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
Börsen:  Hamburger Wertpapierbörse / official dealing
              Börse Düsseldorf / official dealing
              Frankfurter Wertpapierbörse / official dealing
              SWX Swiss Exchange / official dealing
              London Stock Exchange / official dealing
              Niedersächsische Börse zu Hannover / free trade
              Berliner Wertpapierbörse / free trade
              Bayerische Börse / free trade
              Baden-Württembergische Wertpapierbörse / free trade

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