BP Joins Refinery Project

BP PLC
17 March 2008

March 17, 2008



                   BP JOINS IRVING OIL IN PROPOSED EIDER ROCK

                                REFINERY PROJECT



International oil major BP and regional refiner and marketer Irving Oil have
entered into a Memorandum of Understanding to work together on the next phase of
engineering, design, and feasibility for the proposed Eider Rock refinery in
Saint John, New Brunswick, Canada.  BP will contribute US$40 million as its
share of funding for this stage of the study and the two companies will also
investigate the possibility of forming a joint venture to build the refinery
should they decide to proceed.

Irving Oil conducted initial feasibility work and informal public consultation
in 2006, and has been engaged since January 2007 in permitting, public
consultation, and engineering design for the proposed 300,000 barrel per day
refinery. The refinery would be situated close to Irving Oil's existing 300,000
barrel per day refinery and the existing Irving Canaport deepwater crude oil
terminal  which receives VLCC cargoes of crude oil and is located 65 miles (105
km) from the US border.

This next phase of engineering, design and feasibility work, combined with
ongoing permitting and community engagement activities represents over US$100
million of investment over the next 12-15 months.

'We are excited that a company of BP's calibre sees the potential in our region
and in this project to meet the need for a reliable and secure supply of refined
products for the north east,' said Kenneth Irving, president of Irving Oil. 'BP
brings international expertise and crude supply, but what really drew us to
partner with BP was the cultural fit with our company and our shared belief that
the world has changed when it comes to matters that relate to environmental
performance and security of supply. Our shared belief on the future of energy
will increase the potential of this project.'

'This refinery project is of great interest to BP because of its ideal location
close to the markets of the north eastern US where product supplies are
increasingly in deficit,' said Iain Conn, chief executive of BP's refining and
marketing business.  'BP is keen to develop projects which enhance the energy
security of Canada and the US.  Irving Oil has a well-deserved leading
reputation in refining for the east coast.  The two companies have a good track
record of working together and we are pleased to be jointly undertaking the
feasibility work on this exciting opportunity.'

'This project would support the further development of the New Brunswick energy
hub and the refining industry on the East Coast,' said Kevin Scott, Irving Oil's
director of refining growth. 'We will continue to follow the rigourous
permitting process outlined by our Federal and Provincial Governments, and we
will continue to consult our community to ensure that, if the project proceeds,
it will be one the community can be proud of.'

A final investment decision is not expected before 2009 and, although the final
costings will only be clear once all the detailed engineering and design work is
completed, the refinery is expected to cost at least US$7 billion. If permitting
approval is received and an investment decision is made to proceed, site
preparation would begin in 2010, and full scale construction would begin in 2011
with start-up expected in 2015.  Irving Oil has committed to using the best
available proven technology to develop a refinery with leading environmental
performance and economic efficiency.





Notes to Editors:


•   About BP

BP is one of the world's largest oil and gas companies with operations in more
than 100 countries across six continents. The company's main businesses are
exploration and production of oil and gas; refining, manufacturing and marketing
of oil products and petrochemicals; transportation and marketing of natural gas;
and BP Alternative Energy, a growing business in renewable and low-carbon power
and next generation energy technologies. BP Canada is headquartered in Calgary
with natural gas exploration and production activities in Alberta, British
Columbia and the Northwest Territories. BP also operates a significant natural
gas liquids (NGL) business with plants in Alberta, Saskatchewan and Ontario and
is a leading marketer of natural gas, crude oil and NGLs in Canada.  Further
information is available at: www.bp.com and www.bpalternativenergy.com


•   About Irving Oil

Irving Oil is the regional refiner and marketer with a history of long-term
relationships and partnerships. The company serves the US Northeast and Eastern
Canadian markets, and currently operates Canada's largest refinery in Saint
John, New Brunswick. The Saint John 300,000 barrel per day refinery is situated
close to diverse crude sources and is the closest refinery to the US Northeast.
It accounts for 75% of Canada's petroleum product exports to the US, 45% of all
clean petroleum products north of New York, and 20% of all US gasoline and
diesel imports. Irving Oil and Repsol YPF are currently completing construction
of Canada's first LNG regasification terminal.  The Canaport LNG terminal will
have an initial send-out capacity of 1 billion cubic feet per day (1bcf/d), and
is expected to be operational by the end of this year. Irving Oil was the first
oil company to win an Environmental Protection Agency (EPA) Clear Air Excellence
Award, for its clean gasolines.  For more information, visit: www.irvingoil.com.



Further information:

Jennifer Parker, Irving Oil, tel: [phone]
BP Press Office, London, tel: [phone]
BP Canada Press Office, tel: [phone]
BP Press Office, Chicago, tel: [phone]



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