BP Castrol - Mexico

1. BP Castrol - Mexico A Discussion Document Outlining an approach to assist in: Improvement of Financial Processes & Operations – IFPO Project • Qittitut Consulting • November 18, 2004

2. Introduction • Dear____, • Per our recent communications, Qittitut Consulting is please to submit this discussion document to assist with improvements to the closing cycle and reporting of your financial operations for BP Castol. We have termed this project “Improvement of Financial Processes and Operations” and it will be referred to as IFPO in this document. • Based on conducting similar improvement engagements of this type, we have outlined an approach to the analysis and implementation plan definition which is described in the attached pages. To be successful, we propose a lot of interchange with the staff for buy-in to improve acceptance of the recommendations. • We have listed a number of factors that need to be considered which drive the final work plan, resources and level-of-effort. As a next step, we suggest a conference call to answer these questions and clarify any of the other items in this document that need explanation. We would then be in a position to give you a firm estimate and nominate resources. • We appreciate the opportunity to assist you in this important effort. Feel free to call me at any time • Bill Diggons – Qittitut Consulting • 001-713-240-7714

3. Table Of ContentsThis document is organized as follows… • Your Terms of Reference (TOR) • Key assumptions that drive the work and the cost estimate • How to do the project • Typical work plan & milestones • Deliverables and work products • Representative project team resumes

4. Your Terms of ReferenceIn 12 weeks, the project will deliver your areas of focus as listed below… • 1. Process Map normal operations. What currently happens each month as the accounts are closed through to submission of reports – ECCS/Voyager, GFO, etc. Within this would be identification of all reports produced. Having this would put us in a position to evaluate non-value adding work, etc. • 2. Help us develop an integrated timetable. • 3. Tied in with both of the above would be the extent we are dependent / impacted by the Mexico Shared Services Group. This should become obvious through the process mapping & timetable work. Recommendations on improvements reference the Shared Services area as well, SLA format, content etc. • 4. Request they provide suggestions on how the local team can get comfortable with making top down judgments based on rule of thumb, rather than 120% analysis on everything. • 5. Also that they provide recommendations on how we can eliminate the parallel manual Accounting that goes on alongside JDE to enable us to get data integrity, and data in the form required for reporting etc. • 6. JDE set-up in Mexico to evaluate improvement opportunities.

5. Key AssumptionsThe following factors need clarified. They drive the level-of-effort and our cost estimate… • Size of the lubes operation, classes of trade and reporting complexity • Size of the finance organization. Number & size of related organizations • Number of finance facilities and locations • Accessibility of the staff for interviews and (joint) team work assignments • Quality of documentation on existing reports and JDE system interfaces • Number of related (formal and informal) systems and how well they are documented • Two Steering Committee presentations and weekly status meetings • Other Considerations: • Work of some of the expatriate team will be in English with translation arrange by BP • Dedicated offices, network access & conference rooms are needed • A fulltime BP project logistics, documentation & admin coordinator will reduce cost • Access to decision makers in 3 day turn-around on project critical items

6. 7 Mobilize, set up and initiate project 1 Define Key Processes and closing cycles 3 Interviews and cross functional work sessions to design “To Be” functions Define solution architecture 11 Recommend best “acceptance” Option (s) 12 • Evaluate • Processes • Reports • Closing Timetable • Org Structure, e.g., Shared Svc. Group • Technologies 2 Best Practice Investigation 8 Catalogue Reports 4 13 Develop next stage work & Implementation Plans Define Key Organizations and Roles 5 10 Assess other key related initiatives 6 Catalogue current (formal & informal) systems How to do the Project Executing the IFPO initiative, proposed route map – to maximize acceptance Assess AS IS Plan TO-BE Processes Define A Solution Architecture • Define • Process Details • Org Roles & Responsibilities • Technology features 9 Manage change • Assess change barriers 14

7. Project Step W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12++ Typical Work Plan MilestonesThis will be refined after our discussion on the key assumptions… Mobilization and Discovery Team & User Interviews Process Interviews and documentation Reports Other BP Best Practices Roles & Responsibilities Organization Characteristics System Features & Requirements Technology Future State Workshop Gap Analysis Roadmap – Implementation Plan Project Mgt & Communications Steering Committee Meeting Workshops

8. Deliverables and Work ProductsThe project team will produce the following documentation… Deliverables: • “To Be” process maps • Integrated closing timetable • Recommendations for improvement • Coordination with the Shared Services Areas • Local team skills e (and confidence) enhancements • JDE input and reporting • Implementation Plan(s) Work Products: • As-Is maps • Interview notes • Best practices documentation

9. Representative Resume:M. Stetzer – Project Leader Credentials Marty Stetzer is a senior associate with Qittitut Consulting, based in Houston. He has over 13 years consulting experience with PricewaterhouseCoopers Consulting (PwCC). He worked with numerous international Oil & Gas company and NOC managements in engagements in strategy, business and financial operations improvement, E-commerce and systems strategy. He has led delivery projects to clients in the Middle East, USA, UK, India, Russia and Italy. He recently was part of the PwC audit services organization – and understands Sarbanes Oxley reporting as it affects the order-to-cash cycle Prior to PwCC, Marty had 18 years of P&L experience in the upstream with Superior Oil/Mobil and Wilson Industries; and with Exxon in lube oil base stock, planning-analysis, manufacturing and marketing in a wide variety of USA and South East Asia locations. He led Esso Australia Marketing with line P&L responsibility for a 100 man nation wide organization selling $220 million of petroleum products, merchandise and lube oils through 1150 dealer and reseller locations. Marty has a Bachelor's degree in Mechanical Engineering and an MBA. His related global lube oil consulting and industry experienced is on the next page

10. Representative Resume:M. Stetzer – Lubricants Experience Consulting Conducted a confidential market research study for Pennzoil to evaluate their market strategy and technology versus Castrol, Quaker State and the major oil lube marketers. Worked with Exxon USA’s lube oil and specialties 150 man sales force to increase amount and quality of face-to-face selling time with wholesale and mass merchandiser customers. Productively improved 30%. Developed, sold and executed a large project for Exxon USA's Specialty Products Division which tied six industrial customers and distributors directly to finance and customer service via tele-communication links. Operational with Esso Developed market forecasts and economic justification for grassroots 7,000 BCD lube base stock production facility constructed in Singapore. Responsible for supply & profit plans of Exxon's $200 million International Marine lubricants business line. Familiar with lube product specifications, worldwide markets and customers. Managed reorganization of a $15 million marketing-distribution operation to improve profitability of lube oil, and TBA business. Set up regional distributors, penetrated mass merchandisers and improved selling capabilities.