PRESS RELEASE - 31st March 2006

BP brings biofuels into the mainstream

BP Australia today announced it has signed two contracts and a Memorandum of Understanding to provide to consumers over 200 million litres of biofuels per annum by 2008. The announcement signals the early delivery by a single company of over half of the Federal Government's national target of 350 million litres.

BP President, Mr Gerry Hueston said "BP will invest in refining and distribution infrastructure and secure product to enable biofuels to play a role in the future of Australia’s petroleum supplies. This announcement is the culmination of many years of work by BP and demonstrates our ability to deliver cleaner fuels to Australian motorists."

"In delivering these initiatives we would like to acknowledge the support of the Federal and State Governments," said Mr Hueston. "This work signals a unique change to the composition of Australia’s fuel supply and is evidence that much progress is being made towards the Federal Government’s biofuels target."

The initiatives include:-

"BP believes biofuels have an important role to play in strengthening Australia’s security of supply," said Mr Hueston. "However, the role of sound policy settings cannot be underestimated. The Government’s Energy White Paper and introduction of legislation for petroleum market reform are steps that will result in far greater confidence in investing in the future marketing and distribution of these products.

ENDS

For any media inquiries please contact: Chandran Vigneswaran on 03 9268 3534 or 0410 479 002

Notes to editors:

Biodiesel derived from hydrogenation of tallow

Ethanol and e10

General