TIEL, the Netherlands - Under an agreement signed yesterday, Verdugt bv has agreed to buy 100% of BP's formic and propionic acid production beginning October 1, 2003. Effective that date, BP's production of those acids will be marketed on a global basis solely through Verdugt's sales and distribution network.

BP will continue to own and operate the formic and propionic acid production units, which are located at its Saltend, Hull, UK petrochemicals site. The units produce approximately 60,000 metric tons of formic acid and 30,000 metric tons of propionic acid per annum.

Both acids, which exist in nature, have excellent preservation properties and are used in a variety of agricultural applications from enhancing grass silage to upgrading animal feed. The organic acids are also used in a wide variety of industrial applications.

The two companies plan to transfer all sales and customer service functions to Verdugt during the third quarter of 2003. Existing customers should continue to place orders through their present BP channels until notified. Financial details of the transaction were not disclosed.

Richard J Andre, managing director of Verdugt, said, "The addition of BP's formic and propionic acids business complements the existing products and services we offer to the food, agricultural, pharmaceutical and chemical industries."

Based in Tiel, The Netherlands, Verdugt manufactures a wide range of organic acid salts and blends that serve the food, agricultural, pharmaceutical, detergent and chemical industries. Verdugt is also a leading supplier of environmentally friendly airport runway deicers marketed under the Clearway brand.