Statement re Thunder Horse

BP PLC
18 September 2006

                    BP SAYS THAT REPAIR OF SUBSEA EQUIPMENT
                      WILL DELAY THUNDER HORSE UNTIL 2008

Following a series of tests carried out over the past four months that revealed
metallurgical failure in components of the subsea system, BP announced today
that it plans to retrieve and rebuild all the sea-bed production equipment from
its Thunder Horse field in the deepwater Gulf of Mexico.

BP said the problem became evident when it conducted pre-commissioning tests by
pumping water through the system to establish system integrity. The equipment
passed all the normal industry standard tests and regulatory requirements. But
when the company carried out more prolonged and rigorous testing, as an
additional safety precaution, a failure occurred on a subsea weld.

As a consequence of the failure, BP said it had decided to retrieve both the
damaged sea-bed manifold and a second manifold for further examination and
onshore testing. The second manifold displayed a similar failure during testing
last week.

In view of these failures, BP today said it would now retrieve and replace all
the subsea components it believes could be at risk. This work will be done over
the course of the next year and the company said it does not expect production
from Thunder Horse to begin before the middle of 2008.

It said it was too early to estimate the additional costs involved in replacing
the affected systems.


Notes to Editors:

•    The Thunder Horse field was discovered in 1999. It is designed to use the 
     largest production drilling quarters semi-submersible platform in the 
     world.

•    The platform weighs more than 50,000 tons and will produce from water 
     depths of about 6,000 feet, from some of the highest temperature and 
     highest pressure wells in the Gulf of Mexico.

•    The facility is designed to process 250,000 barrels of oil a day and 200 
     million standard cubic feet per day.

•    Oil and gas will be transported to existing shelf and onshore 
     interconnections via the Mardi Gras transportation system.

•    BP operates the development (75 per cent interest), with co-venturer 
     ExxonMobil owning the balance.

•    BP began deepwater Gulf of Mexico operations in the mid-1980s.  BP now 
     produces about 270,000 barrels of oil equivalent per day from nearly two
     dozen fields, including BP-operated facilities at Pompano, Marlin, Horn 
     Mountain and Na Kika.


Further information:

BP Press Office, London, tel: [phone]

BP Press Office, Houston, tel: [phone]


                                    - ENDS -


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