BP PLC — Regulatory Filings 2008

Mar 17, 2008

News Details

Ad-hoc | 17 March 2008 16:36

BP PLC announces Joint Refinery Project

BP p.l.c. / Miscellaneous

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BP JOINS IRVING OIL IN PROPOSED EIDER ROCK REFINERY PROJECT

International oil major BP and regional refiner and marketer Irving Oil
have entered into a Memorandum of Understanding to work together on the
next phase of engineering, design, and feasibility for the proposed Eider
Rock refinery in Saint John, New Brunswick, Canada. BP will contribute
US$40 million as its share of funding for this stage of the study and the
two companies will also investigate the possibility of forming a joint
venture to build the refinery should they decide to proceed.

Irving Oil conducted initial feasibility work and informal public
consultation in 2006, and has been engaged since January 2007 in
permitting, public consultation, and engineering design for the proposed
300,000 barrel per day refinery. The refinery would be situated close to
Irving Oil's existing 300,000 barrel per day refinery and the existing
Irving Canaport deepwater crude oil terminal which receives VLCC cargoes
of crude oil and is located 65 miles (105 km) from the US border.

This next phase of engineering, design and feasibility work, combined with
ongoing permitting and community engagement activities represents over
US$100 million of investment over the next 12-15 months.

'We are excited that a company of BP's calibre sees the potential in our
region and in this project to meet the need for a reliable and secure
supply of refined products for the north east,' said Kenneth Irving,
president of Irving Oil. 'BP brings international expertise and crude
supply, but what really drew us to partner with BP was the cultural fit
with our company and our shared belief that the world has changed when it
comes to matters that relate to environmental performance and security of
supply. Our shared belief on the future of energy will increase the
potential of this project.'

'This refinery project is of great interest to BP because of its ideal
location close to the markets of the north eastern US where product
supplies are increasingly in deficit,' said Iain Conn, chief executive of
BP's refining and marketing business. 'BP is keen to develop projects
which enhance the energy security of Canada and the US. Irving Oil has a
well-deserved leading reputation in refining for the east coast. The two
companies have a good track record of working together and we are pleased
to be jointly undertaking the feasibility work on this exciting
opportunity.'

'This project would support the further development of the New Brunswick
energy hub and the refining industry on the East Coast,' said Kevin Scott,
Irving Oil's director of refining growth. 'We will continue to follow the
rigourous permitting process outlined by our Federal and Provincial
Governments, and we will continue to consult our community to ensure that,
if the project proceeds, it will be one the community can be proud of.'

A final investment decision is not expected before 2009 and, although the
final costings will only be clear once all the detailed engineering and
design work is completed, the refinery is expected to cost at least US$7
billion. If permitting approval is received and an investment decision is
made to proceed, site preparation would begin in 2010, and full scale
construction would begin in 2011 with start-up expected in 2015. Irving
Oil has committed to using the best available proven technology to develop
a refinery with leading environmental performance and economic efficiency.

Notes to Editors:

· About BP

BP is one of the world's largest oil and gas companies with operations in
more than 100 countries across six continents. The company's main
businesses are exploration and production of oil and gas; refining,
manufacturing and marketing of oil products and petrochemicals;
transportation and marketing of natural gas; and BP Alternative Energy, a
growing business in renewable and low-carbon power and next generation
energy technologies. BP Canada is headquartered in Calgary with natural gas
exploration and production activities in Alberta, British
Columbia and the Northwest Territories. BP also operates a significant
natural gas liquids (NGL) business with plants in Alberta, Saskatchewan and
Ontario and is a leading marketer of natural gas, crude oil and NGLs in
Canada. Further information is available at: www.bp.com and
www.bpalternativenergy.com

· About Irving Oil

Irving Oil is the regional refiner and marketer with a history of long-term
relationships and partnerships. The company serves the US Northeast and
Eastern Canadian markets, and currently operates Canada's largest refinery
in Saint John, New Brunswick. The Saint John 300,000 barrel per day
refinery is situated close to diverse crude sources and is the closest
refinery to the US Northeast.
It accounts for 75% of Canada's petroleum product exports to the US, 45% of
all clean petroleum products north of New York, and 20% of all US gasoline
and diesel imports. Irving Oil and Repsol YPF are currently completing
construction of Canada's first LNG regasification terminal. The Canaport
LNG terminal will have an initial send-out capacity of 1 billion cubic feet
per day (1bcf/d), and is expected to be operational by the end of this
year. Irving Oil was the first oil company to win an Environmental
Protection Agency (EPA) Clear Air Excellence Award, for its clean
gasolines. For more information, visit: www.irvingoil.com.

Further information:

Jennifer Parker, Irving Oil, tel: +1 (506) 202 2992
BP Press Office, London, tel: +44 (0)207 496 4358
BP Canada Press Office, tel: +1 403 233 1033
BP Press Office, Chicago, tel: +1 630 821 3212
17.03.2008 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

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