Conoco To Set TLP Record in Gulf of Mexico Magnolia Field.

Business/Energy Editors

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HOUSTON--(BUSINESS WIRE)--May 15, 2002

Conoco (NYSE:COC), in partnership with Ocean Energy Inc. (NYSE:OEI), will install a Tension Leg Platform (TLP) to produce oil and natural gas from the Gulf of Mexico Magnolia field in nearly 4,700 feet of water, a record depth for this type of floating structure.

Located in Garden Banks blocks 783 and 784 about 180 miles south of Cameron, La., initial estimates call for the $600 million deepwater development project to deliver up to 150 million barrels of oil equivalent (MMBOE).

"The selection of TLP technology to develop the Magnolia field follows a pioneering trend that Conoco began in 1984 when we installed the world's first TLP in the U.K. North Sea Hutton field," said Rob McKee, Conoco's executive vice president, exploration production. "We further developed TLP technology with other world firsts -- the first tension leg well platform (TLWP) installed in the Conoco-operated Jolliet field in 1989 in the Gulf of Mexico, and the first concrete TLP in the Heidrun field in 1995 in the Norwegian sector of the North Sea."

Production facilities will be designed to handle 50,000 barrels of oil and 150 million standard cubic feet of gas per day. Eight wells are planned and first production from the Magnolia field is anticipated in the fourth quarter of 2004, with peak production occurring in 2005.

ABB Lummus Global Americas of Houston has been awarded a contract for design, procurement, project management and construction services for the TLP hull and associated systems. This innovative deepwater hull will consist of four circular columns connected at the bottom by rectangular pontoons. At the base of each column, a pontoon will extend outward to support two tethers, which will be connected to pile foundations on the seabed.

ABB LGA has a long history with TLPs. Past Gulf of Mexico projects include Jolliet, Auger, Mars, Ram/Powell, Juliet, Ursa, Marlin and Brutus. Current projects include the groundbreaking West African-Kizomba A project, now under construction.

Alliance Engineering of Houston has been awarded the contract for topsides engineering, procurement and project management services. The topsides design will incorporate state-of-the-art lightweight design technology, which will reduce costs and preserve flexibility in future production operations. Alliance's lightweight topside designs have been included on several projects, including Enchilada, Morpeth, Allegheny, Prince and Horn Mountain. In addition, Alliance is currently designing topsides for the Marco Polo deepwater development in the Gulf of Mexico.

"The selection of ABB and Alliance as our engineering partners is based upon a combination of expertise, experience and aligned corporate cultures," said Glenn Schaaf, deepwater development manager for Conoco. "Execution of this project safely, on schedule and within budget are shared goals of all participants."

Conoco, as operator, holds a 75-percent interest in the field with Ocean owning the remaining 25-percent.

Conoco is a major, integrated energy company active in more than 40 countries.

Forward-Looking Statement Disclaimer. This document contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 relating to the company's operations and business plans. These statements are based on management's current expectations, estimates and projections, are not guarantees of future performance, involve certain risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove to be accurate. Actual outcomes and results may differ materially. Factors that could cause actual results to differ materially from those described in the forward-looking statements include without limitation changes in crude oil and natural gas prices; failure to achieve expected reserve or production levels for existing and future projects due to operating hazards, drilling risks, and the inherent engineering uncertainties in estimating oil and gas reserves; difficulties or cost-overruns in constructing production facilities; potential disruption or interruption of the Company's facilities and operations due to accidents or political events; and general domestic and international economic and political conditions. Other factors that could cause actual results to differ materially from those described in the forward-looking statements are set forth in Conoco's filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended 2001, especially in the Management's Discussion and Analysis section, its most recent Quarterly Report on Form 10-Q and its Current Reports on Form 8-K. Conoco is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this announcement, such as "initial estimates...150 million barrels of oil equivalent (MMBOE)," that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K, File No. 1-14521, available from us at 600 N. Dairy Ashford, Houston, Texas 77079. You can also obtain this form from the SEC by calling 800/SEC-0330.

                              FACT SHEET
                 Conoco's Tension Leg Platform History

Hutton

The Hutton field, brought into production by Conoco in 1984, is located in 480 feet of water in the northern sector of the U.K. North Sea 90 miles northeast of the Shetland Islands. The pioneering nature of Hutton was widely recognized including receiving the U.K. Queen's Award for Technological Achievement in Achievement in 1986, and the Distinguished Achievement Award by the Offshore Technology Conference in Houston in 1985. Today, Kerr McGee operates the Hutton field.

Jolliet

The Jolliet field, located in 1,760 feet of water in the Gulf of Mexico's Green Canyon Block 184, is some 170 miles south of New Orleans, La., and was brought into production in 1989 utilizing a tension leg well platform. When the Jolliet TLWP was installed, it set the world's record for deepwater oil production. Conoco, operator of the field, holds an equal share of the field with GOM Shelf, LLC and ChevronTexaco.

Heidrun

The Heidrun field in the Norwegian Sea sits under 1,150 feet of water in and is located 70 miles south of the Arctic Circle. It is one of the northernmost offshore oil and natural gas field to be developed. Conoco transferred operatorship of the field to Statoil, Norway's state oil company, upon first production from the field in 1995. Conoco holds a 24.3-percent interest in the field.

Ursa

Conoco holds a 16-percent interest in the Shell-operated Ursa field. When the Ursa field was brought into production in 1999, the field surpassed previous water-depth records for an oil and natural gas production platform. The Ursa field lies in almost 4,000 feet of water and is located about 130 miles southeast of New Orleans in Mississippi Canyon Block 809.

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