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ConocoPhillips Signs $2 Billion Settlement Agreement With PDVSA on ICC Arbitration Award

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ConocoPhillips (NYSE:COP) announced today that it has entered into a
settlement agreement with Petróleos de Venezuela, S.A. (PDVSA), the
Venezuelan state-owned oil company, to recover approximately $2 billion,
the full amount awarded to ConocoPhillips by an arbitral tribunal
constituted under the rules of the International Chamber of Commerce
(ICC), plus interest through the payment period.

PDVSA has agreed to recognize the ICC judgment and make initial payments
totaling approximately $500 million within a period of 90 days from the
time of signing. The balance of the settlement is to be paid quarterly
over a period of 4.5 years.

As a result of the settlement, ConocoPhillips has agreed to suspend its
legal enforcement actions of the ICC award, including in the Dutch
Caribbean. ConocoPhillips has ensured that the settlement meets all
appropriate U.S. regulatory requirements, including any applicable
sanctions imposed by the U.S. against Venezuela. Further details of the
agreement are confidential.

On April 25, 2018, the ICC tribunal awarded ConocoPhillips approximately
$2 billion arising out of PDVSA's failure to uphold its contractual
commitments. The award relates to the unlawful expropriation of
ConocoPhillips' investments in the Hamaca and Petrozuata heavy crude oil
projects in Venezuela in 2007 and other pre-expropriation fiscal
measures. The ICC arbitration award is final and binding upon the
parties.

Additionally, ConocoPhillips has a separate and independent legal action
pending against the government of Venezuela before a tribunal under the
auspices of the World Bank's International Centre for Settlement of
Investment Disputes (ICSID). The ICSID tribunal has already ruled that
Venezuela's expropriation of ConocoPhillips' investments violated
international law. Proceedings are underway to determine the amount of
compensation owed to ConocoPhillips.

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About ConocoPhillips

ConocoPhillips is the world's largest independent E&P company based on
production and proved reserves. Headquartered in Houston, Texas,
ConocoPhillips had operations and activities in 17 countries, $69
billion of total assets, and approximately 11,200 employees as of June
30, 2018. Production excluding Libya averaged 1,216 MBOED for the six
months ended June 30, 2018, and proved reserves were 5.0 billion BOE as
of Dec. 31, 2017. For more information, go to www.conocophillips.com.

CAUTIONARY STATEMENT FOR THE PURPOSES OF THE
"SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995

This news release contains forward-looking statements.
Forward-looking statements relate to future events and anticipated
results of operations, business strategies, and other aspects of our
operations or operating results. In many cases you can identify
forward-looking statements by terminology such as "anticipate,"
"estimate," "believe," "continue," "could," "intend," "may," "plan,"
"potential," "predict," "should," "will," "expect," "objective,"
"projection," "forecast," "goal," "guidance," "outlook," "effort," "on
track," "target" and other similar words. However, the absence of these
words does not mean that the statements are not forward-looking. Where,
in any forward-looking statement, the company expresses an expectation
or belief as to future results, such expectation or belief is expressed
in good faith and believed to have a reasonable basis. However, there
can be no assurance that such expectation or belief will result or be
achieved. The actual results of operations can and will be affected by a
variety of risks and other matters including, but not limited to changes
in commodity prices; changes in expected levels of oil and gas reserves
or production; operating hazards, drilling risks, unsuccessful
exploratory activities; difficulties in developing new products and
manufacturing processes; unexpected cost increases or technical
difficulties in constructing, maintaining, or modifying company
facilities; international monetary conditions and exchange rate
fluctuations; changes in international trade relationships, including
the imposition of trade restrictions or tariffs relating to crude oil,
bitumen, natural gas, LNG, natural gas liquids and any materials or
products (such as aluminum and steel) used in the operation of our
business; our ability to liquidate the common stock issued to us by
Cenovus Energy Inc. at prices we deem acceptable, or at all; our ability
to complete the sale of our announced dispositions on the timeline
currently anticipated, if at all; the possibility that regulatory
approvals for our announced dispositions will not be received on a
timely basis, if at all, or that such approvals may require modification
to the terms of our announced dispositions or our remaining business;
business disruptions during or following our announced dispositions,
including the diversion of management time and attention; the ability to
deploy net proceeds from our announced dispositions in the manner and
timeframe we currently anticipate, if at all; potential liability for
remedial actions under existing or future environmental regulations;
potential liability resulting from pending or future litigation; limited
access to capital or significantly higher cost of capital related to
illiquidity or uncertainty in the domestic or international financial
markets; and general domestic and international economic and political
conditions; as well as changes in tax, environmental and other laws
applicable to our business. Other factors that could cause actual
results to differ materially from those described in the forward-looking
statements include other economic, business, competitive and/or
regulatory factors affecting our business generally as set forth in our
filings with the Securities and Exchange Commission (SEC). Unless
legally required, ConocoPhillips undertakes no obligation to update
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.

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