In April 2011, Australia Pacific LNG and Sinopec Corp. signed a sales agreement for 4.3 MTPA of LNG for 20 years from mid-2015 and a Subscription Agreement in which Sinopec Corp. subscribed for a 15 percent equity interest in Australia Pacific LNG. The first train of the project was sanctioned in July 2011, followed by the signing of a binding agreement with Kansai Electric in November 2011 for the sale and purchase of approximately 1 MTPA of LNG for 20 years from 2016. An amendment of the existing sales agreement with Sinopec Corp. was signed in January 2012 increasing their LNG purchase to 7.6 MTPA.With sanction of the second train, the agreement for Sinopec Corp. to subscribe to an increased equity interest in the Australia Pacific LNG joint venture is now unconditional with completion due to occur shortly. Sinopec Corp.’s ownership interest will increase from 15 percent to 25 percent, with ConocoPhillips’ and Origin Energy’s ownership interest each being reduced from 42.5 percent to 37.5 percent. Sinopec Corp.’s additional equity subscription provides Australia Pacific LNG with a net payment of US$1.4 billion for value determined as at Jan. 1, 2011. That amount is then adjusted for Sinopec Corp.’s ownership interest share of capital expenditure since that date. Therefore, Sinopec Corp. will inject an estimated US$2.1 billion into Australia Pacific LNG. These funds will be used to meet project expenditure before any additional funding is required from ConocoPhillips, Origin Energy or Sinopec Corp. Origin Energy and ConocoPhillips previously agreed, subject to certain milestones, that final investment decision payments on the first two trains of the project will be deferred until ConocoPhillips achieves an agreed cash rate of return on its project investment, including acquisition cost. In accordance with that agreement, this project sanction defers ConocoPhillips' final investment decision payment of US$500 million for the second train of the project.--- # # # --- About ConocoPhillips Headquartered in Houston, Texas, ConocoPhillips has operations in 29 countries and more than 16,000 employees as of May 1, 2012. Production averaged 1.62 million BOE per day in 2011 and proved reserves were 8.4 billion BOE as of Dec. 31, 2011. For more information, go to www.conocophillips.com. CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This press release contains forward-looking statements. 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, changes in commodity prices; changes in expected levels of oil and gas reserves or production; operating hazards, drilling risks, unsuccessful exploratory activities; difficulties in developing new products and manufacturing processes; unexpected cost increases; international monetary conditions; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; and general domestic and international economic and political conditions; as well as changes in tax, environmental 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. 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. Note on estimated gross capital cost – Total two train project cost of US$20 billion excludes any movements in foreign exchange rates.