BP (BP)

Board independence

        The qualification for board membership includes a requirement that all our non-executive directors be free from any relationship with the executive management of the Company that could materially interfere with the exercise of their independent judgement. In the board's view, all our non-executive directors fulfil this requirement. It determined all 12 who served during 2004 to be independent directors.

        Mr Knight and Sir Robin Nicholson were appointed to the BP board in 1987 and Mr Miles was appointed in 1994. The length of their respective service on the board exceeds the nine years referred to in the Combined Code. The board considers that the experience and long-term perspective of each of these directors on BP's business during its recent period of growth provide a valuable contribution to the board, given the long-term nature of our business. The integrity and independence of character of these directors are beyond doubt. Both Mr Knight and Sir Robin retired at the 2005 AGM. Mr Miles will retire in 2006.

        Those directors who joined the BP board in 1998 after service on the board of Amoco Corporation (Messrs Bryan, Massey, Wilson and Davis) are considered independent since the most senior executive management of BP comprises individuals who were not previously Amoco employees. While Amoco businesses and assets are a key part of the Group, the scope and scale of BP since its acquisition of the ARCO, Burmah Castrol and Veba businesses are fundamentally different from those of the former Amoco Corporation.

        The board has satisfied itself that there is no compromise to the independence of those directors who serve together as directors on the boards of outside entities (or who have other appointments in outside entities). Where necessary, our board ensures appropriate processes are in place to manage any possible conflict of interest.

        Sir Robin Nicholson received fees during 2004 for representing the board on the BP technology advisory council. Since these fees relate to board representation, they did not compromise Sir Robin's independence. Full details of these fees are disclosed in Compensation — Remuneration of Non-Executive Directors in this Item on page 136.

Board independence

        The qualification for board membership includes a requirement that all our non-executive directors be free from any relationship with the executive management of the Company that could materially interfere with the exercise of their independent judgement. In the board's view, all our non-executive directors fulfil this requirement. It determined all 12 who served during 2004 to be independent directors.

        Mr Knight and Sir Robin Nicholson were appointed to the BP board in 1987 and Mr Miles was appointed in 1994. The length of their respective service on the board exceeds the nine years referred to in the Combined Code. The board considers that the experience and long-term perspective of each of these directors on BP's business during its recent period of growth provide a valuable contribution to the board, given the long-term nature of our business. The integrity and independence of character of these directors are beyond doubt. Both Mr Knight and Sir Robin retired at the 2005 AGM. Mr Miles will retire in 2006.

        Those directors who joined the BP board in 1998 after service on the board of Amoco Corporation (Messrs Bryan, Massey, Wilson and Davis) are considered independent since the most senior executive management of BP comprises individuals who were not previously Amoco employees. While Amoco businesses and assets are a key part of the Group, the scope and scale of BP since its acquisition of the ARCO, Burmah Castrol and Veba businesses are fundamentally different from those of the former Amoco Corporation.

        The board has satisfied itself that there is no compromise to the independence of those directors who serve together as directors on the boards of outside entities (or who have other appointments in outside entities). Where necessary, our board ensures appropriate processes are in place to manage any possible conflict of interest.

        Sir Robin Nicholson received fees during 2004 for representing the board on the BP technology advisory council. Since these fees relate to board representation, they did not compromise Sir Robin's independence. Full details of these fees are disclosed in Compensation — Remuneration of Non-Executive Directors in this Item on page 130.