BP PLC — M&A Activity 2007

Oct 24, 2007

News Details

Ad-hoc | 24 October 2007 15:51

BP PLC announces BP North Sea Restructuring

BP p.l.c. / Miscellaneous

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
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The issuer is solely responsible for the content of this announcement.

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BP RESTRUCTURING TO SECURE LONG-TERM NORTH SEA FUTURE

BP is today announcing proposed plans for important changes to its North
Sea organisation, headquartered in Aberdeen, designed to secure a long-term
future for the company’s oil and gas business in the UK.

The changes are intended to simplify the organisation and improve the
efficiency of work processes in response to the challenges of the
increasingly mature North Sea, where declining production and rapidly
rising costs have created business conditions which are not sustainable in
the long term.

The new structure will mean fewer organisational units and reduced
management layers. This will allow consolidation of onshore non-technical
support activities, leading to economies of scale and reduced complexity.

Regrettably, the company anticipates that the changes will result in the
loss of some BP staff and contractor positions which support its operations
in the UK. BP estimates that somewhere in the region of 350 positions
could be affected, from a total onshore staff and contractor workforce of
2,100. Most of these office-based support jobs are based in BP’s North Sea
operations HQ in Aberdeen.

The company will consult with staff over the coming months and into 2008 on
how these changes will be implemented and seek their views on how the
impact on jobs can be minimised or mitigated.

Andy Inglis, BP’s chief executive for Exploration and Production, said:
'These plans are an important step in delivering BP’s agenda of simplifying
how the company is run and ensuring resources are focused on front-line
delivery. Furthermore, they will help secure our continuing presence in the
UK’s North Sea.'

The changes will be introduced in a carefully considered and measured
programme over the next six months, so that BP can continue to focus on its
priorities of safe operations and maximising the value of its $3 billion to
$4 billion annual investment in the North Sea.

There will be no impact on the workforce offshore or on plant-based
positions at onshore sites.

Plans for moving staff to BP’s new North Sea headquarters in Aberdeen are
unchanged and the company expects the new organisation to be fully
implemented in time for the move during the first part of 2008.

Notes to editors:

· BP has been a major operator in the North Sea for over 40 years. It
currently produces around 350,000 barrels of oil and gas a day from the
UKCS.

· BP spends some $3 billion to $4 billion annually in its UK North Sea
business through new investment and operating expenditure.

· In total, BP currently employs around 2,500 staff and 550 core
contractors onshore and offshore in its UK North Sea business.

· In 2004 BP produced 550,000 barrels per day of oil in the UK North Sea,
employing around 1800 people (onshore staff and core contractors). In
2007, production levels are around 350,000 barrels per day with 2100
people employed onshore.

· In addition to the Aberdeen HQ, BP has UK onshore staff at Sullom Voe
terminal in Shetland, the Kinneil terminal near Grangemouth, the CATS
terminal at Teesside, the Dimlington terminal on Humberside and the
Wytch Farm oilfield in Dorset.

· In the first part of 2008 BP will move its Aberdeen headquarters into
new offices in Dyce built by the developer Goodman.

Further information:

David Nicholas, BP press office, London: +44(0)20 7496 4708
Joanne McDonald, BP press office, Aberdeen: +44(0)1224 832030
Richard Grant, BP press office Aberdeen: +44 (0)1224 832347
24.10.2007 Financial News transmitted by DGAP

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Language: English
Issuer: BP p.l.c.
1 St James's Square
SW1Y 4PD London
Großbritannien
Phone: +44 (0) 207-496-4000
Fax: +44 (0) 207-496-4570
E-mail: ir@bp.com
Internet: www.bp.com
ISIN: GB0007980591
WKN: 850517
Listed: Freiverkehr in Berlin, Stuttgart, München, Hamburg,
Düsseldorf; Open Market in Frankfurt; Foreign Exchange(s) SWX

End of News DGAP News-Service

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