BP and HPCL Sign Letter

BP PLC
13 October 2005

October 13, 2005





                  BP AND HPCL SIGN LETTER OF INTENT TO FORM A
                 REFINING AND MARKETING JOINT VENTURE IN INDIA


BP p.l.c. and Hindustan Petroleum Corporation Limited (HPCL) announced today
that they have signed a letter of intent to form a 50/50 strategic joint venture
covering the refining and marketing sector in India.


One of the joint venture's first major projects will be the construction of a $3
billion refinery, with an annual capacity of at least 9 million tonnes (180,000
barrels a day), at Bhatinda, in Punjab, India.  At the same time, the partners
will begin to develop a joint marketing activity, including the establishment of
a retail service station network, in preparation for the refinery coming on
stream in 2009.


In addition, the joint venture will provide assistance in crude selection and
supply for other refineries of HPCL.


This strategic partnership would also provide opportunities for HPCL to acquire/
participate in refining & marketing assets that the BP group may identify from
its overseas portfolio.


The agreement was signed by Mr John Manzoni, BP's chief executive of refining
and marketing, and Mr Mahesh Behari Lal, Chairman of HPCL, in the presence of Mr
Mani Shankar Aiyar, Minister of Petroleum and Natural Gas, and Lord Browne,
group chief executive of BP, at a ceremony in Delhi.


'India is one of the fastest growing energy markets in the world and we have
been evaluating a range of potential areas where BP might become involved,' said
Lord Browne.  'This strategic partnership with HPCL marks a major step forward
for us and I'm delighted to be in India for the actual signing.'


'The strategic partnership of HPCL and BP would provide a platform for
addressing India's energy needs.  The companies would work together to achieve
energy security for India through co-operation in petroleum business
opportunities both in India and overseas,' said M B Lal.  'It would also support
HPCL's broader visions for the future.'


The two companies will now establish a joint working group to progress the
development of the joint venture and also examine a range of other
opportunities, including some outside India.




Notes to Editors:


•  Hindustan Petroleum Corporation Limited (HPCL) is the second largest
   integrated refining and marketing company in India with a turnover of 
   Rs 646.89 billlion ($14.7 billion).  It has two fully owned coastal 
   refineries at Mumbai and Vishakhapatnam and one joint venture refinery at     
   Mangalore.  Between them, these refineries supply 20 per cent of India's 
   product requirements.

•  BP's largest business in India is Castrol India Ltd and the Castrol brand
   holds a leading position in the retail automotive segment.  BP also has a JV
   with the Tata Group - Tata BP Solar - to manufacture and sell photovoltaic 
   cells and also carries out some oil and chemical trading activities in India.







                                    - ENDS -




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