BP and Marathon Sign LNG Supply Agreement.

HOUSTON -- BP Energy Company today announced that it has signed a five-year agreement to supply liquefied natural gas (LNG) to Marathon Oil Corporation, beginning midyear 2005. Delivery will be at the Elba Island, Ga., LNG regasification terminal. Pricing of the LNG will be linked to the Henry Hub Index.

In welcoming the agreement, Head of BP's North American LNG business unit Nigel Preece said: "This agreement is a good example of how the LNG industry is becoming more flexible. We can supply Marathon from our LNG portfolio to meet their needs in the short term while continuing to develop our own access capacity to supply the U.S. and other markets around the world over the longer term."

Marathon holds rights to deliver and sell up to 58 billion cubic feet of natural gas per year at the Elba Island facility.

Notes to Editors

BP is among the world's largest natural gas companies producing over 8 billion cubic feet per day (bcfd) and marketing and trading over 28 bcfd to markets around the globe. Liquefied natural gas is a rapidly growing part of BP's natural gas portfolio and today we are the world's second largest non-state supplier of natural gas to liquefaction plants. BP has interests in LNG exports from Trinidad and Tobago, Abu Dhabi, Australia and Indonesia -- and developing positions in Egypt and Angola LNG.