Trading Statement

BP PLC
14 January 2003


January 14, 2003

                          BP 4Q'02 TRADING UPDATE


This trading update is aimed at providing an overview of the revenue and trading
conditions experienced by BP during the fourth quarter ending December 31, 2002.


The fourth quarter volume, realisations, margin, demand, debt, tax rate and
other data referred to below are currently provisional, some being drawn from
figures applicable to the first month or so of the quarter.  All such data are
subject to change and may differ quite considerably from the final numbers that
will be reported on February 11, 2003.  The statement is produced in order to
provide greater disclosure to investors and potential investors of some
currently expected outcomes primarily related to revenue, and to ensure that
they all receive equal access to the same information at the same time.


•   Liquids realisations are expected to be broadly in line with last
    quarter.  US gas realisations are expected to rise slightly ahead of the 
    change in Henry Hub marker price.

•   The overall refining and marketing trading environment deteriorated
    relative to 3Q.

•   The chemicals indicator margin is expected to weaken against 3Q levels
    as prices lagged the rise in feedstock costs.  Demand remains sluggish.


Exploration and Production


Hydrocarbon production, as indicated at the time of our 3Q results, is expected
to be up about 3% and 1.5% for the full year and 4Q respectively compared with
last year.


                                                             4Q'02          3Q'02          4Q'01

Brent dated ($/bbl)                                          26.88          26.91          19.41

WTI ($/bbl)                                                  28.31          28.26          20.31

ANS USWC ($/bbl)                                             26.86          27.26          17.79

Gas Henry Hub first of month index ($/mmbtu)                 3.99             3.16         2.43

UK gas price - National Balancing Point (p/therm)            19.09          12.74          22.32



Gas, Power and Renewables


North American NGL margins are expected to be slightly lower than 3Q.  Our
interest in Ruhrgas was sold in 3Q and therefore no contribution from Ruhrgas
will appear in 4Q.



Refining and Marketing

                                                               4Q        3Q 2002    4Q 2001
                                                              2002

Refining Global Indicator Margin* ($/bbl.)

NWE                                                           2.19        1.28        1.53

US Gulf Coast                                                 2.98        1.82        1.79

US Midwest                                                    4.09        3.27        2.63

US West Coast                                                 3.95        3.54        6.25

Singapore                                                     1.41        0.47        1.20

Global Indicator Margin (GIM)                                 2.76        1.98        2.40


*The refining Global Indicator Margin is a weighted average based on BP's
portfolio.  Actual Margins may vary because of refinery configuration, crude
slate and operating practices.


The 4Q'02 Refining GIM is estimated to be higher than 3Q'02.  However, realised
margins are expected to be lower than that implied by the GIM, due to the actual
crude slate used by our refinery system, and a compression of margins for
products not included in the GIM calculation.


4Q'02 retail margins are expected to be down from 3Q'02 due to seasonal declines
compounded by significant crude price increases at year end.


Chemicals


Weighted Chemicals Indicator Margin* ($/te)

4Q'02                   3Q'02                   2Q'02                   4Q'01

N/a                     115                     109                     112



*The Chemicals Indicator Margin is a weighted average of externally-based
product margins. It is based on market data collected by Chem Systems in their
quarterly market analyses, then weighted on BP's product portfolio. This is
described more fully in the Group's quarterly results releases.


Chemicals margins in 4Q'02 are expected to be weaker than the prior quarter as
product prices were unable to compensate for significantly higher feedstock and
utility costs.  Petrochemicals demand remains sluggish across all regions.


Debt/Balance Sheet


The Group's net debt gearing ratio on a proforma basis at quarter-end is
expected to be around 28-29%, in line with the 3Q level of 28.7%.


Tax


The Group's effective tax rate for the fourth quarter on the pro forma result
adjusted for special items is expected to be around 33-34%, compared with 34.5%
in the third quarter.


                                    - ENDS -


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