ConocoPhillips Signs a Production Sharing Contract For Appraisal and Development Offshore Sabah, Malaysia

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March 2, 2005

ConocoPhillips [NYSE:COP] today announced that a PETRONAS Carigali-ConocoPhillips joint venture has signed a Production Sharing Contract with PETRONAS, the Malaysian national oil company, for the appraisal and development of the Kebabangan oil field, in waters off the northwest coast of Sabah, Malaysia.

The Kebabangan field was discovered in 1994 when the initial exploration well encountered a thick gas column with a thin oil rim. An appraisal well drilled in 2002 penetrated gas as well as an oil column in several reservoir intervals. Well tests showed the oil to be light and of high quality.

The Kebabangan discovery will go through an additional appraisal phase to determine the extent and commerciality of the oil reserves, and if successful, will move into development. Water depths range from 400 to 800 feet.

The Kebabangan appraisal represents an opportunity for ConocoPhillips and PETRONAS Carigali to build upon previously announced exploration success in their continuing deepwater Malaysian exploration program in deepwater blocks G and J offshore Sabah. These earlier announcements involved two oil discoveries – Gumusut in 2003 and Malikai in 2004 – in which ConocoPhillips holds an interest, along with PETRONAS Carigali and Shell.

Joint-venture partners in the Kebabangan field are ConocoPhillips (East Malaysia) Ltd., 40 percent, and PETRONAS Carigali, 60 percent. A joint operating company located in Kuala Lumpur will be established to act as the operator of the block on behalf of the partnership.

"We are excited about our growing position in Malaysia and the strong partnership we have built with PETRONAS," said Ryan Lance, president of Asia Pacific for ConocoPhillips. "Together, we hope that ConocoPhillips and PETRONAS will be able to continue to build a strong legacy position in Malaysia and other areas that will add to each company’s growth and value in Southeast Asia.

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