BP (BP)

System of internal control

        Each year, specific reports on risk management and internal control within selected business and functional activities are considered. During 2004, the Exploration and Production and Petrochemicals

146

segments were reviewed, along with accounting issues of the supply and trading function that services all BP's businesses. Given the increased public and regulatory attention to hydrocarbon reserves reporting, the committee sought and received additional assurance that BP's management and recording processes are applied in a consistent and coherent manner throughout the Group. Following the adoption of the US Sarbanes-Oxley Act of 2002, an increased regulatory requirement has been placed on all companies that offer shares by listing on US stock exchanges. The committee has monitored the Company's response to the applicable requirements of this Act and, in particular, its progress in evaluating internal controls as required by rules pursuant to Section 404 of the Act.

System of internal control

        Each year, specific reports on risk management and internal control within selected business and functional activities are considered. During 2004, the Exploration and Production and Petrochemicals

140

segments were reviewed, along with accounting issues of the supply and trading function that services all BP's businesses. Given the increased public and regulatory attention to hydrocarbon reserves reporting, the committee sought and received additional assurance that BP's management and recording processes are applied in a consistent and coherent manner throughout the Group. Following the adoption of the US Sarbanes-Oxley Act of 2002, an increased regulatory requirement has been placed on all companies that offer shares by listing on US stock exchanges. The committee has monitored the Company's response to the applicable requirements of this Act and, in particular, its progress in evaluating internal controls as required by rules pursuant to Section 404 of the Act.