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ConocoPhillips: State of Alaska Releases Draft Agreement on Alaska Gas Pipeline Fiscal Contract.

HOUSTON -- The State of Alaska today released the draft Alaska Gas Pipeline Project fiscal contract between the State and the North Slope producers. ConocoPhillips (NYSE:COP) is supportive of starting the public review process. The company looks forward to providing input to the Alaska State Legislature regarding the need for a fiscal contract supportive of project development and a tax system that balances the needs of the State while encouraging investment.

The fiscal agreement will provide the essential elements for clarity and fiscal certainty necessary to advance the Alaska Gas Pipeline project. The terms of the agreement include state fiscal certainty, as well as the six principles mandated by the State of Alaska for the project. The fiscal contract outlines activities and plans between ConocoPhillips, the other major producers and the State of Alaska for equity ownership, state revenue, Alaska hire, access to gas for in-state use, access for explorers, and future expansion.

"This is an important step toward increased energy security for America. ConocoPhillips, the other project sponsors and the State of Alaska are working as partners on the largest pipeline project in North America," said Jim Mulva, ConocoPhillips chairman and chief executive officer. "The pipeline will provide a long-term source of clean, secure energy to American consumers. We look forward to working with all Alaskans to further develop Alaska's substantial gas resources."

Upon completion, it is anticipated that this project will produce approximately four billion cubic feet of gas per day from Prudhoe Bay, Point Thomson and other western North Slope fields. In addition to supplying a stable, reliable source of clean-burning fuel for America, Alaska North Slope gas development will provide jobs, economic and industrial benefits, and government revenues.

The U.S. federal government, Canadian government, the State of Alaska, and local communities all stand to realize significant long-term benefits including increased investment, job creation and tax revenues as a result of the Alaska Gas Pipeline project.

Following the required public review process, the fiscal contract must be reviewed by the State legislature. Upon legislative authorization of the contract and clarity regarding the stability of Alaska's future production tax system, the producers will begin project planning, which is the next phase in the project's development.

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

CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that contain projections about revenues, income, earnings and other financial items, plans and objectives for the future, future economic performance, or other projections or estimates about assumptions relating to these types of statements. These statements usually relate to future events and anticipated revenues, earnings, business strategies, competitive position or other aspects of operations or operating results. In many cases you can identify forward-looking statements by terminology such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target" and other similar words. However, the absence of these words does not mean that the statements are not forward-looking. The forward-looking statements are based on the expectations, estimates and projections of BP, ConocoPhillips, and ExxonMobil about their respective businesses and the petroleum industry in general on the date this statement was released. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Economic, business, competitive and regulatory factors that may affect BP's, ConocoPhillips', and ExxonMobil's business are generally as set forth in their filings with the Securities and Exchange Commission (SEC). None of BP, ConocoPhillips, or ExxonMobil are under any obligation (and expressly disclaim any such obligation) to update or alter these forward-looking statements whether as a result of new information, future events or otherwise.
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Comment:ConocoPhillips: State of Alaska Releases Draft Agreement on Alaska Gas Pipeline Fiscal Contract.
Publication:Business Wire
Geographic Code:1USA
Date:May 10, 2006
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