Dubai Offshore Oil Fields Transition to New Operator.

HOUSTON -- The Government of Dubai and Dubai Petroleum Company (DPC) today announced a joint agreement that will change the operating arrangements for Dubai offshore oilfields. Effective April 2007, DPC will end its role as operator, marking the end of Dubai's first offshore oil concession and the beginning of a new phase in which the Emirate of Dubai will directly control its offshore oil resources.

DPC is wholly owned by ConocoPhillips (NYSE:COP) and part of the DPC/Dubai Marine Areas Limited ("DUMA") consortium involving interests from Total (France), Repsol YPF (Spain), RWE Dea AG, a subsidiary of RWE AG (Germany) and Wintershall AG, a subsidiary of BASF (Germany).

"Our relationship with the DPC/DUMA consortium was established in 1961," said Abdulla Abdul Karim, Dubai Government representative. "This relationship has served Dubai well over the years and we are grateful to ConocoPhillips, Total, Repsol YPF, RWE Dea and Wintershall for the role they have played in building the new Dubai. Forty years later, it is clear that production will now far outlast the period of the concession agreement, and all parties agree that it is appropriate to initiate a transition of operatorship to the government at this time and to begin a new era."

"DPC would like to thank the Government of Dubai for the unique opportunity we have had to be involved in the growth and success that Dubai has experienced over the last 40 years," said Bill Arnold, president, Dubai Petroleum Company. "DPC will do its part to successfully facilitate the handover of the operations to the Government."

Dubai oil will continue to be freely traded in the international oil market under contracts established by the Government and Dubai Petroleum Establishment (DPE), a new entity wholly owned by the Government of Dubai. Effective 2 April 2007, DPE will be responsible for operating the oilfields and for all future business related to the production of oil and gas in Dubai.

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