bp-2n

2003/5/7 BP

BP Strengthens Asian PTA Presence

BP announced today that it has increased its interests in its Taiwanese and Korean PTA joint ventures. BP now owns 59.02 per cent of China American Petrochemical Company (CAPCO) in Taiwan and 47.41 per cent of Samsung Petrochemical Company (SPC) in Korea. As a result of the two deals, BP's equity PTA capacity in Asia has increased by 14 per cent to around three million tonnes a year.

Steve Welch, BP group vice-president, petrochemicals, said: "PTA is one of BP's core petrochemical products. These acquisitions significantly reinforce our PTA business in the important fast-growing Asian market."

Sue Rataj, Business Unit Leader, PTA Asia, added: "These acquisitions underscore BP's commitment to our PTA business in Asia and in particular to SPC and CAPCO. These companies were two of the first PTA producers in Asia and are among the largest PTA producers in the world. CAPCO and SPC run first class operations. We look forward to an exciting future and closer connections with the two companies."

CAPCO is the largest producer of PTA in Asia operating six production units with a total capacity of 2.1 million tonnes per annum. BP acquired the incremental 9.02 per cent interest in CAPCO from Central Investment Holding Company (CIHC). As a result, BP now controls 59.02 per cent of the equity in CAPCO while Chinese Petroleum Corporation and CIHC retain 25.00 per cent and 15.98 per cent respectively.

SPC is the third largest producer of PTA in Asia operating four PTA units in Korea to produce a total of 1.4 million tonnes per annum. BP and SPC recently completed a number of transactions with minority shareholders of SPC increasing BP's ownership of SPC from 35 per cent to 47.41 per cent. BP's ownership of SPC is now equal with Samsung's.

Financial details of the transactions were not disclosed.

Notes to editors:

PTA is a key feedstock for the production of polyester. The main uses for polyester include clothing, textiles, home furnishings, industrial applications, PET bottles and food packaging.
CAPCO was formed in 1975 as a joint venture between Amoco (50 per cent), CPC (25 per cent) and CIHC (25 per cent). The company has two production sites at Kaohsiung and Taichung in Taiwan.
SPC was formed in 1974 as a joint venture between Samsung (50 per cent), Amoco (35 per cent) and Mitsui Chemicals, Inc. (15 per cent). Samsung's interest was held by a number of its subsidiaries and two of these (Shinsegae and CJ Corporation) became independent of Samsung in the early 1990s. SPC has two production sites at Ulsan and Seosan in Korea.
BP is a world leader in the production of PTA, with worldwide production capacity of almost seven million tonnes a year. BP produces PTA in wholly owned plants in the United States, Belgium and Malaysia, and through joint ventures in China, Korea, Indonesia, Taiwan, and Brazil.
Production recently started from two new PTA units in Asia. In January, BP Zhuhai successfully commissioned a 350,000 tonnes a year unit in southern China. In April, CAPCO started producing from its new 700,000 tonnes a year unit in Taiwan.

2004/2/12 BP

BP Licenses Innovene Technology For Sasol Polymers Polypropylene Expansion

BP and Sasol Polymers have signed an agreement to license BP's Innovene polypropylene process technology for the expansion of Sasol's polypropylene facilities located in Secunda, Republic of South Africa. The new plant will have an annual capacity of 300,000 tonnes, produce homopolymers, random copolymers and impact copolymers, and start up in 2006. Sasol will use BP's proprietary high activity CD catalyst to realize the full benefits of the technology.

"We are very pleased that Sasol Polymers elected to use Innovene technology to expand its well-established polypropylene business," said Gerald Maret, Licensing Area Commercial Manager for BP. "The Innovene gas phase technology has shown distinct advantages over others in terms of low capital cost, operating costs and product capabilities. The horizontal plug flow reactor configuration is a key element of the system, providing rapid product transitions and contributing to a high degree of product quality and consistency."

Execution of the Sasol license concludes a very active year for BP's polyolefins licensing business with successful plant start-ups in the People's Republic of China, the Czech Republic and the Netherlands.

Since 1996, BP has licensed about 2.2 million tonnes of annual Innovene polypropylene capacity of which 670,000 tonnes are now under construction.

Notes to editors:
Sasol, with a market capitalization of approximately USD 9 billion, is an integrated oil and gas group with substantial chemical interests. Based in South Africa and operating in 15 other countries throughout the world, Sasol is the leading provider of liquid fuels in South Africa and a major international producer of chemicals, using a world leading technology for the commercial production of synthetic fuels and chemicals from low-grade coal. In the future Sasol expects to apply this technology to convert natural gas to diesel and chemicals. Sasol manufactures over 200 fuel and chemical products that are sold in more than 90 countries and also operates coal mines to provide feedstock for synthetic fuels and chemical plants. The company also manufactures and markets synthesis gas and operates the only inland crude oil refinery in South Africa.

BP is one of the largest integrated oil companies in the world, operating in 100 countries, on six continents. It is the second largest polypropylene producer in the world, having an annual capacity in excess of 3 million tonnes. BP has extensive research capabilities in the United States, France, Belgium and the United Kingdom.

BP Plans To Sell Over 50% Of Petrochemicals Business And Prepares For IPO

BP announced today that it plans to consolidate the Olefins and Derivatives (O&D) division of its petrochemicals business into a stand-alone entity able to operate separately from the BP Group.

The new O&D business will incorporate more than half of the $13 billion of operating capital employed in BP’s petrochemicals portfolio, giving it the scale to be a major independent player in the global petrochemicals sector.

It will be headed by Ralph Alexander, who was today named as chief executive of BP’s petrochemicals business with effect from July 1, 2004.

BP said it plans to sell O&D in due course, possibly through an Initial Public Offering, depending on market circumstances and necessary approvals, in the second half of 2005.

The Group intends to retain the balance of its petrochemicals portfolio, comprising the aromatics and acetyls businesses. BP views these as “advantaged products” where BP has leading proprietary technology and strong positions in growing Asian markets.

Lord Browne spelt out BP’s determination to tackle the continuing poor returns of its petrochemicals segment overall at a strategy presentation to investors in London and New York last month.

He said future investment would focus more on paraxylene, PTA and acetic acid, and less on olefins and derivatives which form the bulk of BP’s petrochemical operations in Europe.

"We have now concluded that divesting O&D ? perhaps by means of an IPO, subject to market conditions and any necessary consents ? is likely to deliver the best returns to our shareholders and to be in the best long-term interests of the O&D business itself,” Browne said today.

Current chief executive of BP Petrochemicals, Iain Conn, said: “Our O&D sub-segment is one of the highest-quality portfolios of its kind in the petrochemicals industry. It has a global network of manufacturing sites, good technology, a fine range of products and strong market positions. As a free-standing entity it will be a significant competitor in its sector.”

Notes to editors
At a strategy presentation on March 29, 2004, Lord Browne said future investment would focus more on so-called “advantaged products”, including paraxylene, PTA and acetyls which were strong in growing Asian markets and where BP has a proprietary technological lead, and less on olefins and derivatives which dominated the company’s portfolio in the more fragmented and lower-growth European markets.
The O&D business employs approximately 7,500 people in 24 locations worldwide, chiefly the US and Europe. Major petrochemicals sites include Grangemouth in Scotland, Lavera in France, Koln and Gelsenkirchen in Germany, and Lima, Chocolate Bayou and Green Lake in the US and the SECCO joint venture in China.
BP recently announced the intended sale of its Fabrics & Fibres and its Linear & Poly Alpha Olefins businesses. The intention to sell these businesses remains unaffected by this announcement, but BP will consider whether or not to include the sale of the Linear & Poly Alpha Olefins businesses in the planned IPO of O&D.
BP’s products are used to make a wide variety of plastic goods, including food and drink containers and wrappings, pipework, automotive parts and mouldings of all kinds. Current worldwide production capacity of O&D plants is some 20 million tonnes per year of a BP Petrochemicals total of 34.5 million tonnes.
O&D products include olefins (ethylene and propylene) and their derivatives such as acrylonitrile, polyethylene, polypropylene and solvents.
Iain Conn will become a Group Executive Officer of BP with effect from July 1, 2004 and assume Dick Olver’s portfolio of responsibilities, with the exception of the Western Hemisphere.

Platts 2004/11/16

BP chemicals spin-off to include Grangemouth, Lavera refineries

BP plans to include two of its European refineries in a new petrochemicals business being spun off from the main group, the company said Tuesday. The new unit comprising BP's olefins and derivatives businesses is due to be sold, possibly through an initial public offering, in the second half of 2005.

The company has now decided to include its refineries at Grangemouth in Scotland and Lavera in southern France in the new venture. The two refineries have a combined refining capacity of 425,000 b/d of crude, and produce some 2.2-mil mt/yr of chemical feedstock, BP said. Both refineries are closely integrated with neighboring chemicals plants. "These two complexes are highly efficient manufacturing sites and are already integrated with their neighbouring petrochemicals plant. This gives us access to and security of feedstock supply and integration benefits for two major assets in the new company," CEO of the proposed olefins and derivatives entity Ralph Alexander said.

BP last week announced its intention to sell its linear alpha olefins (LAO) and polyalphaolefins (PAO) business under a new twin-track strategy for its petrochemicals sector.
Under this strategy, explained BP, the company will now approach aromatics and acetyls differently from olefins and derivatives (O&D), and will reduce total annual organic capital expenditures to about $750-million in 2006 from the current level of approximately $1-billion.
Discretionary spending will target the 'Advantaged' purified terephthalic acid (PTA), paraxylene and acetyls product lines, 'with a bias' to the Asian markets. BP said the exceptions will be the completion of the 900,000-t/y Secco ethylene cracker project in China and the ongoing ethylene capacity expansion at Chocolate Bayou, Texas.
BP, noting that the "Pressure on returns is particularly strong in the O&D business," said it will look at all options for performance improvements in that area. Assets that it believes have a more natural fit with other industry players will be offered for sale. BP also disclosed plans to sell its Fabrics and Fibers Division.
"These two management approaches recognize the differing strategic and performance agendas for the two parts of our portfolio," stated Iain Conn, petrochemicals chief executive. A twin-track approach reflects growing demand in China and BP's existing strong position in PTA and acetyls, compared to the more fragmented nature and lower growth in the European marketplace where O&D dominates BP's portfolio.
O&D has enjoyed significant investment in recent years and performs well in its sector, but nonetheless, Conn added, it needs to improve its performance relative to the rest of the BP Group.
Worldwide, BP has almost 6-million t/y each of PTA and paraxylene capacity and over 2-million t/y of acetic acid capacity.
The LAO and PAO business being sold has a total of 1.05-million t/y of capacity with production facilities in the U.S., Canada and Belgium.

BP plans announced Tuesday to consolidate the olefins and derivatives division of its petrochemicals business into a stand-alone entity, came as no surprise to many of the Asian participants, according to Platts polls on Wednesday.

One source close to the company said that murmurs of the move have been heard a while back already. Apart from its recent joint venture project with Sinopec in Shanghai, BP has assumed a low-key presence in Asia over the last four years. In April 2003, BP sold its share in Indonesia's PT Peni, one of its three joint venture partners in Asia which includes Bataan Polyethylene Corp and Polyethylene Malaysia. BP has been looking unsuccessfully in selling its stake in BPC for three years now, another source revealed. BP now intends to focus on the mid-stream petrochemical products such as the aromatics and acetyls.

Meanwhile, market sources were concerned that BP's plan to sell its O&D division in the second half of 2005 might not be able to attract sufficient buying interest. The company said that the divestment could be through an initial public offer. "A buyer may be hard to find," one source claimed, due to the general negative perception of the polymer business, given its cyclical nature and the massive competition. A source close to the company pointed out another consideration would be the company's economic viability due to a lack of upward integration in BP's feedstock system. At least 90% of BP's ethylene and propylene crackers in Asia are fed by naphtha which is linked to crude rather than gas; the latter tending to have a $200-300/mt margin advantage over the former, the source added. The new O&D business will be headed by Ralph Alexander, who was named as chief executive of BP's petrochemicals business with effect from Jul 1, 2004.

BP Steps Up Investment In China
http://www.bp.com/genericarticle.do?categoryId=120&contentId=2018233

BP announced today that it has signed a number of agreements covering investments totalling around $1 billion which will deepen its presence in the growing Chinese energy market.

“China, as one of the most rapidly expanding economies, offers significant opportunities for the BP Group, particularly its customer-facing businesses,” said Lord Browne, BP chief executive. “We have already demonstrated the benefit of combining our experience in operating world-class retail service stations and our world-leading petrochemicals technology with the local market knowledge of Chinese partners and we look forward to expanding this through new projects in the future.”
Building on the highly encouraging results from the BP and Sinopec acetic acid joint venture in Chongqing where the capacity is already being increased from 200,000 tonnes a year to 350,000 tonnes a year, BP today signed a heads of agreement to build a 500,000 tonnes a year acetic acid plant in Nanjing, Jiangsu province, through a 50/50 joint venture with Sinopec. The plant, which will incorporate BP’s Cativa technology, is expected to come on stream by the end of 2006 and supply acetic acid for use in such products as fibres, paint, adhesives, pharmaceuticals and printing inks in eastern China.

The company also signed a letter of intent to examine the viability of expanding production at the BP Zhuhai PTA plant from 350,000 tonnes a year to 1.2 million tonnes a year. The plant, which is located at Zhuhai in the Pearl River Delta, is a joint venture between BP (85 per cent) and the Fu Hua Group (15 per cent) and came on stream in September 2003. Both petrochemical projects fall within the ‘advantaged products’ portfolio which BP has said it intends to develop further, focussing on China and growth markets in Asia.

BP’s two Chinese retail service station ventures also took a step forward with the signing of the joint venture contracts and articles of association for both the BP Sinopec Zhejiang Petroleum Company Limited and the BP PetroChina Petroleum Company Limited. These joint ventures will each acquire, build and operate 500 retail service stations in the Zhejiang and Guangdong provinces respectively by 2007. BP has an initial 40 per cent stake in the BP Sinopec Zhejiang Petroleum Company and a 49 per cent holding in the BP PetroChina Petroleum Company.

In a separate move, BP also announced that it has agreed to be a partner in a hydrogen vehicle demonstration project being established by the Chinese Ministry of Science and Technology. Drawing on the experience it has gained through participating in similar hydrogen projects around the world, BP will design, construct, operate and supply hydrogen refuelling facilities for the project which will see hydrogen powered vehicles operating in Beijing and Shanghai.
The Ministry of Science and Technology, which is developing and co-funding the project together with the United Nations Development Programme and the National hydrogen programme, is still in the process of finalising details with other potential project partners but it is envisaged that it will become operational in mid 2005.

BP today announced a phased exit from its DF2 and DF3 acids and acetone manufacturing operations at Saltend, Hull, and with it a phased withdrawal from its formic acidギ酸 , propionic acidプロピオン酸 and acetone businesses, leading to a reduction in its European acetic acid production capacity.

Production on the DF3 unit will cease at the end of April 2005 and on the DF2 unit late 2006/early 2007. A total of approximately 190 job losses are expected as a result of this announcement though the company hopes that the majority will be through voluntary redundancy and redeployment.

Over the past 5 years BP has invested over ￡300m at Hull. All the remaining plants are of world-scale and utilise state of the art technology. The closure of the DF plants will improve the overall competitiveness of the Hull site, which will remain the second largest Acetyls manufacturing site in the world and the largest in Europe.

Making the announcement today, Hull’s Works General Manager, Gareth James, said, “It is with regret that I have to announce the phased closure of the DF plants at Hull. A review of our business has made it clear that it is not viable to continue to operate these assets. Unfortunately, this will mean that the number of BP jobs at Hull will be reduced but we will seek to limit the effects of this through voluntary early retirement and redeployment throughout the rest of the BP Group.

“For those who need to seek work outside BP, we will be providing a comprehensive career guidance facility and providing help to retrain and re-skill each individual. BP will also be contributing ￡500,000 to the Sirius Enterprise Agency to support the creation of new businesses and jobs in the local area.”

Murli Nathan, Performance Unit Leader for the European Acetyls business, confirmed that the decision to close is due to an increasing lack of competitiveness. He added, “high feedstock prices, which are linked to the oil price, coupled with the conversion costs on these assets mean that they are no longer economically viable to operate”.

Gareth James continued “The DF plants have been an important part of the Hull site for more than 30 years. However, they utilise a previous generation process technology which cannot compete against latest generation methanol carbonylation acetic acid production technology. BP will continue to produce acetic acid, acetic anhydride, vinyl acetate and ethyl acetate at its Hull site.”

Saltend Site, Hull:
Hull is part of the Aromatics and Acetyls business which in turn is part of the Refining and Marketing segment of the BP Group. Acetyls is a global business with operations in Europe (Hull), USA, Korea, Malaysia, Taiwan and China.
The DF2 and DF3 plants were commissioned in 1967 and 1972 respectively. They use naphtha as a feedstock to produce acetic acid, formic acid, propionic acid and acetone. The propionic acid, formic acid and acetone businesses will be exited. BP is committed to ensuring continuity of supply to its customers until the final closure date. Acetic acid will continue to be produced on other manufacturing assets on the site.
The combined output from DF2 and DF3 is approximately 380,000te/yr of product.
The remaining businesses of acetic acid, acetic anhydride, ethyl acetate and vinyl acetate have a combined production capability of in excess of 1 million tonnes/yr. Hull remains one of the largest sites of its kind in the world.
There are currently approximately 800 BP employees and 300 contract staff on the site.
Following a restructuring of the site in 1999 the Saltend Community Development Company Ltd, trading as Sirius, was formed to support the economy and community around the manufacturing site. The aim of the enterprise is to encourage new enterprises starting in the area, create local jobs, develop young people and support training and education in small and medium local companies. To date Sirius has been successful in creating 550 jobs in the area since its creation. Following this announcement ￡500,000 will be committed to further support the local community through Sirius.
Formic acid, propionic acid and acetone businesses:

Formic acid is widely used in treating and dyeing manmade fibres and hides and is also used in farming to suppress salmonella.
Propionic acid is utilised in the production of herbicides, perfumes, flavourings and food preservatives; it is also used to protect stored grain against fungi.
Acetone is used in the production of plastic coatings, pharmaceuticals and printing inks.

BP has introduced higher rate production runs of linear low density polyethylene at Grangemouth, Scotland, to meet growing market demand. This has been possible due to the successful introduction of a new best-in-class catalyst, NOVACAT® T, jointly developed between BP and NOVA Chemicals.

It is particularly suited for producing BP’s range of linear low density blown and cast polyethylene film grades.

The Innovene 4 production unit uses proprietary BP Innovene® gas phase technology and has achieved daily and monthly production records throughout this year. Sales in 2004 from this unit are expected to be around 10% up on 2003, with further growth expected in 2005.

“Our customers have really appreciated the full availability of BP’s hexene-based linear low density polyethylene products for both blown and cast applications, in line with their requirements to produce films with enhanced strength, optical performance and consistency,” said Carlino Volpone, PE Sales Manager.

Notes to Editors:
Linear low density polyethylene (LLDPE) is used widely in producing polyethylene film, a tremendously versatile material, used extensively in packaging, building and agriculture. BP’s polyethylene grades allow films to be produced with combinations of strength, transparency, gloss, sealing, barrier and surface properties optimised for different applications. (See “products” and “polymers” website at http://www.bppetrochemicals.com)

BP announced its Ziegler-Natta catalyst collaboration with NOVA Chemicals in 2001 and extended this collaboration to Metallocene and single site catalysts in 2002.

BP has licenced BP Innovene PE technology to 25 licensees in 15 countries.

BP’s gas phase Innovene plant at Granegmouth has a capacity of 320,000 tonnes per year which produces hexene-based LLDPE. BP has a second European plant using gas phase BP Innovene technology of 220,000 tonnes capacity, located at Koln, Germany which produces butene-based LLDPE.

Last month, BP and NOVA Chemicals announced plans to form a European styrene polymers joint venture starting in 2005.

BP announced today that it would close its Linear Alpha Olefin (LAO) production facility in Pasadena, Texas, by the end of 2005. The company will continue the manufacture of linear alpha olefins at its other two facilities in Alberta, Canada and Feluy, Belgium.

Closure of the Pasadena site will reduce BP’s global linear alpha olefin capacity by 500,000 tonnes (1.1 billion pounds) per year.

According to George Tacquard, Senior Vice President of BP’s Global Derivatives business, the closure is the result of an extensive review of the company’s global linear alpha olefins business and prospects for the LAO industry.

“The LAO industry has faced a very difficult environment for the past few years, with overcapacity, slow demand growth, and high feedstock and energy costs. The Pasadena site is our oldest production site, and the closure of these older assets will allow our LAO business to focus resources on keeping our two newer sites at Feluy and Joffre competitive,” Tacquard said.

BP’s worldwide production capacity grew to 1.05 million tonnes (2.3 billion pounds) with the startup of the Joffre, Alberta plant in 2001. Expansions by BP and other producers during the last several years have added over 450 thousand tonnes (1 billion pounds) of capacity, resulting in an industry overcapacity.

“By taking this action, BP will position the LAO business for a profitable future in our portfolio, despite the continued challenging environment” Tacquard added. “BP will continue to supply customers from its Joffre and Feluy facilities”

The Pasadena site is the oldest of BP’s three operating LAO plants and dates back to the 1960s when it was originally built to make linear alcohols for use primarily in detergents. In 2002 BP ceased production of linear alcohols at the Pasadena site.

BP also operates a polyalphaolefin (PAO) plant in Deer Park, near the Pasadena site. Operations at this unit are not affected by the closure of the LAO unit.

After the restructuring, BP will have an annual linear alpha olefin production capability of 300,000 tonnes (660 million pounds) at Feluy, Belgium and another 250,000 tonnes (550 million pounds) at the Joffre, Alberta plant.

BP Petrochemicals is one of the world’s largest petrochemicals companies with chemical production capacity of about 34.5 million tonnes (76 billion pounds).

Note to editors:
Linear alpha olefins find application in a wide variety of end uses including comonomers for polyethylene, synthetic lubricants, surfactant intermediates, base oil for synthetic drilling fluids & lubricant additives.

BP announced today that the name of its new olefins and derivatives subsidiary will be Innovene.

Innovene will be formed as a separate entity within the BP Group in April, with more than $9 billion in assets and $15 billion in third-party sales globally. The new company will be headquartered in Chicago and have more than 8,500 employees at 26 principal sites around the world.

“Innovene combines the best in our BP heritage with the focus and discipline of being independent. Our new name speaks to our aspiration to challenge ourselves and the status quo in our sector,” said Ralph Alexander, CEO. “Like BP, we are a truly global company, with major operations in Asia, North America and Europe.”

The choice of name for Innovene was built upon interviews and research conducted among the company's employees, customers and industry analysts worldwide.

Innovene will be among the five largest petrochemical companies in the world and a Fortune 150-scale company, with global production of more than 15 million tonnes of petrochemicals a year.

Notes to editors:
Innovene's new company's logo can be downloaded from the link below:
Innovene logo
Innovene will be created as a wholly owned subsidiary of BP on April 1, 2005. BP expects to sell the company later in 2005, possibly by way of an IPO, subject to necessary approvals and market conditions.
Innovene's major manufacturing sites include Grangemouth in Scotland, Lavera in France, Koln in Germany and Lima, Chocolate Bayou and Green Lake in the US. SECCO, the joint venture with Sinopec and SPC in Shanghai and the largest petrochemical complex in China to date, is due to become fully operational in the next few months.
Innovene manufacturers petrochemicals, including olefins (ethylene and propylene) and their derivatives such as polyethylene, polypropylene, acrylonitrile, linear alpha olefins, polyalphaolefins, and solvents, as well as gasoline, diesel and other refined products made in the Grangemouth and Lavera refineries. These chemicals are used to make a wide variety of plastic goods, including food and drink containers and wrappings, pipe work, automotive parts and mouldings of all kinds.

BP and NOVA Chemicals Corporation today announced they have signed binding agreements to merge their European styrenic polymers businesses into a 50:50 Joint Venture. As previously announced in November 2004, the transaction to form the Joint Venture will be cashless.

The Joint Venture will be named NOVA Innovene, after its shareholders NOVA Chemicals and Innovene, BP's newly formed olefins and derivatives business.

Also today, Innovene and NOVA Chemicals announced the nomination of two senior managers to lead the Joint Venture.

Martin Pugh, currently Vice President and Managing Director for NOVA Chemicals in Europe, will serve as Managing Director of NOVA Innovene. Chris de la Camp, currently the Controller of the Innovene Styrenics business, will be Finance Director of the new Joint Venture.

NOVA Innovene plans to deliver market-leading styrenic polymers to its customers and to become the most cost-effective producer in the European market. Innovene and NOVA Chemicals expect to commence operations of the Joint Venture, following regulatory and other approvals, in the third quarter of 2005.

NOVA Chemicals produces commodity plastics and chemicals that are essential to everyday life. Our employees develop and manufacture materials for customers worldwide who produce consumer, industrial and packaging products. NOVA Chemicals works with a commitment to Responsible CareR to ensure effective health, safety, security and environmental stewardship. Company shares are traded on the Toronto and New York stock exchanges as NCX. Visit NOVA Chemicals on the Internet at www.novachemicals.com.

BP separated its $15bn turnover olefins and derivatives business ・now called Innovene ・with effect from 1 April 2005 ready for a possible IPO in second half of 2005, subject to market conditions and receipt of all necessary approvals. The NOVA Innovene joint venture will form an important part of the new company.

Shanghai Secco Olefins JV to Stay with BP After Innovene Spin-Off

BP says its 50% stake in the Shanghai Secco Petrochemical joint venture will remain with the BP group following the spin-off of BP's Innovene olefins and derivatives business later this year. BP originally intended to include the Secco stake with Innovene. The decision leaves Innovene without a production base in China. Secco recently began production at a $2.7-billion olefins and derivatives complex at Caojing, near Shanghai. BP's partners in the jv are Sinopec and Sinopec's Shanghai Petrochemical affiliate. BP says it decided to keep the Secco stake because the jv proved "contractually difficult to disengage from." Secco also builds on BP's strong relationship with Sinopec, BP says. That includes the Yaraco acetyls jv at Chongqing, China and an acetic acid jv that is under construction at Nanjing, China. "The overall value of Secco to BP shareholders is likely to be higher," BP says. Secco is based on a 900,000-m.t./year ethylene plant and produces acrylonitrile, aromatics, polyolefins, polystyrene, and styrene. BP plans to float Innovene on the New York Stock Exchange by the end of this year. Innovene has operated as a stand-alone entity within the BP group since April 1. Meanwhile, Innovene is planning a $2-billion ethylene and derivatives jv at Al Jubail, Saudi Arabia that it says will sell mainly to Asian markets.

India's Reliance may be preparing to bid for BP unit Innovene - report

Reliance Industries Ltd is believed to be putting together the finishing touches of a plan to bid for Innovene, the wholly-owned subsidiary of BP PLC, the Economic Times reported, citing industry sources.
In April 2004, BP announced plans to separate its olefins and derivatives business into a separate company to enable a possible sale through an IPO some time in the second half of this year.
That company, Innovene, was formally established in April this year with about 15 bln usd in revenues and 9 bln in assets.
Though BP had committed to Innovene employees at the time of the separation that it would list the company through an IPO and not sell it to a strategic investor, the company may be keeping other options also open, the newspaper cited industry sources as saying.
But it is not known whether BP has begun a formal process to sell a stake in the company, the report said.
Reliance officials could not be reached for comment, it said.

Reuters 2005/9/12

BP chemical unit Innovene sets $1 billion IPO

The main petrochemical subsidiary of oil giant BP Plc, Innovene Inc., said late on Monday it was planning a U.S. initial public offering (IPO) to raise $1 billion.

BP, which said last year it would either sell or float the business, did not say what percentage of Innovene it would sell. Analysts had expected BP to float 20 to 30 percent of the business, which has been valued at around $6-7 billion.

The IPO could see BP boost its cash returns to shareholders, Citibank said in a research note on Tuesday.

The decision to go ahead with IPO plans may force the hand of Reliance Industries Ltd.,-- a $24 billion listed Indian petrochemicals firm which has been linked to a possible bid for BP's olefins and derivatives arm.

The filing with the U.S. Securities and Exchange Commission also follows Innovene's deal earlier this year to build a $2 billion plastics plant in Saudi Arabia in a move to orient the unit toward fast-growing Asian markets.

Under the memorandum of understanding signed with Saudi-owned Delta International, Innovene will build a "cracker" unit, which will convert natural gas into ethylene, the raw material for plastic wrappings and containers.

Analysts have said the joint venture could make Innovene, which is headquartered in Chicago, more attractive to investors.

Goldman Sachs & Co., Morgan Stanley, Lehman Brothers and UBS Investment Bank are listed in the IPO prospectus as underwriters.

On Aug. 28, the Times of India said Reliance Industries, flagship of the Ambani family's Reliance group and India's largest company, may be close to launching a bid for an unnamed business that bore a close resemblance to Innovene.

The newspaper said a bid could put Reliance among the world's top five petrochemical companies, from 10th now.

"Speculation is rife that (chairman Mukesh Ambani) is close to launching a bid for a $15 billion North America-based company which in turn is a wholly-owned subsidiary of one of the world's biggest multinational giants with a name that is synonymous with petroleum," the newspaper said.

BP was formerly known as British Petroleum.

V.K. Sharma, director of research at Anagram Stock Broking Ltd. in Ahmedabad, India, said Reliance was on the lookout for an acquisition and that it was capable of raising enough money to buy out a company of Innovene's size.

"If Reliance is serious about Innovene, then they should be moving in quickly. If you wait for the company to get listed then it would bring about a lot more legal formalities and even valuations could go higher," Sharma said.

In its statement on Monday, Innovene said it plans to list its common stock on the New York Stock Exchange under the symbol INV.

It had revenue of $11.1 billion in the first six months of 2005, compared with $7.8 billion in the same period last year, according to the SEC document.

On June 30, Innovene said, total petrochemical production capacity was about 40 billion pounds per year and its refineries had a combined crude oil distillation capacity of about 400,000 barrels per day.

BP, which is selling shares in the IPO, will receive the proceeds from the IPO, Innovene said.

Innovene said it planned to declare a quarterly cash dividend on each common share after the IPO, starting with the first quarter of 2006.

BP is planning a second world-scale PTA (purified terephthalic acid) plant at their BP Zhuhai Chemical Company Limited (BP Zhuhai) site in Guangdong Province, China.

BP Zhuhai, a joint venture between BP (85 per cent) and Fu Hua Group (15 per cent), currently operates a 350,000 tonnes a year PTA plant at the site and will also own and operate the new plant.　富華集団

The new plant, with a capacity of 900,000 tonnes a year, will be the first to employ BP’s latest generation PTA technology and, subject to final approval from the Chinese Government, is expected to come on stream at the end of 2007 to meet PTA demand growth in China.

Steve Welch, BP Group Vice President, Aromatics and Acetyls, said: “This investment will be the world’s largest single train PTA plant, built in the world’s largest and fastest growing PTA market with the world’s best technology - once again reinforcing BP’s commitment to the PTA business and to China.”
BP’s new technology enables scale and cost efficiencies which significantly reduce both capital cost and conversion costs. In addition, the new plant will deliver a step change in environmental performance, reducing both greenhouse gas emissions and other waste streams.

“The significantly reduced environmental and energy footprint of the new technology will help China meet its commitments to the environment and should set a new standard for others to follow in this important arena,” said Welch.

He added: “With the commercialisation of this new technology, we will actively pursue additional PTA investment options in China and extend our franchises in Europe and North America.”

Components of the technology to be used at Zhuhai are also applicable across BP’s global PTA system, enabling new globally competitive expansion options. BP is actively progressing major debottleneck projects in North America and Europe to take advantage of its enhanced technology position to meet regional demand growth and to improve BP’s leading supplier position in these regions.
The Zhuhai project has already received approvals from the Chinese Environment Protection Agency and the project application has been submitted to National Development & Reform Commission (NDRC).

Upon final approval from the Chinese Government, the Zhuhai project will be built with significant local engineering, procurement and construction in addition to applying project experience from BP’s global system of 21 operating PTA units.

Notes to editors

BP today announced that it is to sell Innovene, its olefins, derivatives and refining group, to UK-based INEOS. The $9 billion cash sale, subject to regulatory approvals, includes all Innovene's manufacturing sites, markets and technologies. The sale is expected to be concluded early in 2006 at which time payment will be received by BP.

"Innovene has proved to be a very attractive business to its peers in the chemicals sector," said Lord Browne, BP Group Chief Executive. "This deal is the very best of a number of good offers. I'm delighted with the outcome which is excellent for BP's shareholders and for Innovene's future."

BP first announced the intention of separating its olefins and derivatives business from its petrochemicals portfolio in April 2004 with an initial public offering (IPO) as one, possible, disposal option. In the interim, it received a number of approaches from companies considering a trade sale leading to this decision instead of the IPO.

Browne said that the decision to sell Innovene in its entirety removed any uncertainty around market conditions at the time of an IPO, as well as would-be investors' concerns about BP's remaining stake and future intentions.

"Consistent with existing BP practice, we remain committed to returning excess free cash flow, including the net proceeds of this sale, to shareholders," he added.

"This is a transformational acquisition elevating INEOS to the world's fourth largest independent petrochemicals company," said Jim Ratcliffe, INEOS Chief Executive. "INEOS and Innovene share a BP heritage of high quality people, assets and technology and are highly complementary businesses."

Innovene is the 100 per cent BP-owned group created in April 2005. It has 8,000 staff, manufacturing facilities in seven countries in North America and Europe; $18 billion revenues in 2004; $13 billion of gross assets; $9.9 billion of net assets; pre-tax profits (Jan-Jun 2005) of $0.7 billion; 18 million tonnes of annual petrochemicals capacity and 412,000 barrels per day of crude oil refining capacity.

Innovene's chief executive is Ralph Alexander and its chief financial officer is Mark Tomkins. Innovene manufactures olefins and related products which are the raw materials for plastics, packaging and textiles industries; and operates two refineries in Europe.

BP was jointly advised by Goldman Sachs and Morgan Stanley on the IPO and sale.

Notes to editors:
BP announced the separation of its olefins and derivatives business in April 2004. It then added two refineries (Grangemouth, UK, and Lavera, France) to the business in November 2004, and created the 100% BP-owned Innovene subsidiary in April 2005.

BP is the world's second largest integrated oil and gas company, operating in more than 100 countries with over 100,000 staff and turnover of $285 billion.

INEOS is a leading global manufacturer of speciality petrochemicals and comprises 10 business units each with a major chemical company heritage. Its production network spans 46 manufacturing facilities in 14 countries.

Innovene assets included in sale agreement:

日本経済新聞　2005/10/14

ＢＰ、中国石油大手と提携交渉

英系メジャー（国際石油資本）のＢＰと中国の中国石油化工集団（シノペック）が提携交渉に入ったと、英フィナンシャル・タイムズ紙などが１３日に報じた。同紙やロイター通信によると、ＢＰが海外で持つ油田権益と交換に、シノペックの株式を取得することが提携の柱になるという。

Britain's BP Plc has held talks with Chinese officials over a possible partnership with top oil refiner Sinopec Corp., the Financial Times reported on Thursday.

BP Chief Executive John Browne met China's President Hu Jintao on the sidelines of a United Nations meeting in New York last month, the newspaper said.

"Browne has big ambitions for China," the report quoted an unnamed BP executive as saying. "China needs the feedstock, BP has got it and BP wants access to the market."

Top-level talks have been going on for some time, the FT said.

Browne will again meet high-level officials in Beijing this month, a second person close to BP said, the FT reported.

The deal would be as ambitious in scope as BP's 2003 partnership with Russia's TNK, the FT said, citing several sources including bankers, diplomats and oil executives in China, Britain and the United States.

A partnership with Sinopec, China's largest refiner and marketer, would give BP unparalleled access to the most important growing market in the world, the report said.

Sinopec would benefit from BP's upstream exploration activities, according to the FT.

A BP spokesman declined to comment directly.

"We have a number of joint ventures in China," he said. "We talk to our joint venture partners regularly on a number of issues, including ongoing business and future possibilities."

Any deal would face close scrutiny from the Chinese authorities, the FT said. China, the world's second-largest oil consumer, has already raised several concerns.

News that Lord Browne is negotiating a big deal with China's Sinopec will come as no surprise to observers of his decade-long tenure as chief executive, writes Thomas Catan in London. Lord Browne, 57, has come to be known for his audacious takeovers of companies around the world, which saw BP emerge as the second-largest publicly traded oil company in the world. At the end of the 1990s, Lord Browne masterminded the takeover of US oil companies Amoco and Arco, followed by the purchase of lubricants and chemicals company Burmah Castrol in 2000. In 2003, he bought 50 per cent of Russian oil company TNK, the first and last time a foreign oil company was allowed to gain such access to Russian oil. The company has given BP unrivalled access to new resources, which now account for a quarter of BP's 4m barrels a day of oil production. Lord Browne has his critics. Some say BP's rapid growth through mergers has contributed to a poor safety record. Others worry that his strong grip on the company and big bets could expose it to unnecessary risks. Last year, BP paid its chief executive ￡3.75m in cash and ￡1.9m in shares.

ジョン・ブラウン卿 　　BP p.l.c.グループ最高経営責任者。

Following the launch of BP Alternative Energy in November 2005 and the sale of Innovene to INEOS in December 2005, certain assets have been transferred between segments to reflect the operational structure of the Group. These transfers are effective from 1 January 2006. Financial information for 2005 and 2004 has been restated to reflect these transfers.

These three transfers are illustrated below:

Descriptions of the transferred assets:
・Shanghai Ethylene Cracker Complex (SECCO) is an integrated olefins and derivatives site with a 900kte Ethylene cracker and a number of downstream derivative facilities. It is a JV between BP (50%), Sinopec (30%) and Sinopec Shanghai Petrochemical Company (20%). The site commenced operation in 2005
・Malaysia Interests comprise:

a 430 kte Ethylene cracker through the Ethylene Malaysia Sdn. Bhd. (EMSB) associated undertaking between BP (15%), Petronas (72.5%) and Indemitsu (12.5%); and
a 310 kte Polyethylene cracker through the Polyethylene Malaysia Sdn. Bhd. (PEMSB) associated undertaking between BP (60%) and Petronas (40%)

・Watson Cogen in the Carson refinery is a 410MW cogeneration facility providing steam and power to BP's Carson refinery in Los Angeles, CA. (and to third parties). The cogen plant is jointly owned by BP (51%) and Edison-Mission (49%) and first entered operation in the mid-1980s
・South Houston Green Power (SHGP) Cogen in the Texas City refinery is a 700MW cogeneration facility supplying steam and power to BP's Texas City refinery in Texas (and to third parties). The cogen plant is a JV between BP (50%) and Cinergy (50%) and first entered commercial operation in 2004
・Phu My phase 3 is a 720MW gas-fired CCGT located in Vietnam. The plant is an Equity Accounted associated undertaking between BP (33.3%), Semcorp (33.3%) and Kyushu Electric (33.3%). The plant began commercial operation in 2003
・the Hydrogen for Transport team participates in demonstration projects across Europe, Asia and the US, in partnership with both governments and auto manufacturers. BP provides the infrastructure for these projects through hydrogen refuelling stations

BP today confirmed that it is proceeding with its project for a major increase in purified terephthalic acid (PTA) production capacity at its Geel, Belgium, plant and also announced that it has recently completed a significant increase in the plant's paraxylene (PX) production capacity.

The planned debottleneck of PTA production at Geel will increase capacity by more than 350,000 tonnes a year, making the total PTA production capacity of the Geel site some 1.4 million tonnes a year.

The increase will be achieved by retrofitting the latest generation of BP's proprietary PTA technology to Geel's two existing PTA production units. This new process offers the lowest capital cost per tonne of PTA capacity of any current technology and also lowers variable costs significantly compared to conventional PTA technology. It is already being applied to new PTA production BP is building in Asia, such as the new 900,000 tonnes a year plant planned for Zhuhai, China.

BP has completed initial engineering design work for the Geel debottleneck and expects the expansion to be fully operational early 2008.

Laurence Mulliez, BP's vice president, PTA Europe, Middle East & Africa said: 'BP is committed to maintaining our leading position in the European PTA market and continuing to grow capacity to meet our customers' demands. Our latest PTA technology has allowed us to achieve this at a very low capital cost while actually lowering operating costs, and so reinforces Geel’s leading position in the European market'.

Dave Miller, Global PTA President said, 'We are looking at all our PTA plants across the world to identify other opportunities for applying this new technology in similar debottlenecking projects, particularly in North America. We will also be considering what options this new technology will give us for future capacity increases in Europe.'
As well as expanding PTA production capacity, application of the latest advances in BP's proprietary paraxylene production technology to Geel’s PX unit in 2005 has now increased capacity of the unit to 560,000 tonnes a year - over 30 per cent higher than the original design capacity of the unit, commissioned in 2000. The use of BP's PX crystallisation technology has made the plant one of the most energy-efficient PX plants now operating.

'The material breakthroughs we have made in both PTA and paraxylene technologies have made our processes even stronger from environmental, energy efficiency and cost perspectives and demonstrate the strength of the continuing developments we are making in these areas,' added Mulliez. 'They clearly reinforce our leadership position in the polyester chain globally and, we believe, confirm us as the partner of choice for PX and PTA developments worldwide.'

Notes to editors
PTA is the preferred raw material used to manufacture polyethylene terephthalate, a widely used polyester polymer for the production of textiles, bottles, packaging and film products. Paraxylene is a key feedstock for PTA production.

BP has been a leader in PTA for over 30 years, with a strong record of growth and innovation in this business. BP has a global PTA production capacity share of 21 per cent on an equity basis (or 31 per cent including joint ventures). BP operates 21 PTA plants located in Asia, the Americas and Europe with a total combined annual production capacity of more than 9 million tonnes.

BP is also a leader in the PX Business with a global production capacity share of 11%. BP's PX assets are in the Americas and Europe with a total combined annual production capacity of 2.9 million tonnes.

Geel (Belgium) is the integrated production site for BP's PTA and PX manufacturing in Europe. Its annual production capacity for PTA & PX has grown from 300.000 to 1.4 million tonnes over the timespan of a decade. Cost effective rail and road connections reach all major European markets, and make the site very attractive in terms of logistics. The Geel site is also advantaged as part of BP's extensive PTA & PX technology and manufacturing networks, contributing to developments on safe, reliable and cost & energy effective manufacturing.

Platts 2006/6/26

BP starts construction of 900 kt/year PTA unit in Zhuhai, China

BP held a ground breaking ceremony to herald the construction of its new purified terephthalic acid plant in Zhuhai, China on Friday. The new unit will be an expansion of BP Zhuhai, an existing joint venture between BP and Fu Hua Group, said a company source Monday.
When commissioned at the end of 2007, it will be the world's largest single train PTA unit with a capacity of 900,000 mt/year, and will bring the combined capacity from the company's Zhuhai site to 1.4 million mt/year, the source said.
"The new technology we are deploying with Zhuhai No 2 will result in the most efficient PTA plant in the world. Compared to conventional PTA technology, Zhuhai No 2 will require much less energy to operate, reduce green-house gas emissions by 65%, liquid waste discharges by 75% and solid process waste by 40%, meaning this investment will meet China's needs for
economic growth that efficiently utilizes resources and respects the environment," said Dave Miller, Global PTA Business Unit Leader.
The project will also draw heavily on local resources. "Zhuhai No 2 will involve many Chinese companies in engineering, procurement and construction and over 50% of material and equipment will be sourced within China. By employing a highly localized Chinese project execution plan, Zhuhai No 2 will deliver the world's lowest capital cost to build," said Yan Qian, Chairman of the Fu Hua Group.
Zhuhai No 2 will significantly expand BP's in-country supply capability to serve the fast growing China PTA demand and provide competitive feedstock for the Chinese polyester and textile industry, particularly those located in South and Central China, according to Paul Lo, BP Zhuhai's president.
PTA is used to manufacture polyethylene terephthalate, a widely used polyester polymer for the production of textiles, bottles, packaging and film products. In China, 90% of PTA production is used in the textile industry. Government statistics show that China's PTA consumption in 2005 exceeded 10 million mt, of which only around 52% was supplied by domestic
production.
The Zhuhai project has already received approvals from the National Development & Reform Commission and the Chinese Environment Protection Agency, said a BP company source.

2006/7/18 BP

BP to Market Share of SPC in Korea

BP announced today that it has decided to pursue a sale of its 47.41% equity interest in Samsung Petrochemical Co., Ltd. (SPC), its joint venture with Samsung located in South Korea. SPC is one of the leading producers of purified terephthalic acid (PTA) in Asia with a total production capacity in excess of 1.8 million tonnes per year. PTA is the preferred raw material used to manufacture polyester.

Dave Miller, president of BP's global PTA business said,"SPC is an excellent business with a solid performance track record and is well-positioned for continued growth. BP and Samsung however have different views of SPC's future strategy and BP believes if it is able to achieve an appropriate price, exiting is in the best interest of SPC and its shareholders. BP remains firmly committed to maintaining our global leadership position in PTA and to providing reliable and competitive PTA supply to our customers. We are focused on rapid deployment of our new lower cost PTA technology as evidenced by our recent announcements regarding the ground breaking on our new 900,000 tonne Zhuhai 2 unit in China, and the 350,000 tonne expansion of our Geel facility in Europe."

Note to editors
BP is one of the world's largest oil and gas companies, serving about 13 million customers every day in more than 100 countries across six continents. BP's business segments are Exploration and Production; Refining and Marketing; and Gas, Power and Renewables which includes its Alternative Energy business. Through these business segments, BP provides fuel for transportation, energy for heat and light, retail services, and petrochemicals products.

SPC is currently owned by BP (47.41%), Samsung (47.41%) and Shinsegae (5.18%). It is staffed by Samsung personnel, headquartered in Seoul and operates four PTA plants on two separate sites; Ulsan Petrochemical Complex (approximately 400 km from Seoul) and Daesan Petrochemical Complex (approximately 145 km from Seoul and 400 km from China) with a total production capacity in excess of 1.8 million tonnes per year).

PTA is the preferred raw material used to manufacture polyethylene terephthalate (PET), a polyester polymer widely used for the production of textiles, bottles, packaging and film products.

BP has been a leader in PTA for over 30 years, with a strong record of growth and innovation in this business. BP has a global PTA production capacity share of over 20 per cent excluding JV partner share. The number of PTA units operated by BP and its joint ventures is 21 at sites located in Asia, the Americas and Europe with a total combined annual production capacity of more than 10 million tonnes (including JV partner share).

BP has enjoyed more than 30 years of success in South Korea and remains fully committed to the country. BP's other activities in South Korea - Samsung BP Chemicals, Asian Acetyls, K-Power, lubricants and shipping - are unaffected by the decision to exit SPC.

Peter Sutherland, chairman of BP, yesterday stamped his authority over the energy group by forcing Lord Browne, its widely admired chief executive, to announce he would retire at the end of 2008.

Echoing words used by Mr Sutherland in private, Lord Browne said yesterday that "a company isn't about one person".

The two men had feuded over the announcement, with Lord Browne reluctant to commit himself to a departure date. Yesterday they reached a compromise that saw Lord Browne promising to go but extending his stay to the end of 2008, rather than February 2008, when he turns 60.

However, even as the company was trying to draw a line under the row, lingering tensions between the two camps resurfaced, particularly over a now-abandoned plan for BP to pursue a merger with Royal Dutch Shell, the company's European rival.

People close to Mr Sutherland and Lord Browne denied that the idea - resisted by the chairman and other board members - fuelled tension between the two.

The move, described earlier this week by sources close to Lord Browne as a "significant potential merger", was yesterday officially dismissed as nothing more than "scenario planning".

A senior BP executive said there was never "a serious proposal", while another said that Shell had not been prepared to discuss the idea when it was being floated by executives in the latter half of last year.

However, two insiders insisted the idea of a transformational merger had been closed down by Mr Sutherland. "Peter was less comfortable with the idea than John [Browne]," one said.

Yesterday Lord Browne gave an unequivocal pledge to leave BP on December 31 2008, adding he would decline to stay on, even if the board requested it.

He denied a rift with his chairman, saying the reason for his going was not age but tenure.

The tensions between Mr Sutherland and Lord Browne have raised questions over how much power the chief executive will exert in his remaining 18 months. Friends had mounted a weekend campaign designed to extend his tenure after Mr Sutherland had told him to "end the uncertainty" over his departure plans.

"At the end of 2008 I will have been CEO of BP for over 13 years and that is quite a long time." Lord Browne added: "This has been a matter of discussion for the chairman, the board and me for a very considerable time."

Bruce Evers, of Investec Securities, said: "Lord Browne is going to be an exceptionally hard act to follow. He is without question the leading oil man of his generation . . ."

BP yesterday reported record net replacement cost profit of $6.1bn (£3.2bn), a 23 per cent rise on last year. High oil prices and strong US refining margins helped offset a decline in production. The company announced sweeping changes to its US operations, which have been rocked by accidents in the past 18 months. BP America will get an advisory board for safety, compliance and regulatory affairs and an extra $1bn on top of $6bn - to improve operational standards and monitoring.

BP also said it would hire external auditors to ensure compliance at its trading operations which were hit recently by accusations from US authorities of market manipulation in 2004.Additional reporting by Toby Shelley in London

BP Agrees Major Exploration and Production Deal with Libya

BP's single biggest exploration commitment," says BP group chief executive.

BP and its Libyan partner, the Libya Investment Corporation (LIC), today signed a major exploration and production agreement with Libya's National Oil Company (NOC). The initial exploration commitment is set at a minimum of $900million, with significant additional appraisal and development expenditures upon exploration success.

The agreement was signed today in Sirt, Libya, by BP's group chief executive Tony Hayward and NOC chairman, Shokri Ghanem.

BP and the LIC will explore around 54,000 square kilometres (km2) of the onshore Ghadames and offshore frontier Sirt basins, equivalent to more than ten of BP's operated deepwater blocks in Angola. Successful exploration could lead to the drilling of around 20 appraisal wells.

During this exploration and appraisal phase, BP will acquire 5,500km of 2D seismic and 30,000km2 of 3D seismic and will drill 17 exploration wells.

"We are delighted to be working with the National Oil Company of Libya to develop their natural resources for domestic and international markets. Our agreement is the start of an enduring, long-term and mutually beneficial partnership with Libya," said Tony Hayward, BP group chief executive.

"With its potentially large resources of gas, favourable geographic location and improving investment climate, Libya has an enormous opportunity to be a source of cleaner energy for the world," said Hayward.

"This is a welcome return to the country for BP after more than 30 years and represents a significant opportunity for both BP and Libya to deliver our long term growth aspirations," said Hayward. "It is BP's single biggest exploration commitment."

BP will spend $50 million on education and training projects for Libyan professionals during the exploration and appraisal period, and, upon success, a further $50 million from commencement of production. The education and training programmes will be designed and managed in partnership with the NOC.

"The agreement reached today is a great success for Libya, the NOC and also for BP," said Hayward.

日本経済新聞　2007/6/23

BP、ロシアのガス田売却　ガスプロムに　事業の独占進む 　　　Kovykta project 　Gazprom

　石油メジャーの英BPは２２日、ロシアの合弁会社が保有する東シベリアのコビクタ・ガス田などの権益をロシア政府系エネルギー会社、ガスプロムに売却し、同ガス田の開発から撤退する、と発表した。ロシア政府から圧力を受けたためだ。日本企業も参加するサハリン沖の石油・ガス開発事業「サハリン2」に続き、外資の権益が奪われたことで対ロ投資への不信感が一段と強まりそうだ。

政府の撤退圧力に譲歩
　権益を手放したのは２００３年にロシア石油大手と合弁で設立したTNK-BP。同社は１兆９千億立方メートルの世界有数の埋蔵量を持つコビクタ・ガス田の権益(６２．９%分)とガスの輸送・販売会社、東シベリアガスの株式の５０%をガスプロムに譲渡する。売却額は７億－９億ドル(約８７０億ー１１００億円)。
　同時にBPはガスプロムとの間で共同エネルギー事業の推進や資産交換などを盛り込んだ戦略提携の覚書に調印した。BP側は「ガスプロムとの協力拡大は将来に重要な意味を持つ」との声明を発表した。
　ロシア当局はコビクタ・ガス田の生産量が計画を下回っている点を指摘、BP側に開発免許の取り消しなどの揺さ振りをかけていた。BP側は当初、コビクタから中国などアジア向けに輸出する予定だったが、輸送網を独占するガスプロムに阻止され、増産できない状態に陥っていた。
　BPは油田のほかコビクタ開発にも乗り出し、ロシア事業を拡大。TNK-BPはBPグループの原油生産量の４分の１に相当する日量１００万バレル以上を生産している。BPはロシア事業の命運をつなぐためにコビクタ撤退を余儀なくされた。
　ロシア政府は昨年、英蘭ロイヤル。ダッチ・シェル、三井物産、三菱商事が出資する「サハリン2」にも環境問題を口実に圧力を掛け、ガスプロムに過半数の権益を売却させた。米エクソンモービルや丸紅などが主導する「サハリン1」にもガスプロムを参画させるよう迫っている。

22 June 2007 BP

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:
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.

BP 2007/6/27

BP, ABF and DuPont Unveil $400 Million Investment in UK Biofuels

The wide spread availability of biofuels in the UK took a major step forward today as BP, Associated British Foods (ABF) and DuPont announced major investment plans, totalling around $400 million, for the construction of a world scale bioethanol plant alongside a high technology demonstration plant to advance development work on the next generation of biofuels.

The bioethanol plant, in which BP and ABF subsidiary British Sugar would each hold 45 per cent with DuPont owning the remaining 10 per cent, will be built on BP's existing chemicals site at Saltend, Hull. Due to be commissioned in late 2009, it will have an annual production capacity of some 420 million litres from wheat feedstock.

Although initial production would be bioethanol, the partners will look at the feasibility of converting it to biobutanol once the required technology is available.

"We are delighted to be announcing, subject to the necessary approvals, the construction of a world scale bioethanol plant in Hull with our partners ABF and DuPont to enable petrol biocomponents to be available to meet the 2010 Renewable Transport Fuel Obligation," said Iain Conn, chief executive officer of BP's refining and marketing business. "In addition we have also selected Hull as the preferred location for a planned biobutanol demonstration plant as laboratory research work on the production of this first advanced biofuel that we and partners DuPont will bring to market is progressing well."

Discussions are currently underway to explore strategic partnerships with grain trading business Frontier Agriculture for the supply of locally grown wheat feedstocks and with co-product marketing company AB Agri in relation to DDGS, a byproduct of bioethanol manufacture. It is expected that formal agreements would be finalised after regulatory approvals are obtained.
"We are delighted that this exciting new project has achieved this important milestone, and are confident that construction work will commence early next year after the required regulatory approvals are obtained," said Mark Carr, CEO of British Sugar. "Front end engineering and design work will commence immediately with Aker Kvaerner leading the project and their joint venture partner Praj providing the technology expertise."

Although the plant will be built from scratch, it will have access to the existing infrastructure at the BP site for essential supporting services. Once operational it will provide around 70 new full-time posts in addition to the employment opportunities generated by the construction phase.

The BP site in Hull has also been selected as the preferred location for a planned biobutanol demonstration plant, funded and owned equally by BP and DuPont which could produce around 20,000 litres of biobutanol a year from a wide variety of feedstocks.

"Over the last year, we have accelerated the commercial development of biobutanol," said John Ranieri, head of DuPont Biofuels. "The demonstration facility, which will begin operation in early 2009, will develop the processing parameters and further advance the commercial deployment of our new technology. At the same time, the growing market demand for biofuels is significant. We are concurrently investing in the Hull bioethanol facility with the intention to increase that investment once biobutanol process technology development is completed and conversion feasibility is validated."
To begin market development of biobutanol, BP and DuPont are also establishing initial introduction plans for biobutanol in the UK. The companies will import small quantities of biobutanol, sourced from an existing first generation manufacturing facility in China. The first product is expected to arrive by the end of the year and will be used to carry out infrastructure and advanced vehicle testing.

This testing will build upon initial laboratory engine tests using conventional butanol which indicated that butanol has similar fuel performance properties to unleaded petrol. In addition, work will be undertaken to gather comprehensive data on the environmental footprint and sustainability of this next generation fuel.

"The three initiatives we have announced today represent a significant first step in delivering BP's strategy for biofuels," commented Phil New, head of BP Biofuels. "As a UK based company, BP is delighted to be the first energy company to commit significant resources to building this important market of the future in the UK, and at the same time, bring a new product of global relevance closer to reality."

Notes to Editors:

Transport accounts for around 21 per cent of all carbon dioxide emissions.
The Renewable Transport Fuel Obligation (RTFO) requires 5 per cent of UK transport fuel to come from biofuels by 2010.
BP and DuPont announced the creation of a partnership to develop, produce and market a next generation of biofuels in June 2006. The partnership leverages DuPont's world-class biotechnology and bio-manufacturing capabilities with BP's fuels technology expertise and market knowledge.
Biobutanol has a low vapour pressure and its tolerance to water contamination in gasoline blends facilitate its use in existing gasoline supply and distribution channels. It has the potential to be blended into gasoline at larger concentrations than existing biofuels without the need to retrofit vehicles and it offers better fuel economy than gasoline-ethanol blends, improving a car's fuel efficiency and mileage.
BP is already a leading player in the biofuels market, accounting for around 10 per cent globally, blending and distributing 800 million gallons of ethanol in 2006.
BP is funding a $9.4 million project in India to demonstrate the feasibility of producing biodiesel from jatropha curcas.
BP's Bulwer Refinery in Queensland, Australia will produce around 110 million litres of biodiesel a year from tallow feedstock.

The coal-bed methane exploration that British Petroleum has talked about undertaking in southeastern British Columbia, to the alarm of some Montana officials, is now a formal proposal.

British Petroleum has asked the provincial government to grant a permit for exploration in the British Columbia side of the Flathead River basin and in the province's Elk River drainage, Kathy Eichenberger of the British Columbia Ministry of Environment said this week.

The transboundary Flathead River system extends into Montana, and a fork of the system serves as Glacier National Park's western boundary. Montana officials have expressed concern that coal-bed methane work north of the border could lead to environmental harm to a stateside area valued for its recreational opportunities and for wildlife that include endangered or threatened species, among them grizzly bears, lynx and bull trout.

Sen. Max Baucus, D-Mont., recently called on BP to halt plans for coal-bed methane work north of the border.

Montanans "enjoy sharing our legacy of hunting and fishing with our children and work hard to preserve our rivers, lakes, forests and rangelands for future generations," Baucus said in a prepared statement.

"It is for the these reasons that I will continue objecting to inappropriate energy development in the Flathead River basin."

Gov. Brian Schweitzer's staff intends to organize a state-province symposium late this year as part of an effort to revive discussions about the future of the Flathead drainage.

BP would be required to inject into the ground the water brought forth in coal-bed methane work, Eichenberger said Wednesday at a meeting of the Flathead Basin Commission, which is charged with monitoring Flathead water quality and working to safeguard it.

Researcher Erin Sexton of the University of Montana Flathead Biological Station maintains injection may be impractical in the Canadian Flathead because injected water is likely to return to the surface rapidly.

Eichenberger said exploratory drilling is unlikely to start this year, and added she is unsure when construction of roads to reach the exploration sites will begin.

The coal-bed methane controversy came soon after plans to develop a coal mine in the province's southeastern area were opposed in Montana. The proposal, by Cline Mining Co., has stalled.

BP、D1オイルズ、合弁企業設立へ
－バイオディーゼル原料ヤトロファ（Jatropha）を開発－

BPとD1オイルズは29日、50％ずつの出資で、D1-BP Fuel Crops Limitedという合弁企業を設立し、ヤトロファ jatropha の栽培を推進すると発表しました。ヤトロファは、食用には適さない油種のできる干ばつに強い木です。肥沃な農地を食用作物から奪うこともなく、熱帯雨林への悪影響もありません。より持続可能なバイオディーゼル原料をより広範囲で確保することが狙いです。

BPの精製・マーケティング部門の最高経営責任者（CEO）、イアン・コンは、合弁企業について次のように述べています。
「この合弁企業は、より持続可能で先進的な形で世界にエネルギーを供給することを目的とするBPの戦略をさらに一段階進めることになります。
「輸送部門では、複数のバイオ原料の混合が、数少ない現実的な前進のための選択肢の１つになっています。BPは今週、英国ハル市に世界規模のバイオエタノール工場を、バイオブタノール実証工場に隣接して建設する計画を発表し、ガソリンに代わるバイオ燃料の幅広い供給が現実に一歩近づきました。今回の合弁企業は、バイオディーゼルの世界で同様の進歩を可能にすることでしょう。」

合意に基づき、BPとD1オイルズは、向こう5年間で約１億6,000万ドルを投資する計画です。D1オイルズは、インド、アフリカ南部、東南アジアで経営している17万2千ヘクタールのプランテーションを、合弁企業のために拠出します。合弁企業は、D1オイルズの工場科学プログラムを通じて生産された、高品質のヤトロファ苗の独占的使用権を与えられます。
BPバイオフューエルズの経営トップ、フィル・ニューは次のように述べています。「ヤトロファは、ほかの多くの植物に比べて、農地としての価値の低い土地で、少ない農業用水で栽培が行える優れたバイオディーゼル原料です。「D1オイルズがヤトロファの最も生産性の高い種を特定しているため、合弁企業は、１ヘクタール当たりのヤトロファ油の生産を大幅に増加する種を手に入れることができます。」

合弁企業は主に東南アジア、アフリカ南部、中南米、インドを中心に、ヤトロファを栽培していきます。今後4年間で、100万ヘクタールに作付けが行われると見込まれています。その後の作付けは、年間30万ヘクタールと推定されています。自社の所有地または借地におけるプランテーションの直接経営に対して投資します。その過程で、投資先コミュニティで雇用を創出します。また、契約農家や種子の購入契約にも投資を行っていきます。

D1オイルズの最高経営責任者（CEO）のエリオット・マニス氏は、合弁企業について次のように語っています。
「これはD1オイルズにとっても、大きな転機となります。BPが、弊社とこの合弁企業を設立することは、持続可能なバイオディーゼルを作る原料として、世界規模でヤトロファを開発している我々の戦略を、BPが支持したという重要な意味合いがあります。
「我々が大きく前進をしたことを示しています。実績あるBPが、物流、管理、資金面で支援してくれれば、ヤトロファの栽培が広がり、拡大のペースを大幅に速めることになります。」
プランテーションで栽培したヤトロファ油は、地元のバイオディーセルの需要を満たすだけでなく、欧州などの海外市場向けにも利用されるでしょう。今後予想される環境規制の強化によって、バイオ燃料需要は2010年以降、年間約1,100万トンと見込まれており、国内の菜種油や廃油では賄いきれなくなることが予想されるからです。

BPのフィル・ニューは次のように述べています。「すべて計画通りにプランテーションが整備された段階で、この合弁企業は世界最大の原料ヤトロファの生産者となると見込まれています。ヤトロファ油の推定生産量は、年間200万トンです。「この作物は耐久性が高いため、幅広いタイプの土地で栽培できます。発展途上国の農村部で栽培すれば、地元の雇用に意義ある影響を及ぼします。これは、BPが理想としているお互いを利する関係の実現につながります。」

BP's answer to food-based ethanol
The oil giant believes an inedible plant called jatropha can ease global fuel demands. It could boost incomes in Africa and other impoverished regions too.

Can a poisonous plant become a biodiesel hero and help African economies in the process?
BP thinks so. It believes jatropha - an inedible plant used for hedges that was spread around the world centuries ago by Portuguese sailors - can dent global fuel demands without using up foodstuffs such as corn, soy and sugar cane, plus boost incomes in Africa and other impoverished regions.

In June the oil giant signed a $160 million deal with British biodiesel producer Dl Oils, creating a joint venture that aims to become the world's largest producer of jatropha oil by 2011. The new company expects to have nearly three million acres under cultivation within four years and process roughly two million tons annually - or 18% of Europe's expected biodiesel demand.

Big ethanol shakeout coming?
"The deal with Dl is all about developing a biofuels business," says BP spokeswoman Wendy Silcock. Half of the 12 countries targeted for bulk plantings are in Africa.

Because it can grow year-round in arid soil and is inedible, jatropha won't innate food prices or take up valuable cropland. Africa is considered ideal because of its proximity to European markets and low land and labor costs. "Jatropha is low input," says Steve Douty, executive director of Dl Oils. "It survives where others don't. It also grows best 25 degrees south or north of the equator. A big chunk of Africa is in that band."

In addition, Jatropha oil can be produced commercially within three years of planting, compared with seven years for palm oil; plus, it is a living fence that keeps cattle in and sand out and can survive for 50 years. Best of all, jatropha seeds generate up to 40% of their weight in oil with ample fertilizer and water, and 30% even in scrubland - far more than soybeans' 18%.

Jatropha sap has long been used in Latin American medicines for its antibacterial qualities. The seed is used for fertilizer in Africa because it is rich in soil nutrients, and the oil is used for French soaps. But pressing oil from its seeds for energy is recent, and current production is negligible. Today jatropha accounts for less than 1% of biodiesel fuel.

High oil prices and the rising cost of food oils make jatropha attractive - as does a looming European mandate requiring that 10% of all transport fuel be biofuel by 2020. Global biodiesel output needs to grow more than ninefold to meet that demand.

More on biofuels
Jatropha is becoming popular elsewhere as well. Energy-starved India led research into jatropha and is believed to have nearly 250,000 acres under cultivation. China reportedly has 100 times that. And in July, SE-Energy Technology announced it will build the largest U.S. biodiesel plant, using primarily jatropha, in Chesapeake, Va.

Even private equity is getting in on the act, says Turi Munthe, a London investor who is raising funds for a 124,000-acre jatropha plantation in Ghana. "Africa is the place for it."

BP announced today during a ceremony in the Great Hall of People in Beijing that it had signed a series of agreements to enhance its commitment to China. These agreements involve strategic integration and commercialisation of clean coal conversion technologies, wind power generation and world-class acetic acid production. The British Prime Minister, the Rt. Hon. Gordon Brown and the Chinese Premier Wen Jiabao, as well as officials from both British and Chinese governments, witnessed the signing.
"BP's total investment in China has exceeded US$4 billion since our arrival some three decades ago," said Dr Gary Dirks, BP president of Asia Pacific and China, at the signing ceremony. "Our commercial and social investments serve a clear purpose, which is to provide quality products and materials to help Chinese consumers improve their quality of life and protect the well-being of the environment. I am pleased that BP is continuing to take steps in delivering this commitment."

Clean Energy Commercialisation Centre
BP and the China Academy of Sciences (CAS) signed an agreement to undertake a feasibility study into a proposed Clean Energy Commercialization Centre (CECC) joint venture. This represents a major step forward following the signing of a Memorandum of Understanding in Shanghai last August.
Under the agreement, CECC is intended to integrate individual clean energy related technologies - coal gasification, coal to liquids, coal to chemical, carbon capture and storage, coal bed methane and underground gasification - from CAS institutes and other organizations both within and outside the PRC, into competitive integrated feedstock manufacturing and product distribution systems and solutions such as polygeneration complexes. The CECC would also serve as an international platform to foster collaboration among research institutes, enterprises and other institutions to improve indigenous Chinese innovation capabilities and market applications in areas such as clean coal conversion, zero emission and carbon capture and storage.
BP and CAS have also agreed that the CECC would act as a cooperation platform between the two parties in order to support the development of the Sino-UK clean coal conversion related near zero emission initiative, including technology development and demonstration projects.
BP and CAS believe that the commercialisation of clean coal conversion and other clean energy conversion technologies will make an important contribution to China's future energy security whilst also helping to reduce CO2 emissions and address China's future energy security and environmental sustainability issues. A full time working team drawn from both BP and CAS has been established to progress the feasibility study and the joint venture contract, with the aim of establishing the CECC joint venture by the end of 2008.

Wind Power
BP signed a framework agreement with Beijing Tianrun New Energy Investment Co., a subsidiary of Goldwind Science and Technology Co., Ltd., with the intention of jointly investing, constructing, and operating three 49.5 megawatt wind power plants near Bayan Obo in Inner Mongolia. The two parties have also agreed to explore further wind power investment opportunities in other areas of Inner Mongolia.

Acetic Acid
BP and Sinopec signed a Memorandum of Understanding to add a new 650k tonnes acetic acid plant at their YARACO joint Venture in Chongqing, upstream Yangtze River, Southwest China. This marks another major milestone in strengthening the existing partnership in acetic acid production and follows on from the successful investment in Yangtze River Acetyls Company (YARACO) in Chongqing, and in the BP Yangtze Petrochemicals Acetyls Company (BYACO) in Nanjing.
This world-scale acetic acid plant, using BP's leading Cativa(r) technology, would have an annual capacity of 650,000 tonnes. The plant is estimated to be on stream in 2011, when the total production at the YARACO site will be well over one million tonnes per annum, making it one of the largest acetic acid production locations in China.

BP and AAR Move to Resolve Joint-Venture Dispute

An overhaul of the governance structure of Russia's third largest oil company, TNK-BP, has been agreed in principle by the two main owners, BP and Alfa Access-Renova (AAR). The aim is to better align their respective interests and improve the transparency of TNK-BP's equity.

A memorandum of understanding (MOU) signed today and due to be finalised in detail over the coming months, envisages the re-structuring of the TNK-BP board through the appointment of three new directors independent of either side.

The MOU also includes an option to sell up to 20 per cent of a subsidiary of TNK-BP through an initial public offering (IPO) on the international financial markets at an appropriate future point, subject to the consent of the Russian authorities.

BP chairman Peter Sutherland said that an agreement would align the two sides around a shared agenda for value growth and allow BP and AAR to move forward, relieving recent tensions.

"It will create a stable base from which to grow the joint venture to the benefit of everyone involved, including the Russian state for which strong capital investment and continued technical innovation to boost declining oil output are so important," Sutherland said.

BP chief executive Tony Hayward described the agreement as "a sensible means of resolving a situation that could not continue without causing serious damage to what has been an immensely successful joint venture for all concerned.

"I now look forward to a fruitful conclusion of negotiations so that we can rebuild trust with AAR and resume our record of success for the benefit of all parties," he said. "A transparent, responsible approach to governance will be a critical factor in the appeal of TNK-BP to potential future investors, if the company is to be fully valued on the financial markets."

The MOU envisages the appointment of a new independent chief executive nominated by BP and approved by the TNK-BP board. The management committee, responsible for running operations, will be reduced significantly from the current 14 members and will include the chief executive, the chief operating officer, the chief financial officer and an executive director.

The main board of TNK-BP will be adjusted in size to four representatives each from BP and AAR, together with the three new independent directors not affiliated to either side. The company will continue to operate under English law.

Current chief executive Bob Dudley will step down before the end of the year. In nominating his replacement, BP will offer a Russian-speaking candidate with extensive Russian business experience. The new CEO will be explicitly incentivised to focus on further improving transparency, financial returns and the market value of the company's shares.

Describing Dudley as "an absolutely outstanding CEO of great courage and strength of character", Hayward said: "Bob originally intended to step down at the beginning of the year but volunteered to stay in place to guide the joint venture through what he realised would be a difficult transitional phase. He will be very hard to replace.

"During the last five years his leadership has been crucial in building what is arguably the most successful oil business in Russia, with the best record of production growth, reserves replacement and total shareholder return. He has overseen extraordinary performance, financial and technical, delivering dividends of more than $20 billion during that period and paying taxes and duties to the Russian Federation of over $80 billion, a record that is surely unrivalled," Hayward said.

Notes to Editors:
TNK-BP posted record profits of $4.7 billion in the first half of this year - more than double the $2.1 billion for the same period in 2007.
Revenues totalled $28.3 billion in last half-year, compared with $17 billion in the first half of 2007.
Oil production has risen in the past four consecutive quarters, to a level of 1.63 million barrels a day. TNK-BP has more than replaced reserves each year since it was formed in August 2003.

　6月17日、露英合弁石油会社TNK-BPの代表取締役であり、 Alfa-group社長であるFridman氏は、記者会見の席上、ロシア人株主はイギリス側に対してTNK-BPの持分を売却する意向はないと伝えた。同氏によると、ロシア側のTNK-BP株主連合会を形成しているAlfa-group及びAccess　Industries、 Renova (AAR)は、TNK-BP株を売却することは考えておらず、株式売却制限を規定するBPとの契約延長に賛成の立場を取っている。また、契約期間に関しては、イギリス側の要求を受け入れるとしている。Fridman氏は、「ロシアの石油業界及びロシア経済全体には、大きく成長する可能性がある。従って、我々は、長期的に、TNK-BPの株主でありたいと考えている。個人的な見解として、ロシア政府の方針は、エネルギー関連業界における国家の介入を強化することではなく、石油企業をめぐる投資環境の改善を図ることであると認識している。BPに関しては分からないが、AAR株主連合会は、今後、ロシアの石油市場から撤退することは考えていない」と述べた。
　
　TNK-BPの株主争いは、現在もっとも注目されている企業ニュースである。6月11日、AAR株主連合会は、6月3日に開催された非合法的な会合の場で決定された事項を無効とすること、また、ロシア法及び会社定款に違反したことを理由に、BPが任命した取締役員を解任し、TNK-BP　Holding における同取締役員のポストを剥奪することを目的として、裁判に踏み切る方針を公表した。
　
　TNK-BPの株主争いは、当初より、その兆しはあった。ロシア側・イギリス側が、それぞれの利益を追求する形となり、その時点ですでに、早かれ遅かれ、株主争いが起きることは明らかであった。TNK-BPの設立当初、プーチン前大統領は、株主争いが生じることを懸念し、どちらかが支配株を取得することを勧めていた。また、TNK-BPの事業内容からしても、ロシア人株主とイギリス人株主が対立することが見込まれていた。
　
　政治研究センターの研究員であるAbzalov氏は、当初から、イギリス側とロシア側の持分比率は、その価値が不均等であったと指摘する。ロシア側が同社資産に主要な石油採掘資産を投下したが、イギリス側は規模の小さい石油採掘関連資産とガソリンスタンド網のみであった。Abzalov氏は、「ロシア人株主には、生産に直接関与する投資家が必要であった。Fridman氏も、Vekselberg氏も、石油会社の経営に携わった経験はなかった。一方、石油最大手のBPは、経験と技術力を持ち、何よりも、国外市場に進出する方法を身につけていた。」と指摘する。すなわち、TNKとBPの統合の際、ロシア人株主は、自らの立場が強化され、企業活動が発展することを期待していた。統合によって、現在、TNK-BPはロシアの中でも、透明性の高い企業活動を行っていることで評価されている。しかし、AAR株主連合会は、その他に、BPから追加的な資金の投入があること、また、国外市場に参入するための援助を受けられることも期待していた。だが、BPにとって、TNK-BPが国外市場に参入し、競争相手となることは望ましくない。
　
　一方、イギリス人株主は、ロシア市場への参入を低価格で原料備蓄量の増加を図ることができる絶好の機会だと捉えていた。もっとも、この点に関しては、イギリス側は、目的を達成したといえる。2004年、TNK-BPの石油採掘量は6380万トンから7200万トンに増加し、その後も、増産は続いている。投資会社AntantaPioglobalの主任アナリストであるKhayrullin氏は、BPは、最初から、新たに設立したTNK-BPではなく、親会社の時価総額を高めることに重点を置いていたと指摘する。同氏は、「こうした計画の下、イギリス側はTNK-BPをBPの収支に組み入れ、また、輸出枠を拡大し、BPの時価総額を高めることに関心を寄せていた。」と言及している。
　
　上記のように、会社が統合された当初から、TNK-BP内部における対立の構図は出来ており、現在は、それが表面化したに過ぎない。TNK-BPの株主が、現在に至るまで、正面を切った対立を回避してきたのは、ロシア側とイギリス側の双方が2007年末までTNK-BPの持分を売却する権利を持たないという契約を締結しているためであったとも考えられる。しかし、2008年、状況は一変し、株式の売却に関する制限はもうない。
　投資会社Veles　CapitalのアナリストであるLyutyagin氏は、「TNK-BP株の取得に意欲を示す第3者が現れれば(ガスプロムがそうした動きをみせている)、株主争いはさらに緊迫の度を増し、ロシア側とイギリス側のどちらか一方が、株主から外れることが考えられる。上記のことを背景に、両側の株主が持分を売却しないことを表明し、株主争いは表面化してきた。」と指摘する。
　
　また、Lyutyagin氏は、ロシアにとって戦略的に重要な取引にTNK-BPが参加することをBPの代表は妨げてきたと指摘する。同氏は、「ロシア側の代表は、北アフリカ・イラン等に飛び、ロシア市場を開拓しようとしてきた。しかし、TNK-BPは、そうした動きに同調せず、外国に事業を展開することができないでいる。ロシア側は、こうしたTNK-BPの経営者の態度を問題視している。」と言及している。
　
　イギリス側が、TNK-BPの外国市場進出を当初から計画していなかったことは明らかである。UniCredit　Atonのアナリストである Sorokin氏は、会社設立以来、英露双方が追及しているものは、変化していないと指摘する。同氏は、「双方の戦略、或いは今後の展望に関する見解が大きく変わったとは考えられない。そもそもの計画では、BPがTNK-BPの経営をすることが予定されており、それについては合意が成立していた。問題が生じてきたのは、ロシア政府の方針が変化したこと及び業界の統合化が進んできたことに関係している。」と分析している。
　
　現段階では、ロシア側・イギリス側のどちらかがTNK-BPの持分を売却せざるを得ないだろうと考えられる。また、先日、ロシア側は、長期的にTNK- BP株を売却する意向がないことを発表したが、多くのアナリストは、TNK-BP株の売却に踏み切るのは、AAR株主連合会の方だろうという見解を示している。政治研究センターのAbzalov氏も、ロシア側が売却することになり、購入するのはガスプロムだろうと予測している。同氏は、「恐らくは、ガスプロム・ネフチが、TNK-BP株51%を取得するだろう。その際、50%をロシア側から、1%をイギリス側から購入すると予測される。ガスプロムが関心を示しているのは、BPとの協力関係を構築することである。BPは特殊な技術・採掘システム等を有しているためである。」と指摘している。
　
　また、投資会社Veles　CapitalのLyutyagin氏は、TNK-BPの株主争いを解決するためにロシアの政治が介入する可能性も否定できないと考えている。同氏は、「ロシアの政治的手段を借りて、問題が解決されることもあり得るだろう。その場合、どちらの株主がTNK-BP株を売却するのか、売却先はどこになるのかに関して、政府が関与することとなる。恐らくは、国家保有分のあるロシア企業がTNK-BP株を取得することになるだろう。」と言及している。
　
　多くのアナリストは、株主2者がまったく異なる利益を追求していて、経営方針が定まっていないというTNK-BPをめぐる状況を特殊なものであると捉えている。UniCredit　AtonのアナリストであるSorokin氏は、現在、ロシアにTNK-BPと同様の状況に陥る可能性のある企業は存在しないと指摘する。また、多くの専門家は、TNK-BPが抱えている大きな問題点とは、独立取締役がいないことであるとしている。Lyutyagin氏は、「独立取締役は、ロシア側、或いはイギリス側の任命によるものであってはならない。また、独立取締役を置く際には、全株主が投票に参加しなければならない。」と言及している。独立取締役に関しては、AAR株主連合会も同様の見解を示している。TNK-BPの代表取締役であり、Alfa-group社長であるFridman氏も、「我々は、TNK-BPが独立した企業として全ての株主の利益を追求する形で経営されることを望んでいる」と述べている。
　
　激化する株主争いを解決に導くために独立取締役を置くという方法は、以前であれば功を奏したかもしれないが、今となっては、それも、状況の改善に寄与するとは考えにくい。現在、株主争いは、当初から予測されたような格好で進行している。従って、イギリス側の行動も予測不可能なことではなかった。この問題が最終的に解決するまでには、時間がかかるものとみられる。従って、TNK-BPに関するニュースは、今後も引き続き注目されるだろう。
　
※TNK-BPは2007年、石油採掘量でロシア第3位。

*	PTA is the preferred raw material used to manufacture polyethylene terephthalate, a widely used polyester polymer for the production of textiles, bottles, packaging and film products. In China, 90 per cent of PTA production is used in the textile industry. Government statistics show that China’s PTA consumption in 2004 exceeded 10 million tonnes, of which only around 40 per cent was supplied by domestic production.
*	BP Zhuhai was formed as a joint venture between BP and Fu Hua in 1997. The venture’s first PTA plant, with initial capacity of 350,000 tonnes a year (tpa), began production in 2003 and has the capability to expand to 500,000 tpa. The site’s combined PTA production capacity after the completion of the new plant will be more than 1.2 million tpa, confirming Zhuhai as one of the major PTA production centres in China.
*	BP has been a leader in PTA for over 30 years, with a global market share of 21 per cent on an equity basis (or 31 per cent including joint ventures). BP operates 21 PTA plants located in Asia, the Americas and Europe with a total combined annual production capacity of more than 9 million tonnes.
*	BP is one of the world’s largest oil, gas and petrochemicals groups, generating 2004 profits of over $16 billion and revenues of over $280 billion. BP employs about 103,000 people worldwide and has activities in more than 100 countries. The company is one of the leading foreign investors in China, having invested over $3 billion in commercial projects in the country. Its activities in China include production and importation of natural gas, supply of aviation fuel, import and marketing of LPG, fuels retailing, lubricants blending and sales, and petrochemical manufacturing. BP employs over 3,000 staff in China, either directly or through joint ventures.
*	Fu Hua Group Ltd was established in 1986 and became the first Zhuhai company to be listed on the Shen Zhen Exchange in the People’s Republic of China in 1993 with a registered capital of 345 million RMB and total assets of 1.2 billion RMB. Fu Hua Group, the former Fu Hua Polyester Fibre Plant, has been developed into a comprehensive enterprise group with main activities in the fields of harbour transportation, real estate development, import and export, pharmaceutical production and distribution.

Summary of the 2006 asset transfers:
1.	following the sale of Innovene to INEOS, the SECCO and Malaysia JV interests, previously held in other businesses and corporate (OB&C) are transferred to refining and marketing (R&M)
2.	the formation of BP alternative energy has resulted in the transfer of certain mid-stream assets and activities to gas, power and renewables (GP&R):
	・South Houston green power (SHGP) cogeneration facility (Cogen) (in Texas City refinery) from R&M ・Watson Cogen (in Carson refinery) from R&M ・Phu My phase 3 in Vietnam from exploration and production (E&P)
3．	transfer of hydrogen for transport from GP&R to R&M

Alfa Access Renova は3社の連合。
・	Alfa Group は、ロシアの新興財閥で、ロシア最大の金融産業コングロマリットのひとつ。中心のアルファ銀行のほか、石油及びガス、消費財取引、保険業、小売業と電気通信分野などグループ企業は広範である。
・	Access Industries はロシア生まれの Len Blavatnik が設立し所有する米国の投資会社で、Basellを買収した。 Len Blavatnik はLyondell Chemical の株式を購入し、話題となっている。　参考　2006/6/15 Basellの買収　　　　　　2007/5/16 Access Industries の会長、Lyondell Chemical の株式を購入
・	Renova Holding はロシアの長者番付では第5位のViktor Feliksovich Vekselberg の所有するベンチャーキャピタル。

・	BP has been operating in China since the early 1970s and has invested over $3 billion in commercial projects. Its activities in China include production and import of natural gas, supply of aviation fuel, import and marketing of LPG, fuels retailing, lubricants blending and sales, and petrochemical manufacturing
・	BP employs over 3,000 staff in China, either directly or through joint ventures.
・	BP’s biggest single equity investment in China is the SECCO (50/50 joint venture with Sinopec) $2.7 billion integrated petrochemical complex under construction outside Shanghai which is expected on stream in 2005. The complex will have a capacity of around 2.3 mtpa of various products. BP is committed to continuing this development which will form part of a new olefins and derivatives petrochemicals entity.
・	BP’s Gas, Power and Renewables business is a 30 per cent partner in the development of the Guangdong LNG import terminal and associated pipelines. BP also has a contract to supply China’s second LNG import terminal at Fujian.
・	BP is the biggest importer of LPG into China and has a number of storage, bottling and marketing operations.
・	Air BP is the only foreign company participating in China’s aviation fuels business, supplying fuel at Shenzhen airport and 16 airports across south and central China.
・	BP also has a 40 per cent holding in the recently commission Nansha oil terminal in Guangdong. The terminal has over 360,000 cubic metres of storage space for oil and chemical products and a 80,000 dwt jetty.