U.S. China Oil & Gas Industry ForumSeptember 11, 2007

San Francisco, CA

Enabling a Brighter Tomorrow: E-GasTM Gasification

Doug SauerManager, Asia Business Development, E-Gas GasificationDoug.b.sauer@conocophillips.com

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Outline

ConocoPhillips & China

Gasification Market Overview

E-GasTM Technology

E-Gas Projects

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E-GasTM Technology Applications are under review in several of ConocoPhillips primary

operating areas

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COP China Business ScopeBohai Bay -

Bohai Phase I & II Developments &

Exploration

South China Sea -Xijiang Development

Shekou –Operations office

& shore base

Shanghai

Shekou Hong Kong

Beijing –Main China office

Taiwan

• South China Sea• Xijiang - 17 Mbopd net, 17% WI• Panyu – 11Mbopd net, 24.5% WI

• Bohai 11/05• Bohai Phase I, II projects – 49% WI

• Phase I, 13 Mbopd net• Phase II first oil thru new FPSO in 2008, 80 Mbopd net

• Bohai Exploration – COP 100%• Over 20 high probability of success prospects

• Sichuan• Bajiaochang – 12 MMscfd, 100% WI

• LNG & Mid stream opportunities

Shanghai –FPSO Hull,

Plastics PlantsChev/P JV

Tanggu

South China Sea -Panyu Development

Sichuan -Bajiaochang Development

Zhejiang

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COP China Facts

• 1973 - Invited with other foreign operators to China in 1973

• 1981 - Awarded South China offshore blocks – Xijiang discovery in 1985

• 1994 - Xijiang first oil

• 1998 - Start up of Polyethylene plant in Jinshanwei

• 1999 - Discovery of PL 19-3 - largest offshore Oil Field in China

• 2002 - First foreign operated production in Bohai Bay

• 2005 - Bohai Phase II ODP approved

• 2006 - Acquisition of Burlington China assets completed 1 April

• Approximately $1.4 billion of Exploration and Development investments in China

• $2.8 billion upon Bohai Phase II completion

• Currently employ 600 Chinese national employees and contractors

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Multi-Fuel, Multi-Product Gasification Technology

Feedstock Options

GasificationTechnology

Product Options

CleanLow-cost Syngas

IGCCIGCC

Bituminous Sub-BituminousPet CokeMSWSludgeBiomassWaste oilsPlastics

Power &Steam

HydrogenAmmoniaCOMethanolAcetic Acid

ChemicalProductionChemical

Production

FuelsFuelsSNGDieselNaphthaJet FuelGasolineDME

Gasification Products• Slag• Elemental Sulfur

Active E-Gas Projects

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Estimated Air Emissions: Coal-Based Power Plants

1) ConocoPhillips in-house estimates for un-scrubbed PC plants in the US 2) Wisconsin Electric Power SCPC information from April 2003 Draft Environmental Impact Statement, Elm Road Generating Station, Volume 1, Public Service Commission of

Wisconsin & Department of Natural Resources, Table 7-11, p. 155 (Pittsburgh No. 8 coal)3) Supplemental Information for PSD Permit Application, March 25, 2003, Prepared by Earth Tech, Inc. for Indeck - Elwood, LLC.4) Wabash River Repowering Project, 1999 average reported to IDNR

0

0.2

0.4

0.6

0.8

1

1.2

1.4

lb /

MM

Btu

Old PC(1) SCPC(2) CFB(3) Wabash IGCC(4) 2010 IGCC

SO2 NOx PM/PM10

Survey ResultsSurvey ResultsOperating Plant Statistics 2004 vs. 2007Operating Plant Statistics 2004 vs. 2007

20042004•• 117117 operating plantsoperating plants•• 385385 gasifiersgasifiers•• Capacity~Capacity~45,00045,000 MWthMWth•• FeedsFeeds

•• Coal Coal 49%,49%, Pet. Resid. Pet. Resid. 36%36%•• Products Products

•• Chemicals Chemicals 37%,37%, FF--T T 36%,36%,Power Power 19%19%

20072007•• 138138 Operating PlantsOperating Plants•• 417417 GasifiersGasifiers•• Capacity~Capacity~56,000 56,000 MWthMWth•• FeedsFeeds

•• Coal Coal 55%,55%, Pet. Resid. Pet. Resid. 32%32%•• ProductsProducts

•• Chemicals Chemicals 44%,44%, FF--T T 30%,30%,Power Power 18%18%

Source: Gasification Technologies Council June 12, 2007

Geographical Distribution of Geographical Distribution of World Gasification CapacityWorld Gasification Capacity

(MW(MWthth Equivalent)Equivalent)

0

5,000

10,000

15,000

20,000

25,000

30,000

C&SAmerica

NorthAmerica

Europe Asia/Aust. Afr/ME

Planned (2010)Operating (2007)

Source: Gasification Technologies Council June 12, 2007

World Gasification Capacity World Gasification Capacity GrowthGrowth

40,000

50,000

60,000

70,000

80,000

2000 2002 2004 2006 2008 2010

2007 Survey2004 Survey

(MW(MWth Equivalent)Equivalent)

Source: Gasification Technologies Council June 12, 2007

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LGTI 19872,400 TPD

1975 Pilot

36 TPD

1979Proto 1 - 400 TPD

1983Proto 2 - 1600 TPD

Successful Scale-ups on Multiple Feedstocks

Wabash 1995

2,600 TPD

Sub-bituminous Bituminous IL #6 coalPetcoke – Multiple refineries.

E-GasTM Technology has over 20 yrs commercial experience

Lignite

Sub-bituminous* TPD = short tons per day per gasifier

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E-Gas Gasification Offering

LICENSINGExpanding Business to include China

Feasibility & Optimization StudiesProcess Design ContentProject Design & Construction AssistanceStart-up AssistanceIn-Country Equipment SourcingTraining & Operations Support

Current Offering of over 3,000 ton/day Coke or Coal

per train

Sub-bituminous CoalBituminous coal

Petcoke

*3D Model by ConocoPhillips & Fluor

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Mine-mouth project producing 50 – 70 billion cubic feet/yr substitute natural gas (SNG)

Joint development between ConocoPhillips and Peabody

Processes 3.5 million tons/yr of coal and ConocoPhillips supplied petroleum coke

U.S. Midwest SNG ProjectU.S. Midwest SNG Project

MilestonesPublic announcement July 2007 Feasibility study completedPreliminary design and economic assessment to be complete early 2008

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10

12

14

16

18

20

22

24

26

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1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

2020

2025

2030

Domestic Production Domestic Consumption

Actual Projected

Imports

TCF

Source: DOE/EIA-Report#0383 (2006) & EIA Annual Energy Review (2005) Table 6.1

U.S. Nat. Gas Production is Short of Demand

The US is short on Natural Gas

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Drivers for SNG Production

China is also short on natural gas and oil but long on coal

High Awareness: Coal-to-transportation fuel: CTL, Methanol, DME

Less Awareness: Coal-to-natural gas applications: SNGPipeline natural gas quality ~ 90% methane, > 950 btu/scf HHVSNG is not town gas: Safer because of low CO content & fungiblewith natural gas because of high heat contentSNG produced by coal gasification can augment China natural gas supplies and LNG importsUtilizes known, domestic China coal reservesIncreases energy supply diversity

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UK Carbon Capture & Storage ProjectUK Carbon Capture & Storage Project

MilestonesFeasibility Study underway

World class 734 MWe CHP plant, Immingham, UK450 MW expansion to 1184 MW in construction – commercial operation 2nd Qtr 2009Provides critical steam supply to 25% of UK refining capacityProject: Refueling existing gas turbines with syngas produced from petcoke or coalDesigning for 90% carbon capture Carbon sequestration in North SeaGovernment incentives important

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Immingham CCS Vision

PowerPower

EGAS EGAS Clean Up + Clean Up +

Conversion to Conversion to Hydrogen & CO2Hydrogen & CO2

Imported Pet Imported Pet Coke / CoalCoke / Coal

Nitrogen

Nitrogen

Hydrogen

Hydrogen

SteamSteam

IncreasedOil Reserves Through

EOR

Depleted Gas Reservoirs:

Southern North Sea

Large oil fieldsNorthern North Sea

UK & Norway

HydrogenHydrogen

SteamSteam

Immingham CHPImmingham CHPPowerPowerTo GridTo Grid

Captured Captured CO2 toCO2 toStorageStorage

Transport & Injection Transport & Injection Into Oil Reservoirs for Into Oil Reservoirs for

Enhanced Oil RecoveryEnhanced Oil Recovery

Humber Humber RefineryRefinery

LindseyLindseyRefineryRefinery

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Summary: ConocoPhillips E-Gas Technology is Ideal

Enables conversion of coal and pet coke into multitude of valuable energy products

Provides environmental advantages over combustion especially when CO2 capture is required

E-Gas Technology Advantages:

Feedstock flexibility (100% Coal to 100% Petcoke)

Unique slag removal system lowers profile & lowers costs

Advanced slurry-based technology improves efficiency

Commercially proven for over 20 years

Competitive & economically viable CapEx & OpEx

Gasification should play a significant role in efforts to diversify future energy needs

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E-Gas Technology for Gasification

“Enabling a Brighter Tomorrow”:

Tomorrow beginstoday”