Guarantees	12 Months Ended
Dec. 31, 2019
Guarantees [Abstract]
Guarantees	Note 12—Guarantees At December 31, 2019, we were liable for certain contingent obligations under various contractual arrangements as described below. We recognize a liability, at inception, for the fair value of our obligation as a guarantor for newly issued or modified guarantees. Unless the carrying amount of the liability is noted below, we have not recognized a liability because the fair value of the obligation is immaterial. In addition, unless otherwise stated, we are not currently performing with any significance under the guarantee and expect future performance to be either immaterial or have only a remote chance of occurrence. APLNG Guarantees At December 31, 2019, we had outstanding multiple guarantees in connection with our 37.5 percent ownership interest in APLNG. The following is a description of the guarantees with values calculated utilizing December 2019 exchange rates: ● During the third quarter of 2016, we issued a guarantee to facilitate the withdrawal of our pro-rata portion of the funds in a project finance reserve account. We estimate the remaining term of this guarantee is 11 years . Our maximum exposure under this guarantee is approximately $ 170 million and may become payable if an enforcement action is commenced by the project finance lenders against APLNG. At December 31, 2019, the carrying value of this guarantee is approximately $ 14 million. ● In conjunction with our original purchase of an ownership interest in APLNG from Origin Energy in October 2008, we agreed to reimburse Origin Energy for our share of the existing contingent liability arising under guarantees of an existing obligation of APLNG to deliver natural gas under several sales agreements with remaining terms of up to 22 years . Our maximum potential liability for future payments, or cost of volume delivery, under these guarantees is estimated to be $ 780 million ($ 1.4 billion in the event of intentional or reckless breach) and would become payable if APLNG fails to meet its obligations under these agreements and the obligations cannot otherwise be mitigated. Future payments are considered unlikely, as the payments, or cost of volume delivery, would only be triggered if APLNG does not have enough natural gas to meet these sales commitments and if the co- venturers do not make necessary equity contributions into APLNG. ● We have guaranteed the performance of APLNG with regard to certain other contracts executed in connection with the project’s continued development. The guarantees have remaining terms of up to 26 years or the life of the venture . As of December 31, 2019, we were released from certain of these guarantees considered subordinated financial support to APLNG. Our remaining maximum potential amount of future payments related to the remaining guarantees is approximately $ 60 million and would become payable if APLNG does not perform. Other Guarantees We have other guarantees with maximum future potential payment amounts totaling approximately $ 820 million, which consist primarily of guarantees of the residual value of leased office buildings, guarantees of the residual value of leased corporate aircraft, and a guarantee for our portion of a joint venture’s project finance reserve accounts. These guarantees have remaining terms of up to three years and would become payable if, upon sale, certain asset values are lower than guaranteed amounts, business conditions decline at guaranteed entities, or as a result of nonperformance of contractual terms by guaranteed parties. In conjunction with the disposition of our two U.K. subsidiaries to Chrysaor E&P Limited, we will temporarily continue to support various guarantees and letters of credit which were provided for the benefit of entities that are now affiliates of Chrysaor E&P Limited. Our maximum potential payment exposure under these obligations is approximately $ 100 million. Chrysaor E&P Limited has agreed to fully indemnify ConocoPhillips for any losses suffered by us related to these obligations. Indemnifications Over the years, we have entered into agreements to sell ownership interests in certain corporations, joint ventures and assets that gave rise to qualifying indemnifications. These agreements include indemnifications for taxes, environmental liabilities, employee claims and litigation. The terms of these indemnifications vary greatly. The majority of these indemnifications are related to environmental issues, the term is generally indefinite and the maximum amount of future payments is generally unlimited. The carrying amount recorded for these indemnifications at December 31, 2019, was approximately $ 80 million. We amortize the indemnification liability over the relevant time period, if one exists, based on the facts and circumstances surrounding each type of indemnity. In cases where the indemnification term is indefinite, we will reverse the liability when we have information the liability is essentially relieved or amortize the liability over an appropriate time period as the fair value of our indemnification exposure declines. Although it is reasonably possible future payments may exceed amounts recorded, due to the nature of the indemnifications, it is not possible to make a reasonable estimate of the maximum potential amount of future payments. Included in the recorded carrying amount at December 31, 2019, were approximately $ 30 million of environmental accruals for known contamination that are included in the “Asset retirement obligations and accrued environmental costs” line on our consolidated balance sheet. For additional information about environmental liabilities, see Note 13—Contingencies and Commitments.

Note 12—Guarantees

At December 31, 2019, we were liable for certain

contingent obligations under various contractual

arrangements as described below.

We recognize a liability, at inception, for the fair value of our obligation as

a guarantor for newly issued or modified guarantees.

Unless the carrying amount of the liability

is noted

below, we have not recognized a liability because the fair value of the obligation

is immaterial.

In addition,

unless otherwise stated, we are not currently

performing with any significance under the

guarantee and expect

future performance to be either immaterial

or have only a remote chance of occurrence.

APLNG Guarantees

At December 31, 2019, we had outstanding multiple

guarantees in connection with our

37.5

percent ownership

interest in APLNG.

The following is a description of the guarantees

with values calculated utilizing December

2019 exchange rates:

●

During the third

quarter of 2016, we issued a guarantee to facilitate

the withdrawal of our pro-rata

portion of the funds in a project finance reserve

account.

We estimate the remaining term of this

guarantee is

11 years

Our maximum exposure under this guarantee is

approximately $

170

million

and may become payable if an enforcement action

is commenced by the project finance lenders

against APLNG.

At December 31, 2019, the carrying value

of this guarantee is approximately $

million.

●

In conjunction with our original purchase of an ownership

interest in APLNG from Origin Energy in

October 2008, we agreed to reimburse Origin

Energy for our share of the existing contingent liability

arising under guarantees of an existing obligation

of APLNG to deliver natural gas under several

sales

agreements with remaining terms of up to

22 years

Our maximum potential liability for future

payments, or cost of volume delivery, under these guarantees is estimated

to be $

780

million ($

1.4

billion in the event of intentional or reckless breach)

and would become payable if APLNG fails

meet its obligations under these agreements and

the obligations cannot otherwise be mitigated.

Future

payments are considered unlikely, as the payments, or cost of volume delivery, would only be

triggered

if APLNG does not have enough natural gas to

meet these sales commitments and if the co-

venturers do not make necessary equity contributions

into APLNG.

●

We have guaranteed the performance of APLNG with regard to certain other contracts

executed in

connection with the project’s continued development.

The guarantees have remaining terms

of up to

26 years or the life of the venture

As of December 31, 2019, we were released from

certain of these

guarantees considered subordinated financial

support to APLNG.

Our remaining maximum potential

amount of future payments related to the remaining

guarantees is approximately $

million and

would become payable if APLNG does not perform.

Other Guarantees

We have other guarantees with maximum future potential payment amounts totaling

approximately

820

million, which consist primarily of

guarantees of the residual value of leased office buildings,

guarantees

of the residual value of leased corporate aircraft,

and a guarantee for our portion of a joint

venture’s project

finance reserve accounts.

These guarantees have remaining terms of up to

three years

and would become

payable if, upon sale, certain asset values are lower

than guaranteed amounts, business conditions

decline at

guaranteed entities, or as a result of nonperformance

of contractual terms by guaranteed parties.

In conjunction with the disposition of our two

U.K. subsidiaries to Chrysaor E&P Limited,

we will temporarily

continue to support various guarantees and letters

of credit which were provided for the benefit of entities

that

are now affiliates of Chrysaor E&P Limited.

Our maximum potential payment exposure under

these

obligations is approximately $

100

million.

Chrysaor E&P Limited has agreed to fully

indemnify

ConocoPhillips for any losses suffered by us related to

these obligations.

Indemnifications

Over the years, we have entered into agreements to

sell ownership interests in certain corporations,

joint

ventures and assets that gave rise to qualifying

indemnifications.

These agreements include indemnifications

for taxes, environmental liabilities, employee claims

and litigation.

The terms of these indemnifications vary

greatly.

The majority of these indemnifications are related

to environmental issues, the term is generally

indefinite and the maximum amount of future payments

is generally unlimited.

The carrying amount recorded

for these indemnifications at December 31, 2019,

was approximately $

million.

We amortize the

indemnification liability over the relevant time

period, if one exists, based on the facts and circumstances

surrounding each type of indemnity.

In cases where the indemnification term is

indefinite, we will reverse the

liability when we have information the liability

is essentially relieved or amortize the liability

over an

appropriate time period as the fair value of our indemnification

exposure declines.

Although it is reasonably

possible future payments may exceed amounts recorded,

due to the nature of the indemnifications, it

is not

possible to make a reasonable estimate of the

maximum potential amount of future payments.

Included in the

recorded carrying amount at December 31, 2019,

were approximately $

million of environmental accruals

for known contamination that are included in

the “Asset retirement obligations and accrued

environmental

costs” line on our consolidated balance sheet.

For additional information about environmental

liabilities, see

Note 13—Contingencies and Commitments.