Commercial Production Started From LD 5-2 in Bohai Bay

HONG KONG, Nov. 21 /Xinhua-PRNewswire-FirstCall/ — CNOOC Limited (the “Company” or ”CNOOC Ltd.”; NYSE: CEO; SEHK: 883) is pleased to announce today that Luda (LD) 5-2, a new field located in Bohai Bay, has started commercial production. The field is producing at a volume of more than 2200 barrels of oil per day from 4 wells.

LD 5-2, with a water depth of about 30 meters, is located in the Liaodong Bay of Bohai Bay. It is adjacent to the producing field Suizhong 36-1.

The peak gross production capacity is designed at 9,600 barrels of oil per day with 22 producing wells on line.

As to date, LD fields, consisting of three fields, LD 4-2, LD10-1, LD5-2 have come on stream successfully. Thanks to the joint development and sharing with Suizhong 36-1 of its producing facilities, the fields will deliver better economic returns.

Mr. Liu Jian, Executive Vice President of the Company commented, ”CNOOC limited discovered and developed the three LD fields independently. It takes only three years to bring them on line. This is another evidence of the Company’s capability to optimize the economic margin via quick development and sharing of existing facilities.”

   The Company holds 100% interest of the field and acts as the operator.    Notes to Editors:    CNOOC LIMITED — BACKGROUND  

CNOOC Limited (the ”Company”, together with its subsidiaries, the ”Group”, ”the Company” or ”CNOOC”) — Incorporated in Hong Kong in August 1999, CNOOC Limited was listed on the New York Stock Exchange (”NYSE”) (code: CEO) and The Stock Exchange of Hong Kong Limited (”HKSE”) (code: 0883) on 27 and 28 February 2001, respectively. The Company was admitted as a constituent stock of the Hang Seng Index in July 2001.

The Group is China’s largest producer of offshore crude oil and natural gas and one of the largest independent oil and gas exploration and production companies in the world. The Company mainly engages in offshore oil and natural gas exploration, development, production and sales.

The Company has four major oil production areas offshore China which are Bohai Bay, Western South China Sea, Eastern South China Sea and East China Sea. It is the largest offshore oil producer in Indonesia. The Group also has certain upstream assets in regions such as Australia.

As at 31 December 2004, the Company owned net proved reserves of approximately 2.2 billion barrels-of-oil equivalent and its annual daily average net production was 382,513 barrels-of-oil equivalent per day.

   The Group has 2,524 employees.    CNOOC LIMITED — Relationship with its parent company, CNOOC  

CNOOC Limited, incorporated in Hong Kong, is a 70.64% held subsidiary of China National Offshore Oil Corporation (”CNOOC”). CNOOC Limited is the sole vehicle through which CNOOC carries out oil and gas exploration, development, production and selling activities offshore China and internationally.

CNOOC, the parent company, is involved in the administrative, research and services functions for the People’s Republic of China’s offshore petroleum industry as well as other mid- or down-stream petroleum projects.

This press release contains statements that are not historical facts, including statements about beliefs and expectations of the directors of CNOOC Limited (the ”Company”). These forward-looking statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and the directors of the Company undertake no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. You are cautioned that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, changes in the PRC economic, political and social conditions as well as government policies.

   For further enquiries, please contact:     Mr. Xiao Zongwei    General Manager of Investor Relations    CNOOC Limited    Tel:   +86-10-8452-1646    Fax:   +86-10-8452-1441    Email: xiaozw@cnooc.com.cn     Ms. Sharon Fung    Ketchum Newscan Public Relations Ltd    Tel:   +852-3141-8082    Fax:   +852-2510-8199    Email: Sharon.Fung@knprhk.com  

CNOOC Limited

CONTACT: Mr. Xiao Zongwei, General Manager of Investor Relations ofCNOOC Limited, +86-10-8452-1646, or fax, +86-10-8452-1441, orxiaozw@cnooc.com.cn; or Ms. Sharon Fung of Ketchum Newscan Public RelationsLtd for CNOOC Limited, +852-3141-8082, or fax, +852-2510-8199, orSharon.Fung@knprhk.com