UPDATE: ConocoPhillips to Sell Interest in Kashagan to ONGC Videsh

ConocoPhillips (NYSE: COP) today announced that it has notified governmentauthorities in Kazakhstan and its co-venturers of the company's intent to sellits 8.4 percent interest in the North Caspian Sea Production Sharing Agreement(Kashagan) to ONGC Videsh Limited.Subject to various government approvals, Kazakhstan state preemption rightsand co-venturers' preemption rights, ONGC Videsh Limited, the internationalarm of Oil and Natural Gas Corporation Limited, India, would acquireConocoPhillips' interest in Kashagan, which is located in the Kazakh sector ofthe Caspian Sea.The transaction is expected to close in the first half of 2013. Expectedproceeds are approximately $5 billion, which represents the purchase priceplus expected working capital and customary adjustments at closing.At Sept. 30, 2012, the carrying value of the net assets related toConocoPhillips' interest in Kashagan was approximately $5.5 billion.ConocoPhillips expects to record an after-tax impairment of approximately $400million in the fourth quarter of 2012 to reduce the carrying value to fairvalue.Through Sept. 30, 2012, the company's 2012-13 disposition program has yieldedproceeds of $2.1 billion. Once closed, this transaction would increase thattotal to approximately $7 billion, and strongly position the company toaccomplish its target of $8-$10 billion by the end of 2013.The proposed sale of its Kashagan interest is part of ConocoPhillips' plan toincrease value for shareholders through focused capital investments and acommitment to deliver growth in production and cash margins, improved returnson capital, and sector-leading shareholder distributions.