Conoco and Partners Announce Commerciality of Vietnam Sutu Den Discovery; Development Program Supports Aggressive Growth in Southeast Asia.

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HOUSTON--(BUSINESS WIRE)--Aug. 13, 2001

Conoco (NYSE:COCA)(NYSE:COCB) and its partners have issued a commercial declaration for the Sutu Den discovery in Block 15-1, offshore Vietnam. Conoco expects total future production from the Sutu Den structure to be at least 200 million barrels of oil, with the potential to exceed 400 million barrels of oil. First production is targeted in less than three years, as part of an aggressive development plan for the field.

Block 15-1 is in the Cuu Long Basin, 120 miles (180 kilometers) southeast of Ho Chi Minh City, and covers 1.15 million acres (4,634 square-kilometers). The Sutu Den discovery is a large, faulted structure in the eastern portion of the block in 154 feet of water (47 meters).

The declaration follows the June completion of an extended well test of the 15-1-SD-2X (ST) sidetracked appraisal well. Commerciality is based on a comprehensive analysis of results from the three wells drilled in Block 15-1, including:

-- 15-1-SD-1X - original discovery well; drilled August 2000; flow rate of
12,600 barrels of oil per day (bpd) from three zones

-- 15-1-SD-2X - appraisal well; drilled May 2001; flow rate of 11,032 bpd,
based on combined well tests from two major pay zones in the fractured Basement
and Miocene reservoirs

-- 15-1-SD-2X (ST) - sidetrack well to SD-2X; drilled June 2001; flow rate of
13,223 bpd from the fractured Basement, with 36-degree API gravity, which is a
record for Basement reservoirs in Vietnam

Conoco holds a 23.25-percent interest in Block 15-1, which is operated by the Cuu Long Joint Operating Company. Other partners are PetroVietnam (50 percent), Korean National Oil Corporation (14.25 percent), SK Corp (9 percent) and Geopetrol (3.5 percent). The Sutu Vang prospect, also in Block 15-1, is expected to be drilled before year-end.

Conoco has interests in four other offshore Vietnam blocks, including:

-- Block 15-2: The company holds a 36-percent interest in the

producing Block 15-2, which covers 400,000 acres (1,615

square-kilometers), and includes the large Rang Dong field.

Gross production from this field is more than 50,000 bpd, with

over 10,000 bpd net to Conoco under the production sharing

agreement (PSA). The company and its partners recently drilled

and tested two successful step-out wells to the south of the

block's existing production area, which could significantly

extend the field.

-- Block 16-2: Conoco owns a 40-percent interest in the highly

prospective Block 16-2, which covers 715,000 acres (2,785

square-kilometers). The company plans to drill the first

exploration well on the Bao Gam prospect later this year, with

the adjacent Bao Vang expected to be drilled during the first

half of 2002. Both are structures with a large, fractured

basement. Conoco will serve as operator for the exploration

and development phases.

-- Blocks 133 and 134: Conoco is operator and has a 70-percent

interest in the deepwater Blocks 133 and 134, both in the Nam

Con Son Basin, approximately 93 miles (150 kilometers) from

the Cuu Long Basin. The company and its partners are

conducting seismic studies to evaluate hydrocarbon potential,

which will determine drilling plans.

Conoco's offshore Vietnam acreage totals more than 5.75 million acres (23,000 square-kilometers). The company currently is the largest acreage holder of any foreign oil company in Vietnam.

A growing Vietnam presence plays a key role in Conoco's aggressive growth plans. The company recently designated Southeast Asia as its fourth core area, following its acquisition of Gulf Canada Resources Limited and that company's majority interest in Gulf Indonesia Resources Limited. The acquisition significantly increased Conoco's upstream presence in the region, which already included interests in Malaysia, Indonesia and Cambodia, in addition to its offshore interests in Vietnam.

"Asia represents one of the fastest growing energy markets in the world, and Conoco plans to be a leader in meeting the region's increasing demand for clean, cost-effective energy," said Rob McKee, executive vice president, worldwide exploration and production.

"We've proven over the past several years that we have the necessary expertise and commitment to build a sustainable business in Vietnam. This has, and continues to be, a major focus for us. Conoco's investment is for the long term, and it supports the country's plans for aggressive economic growth."

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

Forward-Looking Statement Disclaimer: This document contains forward-looking statements relating to the company's operations and business plans that are based on management's current expectations, estimates and projections about the Company and the petroleum industry. These statements 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 include without limitation changes in crude oil and natural gas prices; unsuccessful exploratory or development drilling; 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; potential disruption or interruption of the Company's facilities and operations due to accidents or political events; general domestic and international economic and political conditions; and other matters set forth in the Company's periodic filings with the Securities and Exchange Commission.

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 presentation, such as "XXX million barrels of oil," 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 1-800-SEC-0330.

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