Phillips and Sonangol Sign Exploration Agreement

Phillips Petroleum Company has signed a production sharing agreement with the Angolan state oil company, Sonangol, for Block 34 in deep water offshore northern Angola. Phillips acquired a 20 percent interest in the block. Co-venturers are Sonangol (operator), Norsk Hydro, Shell and Petrobras.

Block 34 is located in the Congo Basin, a prolific oil province that is home to a number of major drilling successes in recent years. The 1.56 million-acre block has never been licensed or drilled. Both 2-D and 3-D seismic data have been acquired on the block. It is anticipated that the first exploration well will be drilled in early 2002.

"We are extremely pleased to be a part of one of the most promising exploration blocks in the world," said Dodd DeCamp, senior vice president of worldwide exploration. "As a result of extensive sub-surface seismic studies, we have significantly advanced our knowledge and understanding of deepwater exploration in Angola. We have identified many high-potential prospects in Block 34 and are looking forward to working with our co-venturers in the block."