BP and Rosneft Committed to Russia’s energy future

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}Russia is the world’s largest producer of oil and gas combined, producing over 21 million barrels of oil equivalent (boe) a day, outstripping the US, Saudi Arabia and Iran.

}It also has the most proven reserves of oil and gas combined: 380 billion boe, more than four times that of the US.

Russia – the energy giant

}Oil and gas production in the country is set to rise by around 16% by 2030, according to BP’s estimates in its BP Energy Outlook 2030.

Production set to rise

Russia – the energy giant

}Rosneft is the largest oil company in Russia, producing around 2.4 million barrels of oil per day.

}It is the sixth largest oil company in the world in terms of production and the fourth largest by proved reserves.

Rosneft – now and beyond 2013

}With the addition of TNK-BP, it will become the world’s biggest publicly traded oil firm, producing 4.1 million barrels of oil per day.

}Its current proved reserves of around 19 bn boe will rise to around 29 bn boe.

The world’s biggest publicly traded oil firm

}Rosneft’s exploration and production assets stretch across Russia from the Black Sea and the Volga region to the Far East. The company also has exploration projects in Algeria, Venezuela and the UAE.

}From TNK-BP, it inherits upstream operations, primarily in West Siberia, East Siberia and Volga-Urals, and downstream businesses including those serving the Moscow and St Petersburg areas.

Broadening horizons

}BP will receive around $12.3bn cash and an 18.5% stake in Rosneft from the sale of its share of TNK-BP.

}The transaction will see BP become the second largest shareholder in Rosneft, after the Russian state, with a total stake of 19.75% when added to the 1.25% it already owns.

BP will be the second largest shareholder in Rosneft

}The total value of the deal to BP, in terms of cash and Rosneft shares, is over $28 billion.

}BP’s group chief executive, Bob Dudley, has been nominated to the Rosneft Board of Directors. In due course, BP’s shareholding will entitle it to two seats on the nine-member Board.

Board representation

}BP’s stake in Rosneft can bring value to BP shareholders in many ways: through growth of reserves, production and earnings1; cash returns

through Rosneft’s dividend growth; and access to new opportunities, both in Russia and internationally.

1 At this level of ownership, BP expects to be able to account for its share of Rosneft’s earnings, production and reserves on an equity basis.

Long-term value and new opportunities for BP

}Combining the assets of TNK-BP with those of Rosneft has the potential to increase production and improve efficiency.

}For example – the geographical location of TNK-BP and Rosneft greenfield developments on the Yamal Peninsula and in East Siberia provides

the opportunity to realise natural industrial synergies.

Potential to increase production and improve efficiency

}Also, both companies are engaged in gas production for the domestic market. The enlarged company will bring these businesses together, creating an optimised gas and natural gas liquids supply chain.

}Crude transport and field infrastructure synergies can be achieved in the greenfield developments of the Yamal area and northern Krasnoyarsk region – such as Messoyakha, Suzun and Tagul, Rospan and Vankor.

Playing a major role in Russia’s energy future

}Greenfield developments around East Siberia, including fields Verkhnechonsk, Kuyumbinskoye and Yurubcheno-Tokhomskoye, have similar characteristics, allowing techniques developed in one field to be applied in the other.

}Downstream, logistical, retailing and refining synergies can be achieved through economies of scale in the Moscow area.

Deploying new technologies upstream and downstream

}BP’s investment and involvement in the expanded Rosneft provides the opportunity to create synergies in the short term and play a major role in Russia’s energy future over the decades to come.

}Over the past 15 years, BP has managed a series of major mergers, in particular one of the largest oil industry mergers of all time with Amoco in 1998. BP played a major part

in successfully managing the merger of BP’s and TNK’s assets in 2003.

BP’s role in the integration and over the longer term

}An integration steering committee has been formed with Bob Dudley as a member, together with Igor Sechin, Eduard Khudainatov, Rob Fisher and Dan Yergin.

}Longer term, BP can help Rosneft increase both reserves and production through the application of its leading-edge technology and disciplined portfolio management in co-operation

with the oil and gas professionals inside Rosneft.

An integration steering committee has been formed

}BP has experience in creating value from Russian assets and knows those of TNK-BP very well. During BP’s involvement, TNK-BP’s production rose by over 40% over nine years, while proved reserves grew by over 50%.

}This record was partly due to the application of specialist BP technologies, such as enhanced oil recovery – techniques that maximise the recovery rates from mature oilfields. This success in applying

leading technologies at brownfield assets can potentially be achieved on an even larger scale with Rosneft.

Experience in creating value

}The combination of Rosneft and TNK-BP with BP’s capability presents an exciting opportunity for both BP and Rosneft to

apply world-class technology and experience to a significantly broader set of opportunities.

Exciting opportunities for both BP and Rosneft

Russia – the energy giant

bp.com

Cautionary statement

These materials and associated presentations contain certain forward-looking statements. These statements may generally, but not always, be identified by the use of words such as ‘will’, ‘expects’, ‘is expected to’, ‘aims’, ‘should’, ‘may’, ‘can be’, ‘has the potential to’, ‘plans’, or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future and are outside the control of BP. Actual results may differ materially from those expressed or implied in such statements, depending on a variety of factors. For more information you should refer to ‘Risk Factors’ in the BP Annual Report and Form 20-F 2012 filed with the US Securities and Exchange Commission (SEC).

Cautionary statement to US investors

We use certain terms in this report, such as ‘reserves’, that the SEC’s rules prohibit us from including in our filings with the SEC. In addition, forward-looking statements included herein may not be based on estimates of proved reserves as defined by SEC guidelines. US investors are urged to consider closely the disclosures in the BP Annual Report and Form 20-F, SEC File No.1-06262. This form is available on our website at bp.com. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or by logging on to their website at www.sec.gov.

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