Conoco Acquires Additional Interests Offshore Vietnam

Conoco Inc. announced its agreement with Statoil ASA to purchase a portion of its interests in the $1.3 billion Nam Con Son natural gas project, offshore Vietnam. The new holdings increase Conoco's total acreage position in Vietnam to 6.05 million gross acres, or 3.2 million net.

Conoco's purchase included Statoil's 50 percent interest in Block 05.3, which covers approximately 462,000 acres. Exploration and appraisal are ongoing. The company also acquired all shares of Statoil subsidiary, Statoil Vietnam AS, which owned a 16.33 percent stake in the Nam Con Son pipeline, a 240-mile delivery system that will transport natural gas from Nam Con Son fields to the Phu My industrial complex near Ho Chi Minh City. Gas delivery is scheduled to begin next year.

The purchase supports Conoco's strategic growth plans for Southeast Asia and its objective of building a sustainable natural gas business in Vietnam. The company currently is the largest acreage holder of any foreign energy company in Vietnam. Conoco's current total production in Vietnam is about 50,000 barrels of oil per day (bpd), or 10,000 bpd net, produced from the Rang Dong Field in Block 15-2 in the Cuu Long Basin. Added future production is expected when the Sutu Den Field in Block 15-1, also in the Cuu Long Basin, comes on-stream, scheduled for late 2003. Early estimates of Sutu Den's initial future production are around 65,000 bpd.

Other stakeholders in the Nam Con Son pipeline are BP (32.67%), who will turn over the role of operator to majority stakeholder PetroVietnam (51%) after the first five years of production. BP holds remaining 50 percent of Block 05.3.