Decommissioning and P&A in the Future

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Decommissioning and P&A in the Future Tim Croucher Decommissioning and Abandonment Manager ConocoPhillips Norway P&A Forum Annual Seminar October 19th 2016

Cautionary Statement The following presentation includes forward-looking statements. These statements relate to future events, such as anticipated revenues, earnings, business strategies, competitive position or other aspects of our operations, operating results or the industries or markets in which we operate or participate in general. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that may prove to be incorrect and are difficult to predict such as oil and gas prices; operational hazards and drilling risks; potential failure to achieve, and potential delays in achieving expected reserves or production levels from existing and future oil and gas development projects; unsuccessful exploratory activities; unexpected cost increases or technical difficulties in constructing, maintaining or modifying company facilities; international monetary conditions and exchange controls; potential liability for remedial actions under existing or future environmental regulations or 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; general domestic and international economic and political conditions, as well as changes in tax, environmental and other laws applicable to ConocoPhillips business and other economic, business, competitive and/or regulatory factors affecting ConocoPhillips business generally as set forth in ConocoPhillips filings with the Securities and Exchange Commission (SEC). We caution you not to place undue reliance on our forward-looking statements, which are only as of the date of this presentation or as otherwise indicated, and we expressly disclaim any responsibility for updating such information. Use of non-gaap financial information This presentation may include non-gaap financial measures, which help facilitate comparison of company operating performance across periods and with peer companies. Any non-gaap measures included herein will be accompanied by a reconciliation to the nearest corresponding GAAP measure on our website at www.conocophillips.com/nongaap. Cautionary Note to U.S. Investors The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves. We use the term "resource" in this presentation that the SEC s guidelines prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the oil and gas disclosures in our Form 10-K and other reports and filings with the SEC. Copies are available from the SEC and from the ConocoPhillips website. 2 P&A Forum Annual Seminar October 19th 2016

Decommissioning and P&A in the Future Agenda: Decommissioning Scope Challenges and Goals Future Solution Development Industry Collaboration Conclusions 3 P&A Forum Annual Seminar October 19th 2016

ConocoPhillips Norway Decommissioning Scope Greater Ekofisk Decommissioning Cost Decommissioning scope 2016-2055: >340 wells to P&A (+/- 50% of total cost) 19 facilities to remove and dispose ( +/- 45% of total cost) 4 P&A Forum Annual Seminar October 19th 2016

Greater Ekofisk Well Plug & Abandonment Scope Ekofisk 2/4 B P&A 22 wells 2 wells 2016 (completed) Future 20 wells Tor P&A 12 wells Ekofisk 2/4 C P&A 23 wells Short Term P&A Well Integrity Driven Medium Term P&A +/- 70-100 wells Structural Integrity Driven Ekofisk 2/4 A P&A 23 Wells 23 wells - Ongoing Eldfisk 2/7 B P&A 19 wells Eldfisk 2/7 B P&A 6 wells Platform Rig - 3 wells 2016 (completed) Platform Rig - 2016 Future 16 wells Long Term P&A > 220 wells Economic Life Driven Eldfisk 2/7 A P&A 27 wells 5 P&A Forum Annual Seminar October 19th 2016

2014 2016 P&A Programs (Total 38 wells) Ekofisk Alpha: 23 Wells Complete by EOY Rowan Gorilla VI Eldfisk Bravo: 6 Wells Platform Rig Ekofisk Kilo: 3 Wells Platform Rig Eldfisk Alpha: 2 Wells Maersk Gallant Ekofisk Bravo: 4 Wells Rowan Norway 6 P&A Forum Annual Seminar October 19th 2016

Greater Ekofisk Area Specific P&A Challenges Mature Subsurface Environment with large variability in pressure after 30 years of water flooding Dynamic Well Conditions with reservoir compaction and overburden subsidence Physical condition of ageing wells Surface / Platform Constraints 7 P&A Forum Annual Seminar October 19th 2016

The Long Term Goal Two core focus areas: Ensure a robust subsurface barrier management philosophy Drive down future P&A cost through the development of new cost effective solutions 8 P&A Forum Annual Seminar October 19th 2016

Multiple Parallel Technology Improvement Strategies Multiple Parallel P&A Improvement Strategies Improve efficiency of current P&A methods Specific targeted improvement initiatives Low Cost Low Risk Early Delivery Incremental Improvement Ensure robust subsurface barrier management Reduce Cost Improve rig efficiency New rig strategy? Single market exercise (functional spec) Medium Cost Medium Risk 2-4 yr Delivery Significant Improvement New Technology Step Change improvement through new technology Multiple strategically focussed R&D and tech development projects Medium Cost High Risk 2-6 yr Delivery (from 2015) Step Change Improvement 9 P&A Forum Annual Seminar October 19th 2016

Improved efficiency of current P&A operations Testing application of new P&A solutions e.g. : Optimized Perf-Wash-Cement technique Use of formation as a barrier Challenged standard P&A practices Improvements in barrier verification Reduced tripping through multi-activity tool combinations Improved operational rig efficiency Improved planning enabled more efficient SIMOP s Optimized pattern skidding +/- 70% improvement in P&A performance (days per well) 10 P&A Forum Annual Seminar October 19th 2016

Reducing the Cost of P&A Activities Rig Cost Reduced time per well -> Reduced cost per well Reduced burn rates -> Reduced cost per well Need dramatic changes in both surface and downhole technical capability Paradigm shift in P&A philosophy / strategy HWO Modular Rig Jack Up Rig The Future? Drilling Rig? P&A Rig? With A Rig? Without a Rig? 11 P&A Forum Annual Seminar October 19th 2016

Future Solution Development New Technology Understand key solution needs and opportunities Consider broad scope of alternative solutions Out of the box thinking / Open minded approach to solution development Communicate needs to the market How to improve market interest / understanding? How to accelerate development of North Sea P&A Solutions market? 12 P&A Forum Annual Seminar October 19th 2016

Multiple Potential Solutions and Providers. etc. Spex Key to Success Collaboration! Erosion Foro Pan North Sea Remote monitoring Multi-string bond logging Monitoring Verify Barrier Regain Wellbore Access Revolutionary P&A Technology Remove Steel Clean Out Heat melting Explosion pressure Corrosion Interwell GA Drilling BiSN Regional Organizations UK Oil and Gas Norwegian Oil and Gas Association Industry JIP s Through Tubing Solutions Establish Barrier Formation Barriers Advanced Pugging Materials Sintef Nammo Bi-Lateral / Tri-Lateral Operator Collaboration. etc. DNV GL DrillWell ANT 13 P&A Forum Annual Seminar October 19th 2016

Conclusions Two core focus areas to drive improvements in future P&A Acceptable subsurface barriers Acceleration of development of new cost effective solutions There is an opportunity for a Paradigm Shift in P&A philosophy / strategy Need dramatic changes in both surface and downhole technical capability There is a huge long term market and there is Win Win market model! Long term environmental risk assurance at a significantly reduced cost Guaranteed scope of work over a very long period Collaboration between Operators and the Market is vital 14 P&A Forum Annual Seminar October 19th 2016