HONG KONG, Dec. 12 /Xinhua-PRNewswire-FirstCall/ -- CNOOC Limited (the "Company" or 'CNOOC Ltd.'; NYSE: CEO; SEHK: 883) announced today that its parent company, China National Offshore Oil Corporation ('CNOOC') has entered into a new production sharing contract (PSC) for block 17/08 in the Pearl River Mouth Basin of the Eastern South China Sea with Newfield Exploration Company ('Newfield'; NYSE: NFX). Block 17/08 is located about 180 kilometers offshore Hong Kong. It covers a total area of 7,108 square kilometers with water depth ranging from 150 to350 meters. Newfield is committed to conduct 3-D seismic survey and wildcat drilling during the exploration period, which is divided into 3 phases. Under the terms of the contract, all expenditures incurred during exploration period will be borne by Newfield. CNOOC Ltd. has the right to participate in up to a 51% interests in the event of any commercial discovery in the block. In addition, a Survey Agreement has been signed between the parties on block 16/05. The block, with an area of 2,064 square kilometers, is also located in the same basin. According to the Survey Agreement, Newfield will acquire 3-D seismic data within the block. Mr. Zhu Weilin, Vice President of the Company and General Manager of exploration department commented, 'I am pleased to know that Newfield has entered into a PSC contract for block 17/08 and a Survey Agreement for block 16/05 with CNOOC. Hope they will achieve great success in the exploration in Pearl River Mouth Basin.' 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: Ms. Sharon Fung Ketchum Newscan Public Relations Ltd Tel: +852-3141-8082 Fax: +852-2510-8199 Email: DATASOURCE: CNOOC Limited CONTACT: Mr. Xiao Zongwei of CNOOC Limited, +86-10-8452-1646, or fax, +86-10-8452-1441, or ; or Ms. Sharon Fung of Ketchum Newscan Public Relations Ltd for CNOOC, +852-3141-8082, or fax, +852-2510-8199, or

Copyright