BP To Sell Its Stake In Singapore Refining Company to SPC

BP and the Singapore Petroleum Company Limited (SPC) announced today (March 1, 2004) that they have reached conditional agreement for SPC to purchase BP's refining interests and one-third stake in Singapore Refining Company Private Limited (SRC) for USD $140 million. The refining interests include BP's one-sixth equity interest in the Tanker Mooring Services Company Pte Ltd.

Subject to receiving the necessary approvals and consents, the parties anticipate completing the transaction by June 30, 2004.

SPC already owns a one-third share of the 285,000 bpd refinery, with the remaining one-third being owned by Caltex.

"SPC has been a long time strategic partner of BP in Singapore and we are pleased to have reached an agreement with them which we believe is of mutual benefit," said Mr William R. Bussing, BP's Manufacturing Director.

"This acquisition is a logical step for SPC to consolidate its asset base, strengthen its earnings capability and add to shareholders' value. With healthier refining margins, this acquisition is expected to enhance SPC's earnings," said Mr Choo Chiau Beng, SPC's chairman.