BP to Market Share of SPC in Korea

18 July 2006, 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.
Notes 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.

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