ConocoPhillips recognizes its responsibility for the accidents in Bohai Bay. Any release of oil, no matter the size, is too great. We understand the accidents have caused concern among the people of China and in the communities that depend on Bohai Bay.

The company is committed to supporting the environmental well-being of China, with focus on the Bohai area. ConocoPhillips has established an environmental fund to support a portfolio of short- and long-term projects.

About the Fund:

• We have established a guiding set of principles for the fund:
• Alignment: It will be supportive of and aligned with Chinese policy priorities.
• Principled: We will follow Chinese and international sustainability principles for long term success.
• Focused: The fund will support projects such as wetlands preservation, water quality improvement, fishery resources, marine ecosystems and risk management.
• Transparency: The fund will be managed with transparency and periodic communications updates.
• Engaged: We will draw on the input of local communities and environmental groups.
• We are working now to establish a panel of third-party experts from academia and environmental organizations. This panel, to be announced in the first quarter of 2012, will provide us with advice and guidance on future project decisions and the monitoring of projects.
• A separate Bohai Bay Compensation Fund has been established to address claims.