ConocoPhillips Approves Bohai Bay Phase II Development

ConocoPhillips has approved approximately $1.8 billion in cash capital commitments for the multi-year second development phase of the company's Peng Lai (PL) 19-3 field in Block 11/05 in China's Bohai Bay. Final project sanction is subject to approval of the overall development plan by the Chinese National Development and Reform Commission.

Phase I of the PL 19-3 development began production in December 2002, and the field is currently producing approximately 20,000 barrels of oil per day (gross). Phase I facilities include a 24-slot wellhead platform and a floating production, storage and offloading facility. The Phase II development will incorporate knowledge gained from the Phase I drilling and production results.

ConocoPhillips and CNOOC signed a petroleum contract in December 1994 granting ConocoPhillips the right to explore Block 11/05, a 1.6 million-acre area located in Bohai Bay. ConocoPhillips is the operator of the block, with a 49 percent working interest in the PL 19-3 development. CNOOC holds the remaining 51 percent working interest.