U.S. Safety Moves

BP PLC
25 July 2006

July 25, 2006



BP TO PUT INDEPENDENT MEMBERS ON NEW US BOARD AND PLEDGES HIGHER SPEND TO SPEED
                               UP US SAFETY MOVES



BP today announced an acceleration of actions to improve the operational
integrity and monitoring of its US businesses.



The company said it would add a further $1 billion to the $6 billion already
earmarked over the next four years to upgrade all aspects of safety at its US
refineries and to repair and replace infield pipelines in Alaska.



The spend is part of a wide-ranging package of measures aimed at  improving
confidence in the integrity of BP's US operations following a series of
incidents over the past 18 months, including last year's explosion at the Texas
City refinery, the recent oil spill in Alaska and the investigation into propane
trading activity in the US.



Speaking in London, BP chief executive Lord Browne said: 'These events in our US
businesses have all caused great shock within the BP Group.  They have prompted
us to look very critically at what we can learn from ourselves and others and at
what more we can do in certain key areas to assure ourselves and the outside
world that our US businesses are consistently operating safely, and with honesty
and integrity.



'We are, of course, continuing to co-operate to the fullest possible extent with
the US regulatory bodies investigating these events. But we do not believe we
can simply await the outcome of those investigations. In addition to the
significant steps we have already taken we have decided we must do more now.'



Browne said it is intended to appoint an advisory board to assist and advise the
Group's wholly-owned US subsidiary, BP America Inc. and its newly-appointed
chairman, Robert A. Malone, in monitoring the operations of BP's US businesses
with particular focus on compliance, safety and regulatory affairs.



The measures Browne announced today include a step-up in the scale and pace of
spending at BP's five US refineries on maintenance, turnarounds, inspections and
staff training. Spend will now rise to $1.5 billion this year from $1.2 billion
in 2005 and will jump further to an average $1.7 billion each year from 2007 to
2010.



Systems to manage process safety at the refineries will undergo a major upgrade,
with some $200 million earmarked to pay for 300 external experts who will
conduct comprehensive audits, and re-designs where necessary, of all safety
process systems. The new systems are targeted to be installed and working by the
end of 2007, a year ahead of the original schedule.



Browne said the input of the US Occupational, Safety & Health Administration
(OSHA) would be sought throughout the process and that the outcome would mirror
or exceed OSHA's requirements.



BP today also pledged more rapid action to restore the integrity of its infield
pipelines in Alaska. With corrosion monitoring already upgraded, it now plans to
remove pipeline residues - through a process known as 'pigging' - by November,
six months ahead of the original schedule.



Any necessary bypass lines are being built this summer and BP is making its own
arrangements for the safe disposal of pipeline residues. The work is expected to
cost some $50 million and entail the loss of around 40,000 barrels a day of
production -11,000 barrels a day BP share - for up to a month.



The pipeline which leaked in the recent oil spill has been taken out of service
and will be replaced by a new line which has already been ordered. If other
transit lines are found to be faulty, they will also be replaced.



Browne said a major review by independent external auditors had also been set in
train of the BP's compliance systems in its US trading business. In the wake of
allegations of market manipulation in US propane trading, the auditors will
examine the design of the trading organisation, delegations of authority,
standards and guidelines, resources and the effectiveness of control and
compliance. The results of the review will be shared with relevant US regulatory
authorities and the auditors' recommendations will be urgently acted upon by BP.



'The steps taken today, including the appointment of a new advisory board for
our US subsidiary, indicate the absolute determination of the BP Group to
restore confidence at every level in the conduct of our business in the US,'
Browne said.



'BP has some 40 per cent of its assets and its staff in the United States and a
US investment programme of around $30 billion over the next five years. We are
the largest indigenous producer of oil and gas combined. It is of vital
importance to BP and to Americans who depend significantly on us for secure
energy supplies that our US businesses operate to the highest standards of
safety and integrity.'





Further information:



BP Press Office, London, tel: [phone]/5256





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