Exploration and Production
 ConocoPhillips is Alaska’s largest oil and gas producer and the largest owner of state and federal exploration leases, with approximately
1.6 million net undeveloped acres at year-end 2007. Approximately
1.2 million of those acres are in the National Petroleum Reserve-Alaska (NPR-A).
ConocoPhillips also has a major ownership interest in two of North America’s largest oil fields located on Alaska’s North Slope, Kuparuk, which the company operates, and Prudhoe Bay. Additionally, ConocoPhillips has a significant operating interest in the Alpine field, located on the western North Slope. In southern Alaska, the company operates the Kenai liquefied natural gas (LNG) facility, the Tyonek platform in the North Cook Inlet field and the Beluga natural gas field in the Cook Inlet area.
Greater Prudhoe Area
Operator: BP (26.4%)
Co-venturers: ExxonMobil (36.4%), ConocoPhillips (36.1%),
Chevron (1.1%)
The Greater Prudhoe area (GPA) is made up of the Prudhoe Bay field, the Prudhoe Bay satellite fields and the Greater Point McIntyre area (GPMA) fields.
Prudhoe Bay Field
The Prudhoe Bay field is the largest producing oil field in the United States and has more than 1,000 active wells. Drilling is expected to continue for many years. Prudhoe Bay also is the site of one of the largest waterflood and enhanced oil recovery projects in the world, as well as a large gas processing plant, which processes more than 8 BCFD of natural gas that is reinjected into the reservoir. In 2007, ConocoPhillips’ net production at Prudhoe Bay averaged 101 MBOED. Prudhoe Bay also contains massive quantities of natural gas, and ConocoPhillips continues to work on opportunities to develop and produce that resource.
Prudhoe Bay Satellites
The Prudhoe Bay satellites consist of Aurora, Borealis, Midnight Sun, Polaris and Orion. In 2007, they contributed nearly 12 MBOED of net production. All Prudhoe Bay satellite fields produce through the Prudhoe Bay production facilities.
Greater Point McIntyre Area
The Greater Point McIntyre area is made up of the Point McIntyre, Niakuk, Lisburne, West Beach and North Prudhoe Bay State fields. Point McIntyre, which began production in 1993, is seven miles north of Prudhoe Bay and extends into the Beaufort Sea. The offshore Niakuk field began production in 1994 from an onshore drill site. Permanent production modules became operational in 1995, and waterflooding was started at that time. Production from the Lisburne field began in 1985. The fields within the GPMA generally are produced through the Lisburne production center. In 2007, GPMA’s net production averaged 14 MBOED.
Greater Kuparuk Area
Located 40 miles west of Prudhoe Bay on the North Slope of Alaska, the Greater Kuparuk area (GKA) contains Kuparuk, the second-largest onshore producing oil field in the United States. GKA also includes four satellite fields: Tarn, West Sak, Tabasco and Meltwater. Its facilities include the Kuparuk operations center and residence camp, and its field installations include three central production facil¬ities that separate oil, natural gas and water. The natural gas is used for fuel or compressed for reinjection to enhance oil recovery.
Kuparuk
Operator: ConocoPhillips (55.3%)
Co-venturers: BP (39.2%), Chevron (5.1%), ExxonMobil (0.4%)
Kuparuk, the second-largest onshore producing oil field in the United States, has been producing since 1981. Infill development continues and uses rotary and coiled tubing drilling that incorporates the results of a comprehensive 3-D seismic program to further delineate reser¬voir geology, characterize reservoir fault blocks and track the performance of the waterflood. Net crude oil production averaged 54 MBD in 2007.
Tarn
Operator: ConocoPhillips (55.4%) Co-venturers: BP (39.3%), Chevron (4.9%), ExxonMobil (0.4%)
Tarn, which began production in 1998, is located in the southwestern corner of the Greater Kuparuk area. In 2007, it produced more than 8 MBD net crude oil from two drill pads. A significant infill and peripheral drilling program is being conducted through 2010. Eight wells were drilled in 2007, and four are expected to be drilled in 2008.
West Sak
Operator: ConocoPhillips (52.2%) Co-venturers: BP (37.0%), Chevron (5.0%), ExxonMobil (5.8%)
Development of the West Sak reservoir, within the Kuparuk River Unit, began in 1998 from a Kuparuk drill site. In 2007, it produced 9 MBD net crude oil. Development of phases I and II of drill site 1J was completed in late 2007, and peak production from 1J is expected in 2008. Planning is under way for additional expansions in the north¬east West Sak area.
Tabasco
Operator: ConocoPhillips (55.4%) Co-venturers: BP (39.3%), Chevron (4.9%), ExxonMobil (0.4%)
Tabasco is a satellite oil field in the western section of the Greater Kuparuk area. Net crude oil production averaged 2 MBD in 2007. Like West Sak, Tabasco utilizes a Kuparuk drill site.
Meltwater
Operator: ConocoPhillips (55.5%) Co-venturers: BP (39.3%), Chevron (5.0%), ExxonMobil (0.2%)
Meltwater is a satellite oil field in the southwestern corner of the Greater Kuparuk area. It began producing in 2001, and its net crude oil production averaged 2 MBD in 2007.
 Western North Slope
Alpine
Operator: ConocoPhillips (78.0%)
Co-venturer: Anadarko (22.0%)
Located 40 miles west of west of Kuparuk, Alpine is the largest onshore oil field discovered in North America in the past 20 years. Directional drilling, zero-waste discharge, roadless development and other inno¬vations minimize the Alpine development’s environmental footprint on the Arctic. The field is being developed from 97 acres or about 0.2 percent of the 40,000-acre field. It began producing in late 2000, and three capacity expansions have been completed since 2004. Its 2007 net crude oil production was 59 MBD.
Alpine Satellites
Operator: ConocoPhillips (78.0%) Co-venturer: Anadarko (22.0%)
The Alpine satellites are made up of the Fiord, Nanuq and Qannik fields. In 2007, the satellites’ net crude oil production was 21 MBD. Fiord was discovered in 1999 and is six miles north of the Alpine field. It is produced from a roadless drill pad in the Colville Delta and is reached by an ice road built in the winter and by aircraft year-round. Fiord is expected to have peak crude oil production of approximately 25 MBD gross in 2009. Nanuq, discovered in 2001, is three miles south of Alpine. Its crude oil is being processed through the existing Alpine facilities. Fiord and Nanuq both produced first oil in 2006. The Qannik reservoir was discovered in 2006 and is being developed via a 7.5-acre expansion to the Alpine field’s CD2 drill site. Qannik’s production, targeted for late 2008, is planned as a nine-well develop¬ment with six producing wells and three water-injection wells. ConocoPhillips and its co-venturer are evaluating additional opportu¬nities near Alpine and currently are seeking state, local and federal permits for additional Alpine satellite development in the NPR-A.
North Slope Transportation
Trans-Alaska Pipeline System
Operator: Alyeska Pipeline Service Co.
Co-venturers: BP (46.9%), ConocoPhillips (28.3%), ExxonMobil (20.3%),
Koch Alaska Pipeline Co. (3.1%), Chevron (1.4%)
The 800-mile Trans-Alaska Pipeline System (TAPS) transports North Slope oil to the tanker terminal in the ice-free port of Valdez, Alaska. The pipeline carries approximately 739 MBD of crude oil and natural gas liquids. In 2004, the owners of TAPS approved plans to upgrade the pipeline’s pump stations. Work on the first two pump stations is complete, and both have commenced operation. The remaining two pump stations will be upgraded sequentially, and their completion is expected by 2010.
Polar Tankers, Inc.
Polar Tankers, Inc. (PTI), a wholly owned subsidiary, manages the marine transportation of ConocoPhillips’ North Slope production. PTI operates five ships in the Alaska trade and charters additional third-party-operated vessels as necessary. From 2001 through 2006, PTI brought five double-hulled tankers into service: Polar Endeavour (2001), Polar Resolution (2002), Polar Discovery (2003), Polar Adventure (2004) and Polar Enterprise (2006). These 140,000¬deadweight-ton crude oil tankers are designed to meet or exceed the requirements of the 1990 Oil Pollution Act, as well as the International Maritime Organization regulations.
 Cook Inlet Area
North Cook Inlet
Operator: ConocoPhillips (100%)
The North Cook Inlet field provides the majority of ConocoPhillips’ share of natural gas feed for the Kenai LNG facility. The field was discovered in the northern waters of Cook Inlet in 1962 and is produced from the Tyonek platform, which began operation in 1968. Net natural gas production averaged 66 MMCFD in 2007.
Beluga River
Operator: ConocoPhillips (33.3%) Co-venturers: Chevron (33.3%), Municipal Light and Power (33.3%)
The Beluga River natural gas field serves major customers in south-central Alaska, including local utilities and industrial consumers. Beluga River production also is used as backup supply for the Kenai LNG facility. Net natural gas production averaged nearly 35 MMCFD in 2007.
Kenai Liquefied Natural Gas (LNG) Facility
Operator: ConocoPhillips (70.0%) Co-venturer: Marathon Oil (30.0%)
For 38 years, the Kenai LNG facility has utilized the company’s proprietary technology to convert natural gas from nearby fields into liquefied natural gas. Utilizing two ships, the LNG is transported to Japanese utilities. Export authorizations have been obtained for Kenai LNG sales through March 2011. In 2007, ConocoPhillips sold 31.2 BCF of LNG to customers in Japan.
Denali - The Alaska Gas Pipeline
On April 8, 2008, ConocoPhillips and BP p.l.c. announced an agree¬ment to start a pipeline project named Denali – The Alaska Gas Pipeline, which would move approximately four billion cubic feet per day of Alaska natural gas to North American markets. The project consists of a gas treatment plant on Alaska’s North Slope and a 700¬mile, large-diameter pipeline through Alaska and into Canada through the Yukon Territory and British Columbia to Alberta. Should it be required to transport gas from Alberta, the project also could include a large-diameter pipeline from Alberta to the Lower 48 U.S. states.
ConocoPhillips and BP plan to spend $600 million to reach the first major project milestone, an open season, which will commence before year-end 2010. Following a successful open season, a process during which the pipeline company solicits customers to make long-term firm transportation commitments to the project, the pipeline entities formed by ConocoPhillips and BP intend to obtain Federal Energy Regulatory Commission (FERC) and Canadian National Energy Board (NEB) certification and move forward with project construction.
Chukchi Sea
ConocoPhillips participated in a lease sale in the first quarter of 2008 and was awarded 98 blocks totaling $506 million in the second quarter of 2008.
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