CONOCOPHILLIPS   Second Quarter 2008   European Marketing  JET ® brand adds value to refining   Norway’s Pulpit Rock  An arduous climb made safer   Gas Giant  Qatar’s star on the rise     © ConocoPhillips Company. 2008. All rights reserved.   We’re defined by what we pass  on to the next generation.  That’s why, as one of North  America’s leading producers   of natural gas, ConocoPhillips   is providing clean-burning   fuel to homes, schools and   businesses. And, to help find  long-term solutions, we’re   exploring new sources of   secure, stable energy. So we   can pass on what matters . . .    to the ones who matter most.    www.conocophillips.com   begins      today.  Tomorrow     Sharing Insights   In an intensely competitive  international oil and gas industry,  ConocoPhillips is uniquely positioned to succeed. We are a leading operator in many  key producing regions, including Europe, Africa, Asia and the Middle East. While the  entire industry is hampered by government-imposed restrictions on access to resources,  we have the advantage of  a substantial existing opportunity portfolio primarily  concentrated in relatively stable OECD (Organization for Economic Cooperation and  Development) countries. ConocoPhillips Exploration and Production remains focused on transforming our  substantial resource potential into proven reserves and, ultimately, production. We are  pursuing new opportunities through focused exploration and business development,  and we intend to achieve a five-year average annual reserve replacement in excess of   100 percent and an average annual production growth rate through 2012 of  2 percent. To this end, in recent months we’ve strengthened our international exploration  portfolio by adding offshore acreage in Australia, Indonesia and the North Sea. In Nigeria, we’ve conducted  successful exploration and appraisal programs both onshore and offshore. Development milestones have  included first production in Indonesia’s Kerisi field, the Statfjord Late Life project in the Norwegian North  Sea and the Kelvin platform in the U.K. North Sea. We’ve also made progress on a number of  major ongoing  projects, including the development of  multiple oil-producing facilities in Bohai Bay, offshore China. Progress- ing toward startup in 2008 are the North Sea Britannia satellite fields and the Yuzhno Khylchuyu field, part  of  our Naryanmarneftegaz joint venture with LUKOIL in northern Russia. Featured in this issue of  spirit Magazine is one of  the most exciting and promising long-term projects in  our international portfolio. The cover story takes an in-depth look at Qatar, a nation often referred to as the  Saudi Arabia of  natural gas. Our partnership with Qatar Petroleum on Qatargas 3, an offshore and onshore  development, will produce 1.4 billion cubic feet per day of  liquefied natural gas for export to world markets,  including the United States. Key elements to Qatar’s story are the progressive socioeconomic programs that  His Highness the Emir Sheikh Hamad bin Khalifa Al-Thani and his wife, Her Highness Sheikha Mozah, have  championed. Under their leadership, Qatar is moving well beyond its energy reserves toward a much larger  regional and global role in the areas of  education, health and sustainable development. Editor’s Note: Since its first issue, spirit Magazine has sought to paint a broad picture of  our company  and our industry. This quarter we continue that tradition by delving into a diversity of  topics, from Euro- pean JET® brand marketing to carbon storage research and development to training for new hires. Also  in this issue, we take a behind-the-scenes look at the 2008 SPIRIT of  Performance Awards, revealing both  the tremendous accomplishments of  employees across many disciplines and the unique way the company  celebrates those achievements.   Reader feedback has played an early and important role in the shaping of  spirit Magazine. As always, we  look forward to your comments on the current issue. You can find information on how to contact us on Page 56.    Ryan Lance President, Explora- tion and Production,  Europe, Africa, Asia  and the Middle East    1 spirit Magazine     spirit Magazine  Second Quarter 2008  4 42 48 54    Qatar is on the rise     Production estimates for Qatar’s offshore natural gas platforms are  astronomical, and ConocoPhillips is taking a major role in bringing that important fuel to the  marketplace.   Faces of ConocoPhillips      Canada’s motorcycle racer.  Australia’s calisthenics queen.  Bartlesville’s busy retiree.   In the News    Texas Children’s  Hospital. Iowa State University.  Public outreach. Friend Ships.  Okmulgee site. Recent trans-  actions. Indonesian apprentices.  Marine business growth.   FSC certification.   The Big Picture      Automated drill rig.    Khalifa International  Stadium, part of  Doha’s Sports City  complex, renovated  with futuristic flare  for the 15th Asian  Games in 2006       16 20 28 34  38    COVER   Qatar    The recently built Al  Dafna Mosque, located in  Doha’s West Bay area on  land reclaimed from the  sea, is a reincarnation of  historic  mosques  in  Qatar.            The country’s traditional  Muslim conservative   society is witnessing a new  dawn of change as it reaps  the benefits of increased   oil and gas revenues   and an ambitious drive  toward modernization.   Photograph by Garth Hannum   Reducing CO2   Carbon  capture and storage is one path  ConocoPhillips is exploring to  find pragmatic and sustainable   solutions that address the   environmental impacts of   climate change.   Getaways    Pulpit Rock   An insider’s look    A popular  orientation program offers new  hires a wealth of knowledge   and a solid foundation for   their careers.   JET®   European marketing  takes two different business  approaches to achieve the same  goal of adding value to local  refinery output.   2008 SPIRIT Awards      Recognizing the “best of the  best�?is an annual affair that  requires teamwork and a   seamlessly executed plan.     QATAR   Doha, Qatar’s  increasingly  crowded skyline  features a  diverse mix of  architecturally  original skyscrapers.     ood morning,�?Mike Stice  says, flashing a broad smile and  looking from face to face. “We’d  like to start off this meeting with a safety  moment. No matter what, always wear  your seatbelt. The roads can be kind of  dangerous out there.�?   G   5 spirit Magazine   The small Middle Eastern nation of Qatar has more natural  gas than you can shake a flare at. And ConocoPhillips is right  in the middle of it with Qatargas 3.    �?  by Jim Spanos.  Photography by Garth Hannum.     6 ConocoPhillips   Right: “Success  here comes from  relationships,�?  says Mike Stice,  president, Conoco- Phillips Qatar. Below: Traditional  wooden fishing  boats stand on the  waterfront in stark  contrast with the  growing modern   city beyond.        It is just after 7 o’clock in the morning, and  Stice is addressing eight members of Conoco- Phillips�?board of directors, along with John  Lowe, executive vice president, Exploration and  Production. The smell of everyone’s omelets,  the ubiquitous safety moment, the ambiance of  the Four Seasons dining room and the familiarity  of the host’s Oklahoma twang cause the hap- less reporter, for a moment, to imagine that this  meeting is taking place somewhere in the   United States.  The fact is, however, that this is not Chicago,  or Houston, or New York. This is Doha, and  ConocoPhillips Qatar President Mike Stice is  briefing his group of guest luminaries for a     Qatar     7 spirit Magazine   Top (from left):  ConocoPhillips  board members  Bill Reilly, Norman  Augustine and  Ambassador J.  Stapleton Roy; John  Lowe, executive vice  president, Conoco- Phillips Exploration  and Production; Ab- dullah Bin Hammad  Al-Attiyah, Qatar  deputy prime min- ister and chairman,  Qatar Petroleum;  Saad Al Kaabi, Qatar  Petroleum director  of Oil and Gas Ven- tures; and Abdulaziz  Al-Malki, office  director, Ministry of  Energy and Industry,  Qatar Left: Qatargas  Site Engineer Len  Wheatley (left) and  QG Company Repre-  sentative Peter  Flanagan standing  in front of the three  massive QG3 and 4  decks, under   construction.   meeting with His Highness Sheikh Hamad bin  Khalifa Al-Thani, the Emir of Qatar.  AMAZING GROWTH  One step into the hotel lobby and its  guests�?customary raiment �?the full-body,  white cotton thobe worn by the men and  the black, full-length abaya worn by many  of the women �?announce the presence  of Arab tradition in what might otherwise  appear a Western hotel. The importance of tradition in the  Arab world is renowned. Throughout  the day, adhan, the Islamic call to prayer,  sounds from the minarets, reminding the  listeners of where they are. It is a necessary re- minder, since Doha’s downtown landscape fairly  bellows the coming of the future with its wealth  of futuristic skyscrapers. The buildings, all glass and concrete and the  latest, hippest architecture, block out the sun    for a good part of the day in a region of the  world feared for its summertime. Where there  are no buildings, there are immense and varied  skeletons of buildings in progress. Where no  structures stand yet, great, cleared plots of land,  bulging with busy bulldozers, promise marvels to    Qatar   Arabian Sea   SAUDI ARABIA UNITED ARAB EMIRATES YEMEN   OMAN  IRAN   QATAR Abu  Dhabi  Doha  Dubai     come. Signs herald the soon-to-be construction of  this tower or that plaza, accompanied by snazzy  artist renderings. There are cranes everywhere. This all seems sort of familiar. It reminds one, at least superficially, of the  recent hypergrowth of the city of Dubai, United  Arab Emirates. A car trip from the airport to one’s  hotel in Dubai is a marvel of internally illuminated  architectural exuberance. For the first few min- utes, one simply gawks at the great number and  variety of tall buildings (not to mention American  fast-food establishments) on display. Ten minutes  later, traveling down the same smooth, wide,  modern freeway, the passenger begins to suspect  he is in some sort of ride simulator in Las Vegas,  ostensibly designed to show an imaginary future  metropolis that covers the entire earth. The build- ings just keep on coming. And coming. Qatar may be building a lot, but it is not a  junior version of Dubai. One critical difference is    the basis of its economy. “Dubai doesn’t have much oil, so it’s having  to create its future in the form of tourism and by  making itself into an economic center,�?says Nick  Spencer, general manager, Middle East and North  Africa, Refining, Marketing and Transportation.    Qatar   8 ConocoPhillips    Above: Nick Spen- cer, general man- ager, Middle East  and North Africa,  Refining, Marketing  and Transportation Right: His Highness  Sheikh Hamad bin  Khalifa Al-Thani,   the Emir of Qatar,   addresses the   United Nations   General Assembly   in September 2007.    Photo by Timothy A. Clary/AFP/Getty Images     “Dubai needs its tourism, unlike a wealthier emir- ate like Abu Dhabi, which can afford to take a bit  longer to accomplish its plans of diversification.�? Abu Dhabi, the capital of the United Arab  Emirates, isn’t resting on its petrolaurels. “For  example,�?Spencer says, “they have an agree- ment with the Guggenheim and with the Louvre  to create satellite versions of those museums  here. They’re building a Formula One racetrack.  They’re building a cultural center. All of this is to  broaden their economic base so they have more  than their oil wealth to depend on in the long  term.�? The idea of such diversification �?that places in  the Middle East should be known, even famous,  for things other than fossil fuel production �?is the  central idea behind the modern Qatar. The Qatar Foundation for Education, Science  and Community Development, founded by H.H.  the Emir in 1995, is the organization at the heart of   Qatar’s progressive development. Its chairwoman is  H.H. the Emir’s wife, Her Highness Sheikha Mozah  Bint Nasser Al-Missned, a beloved figure in Qatar    Qatar   9 spirit Magazine   Hockey players  practice in the ice  rink of the ornately  appointed City Cen- ter Mall in Doha, one  of the largest malls  in the city. In con- trast, (left) a vendor  offers an array of  nuts, beans, spices  and other products  at one of the city’s  many traditional  markets.   The Qatar Foundation’s biggest project is Education City, a  massive 2,400-acre development, designed to be a beacon of  learning for the Arabian Gulf Region.