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ConocoPhillips Notified of Republic of Kazakhstan’s Intent to Pre-empt ConocoPhillips’ Sale of Kashagan Interest

  ConocoPhillips Notified of Republic of Kazakhstan’s Intent to Pre-empt
  ConocoPhillips’ Sale of Kashagan Interest

Business Wire

HOUSTON -- July 2, 2013

ConocoPhillips (NYSE: COP) today confirmed receiving official notification
that the Kazakhstan Ministry of Oil and Gas is exercising its right under the
Subsoil Law of Kazakhstan to pre-empt ConocoPhillips’ proposed sale of its 8.4
percent interest in the North Caspian Sea Production Sharing Agreement
(Kashagan) to ONGC Videsh Limited.

As part of such notice, the Ministry of Oil and Gas designated KazMunayGas
(KMG) as the entity that will acquire ConocoPhillips’ interest in Kashagan,
located in the Kazakhstan sector of the Caspian Sea.

The proceeds received by ConocoPhillips under the pre-emption will remain
unchanged at approximately $5 billion, including customary adjustments.

KMG will proceed with finalizing all necessary approvals, including approval
from the Kazakhstan Anti-Monopoly Agency. The transaction is expected to close
in the fourth quarter of 2013.

“This is another important milestone in progressing our asset disposition
program,” said Don Wallette, executive vice president, Commercial, Business
Development and Corporate Planning. “The decision by the Kazakhstan government
to exercise its pre-emptive right demonstrates the value of this asset and
moves us closer to completing this transaction.”

The sale of its Kashagan interest is part of ConocoPhillips’ plan to increase
value for shareholders through portfolio optimization, focused capital
investments that deliver growth in production and cash margins, improved
returns on capital, and a compelling dividend.

About ConocoPhillips

ConocoPhillips is the world’s largest independent E&P company based on
production and proved reserves. Headquartered in Houston, Texas,
ConocoPhillips had operations and activities in 30 countries, $57 billion in
annualized revenue, $118 billion of total assets, and approximately 17,100
employees as of March 31, 2013. Production from continuing operations averaged
1,555 MBOED for the three months ended March 31, 2013, and proved reserves
were 8.6 billion BOE as of Dec. 31, 2012. For more information, go to
www.conocophillips.com.

CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This news release contains forward-looking statements. Forward-looking
statements relate to future events and anticipated results of operations,
business strategies, and other aspects of our operations or operating results.
In many cases you can identify forward-looking statements by terminology such
as "anticipate," "estimate," "believe," "continue," "could," "intend," "may,"
"plan," "potential," "predict," "should," "will," "expect," "objective,"
"projection," "forecast," "goal," "guidance," "outlook," "effort," "target"
and other similar words. However, the absence of these words does not mean
that the statements are not forward-looking. Where, in any forward-looking
statement, the company expresses an expectation or belief as to future
results, such expectation or belief is expressed in good faith and believed to
have a reasonable basis. However, there can be no assurance that such
expectation or belief will result or be achieved. The actual results of
operations can and will be affected by a variety of risks and other matters
including, but not limited to, changes in commodity prices; changes in
expected levels of oil and gas reserves or production; operating hazards,
drilling risks, unsuccessful exploratory activities; difficulties in
developing new products and manufacturing processes; unexpected cost
increases; international monetary conditions; potential liability for remedial
actions under existing or future environmental regulations; potential
liability resulting from pending or future litigation; limited access to
capital or significantly higher cost of capital related to illiquidity or
uncertainty in the domestic or international financial markets; and general
domestic and international economic and political conditions; as well as
changes in tax, environmental and other laws applicable to our business. Other
factors that could cause actual results to differ materially from those
described in the forward-looking statements include other economic, business,
competitive and/or regulatory factors affecting our business generally as set
forth in our filings with the Securities and Exchange Commission. Unless
legally required, ConocoPhillips undertakes no obligation to update publicly
any forward-looking statements, whether as a result of new information, future
events or otherwise.

Contact:

ConocoPhillips
Kris Sava, 281-293-1808 (media)
kris.sava@conocophillips.com
or
Aftab Ahmed, 281-293-4138 (media)
aftab.ahmed@conocophillips.com
or
Vladimir R. dela Cruz, 212-207-1996 (investors)
v.r.delacruz@conocophillips.com