BP's Innovene in Saudi jv

BP PLC
08 June 2005


press release

June 8, 2005


                 INNOVENE AND DELTA OIL AGREE TO EXPLORE MAJOR
                    PETROCHEMICAL INVESTMENT IN SAUDI ARABIA

Innovene, BP plc's petrochemicals and refining subsidiary, and Delta
International, a leading Saudi-owned independent development company, announced
today the signing of a Memorandum of Understanding (MOU) for a major investment
in Saudi Arabia's petrochemical sector.

The memorandum marks the beginning of detailed negotiations between Innovene and
Delta for the construction of a world-scale cracker and associated derivative
capacity in the Kingdom, with sites being explored in Jubail. It is intended
that this project, which is expected to cost around $2bn, will form a platform
for future long-term growth opportunities.

Innovene and Delta will be equal partners within the joint venture. It is
anticipated that, subject to final approvals, an agreement will be signed before
the end of the year, with commissioning of the first plants expected in late
2008.

The MOU was signed last night at a ceremony in Riyadh by Ralph Alexander, CEO of
Innovene and Mr Badr Al-Aiban, Chairman and CEO of Delta in the presence of His
Highness Prince Saud Bin Thunayyan Al-Saud, Chairman of the Royal Commission for
Jubail and Yanbu.

Commenting on the joint venture with Delta, Ralph Alexander said: 'We see this
joint venture as the first chapter in a long and fruitful partnership between
Innovene and the Kingdom of Saudi Arabia. It confirms Innovene's position as a
truly global petrochemicals player, including Delta on the list of highly
respected companies with whom we have partnerships around the world and adding a
major Middle East position to our existing portfolio of assets in North America,
Asia and Europe.'

Badr Al-Aiban commented: 'We are delighted to be partnering with Innovene, one
of the largest petrochemical companies in the world, and look forward to a
successful venture. Delta has a long reputation for its ability to forge highly
successful long-term strategic alliances with both major companies and the
countries in which we operate. As a Saudi company with domestic and global
activities, we are pleased to be able to play such an important part in the
continuing development of Saudi Arabia's petrochemicals industry.'

Notes to editors:

Innovene

   • Innovene was created as a wholly owned subsidiary of BP on April 1,
     2005. BP may sell part of its stake in Innovene by way of an IPO later in
     2005, subject to necessary approvals and market conditions.

   • Innovene has more than $15bn of revenues, 15 million tonnes of
     petrochemical production volumes and $9bn in total assets.

   • Innovene's major manufacturing sites include Grangemouth in Scotland,
     Lavera in France, Koln in Germany and Lima, Chocolate Bayou and Green Lake
     in the US. SECCO, the joint venture between Innovene/BP, Sinopec and SPC in
     Shanghai and the largest petrochemical complex in China to date, became
     fully operational in March 2005.

   • Innovene manufactures petrochemicals, including olefins (ethylene and
     propylene) and their derivatives such as polyethylene, polypropylene,
     acrylonitrile, linear alpha olefins, polyalphaolefins, and solvents. These
     chemicals are used to make a wide variety of plastic goods, including food
     and drink containers and wrappings, pipe work, automotive parts and
     mouldings. Innovene also manufactures gasoline, diesel and other refined
     products in the Grangemouth and Lavera refineries.

   • The company's global headquarters are located in Chicago.

   • For more information on Innovene, visit www.innovene.com


Delta

   • Delta International, a leading private Saudi-owned independent
     development company, was founded by its Chairman and Chief Executive
     Officer, Mr. Badr Al-Aiban in 1978, and its activities have expanded
     significantly since its inception. Delta is headquartered in Jeddah.


   • Delta played an important role in the conception of the 'Contract of the
     Century'; the formation of the consortium for the supergiant Azeri, Chirag,
     Gunashli field, offshore Azerbaijan, and during that time identified and
     participated in a number of other major projects within the Caspian region,
     Central Asia and the Middle East.


   • Delta's current activities upstream projects are focused primarily on
     North and West Africa.


   • For more information on Delta, visit www.Delta-oil.com

Further media enquiries:

Ben Moxham, Innovene, [phone]
Robert Wine, BP Press Office, [phone]

                                      ENDS




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