More Progress on Alaska South Central LNG Project

  More Progress on Alaska South Central LNG Project

Business Wire

ANCHORAGE, Alaska -- June 21, 2013

ExxonMobil, BP, ConocoPhillips and TransCanada have begun summer field work as
part of their activities associated with a staged pre-FEED (front end
engineering design) for the Alaska South Central LNG (SC LNG) project. This
summer field work will employ approximately 150 people.

Since the joint work began in March 2012, the companies expect to spend $80 -
$100 million by year-end 2013. This builds upon more than $700 million in past
work by the collective companies, including the joint Alaska Gas Producer
Pipeline Team effort in 2001-02, the Denali Project and APP (including the
State's contribution through AGIA). This commitment to summer field work and
other activities will enable the companies to evaluate major future
engineering commitments. Towards this goal, a competitive, predictable and
durable oil and gas fiscal environment will be required for a project of this
unprecedented scale, complexity and cost to compete in global energy markets.

The project companies have completed commercial agreements to support both the
summer field work and other activities to further advance the project. The
planned summer field work consists of studies to collect and analyze
environmental and other scientific data required to support future regulatory
filings that are key to the approval of this $45-65+ billion project. The
study area will be along a potential pipeline route north of Livengood, a
distance of approximately 400 miles. This work provides detailed knowledge of
the route, including information on fisheries, stream hydrology, water
resources, wetlands mapping and socioeconomic assessments to support potential
permit applications.

“The summer field work is a key activity to support the project’s engineering,
design and cost estimation work while also gathering data required for
permitting the project,” said Steve Butt, senior project manager. “It is
another significant step forward for the SC LNG project, further demonstrating
the commitment and capabilities of the sponsor companies.”

The companies confirmed in a February 15, 2013 letter to Governor Parnell they
had reached an important milestone in selecting a project concept that
includes an 800-mile, 42-inch pipeline, up to eight compression stations, at
least five take-off points for in-state gas delivery, a gas treatment plant
located on the North Slope and a liquefaction plant in the south-central
region. The teams are building on the agreed concept with technical work to
prepare the project for more detailed engineering and design work, consistent
with previously released plan phases.

The companies remain committed to working with the state to responsibly
develop North Slope resources. A successful project could provide a host of
economic benefits to Alaskans including state revenues, new job opportunities
and access to decades of domestically-produced natural gas for homes and
businesses in Alaska.



Estimates, expectations, and business plans in this release are
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recoveries and project plans and schedules, could differ materially due to
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( and in Item 1A of our most recent Form 10-K. References
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properties, agreements, investments, developments, phases, work efforts,
activities, and components, each of which we may also describe informally as a



This release contains statements that are forward-looking statements and
involve risks and uncertainties. It is believed that the expectations
reflected in these statements are reasonable, but actual results may differ
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including: the specific factors identified in the discussions accompanying
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statements relate to future events, such as anticipated revenues, earnings,
business strategies, competitive position or other aspects of our operations
or operating results. Actual outcomes and results may differ materially from
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to ConocoPhillips’ business and other economic, business, competitive and/or
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in ConocoPhillips’ filings with the Securities and Exchange Commission (SEC).]



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