ConocoPhillips Sanctions Australia Pacific LNG Project

ConocoPhillips [NYSE:COP] today announced approval of the final
investment decision for the initial train of a two train liquefied
natural gas (LNG) 9.0 million tonnes per annum (MTPA) project by
Australia Pacific LNG in Queensland, Australia.

Project sanction includes development of the necessary resources from
Australia Pacific LNG′s 24 trillion cubic feet of coal seam gas (CSG)
resources in the Surat and Bowen Basins to supply the first train
requirements, installation of a transmission pipeline from the onshore
gas fields to the LNG facility on Curtis Island and infrastructure
commitments to support a second train.

LNG exports from the first train are scheduled to start in 2015 under a
binding sales agreement for 4.3 MTPA with China Petroleum & Chemical
Corporation (Sinopec Corp.).

'This decision marks an important milestone for the Australia Pacific
LNG project and ConocoPhillips,? said Jim Mulva, ConocoPhillips Chairman
and Chief Executive Officer. 'Australia Pacific LNG has one of the
largest CSG reserve positions in Australia and with the project sanction
ConocoPhillips builds on its position as the world′s largest producer of
CSG. The final investment decision reinforces our commitment to deliver
safe and reliable energy to the world, and this world-class project is
well placed to help meet the growing demand for LNG in Asia.?

'With the strengthening LNG market and Australia Pacific LNG′s superior
natural gas resource position, we expect to sanction the second train in
time for early 2016 deliveries,? Mulva added.

Sanction of the project also satisfies the final condition precedent for
Sinopec′s subscription for a 15% interest in the Australia Pacific LNG
joint venture. The subscription agreement is now unconditional,
following receipt of approvals by the Australian and Chinese
governments. On completion of Sinopec′s subscription, expected in early
August, Australia Pacific LNG will become a joint venture among
ConocoPhillips (42.5%), Origin Energy (42.5%) and Sinopec (15%).

The estimated gross capital cost of the two train project is US$20
billion and, post start-up of the second train, the project has an
anticipated peak production net to ConocoPhillips of 115-120 MBOED. With
Australia Pacific LNG′s F&D cost of $13-$14/BOE, excluding acquisition
cost, and a project life of at least 30 years, this project provides a
source of long-term earnings and cash flow to ConocoPhillips′ portfolio
and delivers returns that are competitive with other LNG projects.

This decision follows the preparation of a detailed Environmental Impact
Statement, consultation with more than 6,000 stakeholders, including
landowners, regional councils and non-government organizations over the
past three years, and the receipt of federal and state government
approvals.

The decision also provides an immediate trigger for the development and
construction of project facilities. The engineering, procurement and
construction contracts for the LNG facility have been awarded to Bechtel
International, Inc. and Bechtel Australia Proprietary Limited, building
on the successful collaboration between ConocoPhillips and Bechtel using
ConocoPhillips′ Optimized Cascade ® LNG process. Early site works for the
project have commenced and long lead items have been ordered to maintain
the project schedule. Upstream work has also commenced and is being
managed by Origin Energy Limited, leveraging its significant CSG
experience in Australia.

Origin Energy and ConocoPhillips previously agreed, subject to certain
milestones, that final investment decision payments on the first two
trains of the project will be deferred until ConocoPhillips achieves an
agreed cash rate of return on its project investment, including
acquisition cost.  In accordance with that agreement, this project
sanction defers ConocoPhillips' final investment decision payment for
the first train of the project.

ConocoPhillips is an integrated energy company with interests around the
world. Headquartered in Houston, the company had approximately 29,900
employees, $160 billion of assets, and $244 billion of annualized
revenues as of June 30, 2011. For more information, go to www.conocophillips.com.

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Finding and development (F&D) cost metric ? Australia Pacific LNG′s
F&D of $13-$14/BOE is stated on a 2010 real basis and includes upstream,
pipeline and LNG facility costs, but excludes $4-$5/BOE acquisition
costs.

Sinopec Australia Pacific LNG Pty Limited (a wholly-owned subsidiary
of Sinopec International Petroleum Exploration and Production
Corporation, which in turn is a wholly-owned subsidiary of China
Petrochemical Corporation) will hold 15% of the shares in Australia
Pacific LNG.

Cautionary Note to U.S. Investors ? The SEC permits oil and gas
companies, in their filings with the SEC, to disclose only proved,
probable and possible reserves. We use the term 'resource' in this press
release that the SEC′s guidelines prohibit us from including in filings
with the SEC. U.S. investors are urged to consider closely the oil and
gas disclosures in our Form 10-K and other reports and filings with the
SEC. Copies are available from the SEC and from the ConocoPhillips
website. Australia Pacific LNG estimates its 24 TCF of resources based
on a system developed by the Society of Petroleum Engineers. Included
are commercial and noncommercial (contingent) resources.

ConocoPhillips

Aftab Ahmed (media), 281-293-4138

aftab.ahmed@conocophillips.com

or

Robin
Antrobus (Australian media), +618-9423-6679

robin.antrobus@conocophillips.com

or

Clayton
Reasor (investors), 212-207-1996

c.c.reasor@conocophillips.com