BP Amoco to Sell $10 Billion in Assets

BP Amoco said it will cut expenses by $4 billion in the next three years, twice its previous goal, as the oil giant sells refineries and high-cost oil fields. Chief Executive John Browne, in his annual meeting with analysts, estimated the company will sell $10 billion of assets to better focus on oil and natural-gas exploration, which is more profitable. Analysts said the revised figures indicate Browne is setting the pace for the oil industry in reducing expenses, seven months after Browne’s company completed its $62-billion purchase of Amoco Corp. and touched off a wave of industry consolidation. Browne did not say whether more job cuts are in store. BP Amoco also confirmed the discovery of at least a billion barrels of oil in what may be the largest deep-water discovery ever in the Gulf of Mexico. BP Amoco operates the Crazy Horse prospect, 125 miles southeast of New Orleans, and holds a 75% stake. Mobil Corp., which is being acquired by Exxon Corp., owns the rest. BP Amoco also proposed a 2-for-1 stock split. Its American depositary receipts rose $3 to close at $121.50.