BP PLC — Regulatory Filings 2007

Jun 29, 2007

News Details

Ad-hoc | 29 June 2007 10:43

BP p.l.c.: Re Joint Venture

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 AND D1 OILS FORM JOINT VENTURE TO DEVELOP JATROPHA BIODIESEL FEEDSTOCK

BP and D1 Oils plc announced today that they are to form a 50/50 joint
venture, to be called D1-BP Fuel Crops Limited, to accelerate the planting
of Jatropha curcas - a drought resistant, inedible oilseed bearing tree
which does not compete with food crops for good agricultural land or
adversely impact the rainforest - in order to make more sustainable
biodiesel feedstock available on a larger scale.

'This joint venture is a further milestone in our strategy to develop real
avenues to contribute to global energy supplies in ways that are
sustainable and progressive,' says Iain Conn, chief executive officer of
BP's refining and marketing business. 'In the transportation sector,
increased blending of biocomponents offers one of the few real options for
progress. Our announcement earlier this week of a planned world scale
bioethanol plant in Hull, alongside a biobutanol demonstration plant,
brings widespread availability of biocomponents for gasoline closer to
reality, and this joint venture will enable similar progress on biodiesel.'

Under the terms of the agreement, BP and D1 Oils intend to invest around
$160 million over the next five years. D1 Oils will contribute into the
joint venture their 172,000 hectares of existing plantations in India,
Southern Africa and South East Asia and the joint venture will have
exclusive access to the elite jatropha seedlings produced through D1 Oils'
plant science programme.

'As jatropha can be grown on land of lesser agricultural value with lower
irrigation requirements than many plants, it is an excellent biodiesel
feedstock,' said Phil New, head of BP Biofuels. 'D1 Oils' progress in
identifying the most productive varieties of jatropha means that the joint
venture will have access to seeds which can substantially increase jatropha
oil production per hectare.'

The joint venture will focus on jatropha cultivation in South East Asia,
Southern Africa, Central and South America and India. It is anticipated
that some one million hectares will be planted over the next four years,
with an estimated 300,000 hectares per year thereafter. Investments will
be made through directly managed plantations on owned or leased land, which
will also provide employment for local communities, and through contract
farming and seed purchase agreements.

'This is a transforming event for D1. BP's decision to join us in this new
venture is a significant endorsement of our strategy to develop jatropha as
a global raw material for the production of sustainable biodiesel,' says
Elliott Mannis, chief executive officer of D1 Oils. 'It shows we have come
a long way. BP's proven logistical, managerial and financial support will
enable a significant enhancement and
acceleration of the scope and pace of jatropha planting.'

Jatropha oil produced from the plantations will be used to meet both local
biodiesel requirements and for export to markets such as Europe, where
domestic feedstock produced from rapeseed and waste oil is unlikely to be
sufficient to meet anticipated regulatory led demand for biodiesel of
around 11 million tonnes a year from 2010.

'Once all the planned plantations are established, the joint venture is
expected to become the world's largest commercial producer of jatropha
feedstock, producing up to 2 million tonnes of jatropha oil a year,' says
BP's Phil New. 'As this hardy crop can be grown on a wide range of land
types, it can make a significant impact on employment in rural areas of
developing countries where planting takes place, a benefit which fits well
with BP's aspiration to pursue relationships which are mutually
advantageous.'

Notes to Editors:

· Founded in 2002, UK based D1 Oils plc has been listed on the
Alternative Investment Market (AIM) since October 2004.

· D1 Oils plc is a UK-based global producer of biodiesel, building a
global supply chain and network that is sustainable and delivers value
from 'earth-to-engine'. Its operations cover agronomy, refining and
trading and includes pioneering the science, planting and production of
inedible vegetable oils. D1 Oils also design, build, own, operate and
market biodiesel refineries and source, transport and trade seeds and
seedlings, seedcake, crude vegetable oils and biodiesel.

· BP, Associated British Foods and DuPont announced their intention to
invest around $400 million for the construction of a world scale bioethanol
plant alongside a high technology biobutanol demonstration plant to advance
development work on the next generation of biofuels on June 26, 2007.

Further information:

BP Press Office, London, tel: +44 (0)20 7496 4358
D1 Oils, tel: +44 (0)1642 755580 or Brunswick, tel: +44 (0)20 7404 5959
DGAP 29.06.2007

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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
Indices:
Listed: Amtlicher Markt in SWX; Freiverkehr in Berlin-Bremen,
Stuttgart, München, Hamburg, Düsseldorf; Open Market in
Frankfurt

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