Release: ConocoPhillips and Statoil ASA sign Kuma PSC with Indonesian Government

JAKARTA, 16 January 2007 - ConocoPhillips and Statoil ASA announce the signing of the Kuma Production Sharing Contract (PSC) with the Indonesian government on January 15, 2007. ConocoPhillips and Statoil ASA submitted a bid for the Kuma Block in the 2006 Direct Offer round on October 12th and were subsequently awarded the block on December 13th, 2006. Their winning bid consisted of a US$5.0 million signature bonus, 1,000 km (621 miles) of 2D seismic, and one well. ConocoPhillips? share in the block is 60 per cent, while Statoil ASA?s share is 40 per cent.

Kuma PSC Block is situated in the East Makassar Foldbelt which lies between the Kalimantan and Sulawesi Islands. The East Makassar Foldbelt is part of the North Makassar basin and lies directly offshore from the western coast of Sulawesi in water depths of 1000-2000 meters (3,2181 ? 5,462 feet). This deep water block encompasses an area of approximately 5,086 square kilometers (1,964 square miles).

The signing of this new PSC represents a major step in ConocoPhillips? strategy to grow its Indonesian business through the addition of new quality exploration acreage,? says Bill Berry, ConocoPhillips Executive Vice President, Exploration, and Production.

"This award marks an important new entry into the upstream business in Indonesia for Statoil and fits well into our overall E&P strategy," says Senior Vice President Global Exploration Bill Maloney. "In this project we will use our experience from deepwater operations around the world and build on our ability to apply advanced technology in our upstream ventures." With this award, Statoil ASA now operates in 34 countries worldwide. (end of release)