CNOOC Ltd Announces the Startup of Phase Ⅱ of DF 1-1 Gas Field

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May 3, 2006

CNOOC Limited (NYSE: CEO, SEHK: 883, “the Company") announced today that Phase Ⅱ of Dong Fang (DF) 1-1 Gas Field, the largest independent gas field of the Company, has come on stream successfully. DF1-1 gas field is producing 187 million cubic feet of natural gas per day currently, among which 35 million cubic feet of natural gas are produced from 3 wells of the Phase Ⅱ.

DF 1-1 gas field is located in Yinggehai Basin of Bei Bu Gulf in Western South China Sea, about 110 kilometers of Dong Fang City in Hainan Province. The average water depth of the field ranges from 63 to 70 meters.

The development facilities in Phase Ⅱ of DF 1-1 gas field include: two unmanned wellhead platforms, 16 wells, 2 sub-sea pipelines and 2 sub-sea cables. The natural gas produced will mainly be supplied to a methanol project in Hainan.
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The peak production capacity of the PhaseⅡ is designed at 111 million cubic feet of natural gas per day. With full-scale production, the total capacity of DF1-1 gas field will reach 98.0 billion cubic feet of natural gas per year.

Mr. Zhou Shouwei, President of the Company commented, ”The successful commencement of DF 1-1 gas field PhaseⅡwill further increase the proportion of natural gas in the Company’s production portfolio. We have a number of natural gas projects under development currently, and will strengthen our gas operations and provide more clean energy for the market.

CNOOC Ltd holds 100% interest of DF1-1 gas field and acts as the operator.


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