Trading Statement

BP PLC
02 April 2003

April 2, 2003


                           BP 1Q 2003 TRADING UPDATE

This trading update is aimed at providing an overview of the revenue and trading
conditions experienced by BP during the first quarter ending March 31, 2003.
The first quarter margin, price, realisation, cost 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 April
29, 2003.  The statement is produced in order to provide greater disclosure to
investors and potential investors of currently expected outcomes, and to ensure
that they all receive equal access to the same information at the same time.

Exploration and Production

Marker prices

                                                             1Q'03          4Q'02          1Q'02

Brent dated ($/bbl)                                          31.47          26.88          21.13

WTI ($/bbl)                                                  34.00          28.31          21.54

ANS USWC ($/bbl)                                             33.16          26.86          19.76

US gas Henry Hub first of month index ($/mmbtu)                6.53           3.99           2.35

UK gas price - National Balancing Point (p/therm)            21.28          19.09          19.22


Compared to 4Q'02, liquid realizations are expected to move broadly in line with
the change in marker prices.  Compared to 4Q'02, the Henry Hub gas marker price
is expected to increase by $2.54/mcf.  However, US gas realizations are
projected to be up approximately $2.00/mcf, due to a widening of basin
differentials.

Gas, Power and Renewables

North American gas marketing margins are expected to be significantly up on
4Q'02.  NGL margins are expected to be similar to 4Q'02.

Refining and Marketing


Refining Indicator Margins ($/bbl)


                                                             1Q '03         4Q '02        1Q '02
USA

- West Coast                                                 6.77           3.95          5.43

- Gulf Coast                                                 6.14           2.98          2.04

- Midwest                                                    4.14           4.09          2.06

North West Europe                                            3.70           2.19          0.09

Singapore                                                    2.98           1.41          0.20

Refining Global Indicator Margin* ($/bbl.)                   4.52           2.76          1.64


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


1Q'03 refining margins are expected to be higher than 4Q'02, with some offset
from a significant increase in utility costs. The marketing environment is
projected to be down in 1Q'03 vs. 4Q'02 due to economic slowdown and normal
seasonal variations.


Chemicals

Weighted Chemicals Indicator Margin ($/te)


1Q'03                   4Q'02                   3Q'02                   1Q'02

n/a                     100                     120                      80

*The Chemicals Indicator Margin is a weighted average of externally-based
product margins. It is based on market data collected by Nextant (formerly 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 1Q'03 are expected to be sharply lower than in 4Q'02, due
to feedstock costs rising more rapidly than prices for the majority of
petrochemical products.


Stock Purchases

During the quarter the company purchased for cancellation 154.9 million of its
shares at a cost of around $1 billion.  Shares in issue as at 27 March '03 were
22,242 million.

                                    - ENDS -

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