First Production from WHP-C of Phase II Development
- Peng Lai 19-3 Oilfield in China

BEIJING, June 15, 2007 —ConocoPhillips China Inc (COPC), a ConocoPhillips [NYSE: COP] subsidiary, and China National Offshore Oil Corporation Ltd. (CNOOC) today announced the first production from Wellhead Platform (WHP) C of Phase II development of the Peng Lai (PL) 19-3 oilfield in China’s Bohai Bay.

The PL19-3 Oilfield was discovered in May 1999, through a joint effort of CNOOC and COPC. Production from the Phase I development began in December 2002 and gross production has averaged approximately 25,000 barrels of oil per day (BOPD). Phase I utilizes one wellhead platform and a leased floating production, storage and offloading facility (FPSO).

COPC and CNOOC Ltd. signed a petroleum contract in December 1994 granting COPC the right to explore Block 11/05, a 1.6 million-acre area located in Bohai Bay. CNOOC Ltd. participates in the development of the Peng Lai oilfield with a 51 percent working interest, while COPC is the field operator and has the remaining 49 percent working interest.

On January 17, 2005, the Overall Development Program for Phase II of the PL 19-3 and PL 25-6 oilfield development was officially approved by the Chinese government. Since then, much progress has been made in the detailed design, engineering, procurement and construction. Phase II facilities will include five wellhead platforms, central processing facilities and a new FPSO. WHP-C is an early platform in the Phase II development and has started production through a temporary connection to the Phase I operation facilities.

The next major step in the Phase II development at Peng Lai will occur in late 2008 when additional production platforms are brought onstream and production commences through a new world class FPSO.

“This is another major milestone in the development of this significant oilfield.” said Jim Knudsen, president of COPC, “Together with our partner CNOOC, we have overcome numerous challenges and have made great achievements. We are proud of our safety performance and the cooperation with our partners and contractors. However, we still have tremendous challenges ahead of us to bring such a large and complex project onstream at it’s full scale.”

Headquartered in Houston, Texas, ConocoPhillips operates in more than 40 countries and has approximately 38,300 employees worldwide. ConocoPhillips ranks 5th on the latest Fortune 500.

ConocoPhillips China Inc., with more than 600 employees, is undertaking oil and gas exploration and production operations in China through cooperation with its Chinese partners. COPC has offices in Beijing, Tanggu, Shekou and Chengdu. For more information, go to www.conocophillips.com.