06 July 2012 First for BP as it Licenses Latest Generation PTA Technology to JBF Petrochemicals

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BP and JBF Petrochemicals (a wholly owned subsidiary of JBF Industries Ltd.) have signed an agreement for licensing BP's latest generation purified terephthalic acid (PTA) technology. JBF intends to build a 1.25 million tonnes per annum (tpa) unit at the Special Economic Zone in Mangalore, India, to produce PTA, the primary feedstock for polyesters used in textiles and packaging. JBF expects the Mangalore plant to come on stream at the end of 2014.

"This first third party, non-affiliate, licence recognises the quality of BP's technology and builds on the excellent relationship between our companies. JBF is a world-class polyester producer and I'm proud that they've chosen BP's leading technology," said Nick Elmslie, chief executive of BP's Global Petrochemicals Business.

"Our PTA technology has significantly lower capital and operating costs compared with conventional PTA plants and is more energy efficient, uses less water, and produces less solid waste than its competitors. We have invested significantly in our proprietary technology and there are two routes to monetize this; one is through investment and one is through licensing. We have decided that the maximum value to BP will come both from investing in projects such as our Zhuhai 3 project in Guangdong, China and through licensing."

Over the years the PTA market has continued to grow at a high rate, over 80% of the demand is now in Asia, with around 50% in China alone. "The market is now of such a scale - greater than 50 million tonnes a year and continuing to grow at close to 7% - that three or four new world-scale plants per year will be needed. This creates a material opportunity for us to add value by way of our technology," said Elmslie.

Mr. B.C.Arya, Chairman JBF Industries Ltd., and Director of JBF Petrochemicals said: "This investment is highly strategic for us, fulfilling our captive requirements for PTA at the lowest possible cost. This will make our integrated operations in India and the UAE highly competitive for the long term and underpin our position as one of the world's leading polyester producers."

Notes to editors

BP

BP's Global Petrochemicals Business has total (net to BP) capacity at 18 locations in nine countries of 18.5 million tpa including 7.5 million tpa of PTA. BP is one of the world's largest oil and gas companies, serving millions of customers every day in more than 90 countries, and employing 83,400 people. BP's business segments are oil and gas exploration & production, and refining & marketing. In alternative energies, BP has low- and no-carbon wind and bio fuels businesses, and a carbon capture technology team. Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbons basins and strong market positions in key economies.

BP's PTA technology was originally developed in the USA during the 1950s and through successive iterations has continued to improve in terms of its capital and operating costs. This current generation of technology relies on proprietary energy recovery and water re-use technologies to deliver; 75% lower water discharge, 65% lower GHG emissions and 95% lower solid waste generation than conventional PTA technologies.

JBF Industries

JBF Industries Ltd. is a global polyester producer with annual capacity of 1.1 mtpa, with three manufacturing sites in India (Sarigam and Silvassa) and one in the UAE (Ras Al Khaimah). They are listed on both the Mumbai Stock Exchange and the NYSE, and the major shareholders are the Arya family with 42.7 % (as of 31st March 2012) ownership.

In October 2011, BP and JBF reached agreement on the construction of JBF's 390,000 tpa PET (polyester resin) plant at Geel, Belgium, alongside BP's 1.4 million tpa asset, Europe's largest PTA facility.

Name: BP press office
Location:London
Phone :+44 (0)20 7496 4076
Email:bppress@bp.com