21.07.2003 – 13:14

BP plc

euro adhoc: BP PLC
Mergers - Acquisitions - Takeovers
BP and Rio Tinto to sell Kaltim Prima Coal to PT Bumi Resources (E)

Disclosure announcement transmitted by euro adhoc. The issuer is
responsible for the content of this announcement.

press release

July 21, 2003

BP AND RIO TINTO TO SELL KALTIM PRIMA
                     COAL TO PT BUMI RESOURCES

BP announced today that it has agreed to sell its 50 per cent
interest in the Indonesian coal mining company PT Kaltim Prima Coal
(KPC) to PT Bumi Resources, an Indonesian-controlled resources
company. BP's equal partner in KPC, Rio Tinto, has reached a similar
agreement with the result that, on completion of the sale, KPC will
be wholly owned by Bumi Resources.

Bumi Resources will purchase BP and Rio Tinto's interests in KPC
together for $500million, in cash including assumed debt, which will
divided equally between BP and Rio Tinto. Subject to approval by PT
Bumi Resources shareholders and other approvals, the parties
anticipate completion of the deal in October 2003.

Having sold its other coal interests in 1989-90, BP's shareholding in
KPC is its only interest in coal operations worldwide.

KPC operates a world-class coal mine located near Sangatta in East
Kalimantan, Indonesia. The mine produces around 18 million tonnes of
steaming coal annually for exports to key markets in the Asia Pacific
region, Europe and the United States. KPC directly employs about
2,700 people and contributes around $450 million each year in export
revenue to Indonesia.

Bumi Resources has interests in oil, natural gas and mining, hotel
and tourism and related services and general trading. Established in
1973, it became a public company in 1990 and is fully listed on the
Jakarta and Surabaya Stock Exchanges. Bumi Resources already own PT
Arutmin Indonesia - one of Indonesia's largest coal producers.

BP and Rio Tinto will work with Bumi Resources to ensure a smooth
transition of ownership and are committed to ensuring that there will
be no impact on service to customers. KPC will brief staff and local
communities on the transition process.

The financial advisor on the transaction is JP Morgan. Linklaters is
acting as legal counsel to BP on the sale.

- ENDS -

This information is provided by RNS
       The company news service from the London Stock Exchange

end of announcement        euro adhoc 21.07.2003

Further inquiry note:

David Nicholas, BP London: +44 (0)20 7496 4708,
email: nicholdh@bp.com

Branche: Energy
ISIN: GB0007980591
WKN: 850517
Index:
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