Statoil Enters into ConocoPhillips' Chukchi Sea Leases

ConocoPhillips and Statoil have entered into a deal for Statoil to acquire a 25% working interest in 50 ConocoPhillips leases acquired in the Chukchi Sea federal OCS lease sale in 2008. ConocoPhillips will be retaining operatorship and majority working interest in these leases.

"Statoil's decision to acquire interest in these leases substantiates ConocoPhillips' view that world-class hydrocarbon potential exists in the Chukchi Sea of Alaska," said Larry Archibald, ConocoPhillips senior vice president for Exploration and Business Development.

"ConocoPhillips has had a long-term business relationship with Statoil in many ventures around the world, particularly in Norway, and welcomes its expertise in this harsh operating climate," Archibald continued.

Statoil and ConocoPhillips have conducted joint operations for more than 30 years on the Norwegian continental shelf (NCS). Their NCS operating experience has allowed both companies to gain extensive expertise in tackling harsh environments as well as develop new technology to enhance recovery from existing fields.

"The Chukchi Sea in Alaska is a new frontier area for all operators and we believe that companies like Statoil and ConocoPhillips are among the best companies to take on this exciting journey together. By adding on these leases to the 16 we already have in Chukchi, we have now acquired a sizable acreage portfolio to explore in the coming years," said Tony Doré, heading up Statoil's exploration group in North America.

ConocoPhillips' initial drilling in the Chukchi Sea is presently scheduled for 2012.

In addition to financial considerations from Statoil, ConocoPhillips will also acquire 50 percent working interest in 16 Statoil-operated Gulf of Mexico (GOM) leases and acquire all of Statoil's 25 percent working interest in five additional GOM leases operated by ConocoPhillips. All of the involved GOM blocks are in the emerging Lower Tertiary play where ConocoPhillips has participated in the 2009-announced discoveries Tiber and Shenandoah.