Statement re 6-K Filing

BP PLC
04 September 2002


press release

September 4, 2002



                    BP FILES 6-K WITH SEC AND UPDATES OUTLOOK

In its 6-K filing being lodged today with the US Securities and Exchange
Commission in Washington, BP provides an update of the outlook statement
contained in its half-year results. The update takes account of developments
since the results were published on July 30 and includes revised comments on
production, US gas prices, refining margins and capex.

On production, the update says: 'Third-quarter 2002 hydrocarbon production
growth is expected to be around 5 per cent - lower than previously projected,
due to operational problems during August associated with Schiehallion and the
Interconnector in the UKCS, shut-in wells in Alaska and gas export constraints
in North America.

'Because of these operational problems and their impact on the fourth quarter,
full-year hydrocarbon production growth for 2002 is expected to be in the range
of 4.5 to 5 per cent. New projects which contribute to production in the second
half of the year include King and Trinidad LNG train 2, already in production,
and King's Peak, Horn Mountain and Princess, in the Gulf of Mexico.

'BP's medium-term production target of 5.5 per cent compound annual growth,
averaged over the period 2000 to 2005, remains unchanged.'

On US gas prices, the update says: 'US natural gas prices firmed in the second
half of August in the face of stronger crude prices and high late-summer
temperatures, and despite high levels of gas in storage. Third-quarter average
realisations are still expected to be somewhat lower than in the second-quarter
following low prices in July and early August.'

On refining: 'Refining margins have remained under pressure from firm crude
prices and high product inventories. Although in aggregate OECD product
inventories have moved downward to close to 1997-2001 average levels, distillate
stocks remain high and are likely to limit near-term upward potential in
refining margins.'

On capex: 'Capital expenditure is on track for the upper end of the year's
target range at around $13 billion, excluding acquisitions.'

The update says the third-quarter impacts on production arose from:

  • A problem with the Schiehallion offshore-loading vessel which shut down
    the field in August, with a loss to BP of 55,000 barrels a day. The field is 
    now back on stream but faces reduced operating efficiency until permanent 
    repairs to the ship's swivel mechanism and umbilical controls are completed.

  • The shutdowns of the Interconnector pipeline which interrupted gas exports
    to the continent and curtailed production.

  • A casing failure in Alaska which caused the precautionary shutdown for
    testing of 150 North Slope wells.

  • Reduced North American gas output resulting from throughput constraints in
    third-party pipelines and processing plants.



FORWARD-LOOKING STATEMENTS

In order to utilise the 'Safe Harbour' provisions of the United States Private
Securities Litigation Reform Act of 1995, BP is providing the following
cautionary statement. The foregoing statements and the statements contained in
the attached 'Outlook' section with regard to hydrocarbon production growth and
targets, the outlook for economic recovery, trends in the trading environment,
the timing of new projects, gas and crude oil prices, expected realisation on
gas sales, refining margins, inventory and product stock levels and capital
expenditure targets are all forward-looking in nature. By their nature,
forward-looking statements involve risk and uncertainty because they relate to
events and depend on circumstances that will occur in the future and are outside
the control of BP. Actual results may differ materially from those expressed in
such statements, depending on a variety of factors, including the specific
factors identified in the discussions accompanying such forward-looking
statements, future levels of industry product supply, the timing of bringing new
fields onstream, demand and pricing, operational problems, political stability
and economic growth in relevant areas of the world, development and use of new
technology, the actions of competitors, the actions of third party suppliers of
facilities and services, natural disasters and other changes to business
conditions, wars and acts of terrorism or sabotage and other factors. These and
other factors may cause actual results and developments to differ materially
from those expressed or implied by these forward-looking statements. Additional
information, including information on factors which may affect BP's business, is
contained in BP's Report on Form 6-K for the period ended June 30, 2002, BP's
Annual Report and Annual Accounts for 2001 and the Annual Report on Form 20-F
for 2001 filed with the US Securities and Exchange Commission.



Notes to Editors:

A copy of the full text of the outlook statement from the 6-K filing is
attached.



Further enquiries:

BP press office, [phone]



                                    - ENDS -


OUTLOOK STATEMENT

The world economy continued to recover during the second quarter and further
growth is expected in the third quarter, though recent financial market weakness
poses a downside risk to this economic outlook. BP's overall trading environment
improved to around 'mid-cycle' during the second quarter, but was below this
level on average for the half year.

Crude oil prices have remained firm. The market has shown some signs of
underlying strength as inventories stabilized rather than built seasonally. OPEC
left its production quotas unchanged at its June meeting.  Geopolitical concerns
have remained. Realized prices are expected to remain close to the range
experienced in the second quarter assuming OPEC production continues around
current levels.

US natural gas prices firmed in the second half of August in the face of
stronger crude prices and high late summer temperatures and despite high levels
of gas in storage. Third quarter average realizations are still expected to be
somewhat lower than in the second quarter following low prices in July and early
August.

Third quarter 2002 hydrocarbon production growth is expected to be around 5% -
lower than previously projected, due to operational problems during August
associated with Schiehallion and the Interconnector in the UKCS, shut in wells
in Alaska and gas export constraints in North America.  Because of these
operational problems and their impact on the fourth quarter, full-year
hydrocarbon production growth for 2002 is expected to be in the range of 4.5 to
5 per cent.  New projects which contribute to production in the second half of
the year include King and Trinidad LNG train 2, already in production, and
King's Peak, Horn Mountain and Princess, in the Gulf of Mexico. BP's medium-term
production target of 5.5 per cent compound annual growth, averaged over the
period 2000 to 2005, remains unchanged.

The third quarter impacts on production arose from: a problem with the
Schiehallion offshore-loading vessel which shut down the field in August, with a
loss to BP of 55,000 barrels a day (the field is now back on stream but faces
reduced operating efficiency until permanent repairs to the ship's swivel
mechanism and umbilical controls are completed); the shutdowns of the
Interconnector pipeline which interrupted gas exports to the continent and
curtailed production; a casing failure in Alaska which caused the precautionary
shutdown for testing of 150 North Slope wells; and reduced North American gas
output resulting from throughput constraints in third-party pipelines and
processing plants.

Refining margins have remained under pressure from firm crude prices and high
product inventories. Although in aggregate OECD product inventories have moved
downward to close to 1997-2001 average levels, distillate stocks remain high and
are likely to limit near term upward potential in refining margins.

Retail margins have stabilized, having recovered from the low levels experienced
during the first quarter. Competitive pressure, especially in the USA, remains
strong.

During the second quarter, demand for most chemical products improved, in part
reflecting restocking by end-users. Margins, however, still remain weak and any
strengthening is dependent upon continued global economic recovery.

Capital expenditure is on track for the upper end of the year's target range at
around $13 billion, excluding acquisitions. The net debt ratio was below the
mid-point of the 25-35 per cent range at the end of the second quarter and is
likely to remain relatively stable around this level as the payment for the
purchase of the remaining interest in Veba has been offset by the receipt of
Ruhrgas proceeds in July. The company restarted its share buyback programme in
early August and intends to continue that programme whilst the trading
environment is above mid-cycle.



                                    - ENDS -




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