BP TNK-BP Gazprom Agreement

BP PLC
22 June 2007

June 22, 2007


           BP AND TNK-BP PLAN STRATEGIC ALLIANCE WITH GAZPROM 
             AS TNK-BP SELLS ITS STAKE IN KOVYKTA GAS FIELD

BP and TNK-BP today announced that they have signed a memorandum of
understanding to create a strategic alliance with the Russian gas giant,
Gazprom, to invest jointly in major long-term energy projects or swap assets
around the world.

In a move designed to extend Gazprom's access to international markets and
deepen BP and TNK-BP involvement in Russian oil and gas, the companies will
establish a joint team to identify strategic opportunities for investment both
overseas and inside Russia.

'We will initially be looking for projects of at least $3 billion, but the
potential for further growth could be very significant,' said BP chief executive
Tony Hayward. 'This historic agreement lays the ground for powerful co-operation
between BP, TNK-BP and Gazprom.'

Dr Hayward said the companies would immediately set up a joint steering group to
look for suitable investment options 'across all geographies.'

'Our firm aim is to establish a venture that is strategic and long term, with
mutual benefits for the companies, both inside and outside Russia.'

Under the terms of the agreement signed by all parties, TNK-BP agreed to sell
Gazprom its 62.89 per cent stake in Rusia Petroleum, the company which holds the
licence for the Kovykta gas field in East Siberia. It will also sell its 50 per
cent interest in East Siberian Gas Company (ESGCo), the company constructing the
regional gasification project.

Gazprom will pay between $700-$900 million, subject to adjustments, for TNK-BP's
interests in Rusia and ESGCo.

TNK-BP said a longer-term 'call' option for TNK-BP to buy a 25 per cent plus one
share stake in Kovykta at an independently verified market price, had also been
agreed with Gazprom. This option could be exercised once a significant joint
investment or asset swap has been agreed under the terms of today's memorandum
of understanding.

President and CEO of TNK-BP, Bob Dudley noted: 'This is an important development
in the future growth of TNK-BP. We look forward to broadening our working
relationships with Gazprom and BP and to further developing our Russian asset
base as well as securing access to material additional opportunities for
TNK-BP.'

Notes to editors:

  • BP is one of the world's largest energy companies. It operates across
    six continents and employs around 97,000 people worldwide. Its products and
    services are available in more than 100 countries and it explores for and
    produces oil and gas in 26 countries. BP has made Russia a key element of
    its long-term growth strategy and has conducted business there for more than
    15 years.

  • Gazprom is Russia's largest company and the world's largest producer of
    natural gas. It holds about one quarter of total world gas reserves. Gazprom
    exports gas to 32 countries within and beyond the FSU. In 2005 the company
    sold 156.1 billion cubic metres of gas to European countries and with 76.6
    billion cubic metres to the CIS and Baltic states.

  • TNK-BP is the third largest oil company in Russia. In 2006 it produced
    1.9 million barrels of oil equivalent a day. It is owned and managed jointly
    by BP and Alfa Access Renova group.

  • The Kovykta gas field is located some 450 kilometres from the city of
    Irkutsk in the north of the Irkutsk region of Eastern Siberia. It has
    estimated resources of approximately 2 trillion cubic metres of gas in
    place.

For further information contact:

BP Press Office: [phone]

TNK-BP Press Group:

Marina Dracheva: + 7495 363 6580
Alexander Shadrin: + 7495 745 7846
Vladimir Bobylev: + 7495 745 7846


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