PRESS RELEASE - Conoco named contractor for 20-year Indonesia-to-Malaysia natural gas sale

Conoco, as operator of the South Natuna Sea Block B Production Sharing Contract (PSC), will supply all of the natural gas for a 1.5 trillion cubic feet (TCF) sale announced today between Indonesia and Malaysia.

This contract calls for natural gas from the Block B PSC in Indonesia to be delivered to Malaysia over a 20-year period beginning in 2002. Conoco and its Block B Partners, Inpex and Texaco, have been successfully finding and appraising natural gas reserves in Block B for the past two years in anticipation of growing gas markets, and in 1999 discovered and certified sufficient natural gas for this new sale.

``This sale represents Conoco's second recent success in exporting natural gas from Indonesia. We are proud to have been a part of this process and to be working with Indonesia's Pertamina and Malaysia's Petronas on this project,'' said Rob McKee, Conoco executive vice president for exploration and production. ``We've been actively exploring for new reserves in the region and our efforts proved successful with multiple discoveries in 1999.''

In 1999, the first sales contract for natural gas exported by pipeline from Indonesia was signed between Pertamina, the Indonesian State oil and gas enterprise, and Singapore's SembCorp Gas Pte. Limited. Natural gas sales to Singapore are scheduled for January 2001. Conoco and its Block B partners will supply 43.1 percent of the 2.5 TCF sale to be delivered over a 22-year period.

Associated with both of these natural gas sales, Conoco and its Block B partners are expecting to concurrently develop and produce approximately 280 million barrels of oil, condensate and liquefied petroleum gas from the Block B PSC. In addition to those fields dedicated to these two gas contracts, Conoco and its Block B partners are continuing to find and appraise new oil and gas fields which may be made available by Pertamina for future gas sales in the region.

``Conoco has been a major producer in Indonesia for more than 30 years,'' McKee said. ``This latest long-lived contract further solidifies our commitment to the region and helps diversify our gas market, which is important to our strategy to make Southeast Asia a major area of growth for our company.''

In Malaysia, Conoco holds a 40-percent interest in a 100,000-barrel-per-day refinery near Melaka, Malaysia. Petronas operates the facility and holds a 45-percent interest, and Statoil holds 15 percent. The refinery is a highly complex, modern facility and utilizes Conoco's proprietary carbon upgrading expertise. On the retail side, Conoco has one retail outlet outside Kuala Lumpur and plans to open nearly a dozen additional sites in the coming year.

Conoco is a major, integrated energy company active in more than 40 countries.

Conoco operates four Production Sharing Contracts in Indonesia: Block B PSC, Tobong PSC, North West Natuna II PSC, Warim PSC.

Conoco is a non-operating participant in one additional Indonesian Production Sharing Contract: South Sokang PSC

Block B Production Sharing Contract Partners: Conoco (Operator) 40%; Inpex 35%; Texaco 25%

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This release contains forward-looking statements about Conoco's business plans and operations. These statements are not guarantees of future performance, involve certain risks, uncertainties, and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Actual outcomes and results may differ materially from what is expressed herein. Among the factors that could cause such differences are changes in oil and gas prices; unsuccessful developmental drilling activities; failure to achieve expected reserve or production levels due to operating hazards, drilling risks, and the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas, inability to obtain government approvals for project development; and interruptions of operations due to accidents or political events, as well as other risks discussed in detail in Conoco's publicly available filings with the Securities and Exchange Commission.

Contact: Conoco, Houston, Sondra Fowler, 281/293-4595, www.conoco.com (*)