BP (BP)

Marketing

        Marketing comprises three business areas: Retail, Lubricants and Business to Business Marketing. We market a comprehensive range of refined oil products worldwide. These products include gasoline, gasoil, marine and aviation fuels, heating fuels, LPG, lubricants and bitumen.

(a)

Excludes sales to other BP businesses.

(b)

UK area includes the UK-based international activities of Refining and Marketing.

(c)

Marketing sales are sales to service stations, end-consumers, bulk buyers, jobbers, i.e. third parties who own networks of a number of service stations and small resellers.

(d)

Trading/supply sales are to large unbranded resellers and other oil companies.

        The following table sets out marketing sales by major product group:

        In marketing, our aim is to increase total margin by focusing on both volumes and margin per unit. We do this by growing our customer base, both in existing and new markets, by attracting new customers and by covering a wider geographic area. We also work to improve the efficiency of our operations through reducing the cost of goods sold and improving our product mix. In addition, we recognize that our customers are demanding a wider choice of fuels, particularly fuels that are cleaner and more efficient. Through our integrated refining and marketing operations, we believe we are better able to meet these customer demands.

        During the course of the year we have been successful in maintaining overall volumes despite rising oil and product prices and continuing competitive pressures.

        BP's marketing sales volumes in 2004 were similar to those in 2003.

48

Marketing

        Marketing comprises three business areas: Retail, Lubricants and Business to Business Marketing. We market a comprehensive range of refined oil products worldwide. These products include gasoline, gasoil, marine and aviation fuels, heating fuels, LPG, lubricants and bitumen.

(a)

Excludes sales to other BP businesses.

(b)

UK area includes the UK-based international activities of Refining and Marketing.

(c)

Marketing sales are sales to service stations, end-consumers, bulk buyers, jobbers, i.e. third parties who own networks of a number of service stations and small resellers.

(d)

Trading/supply sales are to large unbranded resellers and other oil companies.

        The following table sets out marketing sales by major product group:

        In marketing, our aim is to increase total margin by focusing on both volumes and margin per unit. We do this by growing our customer base, both in existing and new markets, by attracting new customers and by covering a wider geographic area. We also work to improve the efficiency of our operations through reducing the cost of goods sold and improving our product mix. In addition, we recognize that our customers are demanding a wider choice of fuels, particularly fuels that are cleaner and more efficient. Through our integrated refining and marketing operations, we believe we are better able to meet these customer demands.

        During the course of the year we have been successful in maintaining overall volumes despite rising oil and product prices and continuing competitive pressures.

        BP's marketing sales volumes in 2004 were similar to those in 2003.

47