02.10.2003 – 12:31

BP plc

euro adhoc: BP PLC
BP 3Q 2003 TRADING UPDATE (E)

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

press release  
October 2, 2003

BP 3Q 2003 TRADING UPDATE

This trading update is aimed at providing an overview of the
revenue and trading conditions experienced by BP during the third
quarter ending September 30, 2003. The third quarter margin, price,
realisation, cost, production and other data referred to below are
currently provisional, some being drawn from figures applicable to
the first month or so of the quarter. All such data are subject to
change and may differ quite considerably from the final numbers
that will be reported on October 28, 2003. The statement is
produced in order to provide greater disclosure to investors and
potential investors of currently expected outcomes, and to ensure
that they all receive equal access to the same information at the
same time.

Exploration and Production

Marker prices

3Q'03    2Q'03    1Q'03    3Q'02  
  Brent dated ($/bbl)             28.38    26.03    31.49    26.91  
  WTI ($/bbl)                     30.19    29.02    34.00    28.26  
  ANS USWC ($/bbl)                28.83    27.04    33.17    27.26  
  US gas Henry Hub first of       4.97     5.40     6.58     3.16   
  month index ($/mmbtu)                                             
  UK gas price - National         15.08    17.44    21.37    12.74  
  Balancing Point (p/therm)

Compared to 2Q'03, liquid realisations are expected to move broadly
in line with the change in marker prices. Compared to 2Q'03, the
Henry Hub gas marker price is expected to decrease by $0.43/mmbtu.
However, US gas realisations are expected to decrease by a smaller
amount due to a narrowing of basin differentials. As indicated at
the time of our 2Q results on July 29, the impact of divestments on
reported production is increasing as deals are completed. However,
compared with 3Q'02, the increase in our Russian production
following completion of the TNK-BP deal on August 29 is expected to
broadly offset divestments.

Gas, Power and Renewables

Gas marketing margins are expected to be down on 2Q'03 with lower
results in North America partially offset by continued strength in
LNG. NGL margins are anticipated to be higher than 2Q'03 in line
with normal seasonality

Refining and Marketing

Refining Indicator Margins ($/bbl)

3Q'03     2Q'03    1Q'03    3Q'02  
  USA                                                               
  - West Coast                     9.04     6.34     6.77     3.54  
  - Gulf Coast                     5.61     3.59     6.14     1.82  
  - Midwest                        6.39     4.73     4.14     3.27  
  North West Europe                2.47     2.14     3.70     1.28  
  Singapore                        1.27     0.66     2.98     0.47  
  Refining Global Indicator        4.58     3.27     4.52     1.98  
  Margin* ($/bbl.)

*The refining Global Indicator Margin(GIM) is a weighted average
based on BP's portfolio. Actual margins may vary because of
refinery configuration, crude slate and operating practices.

3Q'03 refining margins are expected to be higher than 2Q'03,
particularly in the US, and similar to the overall margin
environment of 1Q'03. 3Q'03 saw a number of refinery and
infrastructure outages which coincided with an upturn in gasoline
demand. Higher utility costs and adverse foreign exchange effects
are expected to partially offset these higher margins. The 3Q'03
marketing environment is expected to be considerably less favorable
than in the second quarter, and similar to the 1Q'03 level.

Petrochemicals

Weighted Chemicals Indicator Margin ($/te)

3Q'03    2Q'03 est.    1Q'03    3Q'02  
n/a      120           96       120

*The Chemicals Indicator Margin is a weighted average of
externally-based product margins. It is based on market data
collected by Nextant (formerly Chem Systems) in their quarterly
market analyses, then weighted on BP's product portfolio. This is
described more fully in the Group's quarterly results releases.

Petrochemical margins in 3Q'03 are expected to be below 1Q'03 and
substantially reduced versus 2Q'03, particularly in Europe, due to
higher feedstock prices and continued high energy costs.

Stock Purchases

There were no stock purchases during the quarter. Shares in issue
as at October 26, 2003 were 22,108 million.

- ENDS -

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

end of announcement        euro adhoc 02.10.2003

Further inquiry note:

BP PLC
Jude Tomalin
020 7496 4062

Branche: Energy
ISIN: GB0007980591
WKN: 850517
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