BP Amoco and Andersen Consulting expand outsourcing relationship in North Sea

BP Amoco and Andersen Consulting announced an agreement to expand and extend their pioneering outsourcing relationship in the North Sea.
The five-year deal extends a landmark outsourcing agreement in which Andersen Consulting provides finance and administrative services to BP Amoco, and expands these services to include the former Amoco North Sea assets.
The agreement, currently valued at more than $ 100 mm, is scheduled to be reviewed at the end of 2004. The deal, which follows the 1998 merger of BP and Amoco, further demonstrates the increasing role of outsourcing among merged oil companies as a means to operate more efficiently.

As BP Amoco continues to pursue improved business processes and organisational efficiencies, its decision underscores Andersen Consulting's role in the rapid integration of the company's assets. BP Amoco's relationship with Andersen Consulting, which began in 1991, includes the outsourcing of BP Amoco's North Sea finance and accounting functions, and the provision of enterprise business solutions supporting these operations. Results to date include helping BP Amoco reduce its accounting cost per barrel of North Sea crude by approximately 65 % in real terms.
"In an environment marked by uncertain oil prices and increased competitive pressures, the smooth and efficient integration of BP and Amoco remains a top priority," said Ian Rushby, CFO, BP Amoco Exploration.
"Andersen Consulting has produced impressive results throughout the 1990s. We look to the firm to continue not only to maintain the most efficient back office processes and systems to help merge our operations successfully, but also to help us continually find ways of adding value to our business."

Andersen Consulting, the sole provider of finance and accounting outsourcing services to oil companies operating in the North Sea, provides business solutions to energy companies operating in the North Sea from multi-client service locations in Aberdeen, Scotland; Warwick, England; and Stavanger,Norway. These centres leverage the firm's energy industry knowledge, finance and accounting capabilities, and strategic outsourcing expertise. As a result, clients such as BP Amoco, Conoco (UK), Elf Exploration UK, Talisman Energy UK and Saga Petroleum receive superior accounting services, enhanced by the sharing of best practices, cost savings and reduced service risks.
Through the firm's outsourcing capability in these locations, North Sea Energy clients enjoy the lowest costs available for Finance and Accounting services.
Andersen Consulting now dominates the finance and administration market it established in the important North Sea region from its first contract with BP, and is uniquely positioned to help the industry respond to cost pressures.
"Just as many oil companies share drilling platforms at sea, Andersen Consulting helps clients reap advantages from sharing accounting services on land," said Paul Fockens, Andersen Consulting's global client partner responsible for BP Amoco. "Expanding this groundbreaking outsourcing relationship into the next century is a testament to the improvements we have delivered to British Petroleum, as well as to BP Amoco's vision for utilising strategic outsourcing and information technology to improve its performance. We look forward to helping integrate and improve BP Amoco's operations and maximising Andersen Consulting's full range of expertise, including strategic services and electronic commerce offerings, to the combined company."

BP Amoco operates more than 30 North Sea fields and is biggest single producer of oil and gas in the UK. Currently, BP Amoco produces approximately 20 % of the UK's total oil production and some 15 % of the UK's total gas production.

Andersen Consulting is an $ 8.3 bn global management and technology consulting organisation whose mission is to help its clients create their future. The organisation works with clients from a wide range of industries to link their people, processes and technologies to their strategies.
Andersen Consulting has approximately 65,000 people in 48 countries.