Largest-Ever Downstream Energy Finance and Administrative Services Outsourcing Deal Signed
HOUSTON, January 20, 2000 -- Accenture and BP Amoco (NYSE: BPA) today announced a $200-million agreement to expand the finance and administrative (F&A) services Accenture provides to BP Amoco’s downstream businesses in the United States.
Under the 10-year agreement, Accenture will provide F&A services to BP Amoco’s downstream refining and marketing operations. The contract is the largest of its type ever signed in the downstream energy sector. Accenture’s downstream services, which will include credit card support, accounts payable, general and service station accounting, treasury services, and financial analysis and reporting, will be provided from Accenture’s Senergy Business Center (SBC) in Houston. Once former Amoco financial processes are relocated from Tulsa in the second quarter of 2000, the SBC will add roughly 150 new jobs to Houston.
This new downstream agreement between BP Amoco and Accenture follows the June 1999 announcement of a 5-year, $100-million contract extending a pioneering F&A outsourcing arrangement between Accenture and BP Amoco in the UK and Norway. These agreements further demonstrate the increasing role of outsourcing among newly consolidated oil companies, as well as opportunities to gain efficiencies through electronic commerce. This new F&A services agreement also complements other joint initiatives between Accenture and BP Amoco to utilize information technology to deliver additional value, including a broad electronic procurement program recently launched in Europe and the US.
"By migrating manual processes toward electronic commerce, we expect to deliver significant cost savings to BP Amoco’s Downstream businesses," said Michael Scimo, a partner with Accenture’s Energy practice. "BP Amoco has the opportunity to create a purely electronic environment for financial transactions. The structure of our contract with BP Amoco provides incentives to both parties to make this happen. We are especially excited about teaming with BP Amoco’s business units, customers, and suppliers to deliver new and improved electronic capabilities."
Alan Eilles, Downstream Chief Financial Officer, BP Amoco said, "Accenture has produced strong results for BP Amoco throughout the 1990’s. As we continue to implement new business models at BP Amoco, Accenture will help us take the performance of our F&A support to the next level. The entire energy industry has a tremendous opportunity to embrace business-to-business eCommerce and, working with Accenture, we are particularly excited about the opportunities offered by web-based solutions for the downstream businesses of BP Amoco."
The agreement, which continues BP Amoco’s strategy of focusing on its core competencies and outsourcing non- core functions to control costs, will grow Accenture’s Senergy Business Center to nearly 450 financial and information technology personnel. The SBC, Accenture’s hub for information technology and business process outsourcing services for several leading Energy companies, continues to position Accenture as a preeminent finance and administrative service provider for the North American downstream energy industry.
BP Amoco is one of the world’s largest companies and a leader in energy and petrochemicals, with 1998 revenues of more than $83 billion. The companies main activities are exploration and production of crude oil and natural gas; refining, marketing, gas marketing, supply and transportation; manufacturing and marketing of petrochemicals; and a growing activity in solar power generation. BP Amoco has well established operations in Europe, North and South America, Australasia and parts of Africa. More information about the company can be found at http://www.bpamoco.com.