Joint Venture - Sempura

Royal Bank of Scotland Group PLC
09 July 2007


       RBS and Sempra Energy announce Joint Venture Commodities Business


  RBS Sempra Commodities LLP to Significantly Expand RBS's Global Commodities
                                    Platform



RBS and Sempra Energy (NYSE: SRE) have announced that they will form a joint
venture in commodities. The joint venture will be called RBS Sempra Commodities
LLP.


RBS, through the joint venture, will acquire a majority shareholding in Sempra
Commodities, Sempra's successful commodities trading and marketing business,
headquartered in Stamford, CT, for a consideration of $1.35bn. The transaction
will have negligible impact on RBS Group's capital ratios and will be
immediately accretive to RBS's earnings per share. The joint venture will be a
significant expansion of the activities of RBS's Global Banking & Markets
Division (GBM) in this important asset class and provides excellent
opportunities for further growth.


Johnny Cameron, Director of RBS, said: 'Over the past five years RBS has
successfully built a first class global customer franchise in the areas of
loans, bonds, fixed income and treasury risk management products, in our key
markets of Europe, US and AsiaPacific. This joint venture brings leadership in a
major asset class which will further complement that position. We are delighted
that in forming this joint venture we will have more opportunities to meet the
needs of our customers.'


Sempra Commodities is currently a leading player globally in the trading and
marketing of commodities and the provision of risk management products
associated with this sector. In particular it is an established player in the US
, one of the world's largest energy markets and has an excellent knowledge of
trading within the oil and gas sector. GBM is the leading project finance bank
in the world and the leading lender to the renewable energy sector world wide.
The joint venture brings together two partners with clear complementary
strengths.


The joint venture will also enable RBS to take advantage of important
environmental opportunities such as offering customers hedging for carbon and
green certificate projects.


Donald E. Felsinger, Chairman and CEO of Sempra Energy said 'Over the past nine
years, we have grown Sempra Commodities to become one of the most successful
companies in its sector. Today's announcement establishing RBS Sempra
Commodities will allow for faster international expansion of the commodities
business into new markets, leveraging RBS's strong presence in North America,
Europe and Asia, and utilise its financial strength to establish a leadership
position in the commodities sector on a global scale.'


RBS Sempra Commodities LLP will be consolidated within RBS's Global Banking &
Markets. David A. Messer, currently President of Sempra Commodities, will become
CEO of the joint venture, reporting to Jay Levine Head of GBM, North America and
Peter Nielsen, Head of Treasury and Investor Products, GBM. The transaction,
which is expected to be completed by year-end, is subject to customary approvals
by the U.K. Financial Services Authority, the U.S. Federal Reserve Board, the
Federal Energy Regulatory Commission and the Commodities Futures Trading
Commission.


For Further Information Contact:

RBS

Investor Relations

Richard O' Connor [phone]

+ 44 7909 873681


Media

Carolyn McAdam [phone]

[phone]


Sempra

Media

Doug Kline 001 619 540 1685 (cell)


About The Royal Bank of Scotland

The Royal Bank of Scotland Group (RBS) is a broadly based financial services
group with operations spanning retail banking, corporate and commercial banking,
financial markets activities, wealth management and insurance. It is currently
the 3rd largest financial services group in Europe by market capitalisation and
the 10th largest in the world.


RBS Global Banking & Markets is a leading banking partner to major corporations
and financial and governmental institutions around the world. It provides a full
range of debt financing, risk management and investment services. Its approach
is built on innovative and flexible thinking, extensive resources and an
unrelenting focus on client relationships.


About Sempra Energy

Sempra Commodities, based in Stamford, CT., is engaged in marketing and trading
physical and financial energy products including crude oil and refined products,
natural gas, coal and metals. It employs 850 people serving more than 2,600
customers worldwide and generated net after tax profits of $504m in 2006. Gas,
power and oil businesses are the major contributors to its profits. Sempra
Energy, based in San Diego, Calif., is a Fortune 500 energy services holding
company with 2006 revenues of nearly $12 billion. It employs 14,000 people
serving more than 29 million consumers worldwide.


This announcement may contain forward looking statements, including such
statements within the meaning of Section 27A of the US Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934.


These statements concern or may affect future matters, such as the Group's
economic results, business plans and strategies, and are based upon the current
expectations of the directors. They are subject to a number of risks and
uncertainties that might cause actual results and events to differ materially
from the expectations expressed in or implied by such forward looking
statements. Factors that could cause or contribute to differences in current
expectations include, but are not limited to, regulatory developments,
competitive conditions, technological developments and general economic
conditions. These factors, risks and uncertainties are discussed in the Group's
SEC filings. The Group assumes no responsibility to update any of the forward
looking statements contained in this announcement.

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