Trading Statement

BP PLC
09 January 2004


press release

January 9, 2004


BP 4Q 2003 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, 2003.
The fourth quarter margin, price, realisation, cost, production 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 10, 2004. 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
                                                  4Q'03      3Q'03        2Q'03        4Q'02
Brent dated ($/bbl)                               29.43      28.38        26.03        26.88
WTI ($/bbl)                                       31.15      30.19        29.02        28.31
ANS USWC ($/bbl)                                  29.43      28.83        27.04        26.86
US gas Henry Hub first of month index ($/mmbtu)   4.58       4.97         5.40         3.99
UK gas price - National Balancing Point (p/therm) 27.30      15.08        17.44        19.09



Compared to 3Q'03, BP's liquid and US gas realizations are expected to move
broadly in line with changes in marker prices and Henry Hub respectively. As
indicated at the time of our 3Q'03 results, TNK-BP's realizations are expected
to moderate compared to the prior quarter, reflecting normal seasonal factors.


Gas, Power and Renewables


Gas marketing margins are expected to be lower than 3Q'03 in North America and
in the LNG business. NGL margins are expected to be similar to 3Q'03.




Refining and Marketing

Refining Indicator Margins ($/bbl)
                                                   4Q'03     3Q'03     2Q'03     4Q'02
USA

- West Coast                                       6.09      9.04      6.34      3.95
- Gulf Coast                                       3.53      5.61      3.59      2.98
- Midwest                                          2.89      6.39      4.73      4.09
North West Europe                                  2.21      2.47      2.15      2.19

Singapore                                          2.20      1.27      0.66      1.41


Refining Global Indicator Margin* ($/bbl.)         3.14      4.59      3.27      2.76


*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.

Refining indicator margins are expected to be generally lower in 4Q'03 than in
3Q'03, particularly in the US, due to higher refinery operating rates, rising
product inventories and higher feedstock costs. Marketing margins in 4Q'03 are
also expected to be lower than in 3Q'03, reflecting normal seasonality and
increases in product prices late in the quarter. Marketing margins are however
expected to show some improvement relative to 4Q'02, driven largely by an
improved environment in the US.



Petrochemicals


Weighted Chemicals Indicator Margin ($/te)
4Q'03               3Q'03 est.                         2Q'03               4Q'02
n/a                 109                                134                 108


*The Chemicals Indicator Margin is a weighted average of externally-based
product margins. It is based on market data collected by Nexant (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 4Q'03 are expected to be below 3Q'03 margins as a
result of high feedstock prices and energy costs, combined with the timing
effects of reflecting sharp increases in these costs in product prices.



Tax Rate



The effective tax rate for the quarter is expected to be around 35 per cent, in
line with 3Q'03.



Stock Purchases


There were no stock purchases during the quarter. Shares in issue as at December
31, 2003 were 22,123 million.



                                  3/4 ENDS 3/4




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