BP-Schlumberger Alliance Adds Value at Valhall.

Business/Energy Editors

STAVANGER, Norway--(BUSINESS WIRE)--Sept. 29, 2000

BP in Norway announced today a Value Enhancement alliance with Schlumberger Oilfield Services for the Valhall Water Injection Project (WIP), operated by BP in the Norwegian sector of the North Sea. In this new working model, BP and Schlumberger form a single, fully integrated operational team for the Valhall WIP project, merging the best multidisciplinary scientific, engineering and field expertise of each company. A value-driven incentive plan enables Schlumberger to be rewarded for adding value to the project for BP.

The WIP is undertaken to improve oil recovery on the Valhall field. In the alliance Schlumberger will provide technical assistance and core services to project planning, topside value engineering, well construction, reservoir management and life-of-field operations.

BP Norway's managing director Greg Coleman commented, "By teaming up with Schlumberger, bringing creative minds together and applying innovative technology, we envision a step-change increase in value for the Valhall field."

According to Jorgen Rasmussen, vice president and general manager for Schlumberger Oilfield Services in Scandinavia, "Valhall is a challenging field: a complex reservoir with very complex well-construction conditions. We believe that a value enhancement model alliance between oil companies and service companies can more effectively find the best solutions to these challenges. This is certainly the business model for the future in the Norwegian oil industry."

The alliance will initially focus on maximizing the benefit of existing contracts with Schlumberger. These contracts cover drilling and measurement services, stimulation, coiled tubing, data acquisition and well completion.

The Valhall field is located in the southern part of Norway's North Sea sector. The field has been in steady production since 1982. Partners in the license are Amerada Hess, Enterprise and Elf. Estimated production in 2000 is 90,000 barrels/day.

About Valhall WIP

Water injection will start early in 2003, after which oil production will quickly increase to an incremental 60,000 barrels a day in 2006. Incremental production will tail off to a long-term plateau of 10,000 to 15,000 barrels per day around 2015. The project will include 24 well slots on a new platform, which is tied-back to the existing facility. The new fixed structure will be designed and located so that the planned platform-drilling rig can skid between it and the 19-slot wellhead platform installed in 1996. This design will enable drilling on both platforms.

About Schlumberger

Schlumberger Oilfield Services, a business segment of Schlumberger Limited (NYSE:SLB), is a leading supplier of services and technology to the international petroleum industry and operates offices, service locations, and research and development facilities around the world. Schlumberger is a global leader in technical services spanning the oil and gas, utility, semiconductor, smart card, network and Internet solutions industries. Schlumberger revenue was $8.4 billion in 1999. Additional information is available at www.slb.com.

For more information contact Kjell-Erik 0stdahl, sales and marketing manager, Schlumberger Oilfield Services: Tel: [phone]; mobile: [phone]; or Ray Bolianatz, business coordinator, Schlumberger Oilfield Services: Tel: [phone].

About BP

BP is one of the largest integrated oil companies in the world, operating in 100 countries, on 6 continents, and serving 10 million customers every day throughout the world. In Norway, BP operates the Ula, Gyda and Valhall fields in the southern part of the Norwegian North Sea. The company has also made significant new discoveries over the past few years. Currently, BP is evaluating a development of the Skarv field. BP's main activities are exploration and production of crude oil and natural gas; refining, marketing, supply and transportation; solar power; and manufacturing and marketing of petrochemicals. BP revenue was $120 billion in 1999. Additional information is available at www.bp.com.

For more information contact Sveinung Sletten, manager Government and Public Affairs, BP: Tel: [phone]; mobile: [phone]; or Jan Erik Geirmo, public relations, BP: Tel: [phone]; mobile: [phone].