----

**EXECUTION      VERSION**

**Amended      and Restated Credit Agreement**

**Dated      as of**

**August      6, 2007**

**among**

**McMoRan      Exploration Co.,**

**As      Parent,**

**McMoRan      Oil & Gas LLC,**

**as      Borrower,**

**JPMorgan      Chase Bank, N.A.,**

**as      Administrative Agent,**

**Merrill      Lynch Capital,**

**a      division of Merrill Lynch Business Financial Services,      Inc.**

**as      SyndicationAgent,**

**BNP      Paribas,**

**As      Documentation Agent,**

**and**

**The      Lenders Party Hereto**

**Joint      Lead Arrangers and Joint Book Runners**

**J.P.      Morgan Securities      Inc.                                                                                                                                                                   Merrill Lynch Capital,**

**                                                                                                                                                                                  a      division of Merrill Lynch Business Financial Services,      Inc.**

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**TABLE      OF CONTENTS**

**Page**

| **ARTICLE                I****DEFINITIONS                AND ACCOUNTING MATTERS**                                                                                                                                        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Section                1.01Section                1.02Section                1.03Section                1.04Section                1.05                                                                                  | Terms                Defined AboveCertain                Defined TermsTypes                of Loans and BorrowingsTerms                Generally; Rules of ConstructionAccounting                Terms and Determinations:  GAAP | 11191920 |
| **ARTICLE                II****THE                CREDITS**                                                                                                                                                              |
| Section                2.01Section                2.02Section                2.03Section                2.04Section                2.05Section                2.06Section                2.07Section                2.08 | CommitmentsLoans                and borrowingsRequests                for BorrowingsInterest                ElectionsFunding                of BorrowingsTermination                and Reduction of Aggregate Maximum Credit AmountsBorrowing                BaseLetters                of Credit | 2021212223242527 |
| **ARTICLE                III****PAYMENTS                OF PRINCIPAL AND INTEREST; PREPAYMENTS; FEES**                                                                                                                   |
| Section                3.01Section                3.02Section                3.03Section                3.04Section                3.05                                                                                  | Repayment                of LoansInterestAlternate                Rate of InterestPrepaymentsFees | 3132323334 |
| **ARTICLE                IV****PAYMENTS;                PRO RATA TREATMENT; SHARING OF SET-OFFS**                                                                                                                        |
| Section                4.01Section                4.02Section                4.03Section                4.04                                                                                                             | Payments                Generally; Pro Rata Treatment; Sharing of Set-offsPresumption                of Payment by the BorrowerCertain                Deductions by the Administrative AgentDisposition                of Proceeds | 35363637 |
| **ARTICLE                V****INCREASED                COSTS; BREAK FUNDING PAYMENTS; TAXES**                                                                                                                            |
| Section                5.01Section                5.02Section                5.03Section                5.04                                                                                                             | Increased                CostsBreak                Funding PaymentsTaxesDesignation                of Different Lending Office  | 37383840  |

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|                Section                5.05                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                Replacement                of Lenders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                40                       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|
| **ARTICLE                VI****CONDITIONS                PRECEDENT**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Section                6.01Section                6.02                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Effective                DateEach                Credit Event                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 4144                                         |
| **ARTICLE                VII****REPRESENTATIONS                AND WARRANTIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Section                7.01Section                7.02Section                7.03Section                7.04Section                7.05Section                7.06Section                7.07Section                7.08Section                7.09Section                7.10Section                7.11Section                7.12Section                7.13Section                7.14Section                7.15Section                7.16Section                7.17Section                7.18Section                7.19Section                7.20Section                7.21Section                7.22 | Organization;                PowersAuthority;                EnforceabilityApprovals;                No ConflictsFinancial                Condition; No Material Adverse ChangeLitigationEnvironmental                MattersCompliance                with the Laws and Agreements; No DefaultsInvestment                Company ActTaxesERISADisclosure;                No Material MisstatementsInsuranceRestriction                on LiensSubsidiariesLocation                of Business and OfficesProperties;                Titles, Etc.Maintenance                of PropertiesGas                Imbalances, PrepaymentsMarketing                of ProductionSwap                AgreementsUse                of Loans and Letters of CreditSolvency | 45454545464647474848494949505050515151525252 |
| **ARTICLE                VIII****AFFIRMATIVE                COVENANTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

| Section                8.01Section                8.02Section                8.03Section                8.04Section                8.05Section                8.06Section                8.07Section                8.08 Section                8.09Section                8.10Section                8.11Section                8.12Section                8.13 | Financial  Statements;                Other InformationNotices                of Material EventsExistence;                Conduct of BusinessPayment                of ObligationsPerformance                of Obligations under Loan DocumentsOperation                and Maintenance of PropertiesInsuranceBooks                and Records; Inspection RightsCompliance                with LawsEnvironmental                MattersFurther                AssurancesReserve                ReportsTitle                Information | 52555555565656575757585859 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|

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| Section                  8.14Section                  8.15Section                  8.16Section                  8.17Section                  8.18 | Additional                  Collateral; Additional GuarantorsERISA                  ComplianceUnrestricted                  SubsidiariesMarketing                  activitiesSwap                  Agreements | 6061616262 |
|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|

| **ARTICLE                IX****NEGATIVE                COVENANTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Section                9.01Section                9.02Section                9.03Section                9.04Section                9.05Section                9.06Section                9.07Section                9.08Section                9.09Section                9.10Section                9.11Section                9.12Section                9.13Section                9.14Section                9.15Section                9.16Section                9.17Section                9.18Section                9.19 | Financial                CovenantsDebtLiensDividends,                Distributions and RedemptionsInvestments,                Loans and AdvancesNature                of Business; International OperationsProceeds                of NotesERISA                ComplianceSale                or Discount of ReceivablesMergers,                Etc.Sale                of PropertiesEnvironmental                MattersTransactions                with AffiliatesSubsidiariesNegative                Pledge Agreements; Dividend RestrictionsGas                Imbalances, take-or-Pay or Other PrepaymentsSwap                AgreementsAcquisition                DocumentsUnrestricted                Subsidiaries | 62636565666767686969696970707070707171 |
| **ARTICLE                X****EVENTS                OF DEFAULT; REMEDIES**                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Section                10.01Section                10.02                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Events                of DefaultRemedies | 7173 |
| **ARTICLE                XI****THE                ADMINISTRATIVE AGENT**                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Section                11.02Section                11.03Section                11.04Section                11.05Section                11.06Section                11.07Section                11.08Section                11.09Section                11.10Section                11.11                                                                                                                                                                                                                                     | Duties                and Obligations of Administrative AgentAction                by Administrative AgentReliance                by Administrative AgentSubagentsResignation                of Administrative AgentAgents                as LendersNo                RelianceAdministrative                Agent May File Proofs of ClaimAuthority                of Administrative Agent to Release collateral and LiensThe                Arrangers and the Agents | 74757676767676777878 |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                             |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|
| **ARTICLE                XII****MISCELLANEOUS**                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Section                12.01Section                12.02Section                12.03Section                12.04Section                12.05Section                12.06Section                12.07Section                12.08Section                12.09Section                12.10Section                12.11Section                12.12Section                12.13Section                12.14Section                12.15Section                12.16 | NoticesWaivers;                AmendmentsExpenses,                Indemnity; Damage WaiverSuccessors                and AssignsSurvival;                Revival; ReinstatementCounterparts;                Integration; EffectivenessSeverabilityRight                of SetoffGOVERNING                LAW; JURISDICTION; CONSENT TO SERVICE  PROCESSHeadingsConfidentialityInterest                Rate LimitationCollateral                Matters; Swap AgreementsNo                Third Party BeneficiariesAcknowledgementsUSA                Patriot Act Notice | 78788082848585858687878788888888 |

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**ANNEXES,      EXHIBITS AND SCHEDULES**

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**THIS      AMENDED AND RESTATED CREDIT AGREEMENT**
** **

**R      E C I T A L S**

**ARTICLE      I**

**Definitions      and Accounting Matters**

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Section 2.06

| BorrowingBase                  Utilization Percentage | EurodollarLoans         | ABRLoans                | Commitment                  Fee                  Rate |
|-------------------------------------------------------|-------------------------|-------------------------|-------------------------------------------------------|
| >                115%                              | 275                b.p. | 125                b.p. | 50                b.p.                                |
| >                100% and < 115%           | 250                b.p. | 100                b.p. | 50                b.p.                                |
| >                90% and < 100%            | 225                b.p. | 75                b.p.  | 50                b.p.                                |
| >                75% and < 90%             | 200                b.p. | 50                b.p.  | 50                b.p.                                |
| >                50% and < 75%             | 175                b.p. | 25                b.p.  | 37.5                b.p.                              |
| <                50%                               | 150                b.p. | 0                b.p.   | 37.5                b.p.                              |

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Section 8.12(a)

Section 12.04(b)

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Section 2.03

Section 5.01(b)

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Section 2.06
Section 12.04(b)

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Section 6.01
Section 12.02

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Section 1.05

|   | (a) | the                Parent; |
|--------|-----|----------------------------|

|   | (b) | K-Mc                Venture I LLC, a Delaware limited liability                company; |
|--------|-----|-----------------------------------------------------------------------------------------|

|   | (c) | Freeport                Canadian Exploration Company, a Delaware                corporation; |
|--------|-----|----------------------------------------------------------------------------------------------|

|   | (d) | McMoRan                International Inc., a Delaware corporation;                and |
|--------|-----|---------------------------------------------------------------------------------------|

|   | (e) | each                other Domestic Subsidiary which is a Wholly-Owned Subsidiary that                guarantees the Indebtedness pursuant to Section                8.14(b). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Section      2.04

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Section 2.07(b)

Section 2.07(d)

Section 2.08(i)

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Section 12.04(c)

----

Section 12.04(b)

Section 2.07(d)

Section      1.01(d)

Section 2.02(d)

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Section      12.04(c)

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Section 2.07(c)(i)

Section 2.07(c)(ii)

Section      2.07(d)

Section      12.04(b)(iv)

Section      8.10(a)

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Section 2.07(b)

Section 2.07(d)

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**ARTICLE      II **

**The      Credits**

----

Section 3.03

----

Section      2.02

*pro form*

Section 2.05

Section 2.03

Section 2.04

Section 2.04
Section 2.03

----

Section 2.02

Section      2.04(c)(iii)
(iv)

----

Section 2.05(a)

Section 3.04(c)

Section      2.06(b)(i)
Section      2.06(b)(ii)

----

Section      8.13(c)

Section 2.07
Section      2.07(d)
Section 2.07

Section 8.12(a)
(c)
Section 8.12(b)
(c)
Section 8.12(c)

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Section 8.12(a)
(c)
Section 8.12(a)
(c)
Section 2.07(c)(i)

Section 2.07(c)(iii)
Section      2.07(c)(iii)
Section 2.07(d)
Section 2.07(d)

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Section 2.07(c)(iii)

Section 8.12(a)
(c)
Section      8.12(a)
(c)

Section 8.13(c)

----

Section 2.08(c)

*pro      forma*

Section 2.08(d)

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Section 2.05
Section 2.05
*mutatis mutandis*
Section 2.08(e)
Section 2.08(e)
Section 2.08(e)

Section 2.08(e)
Section      2.08(f)

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Section 2.08(h)
Section 2.08(e)

Section      3.05(b)

Section 2.08(j)
Section      3.04(c)
Section 3.04(c)
Section 3.04(c)
Section 10.01(h)
Section 10.01(i)

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Section      2.08(j)
Section 3.04(c)

**ARTICLE      III**

**Payments      of Principal and Interest; Prepayments; Fees**

----

Section 3.04(c)
Section      3.02(a)

Section      3.02(c)

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Section      3.04(b)

Section      2.02
Section 3.02

Section 2.06(b)
Section 2.08(j)

Section 2.07
Section 8.13(c)
Section      2.08(j)
Section 2.07(d)
Section 3.04(c)(ii)

Section      2.08(j)

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Section      3.04(c)(iii)

*pro rata*

Section      3.04(c)

Section 3.04(c)
Section      3.02

Section 3.04
Section 5.02

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Section 3.05(b)

**ARTICLE      IV**

**Payments;      Pro Rata Treatment; Sharing of Set-offs**

Section      5.01
Section 5.02
Section 5.03
Section 12.01
Section 5.01
Section 5.02
Section      5.03
Section 12.03

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*first*
*second*
*third*
*fourth*
*fifth*

Section 4.01(c)
Section 4.01(c)

Section 2.05(b)
Section      2.08(d)
Section 2.08(e)
Section 4.02

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**ARTICLE      V**

**Increased      Costs; Break Funding Payments; Taxes**

Section 5.01(a)
(b)

----

Section 5.01
Section 5.01

Section 5.02

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----

Section      5.03
Section 5.03

Section 5.03

Section 5.01
Section 5.03
Section 5.01
Section      5.03

Section      5.01
Section 5.03
Section 2.07(c)(iii)
Section 5.01
Section 5.03

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**ARTICLE      VI**

**Conditions      Precedent**

Section      12.02

----

Section 7.12

Section 7.04(a)
Section 8.12(c)

Section 9.03

----

Section 12.02

----

Section 2.03
Section 2.08(b)

Section 6.02(a)
(e)

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**ARTICLE      VII**

**Representations      and Warranties**

----

*pro forma*
*pro forma*
*pro forma*

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----

----

Section 9.03(c)

----

Section 8.01(m)
Section 12.01
Section 8.01(m)
Section 12.01
Section      12.01
Section 8.01(m)
Section      12.01(c)
Section 8.01(m)

Section 9.03

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Section 8.12(c)

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Section      8.01(d)

**ARTICLE      VIII**

**Affirmative      Covenants**

----

Section      8.01(a)
Section 8.01(b)
Section 9.01

Section      8.01(a)
Section 8.01(b)

Section 8.01(a)
Section 8.07

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Section 8.01

Section      8.12

----

Section 8.02

----

Section 8.06

----

**,**
Section 8.10
(a)

----

Section      2.07(b)

----

Section 9.03
Section 7.18
Section 8.14(a)

Section 8.12(a)

Section 8.13(a)
Section 9.03

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Section 8.12(c)(vi)
Section 8.12(c)

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**ARTICLE      IX**

**Negative      Covenants**

| Period:                                   |   | Ratio:                     |
|-------------------------------------------|--------|----------------------------|
| Effective                Date to 12/31/07 |   | 3.5                to 1.0  |
|                                      |   |                       |
| 1/1/08                to 6/30/08          |   | 3.0                to 1.0  |
|                                      |   |                       |
| 7/1/08                to 12/31/08         |   | 2.75                to 1.0 |
|                                      |   |                       |
| 1/1/09                and thereafter      |   | 2.5                to 1.0  |
|                                      |   |                       |

----

| Period:                                   |   | Ratio:                    |
|-------------------------------------------|--------|---------------------------|
| Effective                Date to 12/31/08 |   | 2.0                to 1.0 |
|                                      |   |                      |
| 1/1/09                and thereafter      |   | 1.5                to 1.0 |
|                                      |   |                      |

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----

----

Section 9.05(c)
Section      9.05(d)
Section 9.05(e)

----

Section 9.05

Section      7.21

----

----

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Section 8.14(b)

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**ARTICLE      X**

**Events      of Default; Remedies**

Section      10.01(a)

----

Section 8.01(m)
Section      8.02
Section 8.03
ARTICLE IX

Section 10.01(a)
Section 10.01(b)
Section 10.01(d)

Section 10.01(h)

----

Section 10.01(h)
Section      10.01(i)
Section 10.01(j)
Section 2.08(j)
Section 10.01(h)
Section      10.01(i)
Section 10.01(j)

----

Section 2.08(j)

*(i)*
*first*

*(ii)*
*second*

*(iii)*
*third*

*(iv)*
*fourth*

*(v)*
*fifth*

*(vi)*
*sixth*

*(vii)*
*seventh*

**ARTICLE      XI**

**The      Administrative Agent**

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Section 11.03
ARTICLE VI
ARTICLE VI

Section      12.02
Section      12.02
Section 11.03
Section 12.02

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ARTICLE XI

Section 11.06
ARTICLE XI
Section      12.03

----

Section 12.03

Section      12.03

----

**ARTICLE      XII**

**Miscellaneous**

Section 12.01(b)

ARTICLE II
ARTICLE III
ARTICLE      IV
ARTICLE V

----

Section 12.02(b)

Section      4.01(b)
Section      4.01(c)
Section      10.02(c)
Section 11.10
Section      8.14(a)
Section 12.02(b)

----

Section 12.03

----

Section 12.03(a)
(b)

----

Section 12.03

Section 12.04
Section      12.04(c)

Section      12.04(b)(ii)

----

Section 12.04(b)(iv)
Section 5.01
Section 5.02
Section      5.03
Section      12.03
Section 12.04
Section      12.04(c)

Section 12.04(b)
Section 12.04(b)
Section      12.04(b)

Section 12.02
Section 12.03
Section 12.04(c)

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Section      5.01
Section 5.02
Section 5.03
Section 12.04(b)
Section 12.08
Section 4.01(c)

Section 5.01
Section 5.03
Section 5.03

Section 12.04(d)

Section 12.04

Section      5.01
Section 5.02
Section 5.03
Section      12.03

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ARTICLE      XI

Section 6.01

----

Section 12.08

----

----

*pro rata*

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| SYNDICATION                AGENT: | MERRILL                LYNCH CAPITAL, a division                of Merrill                Lynch Business Financial                Services, Inc.,as                Syndication Agent                and as a Lender |
|-----------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| DOCUMENTATION                AGENT: | BNP                PARIBAS, as Documentation Agent and as                a Lender |
|-------------------------------------|-----------------------------------------------------------------------------------|

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