BP PLC — Investor Presentation 2007

Aug 1, 2007

First half 2007 update

24 July 2007

Cautionary Statement

Forward Looking Statements Cautionary Statement

This presentation and the associated slides and discussion contain forward looking statements, particularly those regarding capital expenditure, annual charges, production and timing of major project, expected return of refining capacity and flexibility, share buybacks and other distributions to shareholders, divestments, future performance, gearing, and wind capacity. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Actual results may differ from those expressed in such statements, depending on a variety of factors, including the timing of bringing new fields on stream; future levels of industry product supply; demand and pricing; operational problems; general economic conditions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; exchange rate fluctuations; development and use of new technology; changes in public expectations and other changes in business conditions; the actions of competitors; natural disasters and adverse weather conditions; wars and acts of terrorism or sabotage; and other factors discussed elsewhere in this presentation.

Reconciliations to GAAP - This presentation also contains financial information which is not presented in accordance with generally accepted accounting principles (GAAP). A quantitative reconciliation of this information to the most directly comparable financial measure calculated and presented in accordance with GAAP can be found on our website at www.bp.com

Cautionary Note to US Investors - The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as "resources" and "non-proved reserves", that the SEC's guidelines strictly prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosures in our Form 20-F/A, SEC File No. 1-06262, available from us at 1 St James's Square, London SW1Y 4PD. You can also obtain this form from the SEC by calling 1-800-SEC-0330.

July 2007

Tony Hayward

Group Chief Executive

Issues addressed

US

• Baker Panel report published: implementing recommendations

Russia

•Way forward agreed on Kovykta

Management

• •Succession complete
• •New team in place
• •Clear priorities set

Strategic momentum maintained

Exploration & Production asset base strong and growing:

• •San Juan, Skarv and Southern North Sea projects sanctioned
• •New access: Oman and Libya
• •Exploration success: Angola, Gulf of Mexico and Egypt
• • Strategic Alliance with Gazprom MoUsigned

Refining & Marketing

• •European refining portfolio restructured
• •Biofuels building momentum

Alternative Energy

• •Solar / wind expansion
• •Hydrogen Energy JV established

Financial results for 1H 2007

• • Replacement cost profit
• \$10.4bn, down 8% vs. 1H06
• Per share 54.2¢, down 3% vs. 1H06

•Post tax operating cash flow

\$14.1bn, down 22% vs. 1H06

•Quarterly dividend per share

10.825¢, up 10% vs. 2Q06

2007 guidance

•Production

• 3.8 3.9 mmboed assuming \$60/bbl oil price and current portfolio
• • Organic capex
• Around \$18bn
• • Deliver upstream projects
• Atlantis by end 2007
• Greater Plutonio by end 2007
• • Texas City
• Expected to be processing 400,000 bpd by end of 2007

Byron Grote

Chief Financial Officer

Trading environment

Financial results

		C h a n g	Q 2 2 0 0 6 e v s
f R l h d t t t e s s o e s e c o n q a e u r u r r	\$ b n	%	% h p e s a e r r
R l f i t t t • e p a c e m e n c o s p r o	6 1	( ) 1	5
f P i i l d i i i / l t t • r o n c n g n e n o r g a n s o s s e s u v y	7 4	2	7
N h i d d b i i i i t t t t • e c a s p r o v e y o p e r a n g a c v e s	6 1	( ) 3 3	( ) 2 9
D i i d d b i d t t t • e n o e p a n e q a r e r v x u	/ h ¢ a e s r 0 8 2 1 5	0 % 1 C h H 1 2 0 0 6 a n e s g v
f R l H 1 t e s s o u r	\$ b n	%	% h p e s a e r r
R l f i t t t • e p a c e m e n c o s p r o	1 0 4	( ) 8	( ) 3
P f i i l d i i i / l t t • r o n c u n g n v e n o r y g a n s o s s e s	1 2 0	( ) 7	( ) 1
N h i d d b i i i i t t t t • e c a s p r o e o p e r a n g a c e s v y v	1 4 1	( 2 2 )	( 8 ) 1

Exploration & Production

• •Lower volumes
• •Sector specific inflation
• •Greater integrity spend
• •Higher DD&A
• • Non-Operating Items (NOI)
• −Disposal gains
• Embedded derivatives

Refining & Marketing

• • Higher refining and marketing margins
• •Lower refining availability
• •Greater integrity spend
• • Lower supply optimization
• • Favourable fair value accounting effects
• • Non-Operating Items (NOI)
• Disposal gains

Gas, Power & Renewables

• • Lower marketing & trading contribution
• • Growing expenditure in Alternative Energy
• • Favourable fair value accounting effect
• • Non-Operating Items (NOI)
• Embedded derivatives

Other Business & Corporate

Sources and uses of cash

Net debt ratio = net debt / (net debt + equity)

Shareholder distributions

Tony Hayward

Group Chief Executive

Our agenda

Safety

• •Implement Baker Panel recommendations
• •Implement Operating Management System

People

• •Invest in capability
• •Increase openness and transparency
• •Restore pride & confidence

Performance

• •Restore revenues
• •Reduce complexity and increase efficiency

Strong foundations for the future

Strategy

•Robust and enduring

Financial framework

• •Distribute all free cash flow to shareholders
• •Target gearing range 20 – 30%

Strength of asset base

• • 17.7 bnboe proved reserves(1)
• • 41.3 bnboe non-proved resources(1)
• •1% improvement in recovery factor adds 2 billion boe

Q&A

Tony Hayward Group Chief Executive

Byron Grote Chief Financial Officer

Andy Inglis Chief Executive Exploration & Production

Iain ConnChief Executive Refining & Marketing

Vivienne CoxChief Executive Gas, Power & Renewables

Fergus MacLeod Head of Investor Relations