Re Contract

March 6 2003

 ROLLS-ROYCE TO SUPPLY ADDITIONAL GAS TURBINES WORTH $100M FOR AZERBAIJAN OIL  
                                    PROJECT                                    

Rolls-Royce has won additional orders worth around $100 million for the latest
phases of the Azeri oil and gas field being developed in the Caspian Sea,
bringing the total value of Rolls-Royce energy equipment required for this
project to more than $155 million.

The Azeri project, located offshore some 120km south-east of Baku on the
Caspian coast of Azerbaijan, ordered its first five generator sets for one of
its Production and Drilling platforms and its shore-based oil processing
facility in 2001.

The latest orders involve further phases of the Azeri project, requiring ten
units, two generator sets, four compressor drive and four water-pump drives.
All ten units will be installed on the project's Compressor and Water Injection
platform (CWP).

Rolls-Royce equipment will also figure prominently in another stage of the
project, which involves the construction of two additional Production and
Drilling platforms. Each will be equipped with one generator set. This stage of
the Azeri project also calls for the expansion of the Sangachal on-shore
terminal, where the increased rate of oil extraction requires a further two
generator sets.

Tom Curley, President of Rolls-Royce Energy, said: 'Our successes in these
latest phases of the Azeri project are a direct result of our Rotating
Equipment Initiative with BP.

'This initiative was signed in 2000 to provide maximum equipment reliability
and life cycle cost performance for BP, the leading member of the Azeri
project's consortium. The initiative also provides new product and aftermarket
opportunities for Rolls-Royce.'

These new contracts, plus the original one placed in 2001, brings to 19 the
total number of Rolls-Royce units - all based on the highly successful RB211
6562 gas turbine - required for the Azeri project to date.

Delivery of equipment to Azerbaijan will be spread between 2003 and 2004 and
the project's location dictates deliveries can only be undertaken during the
open weather-window between April and October.

For further information please contact:

Martin Brodie

Head of Corporate Media Relations

Rolls-Royce plc

Tel : [phone]

Email: [e-mail]

Website: www.rolls-royce.com