1   Either  party may  terminate  this  Agreement  immediately  by giving  one
      month's  notice in writing to the other or in the event that either  party
      commits a serious breach of this  Agreement or is in persistent  breach of
      any of the terms of this  Agreement  (and for the purpose of this clause a
      breach by the Secondee  shall be deemed to be a breach by the Company) the
      other party may terminate this Agreement without notice.

7.2   This Agreement shall terminate  automatically on the date that the Company
      or the  Secondee  gives notice to the other to  terminate  the  Secondee's
      employment with the Company.

7.3   This Agreement shall terminate automatically on November 21, 2003.

7.4   On termination  of the  Secondment for whatever  reason the Secondee shall
      return to work for the Company and the Parent  shall have no  liability in
      respect of his employment and/or the termination of his employment.

                                       48
<PAGE>
7.5   The parties acknowledge that following termination of his Secondment,  the
      Secondee's  obligations of confidentiality to the Parent shall continue to
      apply.

8.    MISCELLANEOUS

      Any  notice to be served on either of the  parties  by the other  shall be
      sent by pre-paid  first class post or by telex or telefax to the  business
      address  of the  party to whom it is sent and shall be deemed to have been
      received by the addressee within 48 hours of posting or 2 hours if sent by
      telex or telefax to the  correct  telex or telefax  number  (with  correct
      answer  back in the  case of  telex)  of the  addressee.  Notification  of
      intended  despatch  of any  telefax  shall be given  by  telephone  to the
      addressee prior to despatch of any notice by telefax.

9.    PROPER LAW & JURISDICTION

9.1   This  Agreement is governed by and shall be construed in  accordance  with
      the laws of England.

9.2   The parties to this Agreement submit to the exclusive  jurisdiction of the
      English courts.

IN WITNESS  WHEREOF this Agreement has been executed by the panics hereto and is
hereby delivered on the date first above written.

SIGNED by for and on behalf of         )
BP AMOCO CORPORATION                   )
in the presence of                     )

SIGNED by                              )
for and on behalf of                   )
BP AMOCO PLC                           )
in the presence of                     )

                                       49
<PAGE>

                          GENERAL TERMS AND CONDITIONS
                                  OF EMPLOYMENT
                       ON EXECUTIVE EXPATRIATE SECONDMENTS
                       APPLICABLE TO WILLIAM DOUGLAS FORD

                                       50
<PAGE>
                                TABLE OF CONTENTS

CLAUSE                                                                PAGE

1.    Interpretation                                                     1
2.    Duties                                                             1
3.    Place of Work of the Secondee                                      2
4.    Resettlement                                                       2
5.    Incentives                                                         3
6.    Travelling Expenses                                                3
7.    Car                                                                3
8.    Benefits                                                           3
9.    Vacation                                                           3
10.   Confidential Information                                           3
11..  Intellectual Property                                              4
12.   Termination of Secondment                                          5
13.   General                                                            5
14.   Notices                                                            6

                                       51
<PAGE>
GENERAL TERMS AND CONDITIONS ON EXPATRIATE EXECUTIVE SECONDMENTS

1.    INTERPRETATION

(1)   In these terms and conditions:

      `Secondment' means the secondment of the Secondee by a Group Company
      to another Group Company;

      `Secondee' means William Douglas Ford;

      `Company' means: BP Amoco plc;

      `CEO' means the group chief  executive  of the Company and it includes his
      delegate or delegates where the chief executive  officer has delegated his
      authority to manage the Secondee or the business of the Group in which the
      Secondee is performing his duties;

      `Group' means the Company and its  subsidiaries,  affiliates,  parents and
      related  entities for the time being and `Group  Company' means any one of
      them;

      `Working Day' means a day other than a Saturday, Sunday or Company
      holiday;

(2)   References  in these  terms  and  conditions  to a person  include  a body
      corporate and an unincorporated association of persons and references to a
      company include any body corporate.

(3)   Any  reference  in these terms and  conditions  to a  statutory  provision
      includes any statutory  modification  or  re-enactment  of it for the time
      being in force.

(4)   Where appropriate, references to the Secondee include his personal
      representatives.

2.    DUTIES

(1)   The  Secondee  shall use his best  endeavours  to promote  and protect the
      interests of the Group and shall not do anything which is harmful to those
      interests.

(2)   The  Secondee  shall  diligently  and  faithfully  perform such duties and
      exercise  such powers as may from time to time be assigned to or vested in
      him in relation to the conduct and  management of the affairs of the Group
      by the CEO. The CEO may also suspend all or any of the  Secondee's  duties
      and powers for such  periods and on such terms as he  considers  expedient
      (including  a term that the  Secondee  shall not  attend at the  Company's
      premises).

(3)   The Secondee shall give to the CEO such information  regarding the affairs
      of the  Group  as he shall  require  and  shall  comply  with  all  proper
      instructions of the CEO.

(4)   The Secondee  shall have the power and the  authority to act in accordance
      with the instructions of and within the limits prescribed by the CEO.

                                       52
<PAGE>
(5)   The  Secondee  shall  comply  with all codes of conduct  from time to time
      adopted by the Company and with all applicable laws, rules and regulations
      applicable to the Company.

(6)   The Secondee shall (unless prevented by sickness,  disability or otherwise
      directed by the CEO) devote the whole of his time during  normal  business
      hours to his duties  under those  General  Terms and  Conditions  and such
      additional time as is necessary for the proper fulfilment of those duties.

(7)   The Secondee's  salary shall be inclusive of any fees receivable by him as
      a director of any Group Company and if the Secondee receives any such fees
      in addition to his salary he shall pay them to the Company.

(8)   The Secondee shall not accept any appointment to any office in relation to
      any body,  whether  corporate  or not,  (other  than a Group  Company)  or
      directly or indirectly  be interested in any manner in any other  business
      except:

      (a)    as holder or beneficial owner (for investment purposes only) of any
             class of securities in a company if those  securities  are publicly
             traded on a  recognized  investment  exchange  and if the  Secondee
             (together with his spouse,  children,  parents and parents'  issue)
             neither holds nor is beneficially  interested in more than five per
             cent of the securities of that class; or

      (b)    with the  consent  in  writing  of the  Company  which may be given
             subject to any terms or conditions which the Company requires.

3.    PLACE OF WORK OF THE SECONDEE

      The  Secondee's  duties shall relate  primarily to the United  Kingdom but
      shall extend to travel abroad when required by the Company.

4.    RESETTLEMENT

(1)   The Secondee shall be entitled to relocation  assistance in respect of the
      costs of moving  from his home base to the  overseas  location at which he
      has  accepted  an  appointment.  The  amount of such  assistance  shall be
      determined in accordance with the Company's policies from time to time and
      shall be subject to the terms of such policies.

(2)   Until the date falling two months after the termination of the Secondment,
      or  the  third  anniversary  of  the  Secondee's  expatriate   appointment
      (whichever is the sooner) the Secondee shall be entitled to a resettlement
      allowance (the `Resettlement Allowance') of $540,000 per annum. This is in
      place of the benefits  provided  under the Group  Company that employs the
      Secondee's Foreign Services Premium,  Commodities and Services  Allowance,
      Housing and  Utilities  Allowance,  Home Leave  Travel  Allowance  and Tax
      Equalization policy.

(3)   The  Resettlement   Allowance  shall  not  form  part  of  the  Secondee's
      pensionable  salary and shall not be taken into account in determining the
      Secondee's  pension  benefits or his rights  under any  incentive  plan or
      other benefit in which he participates or to which he is entitled.

                                       53
<PAGE>
(4)   In addition to the  Resettlement  Allowance the Secondee shall be entitled
      to the  costs  of  repatriation  at  the  end  of  his  assignment  (to be
      determined in accordance with and subject to the Company's policies at the
      time of resettlement),  educational assistance,  medical benefits and such
      other benefits as may be notified to him from time to time by the Company.

5.    INCENTIVES

      The  Secondee  agrees  that his  participation  in any bonus or  incentive
      arrangements shall be at the Company's sole discretion; that he is subject
      to the  Company's  procedures  as  notified  to him from  time to time for
      setting and assessing any bonus or incentive  payments,  if any, under any
      scheme in which he participates.

6.    TRAVELLING EXPENSES

      The Company shall  reimburse the Secondee (on  production of such evidence
      as it may  reasonably  require)  the  amount of all  travelling  and other
      expenses  properly and reasonably  incurred by him in the discharge of his
      duties.

7.    CAR

(1)   The Company  shall  provide the  Secondee  with a car  appropriate  to his
      status for his use in the  performance  of his duties and,  subject to any
      restrictions or conditions  from time to time imposed by the Company,  the
      Secondee may use the car for his private purposes.

(2)   The Company shall pay all normal servicing, insurance and running expenses
      in relation to the car and all fuel  expenses  incurred by the Secondee in
      the performance of his duties.

(3)   The Secondee  shall take good care of the car and shall  observe the terms
      and conditions of the insurance policy relating to it and the terms of the
      Company's car policy from time to time.

8.    BENEFITS

      The Secondee shall be entitled to participate in such benefit plans as the
      Company  may from time to time notify to him such  participation  to be on
      the terms or subject to the rules or the  Company's  policies as may apply
      to such benefits from time to time.

9.    VACATION

(1)   The Secondee shall take his vacation  entitlement at times agreed with the
      Company.

(2)   Any entitlement to vacation  remaining at the end of any calendar year may
      be  carried  forward  to  the  next  calendar  year  but no  further.  The
      entitlement  to vacation (and on  termination of employment to accrued but
      unused   vacation)   accrues  pro  rata   throughout  each  calendar  year
      (disregarding fractions of days).

                                       54
<PAGE>
10.   CONFIDENTIAL INFORMATION

(1)   The Secondee shall not make use of or divulge to any person, and shall use
      his best endeavours to prevent the use,  publication or disclosure of, any
      information of a confidential or secret nature:

      (a)    concerning  the  business of the  Company or any Group  Company
             and which  comes to his  knowledge  during  the course of or in
             connection  with  his  employment  or his  holding  any  office
             within  the Group from any  source  within  the  Company or any
             Group Company: or

      (b)    concerning  the  business of any person  having  dealings  with the
             Company or any Group  Company  and which is  obtained  directly  or
             indirectly  in  circumstances  in which  the  Company  or any Group
             Company is subject to a duty of confidentiality in relation to that
             information.

(2)   This clause shall not apply to information which is:

      (a)    used or disclosed in the proper  performance  of the Secondee's
             duties or with the prior written consent of the Company; or

      (b)    ordered to be disclosed  by a court of  competent  jurisdiction
             or otherwise required to be disclosed by law.

(3)   This  clause  shall  continue  to  apply  after  the  termination  of  the
      Secondment without limit of time.

(4)   Each of the  restrictions  in each  paragraph or subclause  above shall be
      enforceable independently of each of the others and its validity shall not
      be affected if any of the others is invalid.  If any of those restrictions
      is void but would be valid if some part of the  restriction  were deleted,
      the  restriction in question shall apply with such  modification as may be
      necessary to make it valid.

11.   INTELLECTUAL PROPERTY

(1)   In this clause  `Intellectual  Property  Right' means a formula,  process,
      invention,  improvement, utility model, trade mark, service mark, business
      name, copyright,  design right, patent,  know-how,  trade secret, program,
      documentation,   other  copyrightable  work  and  any  other  intellectual
      property  right of any nature  whatsoever  throughout  the world  (whether
      registered or unregistered  and including all  applications  and rights to
      apply for the same) which:

      (a)    relates to or is useful in connection  with the business or any
             product or service of a Group Company; and

      (b)    is  invented,  developed,  created  or  acquired  by  the  Secondee
             (whether  alone or jointly with any other person) during the period
             of his employment with the Group (`the Employment').

(2)   Any  Intellectual  Property  Right that the  Secondee  creates or works on
      during the  Employment are works made `for hire' for purposes of copyright
      laws. Any copyright rights in those works are owned by the Company, not by
      the Secondee.

                                       55
<PAGE>
(3)   The Secondee shall promptly  communicate in confidence to the Company full
      particulars  of any  Intellectual  Property  Right  (whether  or not it is
      vested in the Company  pursuant to subclause (2) above or  otherwise)  and
      the  Secondee  shall  not use,  disclose  to any  person  or  exploit  any
      Intellectual  Property  Right  belonging to the Company  without the prior
      written consent of the Company.

(4)   The Secondee shall, at the request and expense of the Company, prepare and
      execute  such  instruments  and do such  other  acts and  things as may be
      necessary  or desirable to enable the Company or its nominee to obtain the
      protection  of any  Intellectual  Property  Right vested in the Company in
      such parts of the world as may be  specified by the Company or its nominee
      and to enable the  Company  to exploit  any  Intellectual  Property  Right
      vested in the Company to best advantage.

(5)   These obligations of the Secondee regarding  Intellectual  Property as set
      forth  above  shall  continue  to  apply  after  the  termination  of  the
      Employment. Each of those obligations is enforceable independently of each
      of the others and its validity  shall not be affected if any of the others
      is unenforceable to any extent.

12.   TERMINATION OF SECONDMENT

(1)   If the Secondee is appointed as a director or officer of the Company or of
      any Group  Company and the Secondee  ceases to be a director or officer of
      the  Company or of that Group  Company  (for any reason  whatsoever)  that
      shall not terminate the Secondment.

(2)   The Secondment shall terminate automatically on the date that the Secondee
      gives, or is given,  notice of termination of employment and shall, in any
      event, terminate automatically on 21st November, 2003.

(3)   On the termination of the Secondment in any way the Secondee shall
      immediately:

      (a)    return the car and its keys to the  Company at such place as it
             shall nominate for the purpose; and

      (b)    deliver to the  Company's  Group  Human  Resources  Department  all
             property in his possession,  custody or under his control belonging
             to any Group Company including (but not limited to) business cards,
             credit and charge cards, security and computer passes, original and
             copy  documents or other media on which  information is held in his
             possession  relating  to the  business  or  affairs  of  any  Group
             Company; and

      (c)    resign  all  offices  held  by him in any  Group  Company  (without
             prejudice to the rights of any party arising out of the termination
             of the Secondment).

(4)   The  Secondee  hereby  authorizes  the  Company to deduct from any amounts
      payable by the Company or the Group to the Secondee on the  termination of
      the  Secondment any sums due to the Company or the Group from the Secondee
      as permitted by law.

                                       56
<PAGE>
(5)   With effect from the date of termination of the Secondment, all the rights
      and  obligations  of the parties  shall  cease  except for those which are
      expressed to continue after that date and except in relation to any breach
      of any  provision  of these terms and  conditions  or any other  agreement
      between the Company and the Secondee before that date.  Termination of the
      Secondment shall not prejudice any other rights of the Company.

13.   GENERAL

(1)   These  terms  and  conditions  shall  be  governed  by  and  construed  in
      accordance with the laws of the United Kingdom.

(2)   In the event of any conflict  between these terms and  conditions  and the
      provisions  of any other  agreement  between  the  Secondee  and any Group
      Company, these terms and conditions shall prevail.

14.   NOTICES

(1)   Any notice or other document to be served under any agreement  between the
      Company and the Secondee may, in the case of the Company,  be delivered by
      hand or sent by first  class  mail or telex or  facsimile  process  to the
      Company at its  registered  office for the time being and,  in the case of
      the  Secondee,  may be delivered to him or sent by first class mail to his
      usual or last known place of residence.

(2)   Any such notice or other document shall be deemed to have been served:

      (a)    if delivered, at the time of delivery;

      (b)    if mail,  at 10.00 a.m. on the second  Working Day after it was
             put into the mail; or

      (c)    if sent by telex or facsimile  process,  at the  expiration  of
             two hours  after the time of  dispatch,  if  dispatched  before
             3.00 p.m.  on any Working  Day,  and in any other case at 10.00
             a.m. on the Working Day following the date of dispatch.

(3)    In proving such service it shall be sufficient to prove that delivery was
       made or that the envelope  containing  such notice or other  document was
       properly  addressed  and posted as a pre-paid  first class letter or that
       the telex or facsimile  message was properly  addressed and dispatched as
       the case may be.

                                       57
<PAGE>

                              William Douglas Ford
                              3654 Highland Avenue
                                  Downers Grove
                               Illinois 60515 USA

                                                               June 19, 2000

BP Amoco Corporation
200 East Randolf Drive
Chicago
Illinois 60601
USA

Dear Sirs,

I hereby confirm that as a term of my secondment to BP Amoco plc (`the Company')
that I am  bound  by and  will  comply  with the  Company's  General  Terms  and
Conditions of Employment on Executive Expatriate  Secondment (a copy of which is
attached) during the secondment.

Yours sincerely,

W D Ford

Enc.

                                       58
<PAGE>
DATED 1ST SEPTEMBER 1997

                    THE BRITISH PETROLEUM COMPANY p.l.c.

                                       and

                          CHRISTOPHER SHAW GIBSON-SMITH

                                SERVICE AGREEMENT

                                       59
<PAGE>

THIS AGREEMENT is made on September 1, 1997 BETWEEN:

(1)   THE BRITISH PETROLEUM COMPANY p.l.c. (registered number 102498)
      whose registered office is at Britannic House, 1 Finsbury Circus,
      London EC2M 7BA (the `Company'); and

(2)   CHRISTOPHER SHAW GIBSON-SMITH of Lartsdowne, White Lane, Guildford,
      Surrey GU4 8PR (the `Executive')

IT IS AGREED as follows:

1.    EMPLOYMENT

      The Company shall continue to employ the Executive and the Executive shall
      assume the position of a Senior  Executive of the Company on the terms set
      out in this agreement (the `Employment').  The Employment in this position
      shall take effect from September 1, 1997.

2.    SALARY

(1)   The  Company  shall  pay  to  the  Executive  a  salary  at  the  rate  of
      (pound)300,000 per annum.

(2)   The Executive's salary shall be reviewed at the discretion of the
      Company.

(3)   The  Executive's  salary  shall  accrue  from day to day and be payable by
      equal instalments in arrear on the last day of every month.

3.    PENSIONS

      The  Executive  is  entitled  to continue to be a member of The BP Pension
      Scheme (the  `Pension  Scheme')  subject to its terms.  The  Executive  is
      entitled  to  benefits  under the Pension  Scheme in  accordance  with the
      separate  arrangements  made  between the Company and the  trustees of the
      Pension  Scheme for the  benefit of the  Executive  and as notified to him
      from time to time by the Company.

4.    TERMINATION OF EMPLOYMENT

(1)   The Company or the Executive may terminate the Employment by giving to the
      other party at least 12 months notice in writing expiring at any time.

(2)   The Company may at any time terminate the Employment with immediate effect
      by giving  notice in writing to the  Executive  on terms that the  Company
      shall pay to the Executive,  in lieu of notice under  subclause (1) above,
      an amount  equal to 12 months'  salary or the amount of salary  that would
      have been paid to the Executive if the Employment terminated on the expiry
      of the remainder of any notice given under  subclause  (1) above  provided
      that the  Executive's  entitlement  to the payment shall be conditional on
      him agreeing to comply with his  obligations to the Company  following the
      termination of the Employment  (which  include,  but without  limiting the
      generality  of the foregoing  his  obligations  not to use or disclose the
      Company's or the Group's confidential  information under the General Terms
      and Conditions of Employment).

                                       60
<PAGE>
(3)   Subclause (1) above does not limit the Company's  rights to suspend any of
      the Executives duties and powers under this agreement or the General Terms
      and Conditions of Employment.  In addition or  alternatively,  the Company
      may  during  the whole or any part of any  period of  notice  require  the
      Executive to perform duties (including any modified duties arising from an
      exercise  by the  Company  of its  rights  under  the  General  Terms  and
      Conditions of  Employment) at such locations as the Company may reasonably
      require.  Throughout any such period of suspension, the Executive's salary
      and other  benefits to which he is  entitled  under this  agreement  shall
      continue to be paid or provided by the Company.

5.    GENERAL

(1)   Each  of  the   provisions  in  this   agreement   shall  be   enforceable
      independently of each of the others and its validity shall not be affected
      if any of the  others  are  invalid.  If  any of the  provisions  of  this
      agreement  are void but  would be valid if some  part of the  clause  were
      deleted,  the clause in question shall apply with such modification as may
      be necessary to make it valid.

(2)   The  General  Terms  and  Conditions  of  Employment  (a copy of which are
      attached to this  agreement)  as amended by the Company from time to time,
      shall form part of the Executive's  terms and conditions of employment and
      the  definitions  and other  provisions  contained  in the  interpretation
      clause in the General Terms and  Conditions  of Employment  shall apply to
      this agreement.

(3)   The terms set out in the Schedule in accordance  with the  requirements of
      the Employment Rights Act 1996 form part of this agreement.

(4)   As from the  effective  date of the  Employment  all other  agreements  or
      arrangements  between the Executive and any Group Company  relating to the
      employment of the Executive shall cease to have effect.

(5)   This  agreement  shall be governed by and  construed  in  accordance  with
      English law.

AS WITNESS the hands of the Executive and of duly authorized  representative  of
the Company on the date which appears first on page 1.

SIGNED by E.J.P. BROWNE                  )
on behalf of THE BRITISH PETROLEUM       )
COMPANY p.l.c.                           )
in the presence of:                      )

SIGNED by                                )
CHRISTOPHER SHAW GIBSON-SMITH            )
in the presence of:                      )

                                       61
<PAGE>
                                  THE SCHEDULE

The following  constitutes  the statement of the  particulars  of the Executives
employment  issued  pursuant to the Employment  Rights Act 1996. The particulars
are those which apply on the date of this agreement:

       Name of employer - the Company as defined on page 1 above,

       Name of employee - the Executive as defined on page 1 above.

       Date of commencement of employment - see clause 1.

       Date of  commencement  of  continuous  period of employment - November 1,
       1970.

       Scale or rate of remuneration or method of calculating remuneration - see
       clause 2.

       Intervals at which remuneration is paid - monthly - see clause 2.

       Hours of work - there are no fixed  hours of work - see also the  General
       Terms and Conditions of Employment.

       Holidays  (including  public  holidays)  and holiday pay - the  Executive
       shall be entitled to 28 Working Days' holiday with pay in every  calendar
       year. In addition see the General Terms and Conditions of Employment.

       Sickness or injury and sick pay - see the General Terms and Conditions of
       Employment.

       Pension - see clause 3. A contracting out certificate  within the meaning
       of Part III of the Pension Schemes Act 1993 is in force.

       Notice - see clause 4.

       Job title - Senior Executive.

       Place of work - the  duties of the  Employment  relate  primarily  to the
       United Kingdom. The Executive shall be based at the Group's Headquarters,
       which for the time being are at the employer's  address as stated on page
       1 above.

       Collective  agreements  - the  Company  is not a party to any  collective
       agreement which affects the Executive's employment.

       Working  overseas - the  Executive  is not under any  obligation  to work
       overseas for periods  exceeding  one month and  accordingly  there are no
       particulars to be entered in this regard.

       Discipline and grievance  procedure - there are no specific  disciplinary
       rules  applicable  to the  Executive's  employment.  If the  Executive is
       dissatisfied  with any  disciplinary  decision  or seeks to  redress  any
       grievance relating to his employment, he should raise this with the CEO.

                                       62
<PAGE>
                          GENERAL TERMS AND CONDITIONS
                                  OF EMPLOYMENT
                            ON EXECUTIVE APPOINTMENTS

                                       63
<PAGE>
                                    CONTENTS
CLAUSE                                                                PAGE

1.     Interpretation                                                    1
2.     Duties                                                            1
3.     Place of Work of the Executive                                    2
4.     Incentives                                                        2
5.     Travelling Expenses                                               3
6      Car                                                               3
7.     Pension                                                           3
8.     Medical and Sickness                                              3
9.     Holidays                                                          4
10.    Confidential Information                                          4
11.    Intellectual Property                                             4
12.    Termination of Employment                                         5
13.    General                                                           7
14.    Notices                                                           7

                                       64
<PAGE>
GENERAL TERMS AND CONDITIONS ON EXECUTIVE APPOINTMENTS

1.   INTERPRETATION

(1)  In these terms and conditions:

     `Employment' means the employment of the Executive by the Company under the
     terms of a service agreement between the Executive and the Company;

     `Associated Company' means:

     (a)  a company  which is not a  Subsidiary  of the Company but whose issued
          equity share  capital (as defined in section 744 of the  Companies Act
          1985) is owned as to at least 20 percent. by the Company or one of its
          Subsidiaries; and

     (b)  a Subsidiary of a company within (a) above;

     `CEO' means the chief executive  officer of the Company and it includes his
     delegate or delegates where the chief  executive  officer has delegated his
     authority to manage the Executive or the business of the Group in which the
     Executive is performing his duties;

     `Group' means the Company and its subsidiaries and Associated Companies for
     the time being and `Group Company' means any one of them;

     `Recognized  Investment Exchange' has the same meaning as in section 207 of
     the Financial Services Act 1986;

     `Subsidiary'  means a  subsidiary  within the meaning of section 736 of the
     Companies Act 1985; and

     `Working  Day' means a day other than a  Saturday,  Sunday or bank or other
     public  holiday in England  (or if the  Executive  works on a bank or other
     public holiday a day's holiday taken in lieu of that holiday).

(2)  References  in  these  terms  and  conditions  to a person  include  a body
     corporate and an unincorporated  association of persons and references to a
     company include any body corporate.

(3)  Any  reference  in these  terms and  conditions  to a  statutory  provision
     includes any  statutory  modification  or  re-enactment  of it for the time
     being in force.

(4)  Subclauses (1) to (3) above apply unless the contrary intention appears.

(5)  The   headings  in  these  terms  and   conditions   do  not  affect  their
     interpretation.

(6)  Where  appropriate,  references  to  the  Executive  include  his  personal
     representatives.

                                       65
<PAGE>
2.   DUTIES

(1)  The  Executive  shall use his best  endeavours  to promote  and protect the
     interests of the Group and shall not do anything  which is harmful to those
     interests.

(2)  The  Executive  shall  diligently  and  faithfully  perform such duties and
     exercise  such  powers as may from time to time be assigned to or vested in
     him in relation to the conduct and  management  of the affairs of the Group
     by the CEO. The CEO may also suspend all or any of the  Executive's  duties
     and powers for such  periods  and on such terms as he  considers  expedient
     (including  a term that the  Executive  shall not  attend at the  Company's
     premises).

(3)  The Executive shall give to the CEO such information  regarding the affairs
     of the  Group  as he  shall  require  and  shall  comply  with  all  proper
     instructions of the CEO.

(4)  The  Executive  shall have the power and the authority to act in accordance
     with the instructions of and within the limits prescribed by the CEO.

(5)  The  Executive  shall  comply  with all codes of conduct  from time to time
     adopted by the Company and with all applicable rules and regulations of the
     London Stock  Exchange  including  (without  limitation)  the model code on
     directors' dealings in securities.

(6)  The  Executive  shall  (unless  prevented  by  ill-health  or  accident  or
     otherwise  directed by the CEO) devote the whole of his time during  normal
     business hours to the duties of the Employment and such  additional time as
     is necessary for the proper fulfilment of those duties.

(7)  The Executive's  salary shall be inclusive of any fees receivable by him as
     a director of any Group Company and if the Executive receives any such fees
     in addition to his salary he shall pay them to the Company.

(8)  The Executive shall not accept any appointment to any office in relation to
     any body whether corporate or not, (other than a Group Company) or directly
     or indirectly be interested in any manner to any other business except:

     (a)  as holder or beneficial  owner (for  investment  purposes only) of any
          class of  securities  in a company if those  securities  are listed or
          dealt in on a  Recognized  Investment  Exchange  and if the  Executive
          (together  with his  spouse,  children,  parents and  parents'  issue)
          neither  holds nor is  beneficially  interested  in more than five per
          cent of the securities of that class; or

     (b)  with the consent in writing of the Company  which may be given subject
          to any terms or conditions which the Company requires.

3.   PLACE OF WORK OF THE EXECUTIVE

     The duties of the Employment  shall relate  primarily to the United Kingdom
     at such  places  as the  Company  may from time to time  require  but shall
     extend to travel abroad when required by the Company.

                                       66
<PAGE>
4.   INCENTIVES

     The  Executive  agrees  that his  participation  in any bonus or  incentive
     arrangements shall be at the Company's sole discretion;  that he is subject
     to the  Company's  procedures  as  notified  to him  from  time to time for
     setting and assessing any bonus or incentive  payments  under any scheme in
     which he participates;  and that he is subject to the procedures for making
     any  payments  that  may be due to him  under  the  terms  of any  bonus or
     incentive scheme in which he participates.

5.   TRAVELLING EXPENSES

     The Company shall  reimburse the Executive (on  production of such evidence
     as it may  reasonably  require)  the  amount  of all  traveling  and  other
     expenses  properly and  reasonably  incurred by him in the discharge of his
     duties.

6.   CAR

(1)  The Company  shall  provide the  Executive  with a car  appropriate  to his
     status for his use in the  performance  of his duties  and,  subject to any
     restrictions  or conditions  from time to time imposed by the Company,  the
     Executive may use the car for his private purposes.

(2)  The Company shall pay all normal servicing,  insurance and running expenses
     in relation to the car and all fuel  expenses  incurred by the Executive in
     the performance of his duties.

(3)  The  Executive  shall take good care of the car and shall observe the terms
     and conditions of the insurance  policy relating to it and the terms of the
     Company's car policy from time to time.

7.   PENSIONS

     The  Executive  is entitled to become or as the case may be remain a member
     of the BP Pension Scheme (the `Pension  Scheme')  subject to its terms. The
     full terms are set out in the trust deeds and rules  governing  the Pension
     Scheme;  copies  of those  documents  are  available  to the  Executive  on
     request.   The  Company  shall  deduct  from  the  Executive's  salary  any
     contributions payable by him from time to time to the Pension Scheme or any
     other pension scheme of the Group of which he becomes a member.

8.   MEDICAL AND SICKNESS

(1)  The Company may from time to time require the Executive to be examined by a
     medical adviser nominated by the Company and the Executive  consents to the
     medical  adviser  disclosing the results of the  examination to the Company
     and shall provide the Company with such formal consents as may be necessary
     for this purpose.

                                       67
<PAGE>
(2)  The Executive  shall be paid in full during any period of absence from work
     due to sickness  or injury of 120  Working  Days and at the rate of half of
     his  salary  for a  further  period  of 120  Working  Days  subject  to the
     provisions of clause 13 and to the production of satisfactory evidence from
     a registered  medical  practitioner  in respect of any period of absence in
     excess of five  consecutive  Working  Days.  The periods  during  which the
     Executive  receives  payment may be  extended by the CEO in his  discretion
     following  consultation with the Company's medical adviser. The Executive's
     salary  during any period of absence  due to  sickness  or injury  shall be
     inclusive of any statutory sick pay to which he is entitled and the Company
     may deduct  from his salary the amount of any social  security  benefits he
     may be entitled to receive.

(3)  If the Executive is incapable of performing  his duties by reason of injury
     sustained wholly or partly as a result of negligence, nuisance or breach of
     any statutory duty on the part of a third party and the Executive  recovers
     any  amount by way of  compensation  for loss of  earnings  from that third
     party, he shall pay to the Company a sum equal to the amount  recovered or,
     if less, the amount paid to him by the Company under subclause (2) above in
     respect of the relevant period of absence as a result of that injury.

9.   HOLIDAYS

(1)  The Executive  shall take his holiday  entitlement at times agreed with the
     Company.

(2)  Any entitlement to holiday remaining at the end of any calendar year may be
     carried  forward to the next calendar year but no further.  The entitlement
     to holiday  (and on  termination  of  employment  to holiday pay in lieu of
     holiday)  accrues pro rata  throughout  each  calendar  year  (disregarding
     fractions of days).

10.  CONFIDENTIAL INFORMATION

(1)  The Executive  shall not make use of or divulge to any person and shall use
     his best  endeavours to prevent the use,  publication or disclosure of, any
     information of a confidential or secret nature:

     (a)  concerning  the business of the Company or any Group Company and which
          comes to his knowledge  during the course of or in connection with his
          employment  or his holding any office within the Group from any source
          within the Company or any Group Company: or

     (b)  concerning the business of any person having dealings with the Company
          or any Group  Company and which is obtained  directly or indirectly in
          circumstances  in which the Company or any Group Company is subject to
          a duty of confidentiality in relation to that information.

(2)  This clause shall not apply to information which is:

     (a)  used or disclosed in the proper  performance of the Executive's duties
          or with the prior written consent of the Company; or

     (b)  ordered  to be  disclosed  by a court  of  competent  jurisdiction  or
          otherwise required to be disclosed by law.

                                       68
<PAGE>
(3)  This clause shall continue to apply after the termination of the Employment
     (whether terminated lawfully or not) without limit of time.

(4)  Each of the  restrictions  in each  paragraph or  subclause  above shall he
     enforceable  independently of each of the others and its validity shall not
     be affected if any of the others are invalid.  If any of those restrictions
     are void but would be valid if some part of the  restriction  were deleted.
     the  restriction in question shall apply with such  modification  as may be
     necessary to make it valid.

11.  INTELLECTUAL PROPERTY

(1)  In this clause  `Intellectual  Property  Right'  means a formula,  process,
     invention,  improvement,  utility model, trade mark, service mark, business
     name, copyright, design right, patent, know-how, trade secret and any other
     intellectual  property right of any nature whatsoever  throughout the world
     (whether  registered or  unregistered  and including all  applications  and
     rights to apply for the same) which:

     (a)  relates to or is useful in connection with the business or any product
          or service of a Group Company; and

     (b)  is invented,  developed, created or acquired by the Executive (whether
          alone or  jointly  with any other  person)  during  the  period of the
          Employment.

(2)  Subject to the provisions of the Patents Act 1977,  the entire  interest of
     the  Executive in any  Intellectual  Property  Right shall,  as between the
     Executive  and the Company,  become the property of the Company as absolute
     beneficial owner without any payment to the Executive for it.

(3)  The Executive shall promptly  communicate in confidence to the Company full
     particulars of any Intellectual Property Right (whether or not it is vested
     in the  Company  pursuant  to  subclause  (2) above or  otherwise)  and the
     Executive shall not use, disclose to any person or exploit any Intellectual
     Property Right  belonging to the Company  without the prior written consent
     of the Company.

(4)  The Executive shall, at the request and expense of the Company, prepare and
     execute  such  instruments  and do such  other  acts and  things  as may be
     necessary  or  desirable to enable the Company or its nominee to obtain the
     protection of any Intellectual Property Right vested in the Company in such
     parts of the world as may be specified by the Company or its nominee and to
     enable the Company to exploit any Intellectual Property Right vested in the
     Company to best advantage.

(5)  The  obligations of the Executive  under  subclauses (2) to (4) above shall
     continue  to  apply  after  the  termination  of  the  Employment  (whether
     terminated  lawfully  or not).  Each of those  obligations  is  enforceable
     independently  of each of the others and its validity shall not be affected
     if any of the others are unenforceable to any extent.

                                       69
<PAGE>
12.  TERMINATION OF EMPLOYMENT

(1)  If not previously  terminated the Employment shall automatically  terminate
     at the end of the day  immediately  before  the day on which the  Executive
     attains age 60 or any other  retirement  age applicable to the employees of
     the Company generally.

(2)  If the Executive:

     (a)  becomes  of  unsound  mind or is,  or may be,  suffering  from  mental
          disorder and either:

          (i)  he is admitted to hospital for treatment  under the Mental Health
               Act 1983; or

          (ii) an order is made by any competent  court for his detention or for
               the  appointment of a receiver,  curator bonis or other person to
               exercise powers with respect to his property or affairs; or

     (b)  is unable  properly  to perform  his  duties by reason of  ill-health,
          accident or otherwise for a period of 12 consecutive months; or

     (c)  fails or neglects  efficiently  and diligently to discharge his duties
          or is guilty of any  serious  or  repeated  breach of his  obligations
          under this agreement (including any consent granted under it); or

     (d)  is guilty of serious  misconduct or any other conduct which affects or
          is likely to affect  prejudicially the interests of the Company or the
          Group or is  convicted  of an  arrestable  offence  (other than a road
          traffic offence for which a non-custodial penalty is imposed); or

     (e)  becomes  bankrupt or makes any  arrangement  or  composition  with his
          creditors; or

     (f)  is  disqualified  from being a director of any company by reason of an
          order made by any competent court,

     the Company may (whether or not any notice of  termination  has been given)
     by written notice to the Executive  terminate the Employment with immediate
     effect but a notice under  paragraph  (b) above may be given by the Company
     to the Executive only within 90 days after the end of any period or periods
     of disability referred to in that paragraph.

(3)  During any period of notice of termination  of the  Employment  (whether or
     not such notice has been given by the Company or the Executive) the Company
     may require the  Executive  to take any holiday to which the  Executive  is
     entitled at such time or times as the Company may decide.

(4)  If the Executive is appointed as a director or officer of the Company or of
     any Group Company and the  Executive  ceases to be a director or officer of
     the Company or of that Group Company (for any reason whatsoever) that shall
     not terminate the Employment.

                                       70
<PAGE>
(5)  On the  termination  of the  Employment  in any way  (whether  lawfully  or
     otherwise) the Executive shall immediately:

     (a)  return  the car and its keys to the  Company at such place as it shall
          nominate for the purpose; and

     (b)  deliver to the Company's Group Human Resources Department all property
          in his possession, custody or under his control belonging to any Group
          Company  including  (but not limited to)  business  cards,  credit and
          charge  cards,  security  and  computer  passes,   original  and  copy
          documents  or  other  media  on  which  information  is  held  in  his
          possession  relating to the business or affairs of any Group  Company;
          and

     (c)  resign all offices held by him in any Group Company (without prejudice
          to the  rights  of any party  arising  out of the  termination  of the
          Employment).

(6)  The  Executive  hereby  authorizes  the  Company to deduct from any amounts
     payable  by  the  Company  to  the  Executive  on  the  termination  of the
     Employment any sums due to the Company from the Executive.

(7)  With effect from the date of termination of the Employment,  all the rights
     and  obligations  of the  parties  shall  cease  except for those which are
     expressed to continue  after that date and except in relation to any breach
     of any  provision  of these  terms and  conditions  or any other  agreement
     between the Company and the Executive before that date.  Termination of the
     Employment shall not prejudice any other rights of the Company.

13.  GENERAL

     These terms and conditions shall be governed by and construed in accordance
     with English Law.

14.  NOTICES

(1)  Any notice or other  document to he served under any agreement  between the
     Company and the Executive may, in the case of the Company,  be delivered or
     sent by first  class post or telex or  facsimile  process to the Company at
     its registered office for the time being and, in the case of the Executive,
     may be  delivered  to him or sent by first  class post to his usual or last
     known place of residence.

(2)  Any such notice or other document shall be deemed to have been served:

     (a)  if delivered, at the time of delivery;

     (b)  if posted,  at 10.00 a.m.  on the second  Working Day after it was put
          into the post; or

     (c)  if sent by telex or facsimile process,  at the expiration of two hours
          after the time of  despatch,  if  despatched  before  3.00 p.m. on any
          Working  Day,  and in any other case at 10.00 a.m. on the Working  Day
          following the date of despatch.

                                       71
<PAGE>
(3)  In proving such service it shall be  sufficient  to prove that delivery was
     made or that the  envelope  containing  such notice or other  document  was
     properly  addressed and posted as a pre-paid first class letter or that the
     telex or facsimile  message was properly  addressed  and  despatched as the
     case may be.

                                       72
<PAGE>

THIS AGREEMENT is made on August 7, 2000

BETWEEN:-

(1)   BP EXPLORATION (ALASKA) INC. a Delaware corporation of 900 East
      Benson Boulevard, Anchorage, Alaska 99508 (the `Company') and

(2)   BP AMOCO plc an English registered  company of 1 Finsbury Circus,  London,
      EC2M 7BA (the `Parent').

WHEREAS the Company has agreed that it will supply to the Parent  assistance  by
seconding  its  employee  BYRON ELMER GROTE (the  `Secondee')  to the Company in
accordance with the terms and conditions of this Agreement.

NOW IT IS HEREBY AGREED AS FOLLOWS:-

1.    TERM

      This Agreement  shall commence on and with effect from 3rd August 2000 and
      shall continue thereafter subject to termination in accordance with Clause
      7 below.

2.    SECONDMIENT

2.1.  The Company shall second the Secondee to the Parent in accordance with the
      terms and conditions of this Agreement (the `Secondment').  The Secondment
      shall be on a full time basis.

2.2   The Secondee shall be supplied to perform the services that are reasonably
      required by the Parent.

2.3   The Company shall procure that the Secondee enters into undertakings as to
      confidentiality and as to compliance with policies  corresponding to those
      normally  obtained by the Parent from its employees and shall procure that
      the Secondee  accepts that he is bound by the Parent's  General  Terms and
      Conditions of Employment on Executive  Expatriate  Secondments  (a copy of
      which are attached to this Agreement) during the Secondment.

3.    OBLIGATIONS OF THE COMPANY

      The Company shall ensure that it performs all  obligations  and discharges
      all  liabilities  which may be  imposed on it by law or  otherwise  in its
      capacity as employer of the Secondee.

4.    REPORTING AND STATUS

      For the  avoidance of doubt the Secondee  shall at all times be and remain
      an employee of the Company but shall  during the course of any  secondment
      pursuant to this Agreement  report to and act upon the instructions of the
      Chief  Executive  Officer  of the  Parent  or  such  person  as the  Chief
      Executive Officer shall from time to time nominate.

                                       73
<PAGE>
5.    INTELLECTUAL PROPERTY RIGHTS

5.1   If at any time during the course of  providing  services to the Parent the
      Secondee  either alone or jointly  discovers  or acquires  any  invention,
      development  improvement  process or design  whatsoever  or any  interests
      therein which shall relate to or concern the activities of the Parent, the
      Company shall use reasonable endeavours to procure that the Secondee shall
      forthwith in writing  communicate  full details  thereof to the Parent and
      any such invention made or discovered as aforesaid  shall belong to and be
      the absolute property of the Parent.

5.2   The Company  shall assign or cause to be assigned to the Parent all rights
      of copyright  or similar  rights in all material  made  developed  written
      granted or  otherwise  created by the  Secondee in the course of providing
      services  to the  Parent and will hold the same to the order of the Parent
      absolutely.

6.    PAYMENT LIABILITY AND INDEMNITY

6.1   The Parent  shall  reimburse  to the Company an amount  equal to the costs
      incurred by the Company in paying the Secondee's  salary and providing his
      other benefits during the course of the Secondment. These amounts shall be
      payable by the Parent to the Company monthly in arrears.

6.2   The Company shall have no liability for any loss or damage (whether direct
      or indirect,  physical,  economic,  consequential or otherwise)  howsoever
      arising  from  or in  connection  with  the  provision  of the  Secondee's
      services  to the Parent and the Parent  agrees and  acknowledges  it shall
      bear full and sole  responsibility  for  supervising the activities of the
      Secondee during the course of the Secondment.

6.3   The Parent agrees to hold the Company fully and effectively indemnified in
      respect  of all and any  liabilities  which the  Company  may incur to any
      third party for claims, losses,  liabilities or damages or loss of profit,
      savings, goodwill, business trade or other economic loss howsoever arising
      in  connection  with the  provision  of any  services to the Parent by the
      Secondee.

7.    TERMINATION

7.1   Either  party may  terminate  this  Agreement  immediately  by giving  one
      month's  notice in writing to the other or in the event that either  party
      commits a serious breach of this  Agreement or is in persistent  breach of
      any of the terms of this  Agreement  (and for the purpose of this clause a
      breach by the Secondee  shall be deemed to be a breach by the Company) the
      other party may terminate this Agreement without notice.

7.2   This Agreement shall terminate  automatically on the date that the Company
      or the  Secondee  gives notice to the other to  terminate  the  Secondee's
      employment with the Company.

7.3   This Agreement shall terminate automatically on 8th January, 2008.

7.4   On termination  of the  Secondment for whatever  reason the Secondee shall
      return to work for the Company and the Parent  shall have no  liability in
      respect of his employment and/or the termination of his employment.

                                       74
<PAGE>
7.5   The parties acknowledge that following termination of his Secondment,  the
      Secondee's  obligations of confidentiality to the Parent shall continue to
      apply.

8.    MISCELLANEOUS

      Any  notice to be served on either of the  parties  by the other  shall be
      sent by pre-paid  first class post or by telex or telefax to the  business
      address  of the  party to whom it is sent and shall be deemed to have been
      received by the addressee within 48 hours of posting or 2 hours if sent by
      telex or telefax to the  correct  telex or telefax  number  (with  correct
      answer  back in the  case of  telex)  of the  addressee.  Notification  of
      intended  despatch  of any  telefax  shall be given  by  telephone  to the
      addressee prior to despatch of any notice by telefax.

9.    PROPER LAW & JURISDICTION

9.1   This  Agreement is governed by and shall be construed in  accordance  with
      the laws of England.

9.2   The parties to this Agreement submit to the exclusive  jurisdiction of the
      English courts.

IN WITNESS WHEREOF this Agreement has been executed by the parties hereto and is
hereby delivered on the date first above written.

SIGNED by                              )
for and on behalf of                   )
BP EXPLORATION (ALASKA) INC.           )
in the presence of                     )

SIGNED by                              )
for and on behalf of                   )
BP AMOCO PLC                           )
in the presence of                     )

                                       75
<PAGE>
DATED August 7, 2000

                          BP EXPLORATION (ALASKA) INC.

                                       and

                                BYRON ELMER GROTE

                              EMPLOYMENT AGREEMENT

                                       76
<PAGE>
                                    CONTENTS

CLAUSE                                                                 PAGE
1.     Employment                                                         1
2.     Term                                                               1
3.     Salary                                                             1
4.     Termination of Employment                                          1
5.     Benefits                                                           2
6.     General                                                            2

                                       77
<PAGE>
THIS AGREEMENT is made on August 7, 2000 BETWEEN:

(1)  BP  EXPLORATION  (ALASKA)  INC. a Delaware  corporation  of 900 East Benson
     Boulevard, Anchorage, Alaska 99508 (the `Company'); and

(2)  BYRON ELMER GROTE of Flat 22, Millers Wharf House, 78 St.  Katherine's Way,
     London El 9YU (the `Executive')

IT IS AGREED as follows:

1.   EMPLOYMENT

     The Company shall employ the Executive and the Executive  shall be employed
     as a senior executive of the Company on the terms set out in this Agreement
     (the `Employment').

2.   TERM

     The Employment  will take effect from 3rd August,  2000. The period of time
     during which Executive is employed by the Company under this Agreement will
     be referred to herein as the `Term'.

3.   SALARY

     The Company shall pay to the Executive a salary at the rate of $540,000 per
     annum, (less applicable deductions).

4.   TERMINATION OF EMPLOYMENT

4.1  Unless  previously  terminated  in  accordance  with  this  agreement,  the
     Employment  may be  terminated  at any time by either  party  giving to the
     other one year's notice in writing.

4.2  The Company may terminate the Employment for cause with immediate effect.

4.3  The Employment  shall in any event  terminate  automatically  on 8th March,
     2008.

4.4  Nothing  contained herein limits the Company's rights to suspend any of the
     Executive's duties and powers under this Agreement.

4.5  For the purpose of this agreement `cause' shall mean that the Executive:

     (i)  commits an act  constituting a misdemeanour  involving moral turpitude
          or a  felony  under  the laws of the  United  States  or any  state or
          political subdivision thereof;

     (ii) commits  an  act  constituting  a  breach  of  fiduciary  duty,  gross
          negligence or willful misconduct;

     (iii)engages in conduct that violates the Company's  policies or procedures
          or the standing of the Company or any of its affiliates;

                                       78
<PAGE>
     (iv) commits  an act of  fraud,  dishonesty  or  misrepresentation  that is
          detrimental to the business,  reputation,  character of the Company or
          any of its affiliates;

     (v)  engages in a conflict of interest or self-dealing; or

     (vi) breaches his obligations as set forth in this agreement or he fails to
          perform  his duties as an  employee  of the  Company  (including  as a
          result of his death or permanent  disability  whereby the Executive is
          unable to  perform  the  essential  functions  of his job for four (4)
          consecutive months).

5.   BENEFITS

     The Executive shall be entitled to participate in such benefit plans as the
     Company may from time to time provide in respect of him, such participation
     to be on the terms or subject to the rules or the Company's policies as may
     apply to such benefits from time to time.

6.   GENERAL

6.1  Each of the provisions in this agreement shall be enforceable independently
     of each of the others and its validity  shall not be affected if any of the
     others is invalid.  If any of the  provisions of this agreement is void but
     would be valid if some  part of the  clause  were  deleted,  the  clause in
     question shall apply with such  modification as may be necessary to make it
     valid.

6.2  During the Employment the Executive will be bound by the Company's policies
     and procedures applicable to employees.

6.3  This  agreement  shall be governed by and construed in accordance  with the
     laws of the State of Delaware.

6.4  As from the  effective  date of the  Employment  all  other  agreements  or
     arrangements between the Executive and the Company or any of its affiliates
     relating to the employment of the Executive  will cease to have effect.  It
     is  acknowledged  and agreed that the Company has no  liability to make any
     payments to the Executive  other than salary and benefits  earned up to the
     effective date of the Employment. In particular, it is confirmed and agreed
     that the Company has no liability to make any payments to the  Executive on
     the termination of his previous service agreements

6.5  This Agreement contains the entire  understanding of the parties and may be
     modified only in a document signed by the parties and referring  explicitly
     hereto.

AS WITNESS the hands of the Executive and of a duly authorized representative of
the Company on the date which appears first on page 1.

SIGNED by                               )
BP EXPLORATION (ALASKA) INC.            )
in the presence of                      )

SIGNED by
BYRON ELMER GROTE
in the presence of

                                       79
<PAGE>

                                Byron Elmer Grote
                          Flat 22, Millers Wharf House
                             78, St Katherine's Way
                                  London El 9YU

 August 2, 2000

BP Exploration (Alaska) Inc.
900 East Benson Boulevard
Anchorage
Alaska 99508
USA

Dear Sirs,

I hereby confirm that as a term of my secondment to BP Amoco plc (`the Company')
that I am  bound  by and  will  comply  with the  Company's  General  Terms  and
Conditions of Employment on Executive Expatriate  Secondment (a copy of which is
attached) during the secondment.

Yours sincerely

B.E. Grote

                                      Enc.

                                       80
<PAGE>
                          GENERAL TERMS AND CONDITIONS
                                  OF EMPLOYMENT
                       ON EXECUTIVE EXPATRIATE SECONDMENTS
                         APPLICABLE TO BYRON ELMER GROTE

                                       81
<PAGE>
                                TABLE OF CONTENTS

CLAUSE                                                                PAGE

1.    Interpretation                                                     1
2.    Duties                                                             1
3.    Place of Work of the Secondee                                      2
4.    Resettlement                                                       2
5.    Incentives                                                         3
6.    Travelling Expenses                                                3
7.    Car                                                                3
8.    Benefits                                                           3
9.    Vacation                                                           3
10.   Confidential Information                                           3
II.   Intellectual Property                                              4
12.   Termination of Secondment                                          5
13.   General                                                            5
14.   Notices                                                            6

                                       82
<PAGE>
GENERAL TERMS AND CONDITIONS ON EXPATRIATE EXECUTIVE SECONDMENTS

1.   INTERPRETATION

(1)  In these terms and conditions:

     `Secondment'  means the  secondment  of the Secondee by a Group  Company to
     another Group Company;

     `Secondee' means Byron Elmer Grote;

     `Company' means: BP Amoco plc;

     `CEO' means the group chief  executive  of the Company and it includes  his
     delegate or delegates where the chief  executive  officer has delegated his
     authority  to manage the Secondee or the business of the Group in which the
     Secondee is performing his duties;

     `Group'  means the Company and its  subsidiaries,  affiliates,  parents and
     related  entities for the time being and `Group  Company'  means any one of
     them;

     `Working Day' means a day other than a Saturday, Sunday or Company holiday;

(2)  References  in  these  terms  and  conditions  to a person  include  a body
     corporate and an unincorporated  association of persons and references to a
     company include any body corporate.

(3)  Any  reference  in these  terms and  conditions  to a  statutory  provision
     includes any  statutory  modification  or  re-enactment  of it for the time
     being in force.

(4)  Where  appropriate,   references  to  the  Secondee  include  his  personal
     representatives.

2.   DUTIES

(1)  The  Secondee  shall use his best  endeavours  to promote  and  protect the
     interests of the Group and shall not do anything  which is harmful to those
     interests.

(2)  The  Secondee  shall  diligently  and  faithfully  perform  such duties and
     exercise  such  powers as may from time to time be assigned to or vested in
     him in relation to the conduct and  management  of the affairs of the Group
     by the CEO.  The CEO may also suspend all or any of the  Secondee's  duties
     and powers for such  periods  and on such terms as he  considers  expedient
     (including  a term  that the  Secondee  shall not  attend at the  Company's
     premises).

(3)  The Secondee shall give to the CEO such  information  regarding the affairs
     of the  Group  as he  shall  require  and  shall  comply  with  all  proper
     instructions of the CEO.

(4)  The Secondee  shall have the power and the  authority to act in  accordance
     with the instructions of and within the limits prescribed by the CEO.

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(5)  The  Secondee  shall  comply  with all codes of  conduct  from time to time
     adopted by the Company and with all applicable  laws, rules and regulations
     applicable to the Company.

(6)  The Secondee shall (unless  prevented by sickness,  disability or otherwise
     directed by the CEO) devote the whole of his time  during  normal  business
     hours to his duties  under  those  General  Terms and  Conditions  and such
     additional time as is necessary for the proper fulfilment of those duties.

(7)  The Secondee's salary shall be inclusive of any fees receivable by him as a
     director of any Group Company and if the Secondee receives any such fees in
     addition to his salary he shall pay them to the Company.

(8)  The Secondee shall not accept any  appointment to any office in relation to
     any  body,  whether  corporate  or not,  (other  than a Group  Company)  or
     directly or indirectly  be  interested in any manner in any other  business
     except:

     (a)  as holder or beneficial  owner (for  investment  purposes only) of any
          class of  securities  in a company if those  securities  are  publicly
          traded  on a  recognized  investment  exchange  and  if  the  Secondee
          (together  with his  spouse,  children,  parents and  parents'  issue)
          neither  holds nor is  beneficially  interested  in more than five per
          cent, of the securities of that class; or

     (b)  with the consent in writing of the Company  which may be given subject
          to any terms or conditions which the Company requires.

3.   PLACE OF WORK OF THE SECONDEE

     The  Secondee's  duties  shall relate  primarily to the United  Kingdom but
     shall extend to travel abroad when required by the Company.

4.   RESETTLEMENT

(1)  The Secondee  shall be entitled to relocation  assistance in respect of the
     costs of moving from his home base to the overseas location at which he has
     accepted an appointment.  The amount of such assistance shall be determined
     in accordance  with the  Company's  policies from time to time and shall be
     subject to the terms of such policies.

(2)  Until the date falling two months after the  termination of the Secondment,
     or  the  third  anniversary  of  the  Seeondee's   expatriate   appointment
     (whichever is the sooner) the Secondee  shall be entitled to a resettlement
     allowance (the `Resettlement  Allowance') of $410,000 per annum. This is in
     place of the  benefits  provided  by the  Group  including  the  Secondee's
     Foreign  Services  Premium,  Cost  of  Living  Adjustment,  Home  Add-Backs
     Allowance, Housing and Utilities Allowance, Home Leave Travel Allowance and
     Council Tax Allowance.

(3)  The   Resettlement   Allowance  shall  not  form  part  of  the  Secondee's
     pensionable  salary and shall not be taken into account in determining  the
     Secondee's pension benefits or his rights under any incentive plan or other
     benefit in which he participates or to which he is entitled.

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(4)  In addition to the Resettlement Allowance the Secondee shall be entitled to
     the costs of repatriation at the end of his assignment (to be determined in
     accordance  with  and  subject  to the  Company's  policies  at the time of
     resettlement),  educational  assistance,  medical  benefits  and such other
     benefits as may be notified to him from time to time by the Company.

5.   INCENTIVES

     The  Secondee  agrees  that his  participation  in any  bonus or  incentive
     arrangements shall be at the Company's sole discretion;  that he is subject
     to the  Company's  procedures  as  notified  to him  from  time to time for
     setting and assessing any bonus or incentive  payments,  if any,  under any
     scheme in which he participates.

6.   TRAVELLIING EXPENSES

     The Company shall reimburse the Secondee (on production of such evidence as
     it may reasonably  require) the amount of all travelling and other expenses
     properly and reasonably incurred by him in the discharge of his duties.

7.   CAR

(1)  The Company shall provide the Secondee with a car appropriate to his status
     for  his  use  in  the  performance  of  his  duties  and,  subject  to any
     restrictions  or conditions  from time to time imposed by the Company,  the
     Secondee may use the car for his private purposes.

(2)  The Company shall pay all normal servicing,  insurance and running expenses
     in relation to the car and all fuel  expenses  incurred by the  Secondee in
     the performance of his duties.

(3)  The  Secondee  shall take good care of the car and shall  observe the terms
     and conditions of the insurance  policy relating to it and the terms of the
     Company's car policy from time to time.

8.   BENEFITS

     The Secondee  shall be entitled to participate in such benefit plans as the
     Company may from time to time notify to him such participation to be on the
     terms or subject  to the rules or the  Company's  policies  as may apply to
     such benefits from time to time.

9.   VACATION

(1)  The Secondee  shall take his vacation  entitlement at times agreed with the
     Company.

(2)  Any  entitlement to vacation  remaining at the end of any calendar year may
     be  carried  forward  to  the  next  calendar  year  but  no  further.  The
     entitlement  to vacation (and on  termination  of employment to accrued but
     unused   vacation)   accrues  pro  rata   throughout   each  calendar  year
     (disregarding fractions of days).

                                       85
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10.  CONFIDENTIAL INFORMATION

(1)  The Secondee shall not make use of or divulge to any person,  and shall use
     his best  endeavours to prevent the use,  publication or disclosure of, any
     information of a confidential or secret nature:

     (a)  concerning  the business of the Company or any Group Company and which
          comes to his knowledge  during the course of or in connection with his
          employment  or his holding any office within the Group from any source
          within the Company or any Group Company: or

     (b)  concerning the business of any person having dealings with the Company
          or any Group  Company and which is obtained  directly or indirectly in
          circumstances  in which the Company or any Group Company is subject to
          a duty of confidentiality in relation to that information.

(2)  This clause shall not apply to information which is:

     (a)  used or disclosed in the proper  performance of the Secondee's  duties
          or with the prior written consent of the Company; or

     (b)  ordered  to be  disclosed  by a court  of  competent  jurisdiction  or
          otherwise required to be disclosed by law.

(3)  This clause shall continue to apply after the termination of the Secondment
     without limit of time.

(4)  Each of the  restrictions  in each  paragraph or  subclause  above shall be
     enforceable  independently of each of the others and its validity shall not
     be affected if any of the others is invalid.  If any of those  restrictions
     is void but would be valid if some part of the  restriction  were  deleted,
     the  restriction in question shall apply with such  modification  as may be
     necessary to make it valid.

11.  INTELLECTUAL PROPERTY

(1)  In this clause  `Intellectual  Property  Right'  means a formula,  process,
     invention,  improvement,  utility model, trade mark, service mark, business
     name, copyright,  design right, patent,  know-how,  trade secret,  program,
     documentation, other copyrightable work and any other intellectual property
     right of any nature whatsoever  throughout the world (whether registered or
     unregistered  and  including all  applications  and rights to apply for the
     same) which:

     (a)  relates to or is useful in connection with the business or any product
          or service of a Group Company; and

     (b)  is invented,  developed,  created or acquired by the Secondee (whether
          alone or  jointly  with any other  person)  during  the  period of his
          employment with the Group (`the Employment').

(2)  Any  Intellectual  Property  Right  that the  Secondee  creates or works on
     during the  Employment  are works made `for hire' for purposes of copyright
     laws. Any copyright rights in those works are owned by the Company,  not by
     the Secondee.

                                       86
<PAGE>
(3)  The Secondee shall  promptly  communicate in confidence to the Company full
     particulars of any Intellectual Property Right (whether or not it is vested
     in the  Company  pursuant  to  subclause  (2) above or  otherwise)  and the
     Secondee shall not use,  disclose to any person or exploit any Intellectual
     Property Right  belonging to the Company  without the prior written consent
     of the Company.

(4)  The Secondee shall, at the request and expense of the Company,  prepare and
     execute  such  instruments  and do such  other  acts and  things  as may be
     necessary  or  desirable to enable the Company or its nominee to obtain the
     protection of any Intellectual Property Right vested in the Company in such
     parts of the world as may be specified by the Company or its nominee and to
     enable the Company to exploit any Intellectual Property Right vested in the
     Company to best advantage.

(5)  These obligations of the Secondee  regarding  Intellectual  Property as set
     forth  above  shall  continue  to  apply  after  the   termination  of  the
     Employment.  Each of those obligations is enforceable independently of each
     of the others and its  validity  shall not be affected if any of the others
     is unenforceable to any extent.

12.  TERMINATION OF SECONDMENT

(1)  If the  Secondee is appointed as a director or officer of the Company or of
     any Group  Company and the  Secondee  ceases to be a director or officer of
     the Company or of that Group Company (for any reason whatsoever) that shall
     not terminate the Secondment.

(2)  The Secondment shall terminate  automatically on the date that the Secondee
     gives,  or is given,  notice of termination of employment and shall, in any
     event, terminate automatically on 8th January 2008.

(3)  On the  termination  of  the  Secondment  in any  way  the  Secondee  shall
     immediately:

     (a)  return  the car and its keys to the  Company at such place as it shall
          nominate for the purpose; and

     (b)  deliver to the Company's Group Human Resources Department all property
          in his possession, custody or under his control belonging to any Group
          Company  including  (but not limited to)  business  cards,  credit and
          charge  cards,  security  and  computer  passes,   original  and  copy
          documents  or  other  media  on  which  information  is  held  in  his
          possession  relating to the business or affairs of any Group  Company;
          and

     (c)  resign all offices held by him in any Group Company (without prejudice
          to the  rights  of any party  arising  out of the  termination  of the
          Secondment).

(4)  The  Secondee  hereby  authorizes  the  Company to deduct  from any amounts
     payable by the Company or the Group to the Secondee on the  termination  of
     the  Secondment  any sums due to the Company or the Group from the Secondee
     as permitted by law.

                                       87
<PAGE>
(5)  With effect from the date of termination of the Secondment,  all the rights
     and  obligations  of the  parties  shall  cease  except for those which are
     expressed to continue  after that date and except in relation to any breach
     of any  provision  of these  terms and  conditions  or any other  agreement
     between the Company and the Secondee  before that date.  Termination of the
     Secondment shall not prejudice any other rights of the Company.

13.  GENERAL

(1)  These terms and conditions shall be governed by and construed in accordance
     with the laws of the United Kingdom.

(2)  In the event of any conflict  between  these terms and  conditions  and the
     provisions  of any  other  agreement  between  the  Secondee  and any Group
     Company, these terms and conditions shall prevail.

14.  NOTICES

(1)  Any notice or other  document to be served under any agreement  between the
     Company and the Secondee  may, in the case of the Company,  be delivered by
     hand or sent by  first  class  mail or telex or  facsimile  process  to the
     Company at its registered office for the time being and, in the case of the
     Secondee,  may be delivered to him or sent by first class mail to his usual
     or last known place of residence.

(2)  Any such notice or other document shall be deemed to have been served:

     (a)  if delivered, at the time of delivery;

     (b)  if mail, at 10.00 a.m. on the second Working Day after it was put into
          the mail; or

     (c)  if sent by telex or facsimile process,  at the expiration of two hours
          after the time of  dispatch,  if  dispatched  before  3.00 p.m. on any
          Working  Day,  and in any other case at 10.00 a.m.  on the Working Day
          following the date of dispatch.

(3)  In proving such service it shall be  sufficient  to prove that delivery was
     made or that the  envelope  containing  such notice or other  document  was
     properly  addressed and posted as a pre-paid first class letter or that the
     telex or facsimile  message was properly  addressed  and  dispatched as the
     case may be.

                                       88
<PAGE>
                            DATED 31st December 1997

                      THE BRITISH PETROLEUM COMPANY p.l.c.

                                       and

                               RICHARD LAKE OLVER

                                SERVICE AGREEMENT

                                       89
<PAGE>
THIS AGREEMENT is made on 31st December 1997 BETWEEN:

(1)    THE BRITISH  PETROLEUM  COMPANY  p.l.c.  (registered  number  102498)
       whose  registered  office is at Britannic  House. 1 Finsbury  Circus,
       London EC2M 7BA (the `Company'); and

(2)    RICHARD LAKE OLVER of Bay Lodge, Mill Lane,  Danbury,  Essex CM3 4HY (the
       Executive)

IT IS AGREED as follows:

1.     EMPLOYMENT

       The Company  shall  continue to employ the  Executive  and the  Executive
       shall  assume the  position of a Senior  Executive  of the Company on the
       terms set out in this  agreement  (the  `Employment').  The Employment in
       this position shall take effect from 1st January 1998.

2.     SALARY

(1)    The  Company  shall  pay to the  Executive  a  salary  at the rate of
       (pound)300,000 per annum.

(2)    The  Executive's  salary shall be reviewed at the  discretion  of the
       Company.

(3)    The  Executive's  salary  shall  accrue from day to day and be payable by
       equal instalments in arrear on the last day of every month.

3.     PENSIONS

       The  Executive  is  entitled to continue to he a member of The BP Pension
       Scheme (the  `Pension  Scheme')  subject to its terms.  The  Executive is
       entitled to  benefits  under the Pension  Scheme in  accordance  with the
       separate  arrangements  made  between the Company and the trustees of the
       Pension  Scheme for the benefit of the  Executive  and as notified to him
       from time to time by the Company.

4.     TERMINATION OF EMPLOYMENT

(1)    The Company or the Executive  may  terminate the  Employment by giving to
       the other  party at least 12 months  notice in  writing  expiring  at any
       time.

(2)    The Company  may at any time  terminate  the  Employment  with  immediate
       effect by giving  notice in  writing to the  Executive  on terms that the
       Company shall pay to the Executive, in lieu of notice under subclause (1)
       above,  an amount equal to 12 months' salary or the amount of salary that
       would have been paid to the Executive if the Employment terminated on the
       expiry of the  remainder  of any notice given under  subclause  (1) above
       provided  that  the  Executive's  entitlement  to the  payment  shall  be
       conditional on him agreeing to comply with his obligations to the Company
       following the termination of the Employment  (which include,  but without
       limiting the  generality of the foregoing his  obligations  not to use or
       disclose the Company's or the Group's confidential  information under the
       General Terms and Conditions of Employment).

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<PAGE>
(3)    Subclause (1) above does not limit the Company's rights to suspend any of
       the  Executive's  duties and powers  under this  agreement or the General
       Terms and Conditions of  Employment.  In addition or  alternatively,  the
       Company may during the whole or any part of any period of notice  require
       the Executive to perform duties  (including  any modified  duties arising
       from an exercise by the Company of its rights under the General Terms and
       Conditions of Employment) at such locations as the Company may reasonably
       require.  Throughout any such period of suspension the Executive's salary
       and other  benefits to which he is entitled  under this  agreement  shall
       continue to be paid or provided by the Company.

5.     GENERAL

(1)    Each  of  the   provisions  in  this   agreement   shall  be  enforceable
       independently  of  each  of the  others  and its  validity  shall  not be
       affected if any of the others is  invalid.  If any of the  provisions  of
       this agreement is void but would be valid if some part of the clause were
       deleted, the clause in question shall apply with such modification as may
       be necessary to make it valid.

(2)    The  General  Terms and  Conditions  of  Employment  (a copy of which are
       attached to this  agreement)  as amended by the Company from time to time
       shall form part of the Executive's terms and conditions of employment and
       the  definitions  and other  provisions  contained in the  interpretation
       clause in the General Terms and  Conditions of Employment  shall apply to
       this agreement.

(3)    The terms set out in the Schedule in accordance with the  requirements of
       the Employment Rights Act 1996 form part of this agreement.

(4)    As from the  effective  date of the  Employment  all other  agreements or
       arrangements  between the Executive and any Group Company relating to the
       employment of the Executive shall cease to have effect.

(5)    This  agreement  shall be governed by and  construed in  accordance  with
       English law.

AS WITNESS the hands of the Executive and of a duly authorized representative of
the Company on the date which appears first on page 1.

SIGNED by E.J.P. BROWNE
on behalf of THE BRITISH PETROLEUM
COMPANY p.l.c.
in the prescence of

SIGNED by RICHARD LAKE OLVER
in the presence of

                                       91
<PAGE>
                                  THE SCHEDULE

The following  constitutes  the statement of the  particulars of the Executive's
employment  issued  pursuant to the Employment  Rights Act 1996. The particulars
are those which apply on the date of this agreement:

       Name of employer - the Company as defined on page 1 above,

       Name of employee - the Executive as defined on page 1 above.

       Date of commencement of employment - see clause 1.

       Date of commencement  of continuous  period of employment - 3rd December,
       1973.

       Scale or rate of remuneration or method of calculating remuneration - see
       clause 2.

       Intervals at which remuneration is paid - monthly - see clause 2.

       Hours of work - there are no fixed  hours of work - see also the  General
       Terms and Conditions of Employment.

       Holidays  (including  public  holidays)  and holiday pay - the  Executive
       shall be entitled to 28 Working Days' holiday with pay in every  calendar
       year. In addition see the General Terms and Conditions of Employment.

       Sickness or injury and sick pay - see the General Terms and Conditions of
       Employment.

       Pension - see clause 3. A contracting out certificate  within the meaning
       of Part III of the Pension Schemes Act 1993 is in force.

       Notice - see clause 4.

       Job title - Senior Executive.

       Place of work - the  duties of the  Employment  relate  primarily  to the
       United Kingdom. The Executive shall be based at the Group's Headquarters,
       which for the time being are at the employer's  address as stated on page
       1 above.

       Collective  agreements  - the  Company  is not a party to any  collective
       agreement which affects the Executive's employment.

       Working  overseas - the  Executive  is not under any  obligation  to work
       overseas for periods  exceeding  one month and  accordingly  there are no
       particulars to be entered in this regard.

       Discipline and grievance  procedure - there are no specific  disciplinary
       rules  applicable  to the  Executive's  employment.  If the  Executive is
       dissatisfied  with any  disciplinary  decision  or seeks to  redress  any
       grievance relating to his employment, he should raise this with the CEO.

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<PAGE>

                          GENERAL TERMS AND CONDIITIONS
                                  OF EMPLOYMENT
                            ON EXECUTIVE APPOINTMENTS

                                       93
<PAGE>
                                    CONTENTS
CLAUSE                                                                PAGE

1.     Interpretation                                                    1
2.     Duties                                                            1
3.     Place of Work of the Executive                                    2
4.     Incentives                                                        2
5.     Travelling Expenses                                               3
6      Car                                                               3
7.     Pension                                                           3
8.     Medical and Sickness                                              3
9.     Holidays                                                          4
10.    Confidential Information                                          4
11.    Intellectual Property                                             4
12.    Termination of Employment                                         5
13.    General                                                           7
14.    Notices                                                           7

                                       94
<PAGE>
GENERAL TERMS AND CONDITIONS ON EXECUTIVE APPOINTMENTS

1.     INTERPRETATION

(1)    In these terms and conditions:

       `Employment'  means the  employment of the Executive by the Company under
       the terms of a service agreement between the Executive and the Company;

       `Associated Company' means:

       (a)   a company which is not a Subsidiary of the Company but whose issued
             equity  share  capital (as defined in section 744 of the  Companies
             Act 1985) is owned as to at least 20 per cent by the Company or one
             of its Subsidiaries; and

       (b)   a Subsidiary of a company within (a) above;

       `CEO'  means the chief  executive  officer of the Company and it includes
       his delegate or delegates where the chief executive officer has delegated
       his  authority  to manage the  Executive  or the business of the Group in
       which the Executive is performing his duties;

       `Group' means the Company and its subsidiaries  and Associated  Companies
       for the time being and `Group Company' means any one of them;

       `Recognized  Investment  Exchange' has the same meaning as in section
       207 of the Financial Services Act 1986;

       `Subsidiary'  means a subsidiary within the meaning of section 736 of
       the Companies Act 1985; and

       `Working Day' means a day other than a Saturday,  Sunday or bank or other
       public  holiday in England (or if the Executive  works on a bank or other
       public holiday a day's holiday taken in lieu of that holiday).

(2)    References  in these  terms  and  conditions  to a person  include a body
       corporate and an unincorporated  association of persons and references to
       a company include any body corporate.

(3)    Any  reference  in these terms and  conditions  to a statutory  provision
       includes any statutory  modification  or  re-enactment of it for the time
       being in force.

(4)    Subclauses (1) to (3) above apply unless the contrary intention
       appears.

(5)    The headings in these terms and conditions do not affect their
       interpretation.

(6)    Where appropriate, references to the Executive include his personal
       representatives.

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<PAGE>
2.     DUTIES

(1)    The  Executive  shall use his best  endeavours to promote and protect the
       interests  of the Group and shall not do  anything  which is  harmful  to
       those interests.

(2)    The Executive  shall  diligently and  faithfully  perform such duties and
       exercise such powers as may from time to time be assigned to or vested in
       him in relation to the conduct and management of the affairs of the Group
       by the CEO. The CEO may also suspend all or any of the Executive's duties
       and powers for such periods and on such terms as he  considers  expedient
       (including a term that the  Executive  shall not attend at the  Company's
       premises).

(3)    The  Executive  shall  give to the CEO  such  information  regarding  the
       affairs of the Group as he shall require and shall comply with all proper
       instructions of the CEO.

(4)    The Executive shall have the power and the authority to act in accordance
       with the instructions of and within the limits prescribed by the CEO.

(5)    The  Executive  shall  comply with all codes of conduct from time to time
       adopted by the Company and with all applicable  rules and  regulations of
       the London Stock Exchange including  (without  limitation) the model code
       on directors' dealings in securities.

(6)    The  Executive  shall  (unless  prevented  by  ill-health  or accident or
       otherwise directed by the CEO) devote the whole of his time during normal
       business hours to the duties of the Employment and such  additional  time
       as is necessary for the proper fulfilment of those duties.

(7)    The  Executive's  salary shall be inclusive of any fees receivable by him
       as a director of any Group Company and if the Executive receives any such
       fees in addition to his salary he shall pay them to the Company.

(8)    The Executive  shall not accept any appointment to any office in relation
       to any body  whether  corporate or not,  (other than a Group  Company) or
       directly or indirectly be interested in any manner in any other  business
       except:

       (a)   as holder or beneficial owner (for investment purposes only) of any
             class of securities in a company if those  securities are listed or
             dealt in on a Recognized  Investment  Exchange and if the Executive
             (together  with his spouse,  children,  parents and parents  issue)
             neither holds nor is beneficially  interested in more than five per
             cent. of the securities of that class; or

       (b)   with the  consent  in  writing  of the  Company  which may be given
             subject to any terms or conditions which the Company requires.

3.    PLACE OF WORK OF THE EXECUTIVE

       The duties of the Employment shall relate primarily to the United Kingdom
       at such  places as the  Company  may from time to time  require but shall
       extend to travel abroad when required by the Company.

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<PAGE>
4.     INCENTIVES

       The  Executive  agrees that his  participation  in any bonus or incentive
       arrangements  shall  be at the  Company's  sole  discretion;  that  he is
       subject to the Company's  procedures as notified to him from time to time
       for setting  and  assessing  any bonus or  incentive  payments  under any
       scheme in which he participates; and that he is subject to the procedures
       for  making  any  payments  that may be due to him under the terms of any
       bonus or incentive scheme in which he participates.

5.     TRAVELLING EXPENSES

       The Company shall reimburse the Executive (on production of such evidence
       as it may  reasonably  require)  the amount of all  travelling  and other
       expenses properly and reasonably  incurred by him in the discharge of his
       duties.

6.     CAR

(1)    The Company  shall provide the Executive  with a car  appropriate  to his
       status for his use in the  performance of his duties and,  subject to any
       restrictions or conditions from time to time imposed by the Company,  the
       Executive may use the car for his private purposes.

(2)    The  Company  shall  pay all  normal  servicing,  insurance  and  running
       expenses  in relation  to the car and all fuel  expenses  incurred by the
       Executive in the performance of his duties.

(3)    The Executive shall take good care of the car and shall observe the terms
       and  conditions of the insurance  policy  relating to it and the terms of
       the Company's car policy from time to time.

7.     PENSIONS

       The Executive is entitled to become or as the case may be remain a member
       of the BP Pension Scheme (the `Pension Scheme') subject to its terms. The
       full terms are set out in the trust deeds and rules governing the Pension
       Scheme;  copies of those  documents  are  available  to the  Executive on
       request.  The  Company  shall  deduct  from the  Executive's  salary  any
       contributions  payable by him from time to time to the Pension  Scheme or
       any other pension scheme of the Group of which he becomes a member.

8.     MEDICAL AND SICKNESS

(1)    The Company may from time to time require the Executive to be examined by
       a medical adviser nominated by the Company and the Executive  consents to
       the medical  adviser  disclosing  the results of the  examination  to the
       Company and shall provide the Company with such formal consents as may be
       necessary for this purpose.

                                       97
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(2)    The  Executive  shall he paid in full  during any period of absence  from
       work due to  sickness  or injury of 120  Working  Days and at the rate of
       half of his salary for a further  period of 120 Working  Days  subject to
       the  provisions  of  clause  13  and to the  production  of  satisfactory
       evidence from a registered medical  practitioner in respect of any period
       of absence in excess of five consecutive Working Days. The periods during
       which the  Executive  receives  payment may be extended by the CEO in his
       discretion following consultation with the Company's medical adviser. The
       Executive's salary during any period of absence due to sickness or injury
       shall be inclusive of any statutory  sick pay to which he is entitled and
       the Company may deduct from his salary the amount of any social  security
       benefits he may be entitled to receive.

(3)    If the  Executive  is  incapable  of  performing  his duties by reason of
       injury sustained wholly or partly as a result of negligence,  nuisance or
       breach  of any  statutory  duty  on the  part of a  third  party  and the
       Executive recovers any amount by way of compensation for loss of earnings
       from that  third  party,  he shall pay to the  Company a sum equal to the
       amount recovered or, if less, the amount paid to him by the Company under
       subclause  (2) above in  respect of the  relevant  period of absence as a
       result of that injury.

9.     HOLIDAYS

(1)    The Executive shall take his holiday entitlement at times agreed with the
       Company.

(2)    Any entitlement to holiday  remaining at the end of any calendar year may
       be  carried  forward  to the  next  calendar  year  but no  further.  The
       entitlement  to holiday (and on  termination of employment to holiday pay
       in lieu of  holiday)  accrues  pro rata  throughout  each  calendar  year
       (disregarding fractions of days).

10.    CONFIDENTIAL INFORMATION

(1)    The Executive  shall not make use of or divulge to any person.  and shall
       use his best endeavours to prevent the use, publication or disclosure of,
       any information of a confidential or secret nature:

       (a)    concerning  the  business of the Company or any Group  Company and
              which comes to his knowledge during the course of or in connection
              with his  employment  or his holding  any office  within the Group
              from any source within the Company or any Group Company: or

       (b)    concerning  the business of any person  having  dealings  with the
              Company or any Group  Company  and which is  obtained  directly or
              indirectly  in  circumstances  in which the  Company  or any Group
              Company is subject to a duty of  confidentiality  in  relation  to
              that information

(2)    This clause shall not apply to information which is:

       (a)    used or disclosed  in the proper  performance  of the  Executive's
              duties or with the prior written consent of the Company; or

       (b)    ordered to be disclosed by a court of  competent  jurisdiction  or
              otherwise required to be disclosed by law.

                                       98
<PAGE>
(3)    This  clause  shall  continue  to  apply  after  the  termination  of the
       Employment (whether terminated lawfully or not) without limit of time.

(4)    Each of the  restrictions  in each paragraph or subclause  above shall be
       enforceable  independently  of each of the others and its validity  shall
       not be  affected  if  any  of the  others  is  invalid.  If any of  those
       restrictions  is void but would be valid if some part of the  restriction
       were  deleted,   the  restriction  in  question  shall  apply  with  such
       modification as may be necessary to make it valid.

11.    INTELLECTUAL PROPERTY

(1)    In this clause  `Intellectual  Property Right' means a formula,  process,
       invention. improvement, utility model, trade mark, service mark, business
       name,  copyright,  design right. patent,  know-how,  trade secret and any
       other intellectual property right of any nature whatsoever throughout the
       world (whether  registered or unregistered and including all applications
       and rights to apply for the same) which:

       (a)   relates to or is useful in connection with the business or any
             product or service of a Group Company; and

       (b)   is  invented,  developed,  created  or  acquired  by the  Executive
             (whether  alone or jointly with any other person) during the period
             of the Employment.

(2)    Subject to the provisions of the Patents Act 1977, the entire interest of
       the Executive in any  Intellectual  Property Right shall,  as between the
       Executive and the Company, become the property of the Company as absolute
       beneficial owner without any payment to the Executive for it.

(3)    The Executive  shall  promptly  communicate  in confidence to the Company
       full particulars of any Intellectual Property Right (whether or not it is
       vested in the Company  pursuant to subclause (2) above or otherwise)  and
       the  Executive  shall not use,  disclose  to any  person or  exploit  any
       Intellectual  Property Right  belonging to the Company  without the prior
       written consent of the Company.

(4)    The Executive  shall, at the request and expense of the Company,  prepare
       and execute such  instruments and do such other acts and things as may be
       necessary or desirable to enable the Company or its nominee to obtain the
       protection of any  intellectual  Property  Right vested in the Company in
       such parts of the world as may be specified by the Company or its nominee
       and to enable the  Company to exploit  any  Intellectual  Property  Right
       vested in the Company to best advantage.

(5)    The obligations of the Executive under  subclauses (2) to (4) above shall
       continue  to apply  after  the  termination  of the  Employment  (whether
       terminated  lawfully or not).  Each of those  obligations  is enforceable
       independently  of  each  of the  others  and its  validity  shall  not be
       affected if any of the others is unenforceable to any extent.

                                       99
<PAGE>
12.    TERMINATION OF EMPLOYMENT

(1)    If not previously terminated the Employment shall automatically terminate
       at the end of the day  immediately  before the day on which the Executive
       attains age 60 or any other retirement age applicable to the employees of
       the Company generally.

(2)    If the Executive:

       (a)   becomes of unsound mind or is, or may be, suffering from
             mental disorder and either:

            (i)  he is admitted to hospital for treatment under the Mental
                 Health Act 1983; or

            (ii) an order is made by any  competent  court for his  detention or
                 for the  appointment  of a  receiver,  curator  bonis  or other
                 person to  exercise  powers  with  respect to his  property  or
                 affairs; or

       (b)   is unable properly to perform his duties by reason of
             ill-health, accident or otherwise for a period of 12
             consecutive months; or

       (c)   fails or neglects  efficiently  and  diligently  to  discharge  his
             duties  or is  guilty  of any  serious  or  repeated  breach of his
             obligations  under this agreement  (including  any consent  granted
             under it); or

       (d)   is guilty of serious  misconduct or any other conduct which affects
             or is likely to affect  prejudicially  the interests of the Company
             or the Group or is convicted of an arrestable offence (other than a
             road traffic offence for which a non-custodial penalty is imposed);
             or

       (e)   becomes bankrupt or makes any arrangement or composition with
             his creditors; or

       (f)   is disqualified from being a director of any company by reason
             of an order made by any competent court,

       the Company may (whether or not any notice of termination has been given)
       by  written  notice  to  the  Executive  terminate  the  Employment  with
       immediate  effect but a notice under  paragraph (b) above may be given by
       the  Company to the  Executive  only  within 90 days after the end of any
       period or periods of disability referred to in that paragraph.

(3)    During any period of notice of termination of the Employment  (whether or
       not such  notice has been  given by the  Company  or the  Executive)  the
       Company  may  require  the  Executive  to take any  holiday  to which the
       Executive is entitled at such time or times as the Company may decide.

(4)    If the  Executive is appointed as a director or officer of the Company or
       of any Group Company and the Executive ceases to be a director or officer
       of the Company or of that Group Company (for any reason  whatsoever) that
       shall not terminate the Employment.

                                      100
<PAGE>
(5)    On the  termination  of the  Employment  in any way (whether  lawfully or
       otherwise) the Executive shall immediately:

       (a)   return the car and its keys to the Company at such place as it
             shall nominate for the purpose; and

       (b)   deliver to the  Company's  Group  Human  Resources  Department  all
             property in his possession,  custody or under his control belonging
             to any Group Company including (but not limited to) business cards,
             credit and charge cards, security and computer passes, original and
             copy  documents or other media on which  information is held in his
             possession  relating  to the  business  or  affairs  of  any  Group
             Company; and

       (c)   resign  all  offices  held  by him in any  Group  Company  (without
             prejudice to the rights of any party arising out of the termination
             of the Employment).

(6)    The Executive  hereby  authorizes  the Company to deduct from any amounts
       payable  by the  Company  to the  Executive  on  the  termination  of the
       Employment any sums due to the Company from the Executive.

(7)    With  effect  from the date of  termination  of the  Employment,  all the
       rights and  obligations of the parties shall cease except for those which
       are  expressed to continue  after that date and except in relation to any
       breach  of any  provision  of these  terms  and  conditions  or any other
       agreement  between  the  Company  and the  Executive  before  that  date.
       Termination of the Employment shall not prejudice any other rights of the
       Company.

13.    GENERAL

       These  terms  and  conditions  shall  be  governed  by and  construed  in
       accordance with English Law.

14.    NOTICES

(1)    Any notice or other document to be served under any agreement between the
       Company and the Executive  may, in the case of the Company,  be delivered
       or sent by first class post or telex or facsimile  process to the Company
       at its  registered  office  for the time  being  and,  in the case of the
       Executive,  may be  delivered  to him or sent by first  class post to his
       usual or last known place of residence.

(2)    Any such notice or other document shall he deemed to have been served:

       (a)   if delivered, at the time of delivery;

       (b)   if posted, at 10.00 a.m. on the second Working Day after it
             was put into the post; or

       (c)   if sent by telex or facsimile process, at the expiration of
             two hours after the time of despatch, if despatched before
             3.00 p.m. on any Working Day, and in any other case at 10.00
             am. on the Working Day following the date of despatch.

                                      101
<PAGE>
(3)    In proving such service it shall he sufficient to prove that delivery was
       made or that the envelope  containing  such notice or other  document was
       properly  addressed  and posted as a pre-paid  first class letter or that
       the telex or facsimile  message was properly  addressed and despatched as
       the case may be.

                                      102

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