QHD 32-6 Development Successfully Completed

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Oct. 16 2001

CNOOC Limited announced today that Qinhuangdao 32-6 (QHD 32-6) oil field, which was scheduled for startup in the fourth quarter of 2001, has been brought on stream successfully.

QHD 32-6 is located in the central to northern part of Bohai Bay, 130 kilometers from the city of Tianjin. It holds a recoverable reserve of 103 million barrels net to CNOOC. The development of QHD 32-6 includes 6 producing wellhead platforms. The development planned for this year is consisted of wellhead platform A and B, a single point moor and an FPSO.

QHD 32-6 is jointly owned by CNOOC Limited (51%), ChevronTexaco (24.5%) and BP (24.5%). CNOOC Limited is the operator. The overall development is expected to complete in 2002. The designed peak capacity of the entire field is over 65,000 barrels per day.

"All development projects scheduled to complete this year have thus far all been brought into production," said Mr. Zhou Shouwei, Executive Vice President of CNOOC. "The successful completion of the development program for the year has greatly removed uncertainties surrounding achieving this year's production target and reaching production growth for next year."

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