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

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 value.

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 www.conocophillips.com.





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ConocoPhillips

John McLemore, 281-293-1247 (media)

john.l.mclemore@conocophillips.com

or

Aftab
Ahmed, 281-293-4138 (media)

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or

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R. dela Cruz, 212-207-1996 (investors)

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