Re Joint Venture

BP PLC
24 April 2008

April 24, 2008

           BP, SANTELISA VALE, AND MAEDA UNVEIL PLANS TO INVEST 
                    R$1.66 BILLION IN BIOFUELS

BP announced today that it intends to take a 50 per cent stake in Tropical
BioEnergia SA, a joint venture established by Brazilian companies Santelisa Vale
and Maeda Group, which is constructing a 435 million litre (115 million US
gallons) a year ethanol refinery in Edeia, Goias State, Brazil.

The joint venture, in which Santelisa Vale and Maeda Group would each hold 25
per cent, also intends to progress plans to build a second ethanol refinery,
investing a total of approximately R$1.66 billion (US$1 billion) in the two
refineries.

Assuming all the required approvals are received, BP will pay around R$100
million (US$59.8 million) for the 50 per cent stake, subject to working capital
adjustments, and provide funding for agreed future investment in line with its
shareholding. The parties said that they hoped to be able to complete the
transaction before the end of June 2008.

'This investment, the largest made by an international oil company in the
Brazilian ethanol industry, represents a significant step in delivering BP's
strategy for biofuels which centres around sustainable feedstocks that do not
impact on food supplies, and investing in research work to develop the
technologies required to produce advanced biofuels,' commented Phil New, head of
BP Biofuels. 'BP is delighted to be partnering with two Brazilian companies with
leading positions in their sectors and we look forward to a long relationship
with them.'

The joint venture will focus on potential sugarcane production and the
manufacturing and marketing of conventional ethanol, including the associated
agricultural assets and cogeneration plants. Sugarcane is the most efficient
source of biofuel currently available. Sugarcane lends itself to further
improvement through the use of advanced biofuels technology and will therefore
be a compelling source of renewable fuel for the foreseeable future. It provides
a greenhouse gas emissions reduction of up to 80 per cent.

Operations at the first refinery are expected to commence during the second half
of 2008, with full capacity anticipated by mid-2010. The refineries will be
positioned to supply the Brazilian ethanol markets with the potential to export
to the demand markets of US, Europe and Asia.

Besides developing sustainable biofuels, the refineries are expected to be able
to sell surplus electricity, with each of them exporting at least 30 MW of
surplus power from integrated bagasse cogeneration facilities. The facilities
are also intended to offer a potential platform for deploying future
technologies such as lignocellulosics and biobutanol.

The Maeda Group is one of the largest cotton producers in the world. 'BP's
decision to join Tropical Bioenergia in this new venture is significant,' said
Jorge Maeda, chief executive officer of Maeda Group. 'Today we are demonstrating
how Maeda's unique agriculture expertise, attendant network of relationships,
and knowledge of the region's soils, climate and rural labor conditions combined
with Santelisa Vale's sugarcane expertise can provide sustainable renewable and
reliable solutions for fuel.'

Santelisa Vale Group is the second-largest sugar cane crusher in Brazil and the
first in energy cogeneration from bagasse. As it already operates a number of
ethanol refineries, Santelisa Vale has expertise along the entire value chain of
ethanol/sugar production.

'BP's proven logistical, technological and fuel supply chain experience will
enable a significant enhancement of our strategic plans,' noted Anselmo Lopes
Rodrigues, chief executive officer of Santelisa Vale.

Notes to editors:

    • Transport accounts for around 21 per cent of all carbon dioxide
    emissions.

    • BP is one of the world's largest energy companies, providing its
    customers with fuel for transportation, energy for heat and light, retail
    services and petrochemicals products for everyday items. It is the largest
    oil and gas producer in the U.S. and one of the largest refiners. BP also
    has a global network of around 25,000 service stations.

   • BP is a leading player in the global biofuels market. In the US, BP has
    blended and distributed 763 million US gallons of ethanol and about 1
    million US gallons of biodiesel in 2007. In Europe, BP sold 344 million
    litres of ethanol and 847 million litres of biodiesel in 2007. BP's sales of
    biofuels in 2007 accounted for about 10 per cent of the global biofuels
    market

    • Maeda Group is recognized worldwide as being one of the most
    vertically integrated players in the cotton value chain with 80 years in
    the industry. The company has one of the few cotton seed crushing
    businesses in Brazil, producing several products from cotton seeds:
    vegetable oil, which contains no 'trans fat' and is used as input in the
    food industry; linter (the material around the cotton seeds), used for
    special products such as money paper and LCD screens; and cotton seed
    meal, used as animal feed.

    • Santelisa Vale, Brazil's second largest sugar and ethanol producer and
    first in energy cogeneration from bagasse, expects to crush 18 million
    tons of sugar cane in 2008. The company will produce 25 million bags of
    sugar and 770 million litres of ethanol. Santelisa Vale also produces
    and sells a surplus of 420,000 Mwh of electricity from sugar cane
    bagasse - enough to supply a population of one million per year. The
    company, with over 70 years of history, is a leader in technology and
    innovation within the segment.

    • Santelisa Vale and Maeda Group were advised by ING Bank.

    Further information:
  
    • BP Press Office, London, tel: [phone]
    • BP U.S. Press Office, Chicago, Tel: [phone]
    • BP Brazilian Office, Campinas, tel [phone]
    • Maeda Press Office, tel: [phone]
    • Santelisa Vale Press Office, tel: [phone] or email:
      [e-mail]
    • Ketchum Estrategia Assessoria de Comunicacao
      Rafael Presilli / Adriana Toledo, tel:[phone] ext. 212/280 or
      [e-mail] / [e-mail]

- ENDS -




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