Acquisition

BP PLC
05 December 2005

December 5, 2005


The following press release was issued in Singapore at 1700 local time today


                BP MAKES STRATEGIC INVESTMENT IN CHINA AVIATION

                                OIL (SINGAPORE)


BP Singapore announced today that it is to purchase 20 per cent of the equity in
China Aviation Oil (Singapore) for some $US44 million.


The investment follows approval from the creditors of China Aviation Oil
(Singapore) for the company to seek a strategic investor as part of the
restructuring process prior to seeking re-listing on the Singapore Exchange.


Under the equity investment agreement, BP will appoint two directors to the
Board of China Aviation Oil (Singapore) and have the ability to appoint staff to
a key trading role and a key governance and control role.


'BP fully supports the restructuring plans for China Aviation Oil (Singapore)
which will clear the way for China Aviation Oil to start afresh,' said Mike
Bennetts, BP's Regional Director for Supply and Trading. 'In addition to the
financial investment, we will be providing the company with corporate governance
and supply and trading management systems to enable the re-listed company to
trade profitably and create value for all its shareholders.'


Notes to Editors:


•  China Aviation Oil (Singapore) is the Singapore Exchange (SGX)
   registered subsidiary of China Aviation Oil Holding Company (CAOHC) and a 
   major importer of jet fuel into the Chinese market.

•  The company decided to pursue a consensual debt and equity restructuring in 
   late 2004 after derivative losses arising from unauthorised trading.  Having 
   agreed a Scheme of Arrangement with creditors in June 2005, China Aviation 
   Oil (Singapore) is now nearing completion of its restructuring before seeking 
   final approvals from regulatory bodies and minority shareholders to re-list 
   the company on the Singapore Exchange.

•  BP, which was a creditor of China Aviation Oil (Singapore), will still 
   receive repayment of its outstanding debt under the agreed Scheme of 
   Arrangement in the same way as the other creditors.

•  BP Singapore is an important regional head office for BP in Asia, supporting 
   a number of international businesses and the company's integrated supply and 
   trading division.  Around 500 people are employed by BP Singapore.

                                   -  ENDS -


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