Disposal

BP PLC
04 February 2003

February 4, 2003



This press release was issued by BP Indonesia today.


                    CNOOC LIMITED ACQUIRES STAKE IN TANGGUH


CNOOC Limited has acquired a 12.5 per cent share of Indonesia's Tangguh
liquefied natural gas (LNG) project from BP for US$275 million.


This acquisition follows the signing last September of a 25-year agreement
between CNOOC Limited and BPMIGAS - implementing agency for the upstream oil and
gas sector in Indonesia - under which the BP-operated Tangguh project will
supply LNG to China's Fujian LNG terminal. Also signed was an agreement in
principle for CNOOC Limited's participation in Tangguh.


BP is pleased to welcome CNOOC Limited as a full partner in Tangguh. CNOOC
Limited's addition affords Tangguh greater access to the Chinese LNG market as
already evidenced by the Fujian LNG sale and purchase agreement approved in
September last year. We look forward to CNOOC Limited's contribution to the
partnership as an experienced oil and gas company with which BP has enjoyed a
strong relationship in China.



Notes to Editors:

•      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 retains an interest in all three of the
PSCs, on two of which BP is operator. The project is located in the
Berau-Bintuni Bay region of Manokwari District in the Indonesian province of
Papua.

•      The shares in proved reserves in the Tangguh project, derived from the
three PSCs are: BP 37.2 per cent, Mitsubishi 16.3 per cent, CNOOC Limited 12.5
per cent, Nippon 12.2 per cent, BG 10.7 per cent, KG (Kanematsu Corp, JNOC and
Overseas Petroleum) 10.0 per cent, and LNG Japan 1.1 per cent.

•      The Tangguh LNG project represents a comprehensive approach to
sustainable resource development that integrates environmental, social and
economic considerations into all aspects of the project design and management.
The project is expected to accelerate sustainable economic development in the
surrounding communities, while at the same time diversifying and expanding the
economic base of Papua and Indonesia.



•      The construction of the Fujian terminal is expected to start in 2004 and
the terminal is scheduled to begin operations in 2007.


For further information contact:


BP Hong Kong, Steve Lawrence, Tel [phone]


- ENDS -


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