ConocoPhillips to Establish Second Bohai Bay Fund

HOUSTON, September 18, 2011 – ConocoPhillips [NYSE:COP] today announced that its Board of Directors approved the creation of a second fund and will work with co-venturer, China National Offshore Oil Corporation (CNOOC) or other appropriate parties to specifically address environmental issues in Bohai Bay, China. The company also reaffirmed its previous September 6, 2011 announcement to establish a separate fund to provide fair and reasonable compensation for any damages arising from the incidents at the Peng Lai 19-3 field in Bohai Bay. The company takes these actions in recognition of its obligations to the people and the government of China, and as part of its commitment to a long term relationship with them. ConocoPhillips will work cooperatively with the appropriate governmental authorities in regard to these funds.

The incidents in Bohai Bay occurred on June 4 and June 17 and resulted in a total release of approximately 700 barrels (115 cubic meters) of oil into Bohai Bay and approximately 2,500 barrels (400 cubic meters) of mineral oil-based drilling mud (MOBM) on the seafloor. The Platform B fault has been sealed and the Platform C well permanently plugged and abandoned.

The released oil has either been collected, evaporated, biodegraded or broken down to background levels by virtue of waves and currents. The company continues to survey and sample the seafloor immediately around Platform C and clean up any residual amounts of MOBM that are encountered.  This work will continue until ConocoPhillips, CNOOC and Chinese authorities are satisfied that the clean up is complete.

The company is currently in the process of implementing plans to depressurize the reservoir and take additional precautionary measures to prevent these incidents from recurring. ConocoPhillips is also preparing a new marine Environmental Impact Assessment and updating the Overall Development Plan as part of a phased recovery program. These plans are being carried out under the supervision of CNOOC and Chinese authorities.


- # # # -



Aftab Ahmed (media) 281-293-4138 

Clayton Reasor (investors) 212-207-1996


This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Forward-looking statements relate to future events and anticipated results of operations, business strategies, and other aspects of our 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. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, there can be no assurance that such expectation or belief will result or be achieved. The actual results of operations can and will be affected by a variety of risks and other matters including, but not limited to, crude oil and natural gas prices; refining and marketing margins; potential failure to achieve, and potential delays in achieving expected reserves or production levels from existing and future oil and gas development projects due to operating hazards, drilling risks, and the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas; unsuccessful exploratory drilling activities; lack of exploration success; potential disruption or unexpected technical difficulties in developing new products and manufacturing processes; potential failure of new products to achieve acceptance in the market; unexpected cost increases or technical difficulties in constructing or modifying company manufacturing or refining facilities; unexpected difficulties in manufacturing, transporting or refining synthetic crude oil; international monetary conditions and exchange controls; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation; general domestic and international economic and political conditions, as well as changes in tax and other laws applicable to our business. Other factors that could cause actual results to differ materially from those described in the forward-looking statements include other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission (SEC). Unless legally required, ConocoPhillips undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.