Disposal

BP PLC
07 October 2005

7 October, 2005

       BP AGREES SALE OF PETROCHEMICALS BUSINESS TO INEOS FOR $9 BILLION

BP today announced that it is to sell Innovene, its olefins, derivatives and
refining group, to UK-based INEOS. The $9 billion cash sale, subject to
regulatory approvals, includes all Innovene's manufacturing sites, markets and
technologies. The sale is expected to be concluded early in 2006 at which time
payment will be received by BP.

'Innovene has proved to be a very attractive business to its peers in the
chemicals sector,' said Lord Browne, BP Group Chief Executive. 'This deal is the
very best of a number of good offers. I'm delighted with the outcome which is
excellent for BP's shareholders and for Innovene's future.'

BP first announced the intention of separating its olefins and derivatives
business from its petrochemicals portfolio in April 2004 with an initial public
offering (IPO) as one, possible, disposal option. In the interim, it received a
number of approaches from companies considering a trade sale leading to this
decision instead of the IPO.

Browne said that the decision to sell Innovene in its entirety removed any
uncertainty around market conditions at the time of an IPO, as well as would-be
investors' concerns about BP's remaining stake and future intentions.

'Consistent with existing BP practice, we remain committed to returning excess
free cash flow, including the net proceeds of this sale, to shareholders,' he
added.

'This is a transformational acquisition elevating INEOS to the world's fourth
largest independent petrochemicals company,' said Jim Ratcliffe, INEOS Chief
Executive. 'INEOS and Innovene share a BP heritage of high quality people,
assets and technology and are highly complementary businesses.'

Innovene is the 100 per cent BP-owned group created in April 2005. It has 8,000
staff, manufacturing facilities in seven countries in North America and Europe;
$18 billion revenues in 2004; $13 billion of gross assets; $9.9 billion of net
assets; pre-tax profits (Jan-Jun 2005) of $0.7 billion; 18 million tonnes of
annual petrochemicals capacity and 412,000 barrels per day of crude oil refining
capacity.

Innovene's chief executive is Ralph Alexander and its chief financial officer is
Mark Tomkins. Innovene manufactures olefins and related products which are the
raw materials for plastics, packaging and textiles industries; and operates two
refineries in Europe.

BP was jointly advised by Goldman Sachs and Morgan Stanley on the IPO and sale.


Notes to editors:

BP announced the separation of its olefins and derivatives business in April
2004. It then added two refineries (Grangemouth, UK, and Lavera, France) to the
business in November 2004, and created the 100% BP-owned Innovene subsidiary in
April 2005.

BP is the world's second largest integrated oil and gas company, operating in
more than 100 countries with over 100,000 staff and turnover of $285 billion.
INEOS is a leading global manufacturer of speciality petrochemicals and
comprises 10 business units each with a major chemical company heritage. Its
production network spans 46 manufacturing facilities in 14 countries.

Innovene assets included in sale agreement:

North America                           Europe

Chocolate Bayou, Texas                  Grangemouth (chems/refinery), UK

Texas City (chems), Texas               Lavera (chems/refinery), France

Hobbs Gas Fractionation Facility,       Sarralbe, France
Texas

Battleground (ex-Deer Park), Texas      Feluy, Belgium

Green Lake, Texas                       Geel (polypropylene), Belgium

Carson (chems), California              Lillo, Belgium

Lima, Ohio                              Koln, (excluding ethylene oxide),
                                        Germany

Whiting (chems), Indiana                Marl, Germany

Joffre, Canada                          Rosignano, Italy

                                        The NOVA Innovene joint venture



Further media enquiries:

BP:      Press Office      [phone] / 4827      www.bp.com
INEOS:   Press office      [phone] / 7025      www.ineos.com


- ENDS -



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