Re Contract

18 December 2007

 ROLLS-ROYCE WINS £120M TOTALCARE CONTRACT FOR INDUSTRIAL GAS TURBINES FROM BP 

Rolls-Royce and BP have signed a £120 million TotalCare services agreement for
the maintenance of 28 RB211 gas turbines operating onshore and offshore in
Azerbaijan.

The agreement, the largest single contract the Rolls-Royce energy business has
received, extends an existing contract until 2016.

Tom Curley, President of the Rolls-Royce energy business, said. "We are
delighted to extend our TotalCare partnership with BP. With this agreement we
are focused on maximising their hydrocarbon production through high unit
availability.

"Our TotalCare agreements create close working relationships designed to
control the operator's maintenance budgets and manage risks more effectively."

A team located at the Rolls-Royce office in Baku, Azerbaijan will manage
maintenance of the RB211 gas turbines operating on offshore platforms in the
Caspian Sea, as well as the turbines at an onshore terminal. Engine overhauls
will be performed at the Rolls Wood Group facility in Aberdeen, Scotland.

This is the second TotalCare agreement covering industrial gas turbines
operating in the oil and gas sector to be signed recently between BP and
Rolls-Royce.

In 2006, following a pilot programme, a £25 million agreement covered eight
Avon and RB211 gas turbine packages operating in four offshore North Sea oil
and gas fields and at a UK onshore gas processing terminal.

Notes to editors:

 1. TotalCare means Rolls-Royce manages maintenance to minimise disruption to
    the customer.
   
 2. Essentially it is a framework to define the long-term relationship between
    Rolls-Royce and BP. It adds value to the customer's operation by applying
    Rolls-Royce technical expertise to manage risks more effectively, control
    maintenance budgets, provision resources and improve availability and
    reliability.
   
 3. In 2000 Rolls-Royce and BP signed a Rotating Equipment Initiative (REI) to
    provide maximum equipment reliability and life cycle cost performance for
    the gas turbines operated by BP.
   
 4. For the Azeri oil project, Rolls-Royce has received orders for RB211
    powered equipment to be installed on six platforms in the Caspian Sea and
    an onshore terminal at Sangachal. Equipment installed on the platforms has
    various roles, from providing the electrical power to powering gas
    compressor and water injection packages. The largest installation consists
    of ten RB211 packages on a single platform.
   
 5. Rolls-Royce has a fleet of over 550 industrial gas turbines operating
    offshore in 32 countries. The first units entered service offshore
    Venezuela in 1969, offshore USA in 1970 and the North Sea in 1972.
   
 6. Total operating hours of Rolls-Royce industrial gas turbines worldwide is
    over 160 million.
   
For further information:

Mark Alflatt
Director - Financial Communications
Tel: [phone]