ConocoPhillips Announces Intention to Sell Interest in North Caspian Sea Production Sharing Agreement (Kashagan)

  ConocoPhillips Announces Intention to Sell Interest in North Caspian Sea
  Production Sharing Agreement (Kashagan)

Business Wire

HOUSTON -- November 26, 2012

ConocoPhillips (NYSE: COP) today announced that it has notified government
authorities in Kazakhstan and its co-venturers of the company’s intent to sell
its 8.4 percent interest in the North Caspian Sea Production Sharing Agreement
(Kashagan) to ONGC Videsh Limited.

Subject to various government approvals, Kazakhstan state preemption rights
and co-venturers’ preemption rights, ONGC Videsh Limited, the international
arm of Oil and Natural Gas Corporation Limited, India, would acquire
ConocoPhillips’ interest in Kashagan, which is located in the Kazakh sector of
the Caspian Sea.

The transaction is expected to close in the first half of 2013. Expected
proceeds are approximately $5 billion, which represents the purchase price
plus expected working capital and customary adjustments at closing.

“The sale of this quality asset is an important component of our ongoing
strategic asset disposition program,” said Don Wallette, executive vice
president, Commercial, Business Development, and Corporate Planning. “We are
pleased that ONGC Videsh recognizes the value of this asset.”

At Sept. 30, 2012, the carrying value of the net assets related to
ConocoPhillips’ interest in Kashagan was approximately $5.5 billion.
ConocoPhillips expects to record an after-tax impairment of approximately $400
million in the fourth quarter of 2012 to reduce the carrying value to fair

Through Sept. 30, 2012, the company’s 2012-13 disposition program has yielded
proceeds of $2.1 billion. Once closed, this transaction would increase that
total to approximately $7 billion, and strongly position the company to
accomplish its target of $8-$10 billion by the end of 2013.

The proposed sale of its Kashagan interest is part of ConocoPhillips’ plan to
increase value for shareholders through focused capital investments and a
commitment to deliver growth in production and cash margins, improved returns
on capital, and sector-leading shareholder distributions.

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About ConocoPhillips

Headquartered in Houston, Texas, ConocoPhillips had operations and activities
in 30 countries, $115 billion of assets, and approximately 16,700 employees as
of Sept. 30, 2012. Production averaged 1.57 million BOE per day for the nine
months ended Sept. 30, 2012, and proved reserves were 8.4 billion BOE as of
Dec. 31, 2011. For more information, go to


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John McLemore, 281-293-1247 (media)
Aftab Ahmed, 281-293-4138 (media)
Vladimir R. dela Cruz, 212-207-1996 (investors)
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