BP (BP)

Exploration

        The Group explores for oil and natural gas under a wide range of licensing, joint venture and other contractual agreements. We may do this alone or, more frequently, with partners. BP acts as operator for many of these ventures.

        Our exploration and appraisal costs in 2004 were $1,038 million compared to $826 million in 2003 and $1,108 million in 2002. About 22% of 2004 exploration and appraisal costs were directed towards appraisal activity. In 2004, we participated in 118 gross (56.6 net) exploration and appraisal wells in 13 countries. The principal areas of activity were Angola, Egypt, Russia (outside TNK-BP), Trinidad and the USA.

        Total exploration expense in 2004 of $637 million (2003 $542 million, 2002 $644 million) includes the write-off of unsuccessful drilling activity in the Gulf of Mexico ($135 million), in Brazil ($32 million) and in the UK ($13 million).

        In 2004, we obtained upstream rights in several new tracts, which include the following:

—

In Egypt, BP was awarded two new blocks in the Gulf of Suez and two new blocks in the Nile Delta.



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In the Gulf of Mexico, BP was awarded 76 blocks in the Outer Continental Shelf Lease Sales 190 and 192.

23

        In 2004, we were involved in discoveries in Angola, Egypt, Trinidad, Russia and the USA. In most cases, reserve bookings from these fields will depend on the results of ongoing technical and commercial evaluations, including appraisal drilling. Our 2004 discoveries included the following:

—

In Angola, BP made further discoveries in the "ultra deep water' (greater than 1,500 metres) acreage with the Venus and Palas wells in Block 31 (BP 26.7% and operator). The Ceres discovery in the same Block, and the Cesio and Chumbo discoveries in Block 18 (BP 50% and operator) were announced in 2005.



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In Egypt, BP made three discoveries in the Nile Delta with the Raven well in the North Alexandria Concession (BP 60% and operator), with the Taurt well in the Ras El Barr Concession (BP 50% and operator) and the Polaris well in the West Mediterranean Deepwater Concession (BP 80% and operator).



—

In Trinidad, BP made a discovery with the Chachalaca well (BP 100%).



—

In Russia, a discovery was made in the Kaigansky-Vasukansky licence in the south of the Sakhalin V area with the Pela Lache well (BP 49%, operated by Elvary Neftegas, a JV company established by Rosneft and BP).



—

In the Deepwater Gulf of Mexico, a discovery was made with the Puma well (BP 51.7% and operator) in the Southern Green Canyon.

Exploration

        The Group explores for oil and natural gas under a wide range of licensing, joint venture and other contractual agreements. We may do this alone or, more frequently, with partners. BP acts as operator for many of these ventures.

        Our exploration and appraisal costs in 2004 were $1,038 million compared to $826 million in 2003 and $1,108 million in 2002. About 22% of 2004 exploration and appraisal costs were directed towards appraisal activity. In 2004, we participated in 118 gross (56.6 net) exploration and appraisal wells in 13 countries. The principal areas of activity were Angola, Egypt, Russia (outside TNK-BP), Trinidad and the USA.

        Total exploration expense in 2004 of $637 million (2003 $542 million, 2002 $644 million) includes the write-off of unsuccessful drilling activity in the Gulf of Mexico ($135 million), in Brazil ($32 million) and in the UK ($13 million).

        In 2004, we obtained upstream rights in several new tracts, which include the following:

—

In Egypt, BP was awarded two new blocks in the Gulf of Suez and two new blocks in the Nile Delta.



—

In the Gulf of Mexico, BP was awarded 76 blocks in the Outer Continental Shelf Lease Sales 190 and 192.

22

        In 2004, we were involved in discoveries in Angola, Egypt, Trinidad, Russia and the USA. In most cases, reserve bookings from these fields will depend on the results of ongoing technical and commercial evaluations, including appraisal drilling. Our 2004 discoveries included the following:

—

In Angola, BP made further discoveries in the "ultra deep water' (greater than 1,500 metres) acreage with the Venus and Palas wells in Block 31 (BP 26.7% and operator). The Ceres discovery in the same Block, and the Cesio and Chumbo discoveries in Block 18 (BP 50% and operator) were announced in 2005.



—

In Egypt, BP made three discoveries in the Nile Delta with the Raven well in the North Alexandria Concession (BP 60% and operator), with the Taurt well in the Ras El Barr Concession (BP 50% and operator) and the Polaris well in the West Mediterranean Deepwater Concession (BP 80% and operator).



—

In Trinidad, BP made a discovery with the Chachalaca well (BP 100%).



—

In Russia, a discovery was made in the Kaigansky-Vasukansky licence in the south of the Sakhalin V area with the Pela Lache well (BP 49%, operated by Elvary Neftegas, a JV company established by Rosneft and BP).



—

In the Deepwater Gulf of Mexico, a discovery was made with the Puma well (BP 51.7% and operator) in the Southern Green Canyon.