CNOOC Ltd. Achieved Production and Revenue Growth in the First Quarter

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Apr 28, 2010, 04:56 ET

HONG KONG, April 28 /PRNewswire-Asia/ -- CNOOC Limited (the "Company" or "CNOOC Ltd.", NYSE: CEO, SEHK: 00883) is pleased to announce its results for the first quarter of 2010. During the period, the Company achieved a total net production of 67.3 million barrels of oil equivalent (BOE), representing an increase of 31.9% year-on-year (YOY). Total unaudited revenue surged 118.5% to RMB30.49 billion.

(Logo: http://www.prnasia.com/xprn/sa/200701301659.jpg )

In the first quarter of 2010, the Company produced 55.0 million barrels of crude oil and liquids, an increase of 30.4% YOY, and 71.6 billion cubic feet of natural gas, up 41.4% YOY. The production growth was mainly attributable to the production from projects that came on stream in 2008 and 2009 and the outstanding performance of existing oil and gas fields.

During the period, the average realized oil and gas prices rose 81.4% and 13.9% YOY to US$75.37 per barrel and US$4.43 per thousand cubic feet respectively. Benefiting from increased production and sales volume and higher realized prices, the Company recorded a total unaudited revenue of approximately RMB30.49 billion with a significant increase of 118.5% YOY.

In the first quarter of 2010, the Company and its partner made five new discoveries offshore China, among which, Penglai 9-1 is a sizable discovery. Meanwhile, the Company and its partner successfully drilled five appraisal wells.

On the development side, all major projects are proceeding smoothly as scheduled. Bozhong 3-2, Weizhou 11-1E and Caofeidian 18-1 commenced production during the period.

In the first quarter of 2010, CNOOC International Limited, a wholly-owned subsidiary of the Company, entered into an agreement with Bridas Energy Holdings Ltd. to form a 50:50 joint venture in Bridas Corporation for a consideration of approximately US$3.1 billion in cash. Completion of this transaction is expected to take place in the first half of 2010 subject to, amongst others, necessary government and regulatory approvals of PRC.

During the period, the Company's capital expenditure fell 22.7% YOY to approximately RMB5.80 billion. As a result of major workload scheduled to be carried out in the second quarter or later this year, the Company's development expenditure was approximately RMB3.09 billion, representing a decrease of 45.0% YOY.

Mr. Fu Chengyu, Chairman and Chief Executive Officer of the Company commented," In the first quarter, the Company achieved strong production and revenue growth as well as encouraging exploration discoveries. I believe that such solid results will provide strong support for achieving our 2010 target."

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 2009 Annual Report on Form 20-F filed on April 23, 2010.

    For further enquiries, please contact:

     Mr. Jiang Yongzhi
     Joint Company Secretary and General Manager
     of Investor Relations Department
     CNOOC Limited
     Tel:    +86-10-8452-1731
     Fax:    +86-10-8452-1441
     E-mail: [email protected]

     Ms. Sharon Fung
     Ketchum Newscan Public Relations Ltd
     Tel:    +852-3141-8082
     Fax:    +852-2510-8199
     E-mail: [email protected]

SOURCE CNOOC Limited