BP (BP)

Russia

        TNK-BP

—

TNK-BP (BP 50%) is an integrated oil company operating in Russia and the Ukraine. TNK-BP has proved reserves of 4.4 billion boe (including its 49.5% equity share of Slavneft), of which 3.8 billion are developed. Daily oil production currently amounts to some 1.7 million boe/d, including its share of Slavneft. The production base is largely centred in West Siberia (Samotlor, Nizhnevartovskoye Neftedobyvaushee Predpriyatie, Nyagan and Megion), which contributes about 1.0 million boe/d, together with Volga Urals (Orenburgneft) contributing 0.4 million boe/d. About 50% of total oil production is currently exported as crude oil and 15% as refined product. Downstream, TNK-BP owns six refineries in Russia and the Ukraine (including Ryazan and Lisichansk), with throughput of 0.5 million barrels a day (25 million tonnes a year). In retail, TNK-BP supplies more than 2,100 filling stations in Russia and the Ukraine, with a share of the Moscow retail market in excess of 20%. The workforce currently is about 100,000 people.



—

BP's investment in TNK-BP is held by the Exploration and Production business, and the results of TNK-BP are accounted for under the equity method in that segment.

39

        TNK-BP Group Restructuring

—

On January 14, 2005, TNK-BP announced the details of its plans to restructure the group in Russia. A new holding company — OAO TNK-BP Holding — has been formed and now owns TNK-BPs interests in OAO ONAKO, OAO Sidanco and OAO TNK. On March 1, 2005, shareholders of these latter three companies approved a scheme of accession to OAO TNK-BP Holding. Included in the announcement on January 14, were the terms of a voluntary offer to minority shareholders of 14 material subsidiaries of the TNK-BP group to exchange their shares for shares in OAO TNK-BP Holding. The offer is expected to take place when the accessions near completion. On completion of the accessions and voluntary offer, TNK-BP will consider further accessions of material subsidiaries. OAO TNK-BP Holding will own all the TNK-BP group's material assets in Russia except for the group's interests in OAO Rusia Petroleum, the OAO Slavneft group and the BP branded retail sites in Moscow and the Moscow region.

Russia

        TNK-BP

—

TNK-BP (BP 50%) is an integrated oil company operating in Russia and the Ukraine. TNK-BP has proved reserves of 4.4 billion boe (including its 49.5% equity share of Slavneft), of which 3.8 billion are developed. Daily oil production currently amounts to some 1.7 million boe/d, including its share of Slavneft. The production base is largely centred in West Siberia (Samotlor, Nizhnevartovskoye Neftedobyvaushee Predpriyatie, Nyagan and Megion), which contributes about 1.0 million boe/d, together with Volga Urals (Orenburgneft) contributing 0.4 million boe/d. About 50% of total oil production is currently exported as crude oil and 15% as refined product. Downstream, TNK-BP owns six refineries in Russia and the Ukraine (including Ryazan and Lisichansk), with throughput of 0.5 million barrels a day (25 million tonnes a year). In retail, TNK-BP supplies more than 2,100 filling stations in Russia and the Ukraine, with a share of the Moscow retail market in excess of 20%. The workforce currently is about 100,000 people.



—

BP's investment in TNK-BP is held by the Exploration and Production business, and the results of TNK-BP are accounted for under the equity method in that segment.

38

        TNK-BP Group Restructuring

—

On January 14, 2005, TNK-BP announced the details of its plans to restructure the group in Russia. A new holding company — OAO TNK-BP Holding — has been formed and now owns TNK-BPs interests in OAO ONAKO, OAO Sidanco and OAO TNK. On March 1, 2005, shareholders of these latter three companies approved a scheme of accession to OAO TNK-BP Holding. Included in the announcement on January 14, were the terms of a voluntary offer to minority shareholders of 14 material subsidiaries of the TNK-BP group to exchange their shares for shares in OAO TNK-BP Holding. The offer is expected to take place when the accessions near completion. On completion of the accessions and voluntary offer, TNK-BP will consider further accessions of material subsidiaries. OAO TNK-BP Holding will own all the TNK-BP group's material assets in Russia except for the group's interests in OAO Rusia Petroleum, the OAO Slavneft group and the BP branded retail sites in Moscow and the Moscow region.