Venezuela: A Reliable Partner July 2003

Venezuela: A Reliable Partner July 2003

JoseCaracas

PetrozuataPetrozuata

Gulf of Paria

HamacaHamaca

GOPGOP

Venezuela BusinessCurrent Projects - Location

ConocoPhillips History in Venezuela1990

• Petrozuata (PZ):– Agreement signed 1993– First Oil 1998– Peak Production 2000

• Hamaca (PA) – Agreement signed 1997– First Oil 2001– Peak Production 2004

• Corocoro (CC)– Agreement signed 1996– First Oil 2006– Peak Production 2010

PZ Agreement Signed

CC Agreement SignedPA Agreement SignedPZ First Oil

PA First Oil

CC First Oil

PZ Peak Oil

PA Peak Oil

CC Peak Oil

Cycle time from Agreement to Peak Production has been seven years in the Orinoco and over ten for conventional exploration.

1995

2000

2005

2010

2015

STRATEGIC ASSOCIATIONS LOCATIONSTRATEGIC ASSOCIATIONS LOCATION

PDVSA 41.67 %MOBIL 41.67 %VEBA 16.67 %

PDVSA 41.67 %MOBIL 41.67 %VEBA 16.67 %

PDVSA 30 %PHILLIPS 40 % TEXACO 30 %

PDVSA 30 %PHILLIPS 40 % TEXACO 30 %PDVSA 49.9 %

CONOCO 50.1 % PDVSA 49.9 %CONOCO 50.1 %

PDVSA 38 %TOTAL 47 %STATOIL 15 %

PDVSA 38 %TOTAL 47 %STATOIL 15 %

HAMACAHAMACACERRO NEGRO CERRO NEGRO

SINCORSINCORPETROZUATAPETROZUATA

200 Km36” / 20 “200 Km36” / 20 “

25 Km26” / 12 “25 Km

26” / 12 “PTOPTO

Km 52Km 52 156 Km42” / 20 “156 Km42” / 20 “

134 Km30” / 20 “134 Km

30” / 20 “65 Km

30” / 20 “65 Km

30” / 20 “

PUERTO LA CRUZJOSE

CARIBBEAN SEACARIBBEAN SEA

STRATEGIC ASSOCIATIONSSTRATEGIC ASSOCIATIONS - PETROZUATA & HAMACA

PDVSA PDVSA 30% COP 40 % CVX 30 %

PDVSA 49.9 %PDVSA 49.9 %COP 50.1 %

CERRO NEGRO CERRO NEGRO SINCORSINCOR

PETROZUATA

PTOPTO

Km 52Km 52

PUERTO LA CRUZJOSE

CARIBBEAN SEACARIBBEAN SEA

HAMACA

Current Projects - Petrozuata

• Venezuelan corporation (50.1% COP participation)• Produce, transport and transform Extra Heavy

Crude Oil (EHCO) into synthetic crude oil• 35 year operating life (700 wells)• Gross reserves of 1.6 Billion Bbls, EHCO

production of 120,000 BPD (plateau)• Synthetic crude API ranges from 19 to 25 degrees • Off-take integrated with Lake Charles Refinery• Gross total life real capex of $4.8B including:

– EHCO production facilities– Two 125 mile pipelines – Upgrader facility – Solids Handling and marine facilities

• First project of its kind

Current Projects - Hamaca

• Unincorporated Venezuelan J.V. “Mancomunada”Ameriven acts as the agent on behalf of partners

• Produce, transport and transform EHCO into synthetic crude oil

• 35 year operating life (600 wells)• Gross reserves of 1.9 Billion Bbls, EHCO

production of 180,000 BPD (plateau)• Crude API 26 degrees • Gross total life real capex of $4.4B including:

– EHCO production facilities– Two 138 mile pipelines– Upgrader facility (on-line Q3 2004)

Current Projects – Gulf of Paria West• Exploration block (COP operator)• Corocoro discovery and additional exploration• 20 year operating life • Phase I gross resources of 450 Million Bbls• Crude API 24 degrees (no upgrading required)• Gross production of 60,000 BPD (Phase I) and

120,000 BPD+ (Phase I & II)• Gross real capex of $1B including:

– 24 Slot Well head platform – Production facilities– 22 kilometer export pipeline– Floating storage and off take vessel

• First of its kind development

Production Platform

24-Slot Wellhead Platform ( W.H.P. )

24-Slot Wellhead Platform ( W.H.P. )

~3 km Pipelines

Phase 2 Oil Capacity = 120,000+ BPD

Combined Phase 1 & 2 Capex over $1 Billion gross

Not shown to scale

Venezuelan Resource Position

0

500

1000

1500

2000

2500

3000

3500

Current Future

Net

Mlli

on B

OEs

PlataformaDeltana andOther Gas

Gulf of Paria

Hamaca

Petrozuata

ConocoPhillips is growing from a heavy oil leadership position to an expanded leadership position in Eastern Venezuela oil and gas products.

Blk2PLATAFORMA

DELTANA5 to 8 TCF

500 MMCFD

VENEZUELA

VISION: EASTERN VENEZUELA REGIONAL LNG

• Industrial Complex in Guiria (LNG PLANT)

• Gas Supply

Block 2 Deltana & Corocoro 1st Train

Gulf of Paria Exploration

GÜIRIA

HUBGOPW

750 MMCFD 1st Train (Blk2 & GOPW)

GOPE

Concept for Regional LNG in Eastern Venezuela

COP’s position in Venezuela: Partnering with Venezuela in……

Heavy Oil•A leader in Orinoco heavy oil with two strategic associations.•Envision more projects in the Orinoco.

Conventional Oil•A leader in conventional exploration in Eastern Venezuela.•Following-up on the Corocoro discovery with more oil and gas exploration.

Gas•Entering the Deltana gas play complimented by GOP position.•An emerging player in LNG anchored by Gulf of Paria and Deltana gas.

Additional Material

COP Venezuela Current Production

Venezuela Production MBD by Company

126.8

104.4

92.156.0

56.0

47.2

46.2

37.8

24.0

15.0Chev/TexTotalFinaCOPRepsolLasmoBPExxon/MobilPerez-CompacCNPCShell

Net mbdChev/Tex 126.8TotalFina 104.4COP 92.1Repsol 56.0Lasmo 56.0BP 47.2Exxon/Mobil 46.2Perez-Compac 37.8CNPC 24.0Shell 15.0

Total 605.5

COP Venezuela Future Production

Net mbdCOP 173.6Chev/Tex 164.3TotalFina 104.4Repsol 56.0Lasmo 56.0BP 47.2Exxon/Mobil 46.2Perez-Compac 37.8CNPC 24.0Shell 15.0

Total 724.5

Venezuela Production MBD by Company

173.6

164.3

104.4

56.0

56.0

47.2

46.2

37.8

24.0

15.0

COPChev/Tex TotalFinaRepsolLasmoBPExxon/MobilPerez-CompacCNPCShell