Exhibit 99
NEWS Phillips Petroleum Company
Media Relations
Bartlesville, Oklahoma 74004
www.phillips66.com/newsroom
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CONTACTS: FOR IMMEDIATE RELEASE
Kristi DesJarlais (media) 918-661-6117 ---------------------
Clayton Reasor (investors) 212-207-1996
Kashagan Declared Commercial
BARTLESVILLE, Okla., June 28, 2002 --- Phillips Petroleum Company
[NYSE:P] and the other contracting companies in the North Caspian Sea
PSA have declared the Kashagan discovery commercial, in conjunction
with KazMunayGas, which represents the Government of the Republic of
Kazakhstan.
The two-year appraisal program undertaken by the contracting
companies indicates a preliminary estimate of the producible reserves
from the Kashagan field in the range of seven to nine billion barrels
of oil. These figures will be revised on the basis of the results of
further studies and data.
This declaration of commerciality enables preparation of a
development plan for the Kashagan field for the mutual benefit of the
people of the Republic of Kazakhstan and the contracting companies.
The contracting companies will continue to explore other structures
in the North Caspian Sea contract area by drilling Kalamkas (2002),
Kashagan South West (2003), Aktote (2003), and Kairan (2003).
The contracting companies involved in the North Caspian Sea PSA are:
Eni, operating the project through Agip KCO, with an interest of
16.67 percent; BG, 16.67 percent; ExxonMobil, 16.67 percent; Inpex,
8.33 percent; Phillips, 8.33 percent; Shell, 16.67 percent; and
TotalFinaElf, 16.67 percent.
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Kashagan Declared Commercial
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CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR"
PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Certain statements contained in this press release are "forward-
looking statements" within the meaning of The Private Securities
Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risk and uncertainty. The forward-looking
statements regard estimated producible oil from the Kashagan field.
The factors identified in this cautionary statement are important
factors (but not necessarily all important factors) that could
cause actual results to differ materially from those expressed in
any forward-looking statement. Factors which could cause the result
to differ from those expected or believed to be achieved or
accomplished are: preparation of, and agreement on, a plan of
development by Phillips, the other contracting companies in the
North Caspian Sea PSA and the government of the Republic of
Kazakhstan; availability of drilling rigs, equipment and
specialized workers; and weather and sea conditions. In any
forward-looking statement in which the company expresses an
expectation or belief as to future results, such expectations or
belief is expressed in good faith and believed to have a reasonable
basis, but there can be no assurance that the statement or
expectation or belief will result or be achieved or accomplished.
Cautionary note to U.S. investors - The United States Securities
and Exchange Commission permits oil and gas companies, in their
filings with the SEC, to disclose only proved reserves that a
company has demonstrated by actual production or conclusive
formation tests to be economically and legally producible under
existing economic and operating conditions. We use certain terms
in this press release, such as "producible reserves," that the
SEC's guidelines strictly prohibit us from including in filings
with the SEC. U.S. investors are urged to consider closely the
disclosure in the company's 2001 Form 10-K , available free by
calling Phillips at 918-661-3700. You can also obtain this form
from the SEC by calling 1-800-732-0330. These reports are also
available on the company's Web site at http://www.phillips66.com.
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