Re Contract

19 January 2005

             ROLLS-ROYCE SIGNS $75 MILLION AZERBAIJAN ENERGY DEAL              

Rolls-Royce has won a third contract to supply RB211 gas turbines for the Azeri
oil project being developed in the Caspian Sea. Valued at over $75 million the
new contract brings the total value of Rolls-Royce energy equipment ordered for
this project to more than $230 million.

Rolls-Royce has now secured orders for 27 RB211 sets over the past three years
from BP for installation in the Caspian Sea oil fields - one of the largest
concentrations of industrial RB211s in the world.

Eight industrial RB211 gas turbines are required for the newly-launched Phase
III Deep Water Gunashli phase of the development, in which the Azerbaijan
International Operating Company (AIOC) is investing some $4.7 billion.

Four sets will generate electrical power and three sets provide Water Injection
pump drive on the Process, Compression, Water Injection and Utilities (PCWU)
platform of the development.

The eighth RB211 set, a main power generation unit, will be located on the
adjacent Drilling, Utilities and Quarters (DUQ) platform.

Tom Curley, President of the Rolls-Royce energy business, said: "The latest
contract from Azerbaijan is a significant accomplishment and reflects the
confidence and satisfaction that BP has in Rolls-Royce products for these
critical applications.

"All the gas turbine orders in our size range for Phase I, Phase II and now
Phase III of this important development have been won by Rolls-Royce."

Success for Rolls-Royce in all three phases of this development is a direct
result of the Rotating Equipment Initiative signed with BP in 2000. This
ensures maximum equipment availability and highly competitive life-cycle costs
for BP, the operator of the Azerbaijan project. The initiative also provides
new product and aftermarket opportunities for Rolls-Royce.

Equipment will be delivered to a schedule that will enable Phase III of the
project, which focuses on development of the Deep-Water Gunashli oil field, to
begin oil production in mid-2008.

The Rolls-Royce gas turbines sets for this phase of the Azeri project will be
engineered, packaged and tested at the company's Liverpool, UK, facilities.
Nineteen Liverpool produced packages have already been delivered to Azerbaijan
for Phases I and II.

Total industrial RB211 sales worldwide have surpassed 400, of which some 170
are providing power generation and mechanical drive services for offshore oil
and gas installations.

For more information, please contact:

Gary Hyman

Head of Communications - Energy Business

Rolls-Royce

Tel: [phone]

Email: [e-mail]

Web www.rolls-royce.com

Richard Catling

Crest Communications (PR) Limited

Tel: [phone]

Email: [e-mail]

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