BP (BP)

        The Company maintains 'disclosure controls and procedures' as such term is defined in Exchange Act Rule 13a-15(e), that are designed to ensure that information required to be disclosed in reports the Company files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to management, including the Company's group chief executive and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

        In designing and evaluating our disclosure controls and procedures, our management, including the group chief executive and chief financial officer, recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. Further, in the design and evaluation of our disclosure controls and procedures our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Also, we have investments in certain unconsolidated entities. As we do not control these entities, our disclosure controls and procedures with respect to such entities are necessarily substantially more limited than those we maintain with respect to our consolidated subsidiaries. Because of the inherent limitations in a cost-effective control system, mis-statements due to error or fraud may occur and not be detected. The Company's disclosure controls and procedures have been designed to meet, and management believe that they meet, reasonable assurance standards.

        During 2005, a review was undertaken into the accounting treatment under US GAAP for OTC forward contracts in oil, gas, NGLs and power in the context of the review undertaken for final transition to IFRS. As a result of this review the Group reassessed its recognition of revenues associated with these contracts under US GAAP and determined that these contracts should be reported net. (See Item 18 — Financial Statements — Note 50 on page F-103.) Under the provisions of APB 20 the Company's management concluded that the change represented the correction of an accounting error and as a result revenues and cost of sales for US GAAP have been restated. Because under UK GAAP these transactions were reported gross, a difference in accounting treatment is now disclosed in Item 18 — Financial Statements — Note 50 on page F-103. In addition, in connection with the preparation of this Form 20-F/A, the Group identified additional transactions which should also have been presented net under US GAAP.

        In light of this subsequent restatement, the Company's management, including the group chief executive and the chief financial officer, re-evaluated the Company's disclosure controls and procedures as in effect at the end of 2004. Although the restatement for US GAAP purposes did not impact the Group's profit for the year as adjusted to accord with US GAAP, profit per ordinary share, cash flow or

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financial position, the group chief executive and the chief financial officer have determined, due to the change in the US GAAP accounting treatment for OTC forward contracts, that the Company's disclosure controls and procedures at the end of the period were not effective to provide reasonable assurance that information required to be disclosed in the Company's reports filed or submitted under the Exchange Act was recorded, processed, summarized and reported within the time period specified in the rules and forms of the SEC.

        Apart from the failure to account for OTC forward contracts on a net basis under US GAAP, the Company's management has not identified any other deficiencies that would have led the Company's management to conclude that the Group's disclosure controls and procedures were ineffective for the period covered by this annual report. The Company is not currently required to report on management's assessment of the effectiveness of the Group's internal controls over financial reporting and the Company has not undertaken the kind of review of such controls that would be required in order to make such a report.

        Following the review of the accounting treatment for OTC forward contracts under US GAAP, the Group has improved its disclosure controls and procedures by changing its US GAAP accounting policy for OTC forward contracts to conform to US GAAP, training the accounting staff regarding the policy change, implementing changes in its internal reporting systems to process and report sale and purchase contracts in accordance with Group US GAAP accounting policy for such transactions and increasing management oversight of compliance therewith.

        The Company maintains 'disclosure controls and procedures' as such term is defined in Exchange Act Rule 13a-15(e), that are designed to ensure that information required to be disclosed in reports the Company files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to management, including the Company's group chief executive and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

        In designing and evaluating our disclosure controls and procedures, our management, including the group chief executive and chief financial officer, recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. Further, in the design and evaluation of our disclosure controls and procedures our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Also, we have investments in certain unconsolidated entities. As we do not control these entities, our disclosure controls and procedures with respect to such entities are necessarily substantially more limited than those we maintain with respect to our consolidated subsidiaries. Because of the inherent limitations in a cost-effective control system, mis-statements due to error or fraud may occur and not be detected. The Company's disclosure controls and procedures have been designed to meet, and management believe that they meet, reasonable assurance standards.

        The Company's management, with the participation of the Company's group chief executive and chief financial officer, has evaluated the effectiveness of the Company's disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(b) as of the end of the period covered by this annual report. Based on that evaluation, the group chief executive and chief financial officer have concluded that, subject to the limitations noted above, the Company's disclosure controls and procedures are effective to provide reasonable assurance that material information required to be included in the Company's periodic filings under the Exchange Act is made known to them on a timely basis.