ConocoPhillips Withdraws Application for Compass Port LNG Project.

HOUSTON -- ConocoPhillips (NYSE:COP) today announced that it has withdrawn the application for a license under the federal Deepwater Port Act for its Compass Port liquefied natural gas (LNG) project that had been proposed for 11 miles off the Alabama coast.

"Over the past two years, ConocoPhillips has worked closely with the offices of Alabama Governor Bob Riley and Mississippi Governor Haley Barbour and several federal agencies to address the issues associated with the application of Open Loop Vaporization technology," said Sig Cornelius, president of ConocoPhillips Global Gas. "It is clear that Governor Riley still has environmental concerns despite the independent scientific studies predicting minimal impact. Therefore, ConocoPhillips has elected to withdraw its deepwater port application. At Governor Riley's request, ConocoPhillips will begin evaluating the economics of utilizing a Closed Loop warming system as an alternative to Open Loop vaporization. Compass Port remains an attractive location and the decision on whether or not to proceed with re-filing an application will be made after consideration of all the economic factors."

ConocoPhillips will complete the current work program that it has been supporting since October 2004 with the Dauphin Island Sea Lab and the Mississippi Gulf Coast Research Lab to establish a comprehensive environmental baseline at the project site. The company will continue to pursue LNG supply options and explore other opportunities to site LNG facilities to meet growing needs for clean, abundant natural gas in the United States.

For more information, go to www.CompassPortCleanEnergy.com.

ConocoPhillips is an integrated petroleum company with interests around the world. For more information, go to www.conocophillips.com.

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