Acquisition

BP PLC
16 April 2002

BP INCREASES ITS SHAREHOLDING IN SIDANCO



BP announced today that it has completed a transaction with Alfa Group and
Access-Renova to expand its stake in the Russian oil and gas producer, Sidanco,
from 10 to 25 per cent.

BP has agreed to pay $375 million for an additional 15 per cent of Sidanco, to
take its interest to 25 per cent plus one share - a level of equity that matches
its current voting rights.

BP staff currently hold the posts of chairman of the board and president, as
well as several other key executive positions, and its increased holding will
further consolidate its influence in the company.

Lord Browne, group chief executive, BP said today: 'This purchase underlines
BP's confidence in Russia and its improving business environment. Over the last
few years Sidanco has refined its costs, strengthened its balance sheet and
increased its focus on the upstream business. With this foundation Sidanco is
well positioned to compete in the Russian market. BP will now second further
staff into Sidanco's management to help drive the company forward.'

'We welcome BP's increased participation as a shareholder in Sidanco and its
enhanced management commitment,' said Alfa Group Chairman Mikhail Fridman. 'We
view this transaction as an important step in developing our co-operation with
BP, and as a signal of renewed investor confidence in Russia.'

President of Access Industries Len Blavatnik said: 'BP's presence in Sidanco has
demonstrated the value of strong management and good corporate governance for
the benefit of all Sidanco shareholders. We welcome the deepening of BP's
interest.'

Sidanco produces some 380,000 barrels of oil a day gross, mainly at facilities
located in Western Siberia, including the recently returned Chernogorneft
assets. Alfa Group and Access-Renova will remain majority stakeholders in
Sidanco following the completion of this transaction.


Notes to Editors:


Principal BP interests in Russia in addition to its Sidanco interests are:

•        A 33 per cent equity interest in RUSIA Petroleum, following licence
         unification, of which 4.5 per cent is voted by the Irkutsk Oblast.

•        A network of 34 world-class gasoline retail stations in Moscow.

•        Joint bidding agreements with Rosneft and Sakhalinmorneftegas for the
         potential exploration of Sakhalin 4 and 5.

•        A successful and growing oil trading and lubricants businesses.

•        Alfa Group and Access-Renova own a number of assets in the CIS oil and
         gas industry including stakes in Tyumen Oil Company and Sidanco.


Further enquiries:


Peter Henshaw, Director External Affairs, BP Russia [phone]
Toby Odone, BP Press Office [phone]


- ENDS -



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