HOME

HONG KONG, Jan. 29 /Xinhua-PRNewswire-FirstCall/ — CNOOC Limited
(the “Company” or “CNOOC Ltd.”; NYSE: CEO; HKEx: 883) today announced
its business strategy and development plan for year 2008.

The targeted net production of CNOOC Ltd. in 2008 is 195-199
million barrels of oil equivalent (BOE) (with WTI at US$70.0/barrel),
compared with the estimated net production of 169-171 million BOE (with WTI at
US$72.2/barrel) for 2007.

During the year, ten new projects are expected to come on stream,
including major offshore China projects such as platform B, D, E of
Penglai 19-3 phase II, Wenchang oilfields and Xijiang 23-1.

In 2008, carrying on the exploration successes in 2007, the Company
will further enhance its exploration activities.  The Company’s
exploration program will continue to focus on offshore China, where more
drilling activities and seismic data collection work will be conducted
during the year. In the meantime, the Company and its PSC partners will
organize exploration campaigns aiming at the deepwater blocks.  The
Company expects to achieve a reserve replacement ratio (RRR) of over 100% in
2008.

In 2008, the Company’s total capital expenditure is expected to
increase to US$5.24 billion, representing an increase of 43.7% year on
year.  Due to the intensive exploration and development activities, the
Company’s exploration capital expenditure is anticipated to reach US$1.04
billion while capital expenditure on development activities is
expected to increase to US$4.15 billion.  The Company expects that these
capital expenditures will provide strong support to its reserves and
production growth in 2008 and in the next few years.

“We will take advantage of the high oil price environment and speed
up our operations.  We will also maintain the prudent financial
discipline in the face of industry cost escalations, in order to continue a
sustainable and profitable growth,” Mr. Yang Hua, Executive Vice
President and CFO of the Company commented.

Mr. Fu Chengyu, Chairman and Chief Executive Officer of the Company
said, “For CNOOC Ltd. 2008 is a new exciting year with rapid growth in
production.  I am confident that with new projects and active
exploration and development programs, the quality and quantity of our assets
will be further optimized, bringing better return for the shareholders.”

Notes to Editors:

More information about the Company is available at
http://www.cnoocltd.com .

This press release includes “forward-looking statements” within the
meaning of the United States Private Securities Litigation Reform Act
of 1995, including statements regarding expected future events,
business prospectus or financial results.  The words “believe,” “intend,”
“expect,” “anticipate,” “project,” “estimate,” “plan,” “predict” and
similar expressions are intended to identify such forward-looking statements.
These statements are based on assumptions and analyses made by us
that we believe are reasonable under the circumstances.  However, whether
actual results and developments will meet our expectations and
predictions depend on a number of risks and uncertainties which could cause our
actual results, performance and financial condition to differ
materially from our expectations.  For a description of these and other risks
and uncertainties, please see the documents we file from time to time
with the United States Securities and Exchange Commission, including our
2006 Annual Report on Form 20-F filed on June 29, 2007.

For further enquiries, please contact:

Mr. Xiao Zongwei
General Manager of Investor Relations Department
CNOOC Limited
Tel:   +86-10-8452-1646
Fax:   +86-10-8452-1441
Email: xiaozw@cnooc.com.cn

Ms. Carol Wong
Account Manager
Ketchum Hong Kong
Tel:   +852-3141-8098
Fax:   +852-2510-8199
Email: carol.wong@knprhk.com

SOURCE  CNOOC Limited