Acquisition

BP PLC
6 July 2001


July 6, 2001


BP INCREASES STAKE IN TANGGUH GAS PROJECT


BP announced today that it has acquired Cairns Limited for a lump sum of $107
million and a deferred share of future profits from the Tangguh field.



Cairns, a subsidiary of Genting Berhad of Malaysia, holds a 9.7 per cent stake
in the Tangguh LNG project.



Bill Schrader, BP Associate President, Indonesia said today, 'This is a very
good strategic acquisition which will increase BP's share of Tangguh to about
50 per cent and reflects our confidence in the development. Tangguh offers a
new 'grass roots' project and it will be a long-term competitive supply source
which will help meet rising demand in the region. The marketing of Tangguh is
going very well and there is great interest in the markets of the Far East,
particularly China, Japan and Korea.'



Notes for Editors:



1.      Tangguh is a world class gas field in Indonesia, with proved reserves
certified at 14.4 trillion cubic feet. The Tangguh reserves are located on
three Production Sharing Contracts (PSCs). BP already held an interest (and is
operator) on two of the PSCs and this deal puts BP on the third.


2.      The three Production Sharing Contracts which make up Tangguh are:

Wiriagar: BP (operator) 80 per cent; KG 20 per cent

Berau: BP (operator) 48 per cent, Oxy 22.856 per cent; Nippon 17.144 per cent
and KG 12 per cent

Muturi: BG 50 per cent, Cairns 45 per cent and Nissho Iwai 5 per cent


3.      The shares in proved reserves in the Tangguh project, derived from
these PSCs are:

BP 40 per cent, Oxy 16 per cent, Nippon 12 per cent, BG 11 per cent, KG 10 per

cent, Cairns 10 per cent and Nissho Iwai 1 per cent. Following this
acquisition, BP's interest in Tangguh increases to 50 per cent.


4.      The agreement is for Genting to receive an immediate lump sum of $107
million and a future share equivalent to around 3 per cent of Tangguh net
profit.


5.      Cairns was a subsidiary of Genting Berhad (of Malaysia) which is
principally an investment holding and management company and whose subsidiary
companies are primarily involved in seven major business divisions, one of
which is oil and gas. Genting Berhad was incorporated as a private limited
company in 1968 and re-structured in 1989.


Further enquiries:


Ian Stewart, BP press office, London: 44 (0) 207 496 4324


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