Disposal

BP PLC
16 October 2002


press release

October 16, 2002

                BP TO SELL RETAIL AND OTHER INLAND FUEL BUSINESSES
                 IN THE REPUBLIC OF CYPRUS TO HELLENIC PETROLEUM


BP has today agreed to sell, subject to the necessary regulatory approvals, its
retail network of 70 service stations and other inland fuels businesses in the
Republic of Cyprus to Hellenic Petroleum. The sale excludes BP's international
businesses Air BP and BP Marine, and BP Lubricants.


The decision to sell is the result of BP's ongoing review of its global
portfolio which concluded that the retail and other inland fuels businesses in
Cyprus would have more longer term value to a company wishing to establish a
significant position in the Cyprus fuels market, and as a platform for regional
expansion. Financial details of the sale are not being disclosed.


'The retail and other inland fuel businesses in Cyprus, are a profitable
operation with highly skilled and professional staff,' said Mr George Petrou, BP
Country President in Cyprus.

'It has grown steadily over the years but no longer fits within BP's strategy.
We have therefore decided to re-position our assets and focus on areas where we
believe we can deliver a stronger performance.'

Hellenic Petroleum is 67.8 per cent owned by the Greek state and is the largest
Greek Refiner, owning 50 per cent of Greece's refining capacity through two
refineries - Aspropyrgos and Thessaloniki - and also a majority stake in the
Skopje refinery.  Hellenic Petroleum has a 23 per cent share of the Greek retail
market through the EKO brand and is the leading integrated oil company in
Greece. It also has a presence in Albania, Montenegro and Georgia through
marketing subsidiaries.  From this strong base, Hellenic Petroleum is pursuing a
strategy of regional expansion with a focus on South Eastern Europe.


'We are delighted to acquire BP's retail and other inland fuels businesses in
Cyprus. It is a strategic opportunity for our company. BP Cyprus Limited is an
efficient and well managed company, and it gives us a unique opportunity to
establish a significant position in Cyprus. It will also provide a platform for
expanding in the region and we are well equipped to make it a very successful
business venture', said Mr Athanasios Karachalios, Managing Director of Hellenic
Petroleum.


The shares of BP Cyprus Limited will transfer to Hellenic Petroleum together
with around 40 members of staff, under local rules and regulations and existing
terms and

conditions of employment. Trade unions and employees have been appropriately
briefed.  The BP service stations will be progressively rebranded to the EKO
brand.


Air BP, BP Marine and BP Lubricants are independent businesses which will be
largely unaffected by the sale and will continue their activities in Cyprus
under the new name, BP Eastern Mediterranean Ltd, a wholly-owned subsidiary of
BP p.l.c.


Notes to Editors:


•        BP Cyprus Limited sells approximately 500 million litres of fuel per
annum and is the leading motor gasoline marketer in Cyprus with an approximate
35 per cent market share.

•        The businesses sold to Hellenic Petroleum include a retail network of
70 service stations, an inland direct and wholesaling fuels business, an LPG
storage and bottling plant and a 65 per cent shareholding in the Superlube
lubricants blending plant.

•        There are approximately 70 staff in BP Cyprus and one third will remain
with the retained businesses of BP Eastern Mediterranean Limited. The remaining
staff will continue in the employment of BP Cyprus Limited under the ownership
of Hellenic Petroleum.

•        The net value of the assets involved in the sale was £14 million as at
December 2001.



Further information:


Wendy Silcock, BP Press Office London,  [phone]

George Petrou, BP Cyprus, [phone]



                                    - ENDS -


                      This information is provided by RNS
            The company news service from the London Stock Exchange