CONOCOPHILLIPS, PETRONAS CARIGALI, SHELL SIGN CONTRACT FOR SABAH.

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(BW)(TX-CONOCOPHILLIPS)(COP.NYSE) ConocoPhillips, PETRONAS Carigali and Shell Sign Production Sharing Contract for Appraisal and Development Offshore Sabah, Malaysia

Energy Writers

KUALA LUMPUR, Malaysia (BUSINESS WIRE) - Dec 31, 2007 - ConocoPhillips [NYSE:COP] today announcedthat PETRONAS Carigali, ConocoPhillips and Shell have signed a Production Sharing Contract with PETRONAS, the Malaysian National Oil Company, for the appraisal and development of four discovered undeveloped natural gas and condensate fields in waters off the northwest coast of Sabah, Malaysia.

The fields, named Kebabangan, Kamunsu East, Kamunsu East Upthrown and Kamunsu East Upthrown Canyon have been designated as the "Kebabangan Cluster." The Kebabangan field is located in moderate water depth and is expected to be the first of the four fields to be developed. The other fields are expected to be developed at a later date once appraisal drilling is complete and commerciality is established.

The Kebabangan Cluster represents an opportunity for ConocoPhillips, PETRONAS Carigali and Shell to build upon previously announced exploration success in their contiguous deepwater Malaysia Blocks G and J offshore Sabah. These earlier announcements include two significant oil discoveries -- Gumusut and Malikai, discovered in 2003 and 2004, respectively. Appraisal activities have been completed and development planning is under way for both of these fields. Other recently announced oil discoveries in these blocks include Ubah and Petai, both of which are currently being evaluated for future appraisal and development.

Joint venture partners in the Kebabangan Cluster PSC are ConocoPhillips Sabah Gas Ltd., 30 per cent, PETRONAS Carigali, 40 per cent, and Shell Energy Asia Limited, 30 per cent. A joint operating company located in Kuala Lumpur has been established to act as the operator of the block on behalf of the partnership.