Trading Statement

BP PLC
02 July 2003


July 2, 2003


                           BP 2Q 2003 TRADING UPDATE

This trading update is aimed at providing an overview of the revenue and trading
conditions experienced by BP during the second quarter ending June 30, 2003. The
second 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 July 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
                                                       2Q'03    1Q'03    2Q'02

Brent dated ($/bbl)                                    26.03    31.47    25.07

WTI ($/bbl)                                            29.02    34.00    26.30

ANS USWC ($/bbl)                                       27.04    33.16    25.04

US gas Henry Hub first of month index ($/mmbtu)         5.40     6.53     3.38

UK gas price - National Balancing Point (p/therm)      17.44    21.28    12.10

Compared to 1Q'03, liquid realisations are expected to move broadly in line with
the change in marker prices. Compared to 1Q'03, the Henry Hub gas marker price
is expected to decrease by $1.13/mmbtu. However, US gas realisations are
expected to decrease by a smaller amount due to a narrowing of basin
differentials.

Gas, Power and Renewables

North American gas marketing margins are expected to be significantly lower than
1Q'03 as gas price volatility has decreased. NGL margins are anticipated to be
lower than 1Q'03 in line with normal seasonality.

Refining and Marketing

Refining Indicator Margins ($/bbl)

                                                 2Q'03       1Q'03       2Q'02

USA

- West Coast                                      6.34        6.77        4.46

- Gulf Coast                                      3.59        6.14        2.62

- Midwest                                         4.73        4.14        3.76

North West Europe                                 2.15        3.70        0.59

Singapore                                         0.67        2.98        0.18

Refining Global Indicator Margin* ($/bbl.)        3.27        4.52        2.05

*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.

2Q'03 refining margins are expected to be lower than 1Q'03. The marketing
environment is projected to be up in 2Q'03 versus both 1Q'03 and 2Q'02 due to
falling oil prices and despite continuing economic slowdown.

Petrochemicals

Weighted Chemicals Indicator Margin ($/te)

2Q'03              1Q'03                             4Q'02               2Q'02

n/a            90 (prov)                               108                 109

*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.

Petrochemical margins in 2Q'03 are expected to be better than in 1Q'03 as
feedstock costs fell during the quarter, though this benefit will be partially
offset by reduced product demand in Asia.

Stock Purchases

During the quarter the company purchased for cancellation 144 million of its
shares at a cost of around $1 billion. Shares in issue as at July 1, 2003 were
22,102 million.

                                    - ENDS -


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