INEOS is Offered $1 Billion by PetroChina for a 50% Share in its European Refining Business

LONDON, January 31, 2011 - The proposed joint venture meets INEOS Refining's strategic objectives,
bringing a long term partner to the business with a jointly agreed investment
programme for Grangemouth (Scotland) and Lavéra (France).

"This offer is an important step on the way to forming a strategic
partnership with PetroChina," says Jim Ratcliffe, Chairman of INEOS. "It
allows us to remain fully committed to our refining business as well as
presenting an opportunity to further develop our interests in China and
beyond."

INEOS has significantly improved its financial position over
the past eighteen months and this transaction will have a further positive
impact on the group.

Jim Ratcliffe adds, "We now intend to evaluate our future refinancing
options for the group over the first half of 2011."

Today PetroChina International (London) Co. Ltd. submitted an irrevocable
offer to INEOS of US$1,015,000,000 for a 50% share in its European refining
business. This business includes the refineries at Grangemouth in Scotland
and Lavéra in France.

The partnership with PetroChina will comprise a trading joint venture and
a refining joint venture. A new Swiss company will be incorporated to hold
the INEOS investment. The two joint ventures will be operated independently
of the INEOS Group.

INEOS and PetroChina will now work towards forming the proposed joint
ventures in Q2 2011.

"This new partnership will secure investment and the long-term
sustainability of both sites in a highly competitive market and ensure we
continue to be Europe's leading independent crude oil refiner. We are
delighted to be progressing PetroChina as a long term strategic partner,"
said Calum MacLean, CEO INEOS Refining

This transaction will significantly enhance the Group's
financial position. Group leverage was 4.3x EBITDA at the end of September
2010 and is expected to reduce to around 3.5x EBITDA following completion.

Jim Ratcliffe, chairman of INEOS, says, "This offer is an
important step on the way to INEOS forming a joint venture with PetroChina.
When completed we will have a strategic partner with significant refining
expertise that is integrated upstream with very strong equity crude
positions. This agreement allows us to remain fully committed to our refining
business and presents us with an opportunity to further develop our
technology business in China and beyond."

Jim Ratcliffe continues, "As we move towards completing this
joint venture, we now intend to evaluate our future refinancing options for
the group over the first half of 2011."

This deal will help create a true strategic partnership between the two
companies. It will improve the long-term sustainability of the INEOS
refineries, enhance security of supply for customers and secure jobs and
skills in both the UK and France

The proposed joint venture is consistent with PetroChina's
strategy of building a broader business platform in Europe and of becoming a
leading international energy company. The geographic location and production
capabilities of the INEOS refineries are very favourable as both refineries
are well located in terms of markets and access to raw materials and both
have a significant production bias towards diesel, which is the fastest
growing refined fuel in Europe.

The Grangemouth refinery is located on the Firth of Forth with
direct access to crude oil and gas from the North Sea. The Grangemouth
refinery processes around 210,000 barrels of crude oil per day and provides
fuel to Scotland, Northern England and Northern Ireland.

The Lavéra refinery processes 210,000 barrels of crude oil per
day. It is located on the coast of the Mediterranean crude oil trading basin,
next to the port of Marseille and adjacent to a crude oil terminal. The
refinery supplies fuel by pipelines into France, Switzerland and Southern
Germany.

Both sites are integrated into INEOS's downstream
petrochemical production and remain strategic to its long-term business.

Following this announcement, there will be a period of
employee consultation prior to the signing of a binding agreement, subject to
the approval of the relevant Government and regulatory bodies.

B-Roll and photography of Grangemouth and Lavera is available from
Mediazoo contacts below.

Note to editors

INEOS (www.ineos.com) is the world's fourth largest
chemicals group and a leading manufacturer of petrochemicals, speciality
chemicals and oil products. As of the end of 2010 it operates 15 businesses
and with a production network spanning 61 manufacturing facilities in 13
countries, the group produces more than 40 million tonnes of petrochemicals
and 20 million tonnes per annum of crude oil refined products (fuels) each
year. INEOS employs 15,000 people and annual sales of around $40bn.

INEOS Refining (ineosrefining.com) is Europe's leading independent
crude oil refiner. With two particularly advantaged refineries, it processes
more than 420,000 barrels of crude oil per day, to produce in the region of
20 million tonnes of fuels per annum. Our refineries are strategically
located at Grangemouth Scotland and Lavéra France and are both fully
integrated with co-sited petrochemical assets of the Company. Close proximity
to feedstocks and our customers are key elements of our strength. INEOS
Refining employs around 1000 people and has a turnover of around $15bn.

PetroChina Company Limited (www.petrochina.com.cn) is the largest
oil and gas producer and distributor, in China. It is one of the largest
companies in China by revenue, and one of the largest oil companies in the
world. PetroChina was established as a joint stock company with limited
liabilities by China National Petroleum Corporation on November 5th, 1999.
With its headquarters in Beijing, PetroChina is China's biggest oil producer
and as of September 2010 is the world's largest company by market value.
Traded in Hong Kong and New York, the mainland enterprise announced its plans
to issue stock in Shanghai in November 2007 and following its debut on the
Shanghai index its market value has tripled, making PetroChina the first
company to reach a trillion dollar market capitalization. The company employs
around 540,000 people and has a turnover of around $157billion.

    For further press contact:

    INEOS

    Richard Longden: Tel: +44(0)7710-371998 or email:
    richard.longden@ineos.com

    Mark Killick: Tel: +44(0)20-7384-6980 or +44(0)7836-634449 or email:
    mark@mediazoo.tv

    Sion Taylor Tel: +44(0)20-7384-6980 or +44(0)7768-372714 or e-mail:
    sion@mediazoo.tv

    Andrew McLachlan Tel: +44(02)20-7384-6980 or +44(0)7931-377162 or email:
    andrew@mediazoo.tv

    Helen Morris Tel: +44(0)20-7384-6980 or +44(0)791-7646585 or e-mail:
    helen@mediazoo.tv

Richard Longden: Tel: +44(0)7710-371998 or email: richard.longden at ineos.com Mark Killick: Tel: +44(0)20-7384-6980 or +44(0)7836-634449 or email: mark at mediazoo.tv Sion Taylor Tel: +44(0)20-7384-6980 or +44(0)7768-372714 or e-mail: sion at mediazoo.tv Andrew McLachlan Tel: +44(02)20-7384-6980 or +44(0)7931-377162 or email: andrew at mediazoo.tv Helen Morris Tel: +44(0)20-7384-6980 or +44(0)791-7646585 or e-mail: helen at mediazoo.tv