Denali – The Alaska Gas Pipeline BP and ConocoPhillips have joined to start “Denali – The Alaska Gas Pipeline” Project headquarters in Anchorage New company formed to manage the project in Alaska; joint venture being formed in Canada Plan to start open season before year-end 2010 Plan to spend $600 million over 36 months Executive Team in place Project team mobilized Field work program underway Community visits and agency discussions underway in Canada and Alaska

How much is 4 billion cubic feet per day? Denali Project 4 billion ft3/day to North American Consumers Project Components Gas Treatment Plant on the North Slope Large diameter, high pressure pipeline to Alberta Extension of pipeline from Alberta to Lower 48 will be undertaken if it improves project success or reduces transportation costs 1 2 3 Legend Denali Pipeline Denali B2C Pipeline Alliance Pipeline West Nova Pipeline East Nova Pipeline Western Pipeline Northwest Pipeline Northern Borders Pipeline Trans Canada Main Line Great Lakes Pipeline Union Gas Trans Quebec & Maritimes PL Iroquois Pipeline Portland Gas Pipeline 4 12 9 5 14 9 6 13 7 2 10 8 3 11 7 6 How much is 4 billion cubic feet per day? 6-8% of US daily consumption

New Gas Treatment Plant Central Compression Plant What will it do? Remove CO2 and other impurities CO2 to be reinjected, reducing greenhouse gases Dehydrate gas Remove water Compress gas For pipeline pressure Chill gas Maintain permafrost Where will it be? Located near the Prudhoe Bay facilities New Gas Treatment Plant Central Compression Plant Central Gas Facility

Pipeline What is it? How big is it? Buried large diameter pipeline Operates at ~ 2,500 psi Compressor stations every 100 to 200 miles at >40,000 hp each How big is it? About 2,000 miles to Alberta ~2-3 million tons of steel Possibly another 1,500 miles to US markets ~2 million tons of steel Cut-Away View Alaska Gas Pipeline TAPS

Alaskan Programs Make available $30 million to fund Job Training Programs In-State Gas Feasibility Infrastructure Upgrade Studies

Job Training Our goal is having a trained workforce for this project Owner companies support many technical training programs Committed to train local residents for this project Denali’s owner companies have demonstrated a long history of local hire, buy, and build. Denali will share that commitment.

Natural Gas for Local Use Denali – The Alaska Gas Pipeline proposed route Potential Alaska Offtake Points Will support in-state gas distribution efforts, including gas to Southcentral Alaska. Will provide for at least 5 Alaskan offtake points, including Fairbanks Other offtake points including Canada as appropriate

Infrastructure Upgrade Studies Roads e.g. Richardson, Dalton, Haines, Elliot, & Alaska/Canadian Highways Bridges e.g. Steese, Glenn, Parks, Haines Highways Ports e.g. Port of Haines

2008 Work Summer Field Work Engineering progressed Tok field office established Surveyed over 200 miles of wetlands Investigated 70 archeological sites Shot over 1700 miles of ortho-photography Shot 730 miles of “immersive” video Investigated 538 potential stream/river crossings Performed route reconnaissance As many as 80 people in the field Engineering progressed Route optimizations Technical studies Environmental assessments Cost estimates & schedules Plan project execution Employing 60+ people

Who’s Working with Denali right now? $40 million to be spent on Summer Field Work.

2009 Field Work Program Extend study area to encompass entire Alaskan route Focus on Yukon and British Columbia Consultation with communities, native Alaska stakeholders and Canadian Aboriginal groups Secure permits and land access Consultation with Communities Input on preliminary route Input on planned program Identification of potential resources Review existing data, perform data gap analysis and finalize 2009 program

Denali Terms of Service Denali will be an open access pipeline Rates will be distance-sensitive for local use Project design will provide for efficient expandability Denali plans to solicit customers for interest in expansion every two years Flexibility to use existing or new infrastructure out of Alberta

Stakeholder engagement Success Case Project Timeline File All Applications 2018 All Project Approvals (FERC / NEB, Permitting, ROW, & Full Funding) First Gas Full Capacity 5 Years 5 Years 2008 Phase 1 (Planning) Phase 2 (Prepare Applications) Phase 3 (Permit Approvals) Phase 4 (Execution) Ramp up Outreach Stakeholder engagement Planning Planning Collect Field Data Open Season Permitting Application Prep Review/Approval Engineering & Regulatory Engineering Detailed Design Procurement Pre-Procure Equip & Material Supply Module Fabrication Construction Pre-Construct. Construction & Commissioning Infrastructure Upgrades

Open Season By year-end 2010 1-2 months … Formal process regulated by the FERC in the US (NEB in Canada) Pipeline company seeks customers to make long-term firm transportation commitments to the project These contracts obligate customer to pay costs whether or not they ship or even own gas These contracts give banks the necessary confidence to lend money to the pipeline company By year-end 2010 1-2 months Notice to Conduct Open Season 60 Days 30 Days 90 Days … 10 days 10 days Discussions with potential shippers, negotiate terms of carriage & prepare Open Season Plan File copies of precedent agreements with FERC; begin to secure financing Conduct Open Season Sign precedent agreements Public comments Apply for FERC approval of Open Season Plan Post results of Open Season FERC Approves Open Season Plan

Denali Progress Continues Opened Tok field office and two temp offices in Anchorage FERC pre-filing request approved Executive Team in place 2008 summer field program nearing completion ($40 million) Borehole drilling to begin this winter 2009 field work program in both Canada and Alaska Expect to let key engineering contracts in the next six months In-state gas study will be initiated in 2009

BP & ConocoPhillips: Technical and Financial Strength Combined Pipeline experience More than 50,000 miles of oil & gas pipelines Solid technical capabilities Proven leaders in pipeline technology development Proven track record in the arctic Proven ability to deliver challenging world-class projects Strong balance sheets More than $300 billion of combined market capitalization Provide financial strength to support construction