HONG KONG, Dec. 6 /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 singed a production sharing contract (PSC) with Devon Energy Corporation ('Devon', NYSE: DVN) for deepwater block 42/05. Block 42/05, located in Baiyun Sag of Pearl River Mouth Basin in the Eastern South China Sea, covers a total area of 6,939 square kilometers with water depth ranging from 300 to 2000 meters. The Company has acquired 2-D seismic data in the block. Under the terms of the contract, Devon is committed to conduct a 3-D seismic survey and wildcat drilling during the exploration period. All expenditures incurred during exploration period will be borne by Devon. CNOOC Ltd. has the right to participate in up to a 51% interests in the event of any commercial discovey in the block. The Company and Devon successfully developed Panyu 4-2/5-1 oil fields in Block 15/34 and started commercial production in 2003. Mr. Zhu Weilin, Vice President of the Company and General Manager of exploration department commented, 'The signing of the contract is clearly an evidence of Devon's confidence in the exploration potential and opportunities offshore China. We have established an outstanding work relationship with Devon. The cooperation has brought valuable return to both companies.' This contract is the fourth deepwater contract between CNOOC and its foreign partners. 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

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