euro adhoc: BP PLC / Disposal (E)

Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.

January 13, 2003

BP TO SELL FORTIES FIELD AND GULF OF MEXICO
ASSETS TO APACHE FOR $1.3 BILLION

BP announced today that it has agreed in principle to sell its 96.14 per cent stake in the North Sea Forties oilfield, together with a package of shallow-water assets in the Gulf of Mexico, to the US independent oil and gas company, Apache, for $1.3 billion.

BP's share of production from Forties is some 48,000 barrels of oil equivalent a day. Its overall current production from the UK North Sea is approximately 750,000 barrels a day.

The Gulf of Mexico assets comprise interests in 61 small fields in the shallow water, mainly gas producers. BP's net share of output is around 71,000 barrels of oil equivalent a day.

BP's share of the combined proved reserves for these assets is approximately 243 million barrels of oil equivalent.

The disposals are an outcome of BP's ongoing comprehensive review of its worldwide asset portfolio, announced by chief executive Lord Browne last October. Further transactions are expected during 2003.

BP said that sale would improve returns on its upstream portfolio by reducing operating costs and freeing up capital for investment in other projects offering better profit margins.

"The objective of our asset review is to emerge with a more streamlined, consolidated portfolio that offers improved financial returns and higher value growth in the near and long term," the company said. "This means disposing of assets that may be worth more to others than to us.

"We believe this is an excellent deal for BP and Apache. Among other things, it brings to the UKCS a powerful US independent, for which Forties will be a highly material asset and therefore more likely to attract necessary future investment."

Subject to UK and US regulatory consents and other approvals, the sale is expected to be completed in the first half of this year. The Forties pipeline is not included in the sale.

Notes to Editors:

· The Forties field was discovered in October 1970 and began producing oil in September 1975. It was officially inaugurated by Her Majesty The Queen on November 3, 1975. At its peak in 1979 it produced some 500,000 barrels a day - well above early expectations -representing about 25 per cent of UK oil demand at the time. To date, some 2.5 billion barrels of oil have been produced from
the field.

· BP's worldwide production is in excess of 3.5 million barrels of oil and gas equivalent a day.

--ENDS--

This information is provided by RNS
The company news service from the London Stock Exchange

Further inquiry note:
Further enquiries:

Clare Bebbington, BP Press Office, London, tel: +44 (0)20 7496 4851 BP Press Office, London, tel: +44 (0)20 7496 4067 or
+44 (0)20 7496 4358

Tony Lentini, Apache Press Office, Houston, tel: +1 713 296 6227

Web sites: www.bp.com
www.apachecorp.com
Tel: +44 20 7496 4000
Email: komalij@bp.com

end of announcement euro adhoc

Emittent: BP PLC
1 ST JAMES SQUARE
UK-SW1Y4PD LONDON
Tel: +44 20 7496 4000
Email: komalij@bp.com
WWW: http://www.bp.com
ISIN: GB0007980591
WKN: 850517
Indizes:
Börsen: free trade Baden-Württembergische Wertpapierbörse, Bayerische Börse, Berliner Wertpapierbörse, Niedersächsische Börse zu Hannover; official dealing Börse Düsseldorf, Frankfurter Wertpapierbörse, Hamburger Wertpapierbörse, London Stock Exchange, SWX Swiss Exchange
Branche: Energy
Sprache: Englisch

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