CNOOC Signed Amendment Agreements to PSC for Three Deepwater Blocks

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Sep 07, 2010, 05:30 ET

HONG KONG, Sept. 7 /PRNewswire-Asia/ -- CNOOC Limited (the "Company", NYSE: CEO, HKEx: 00883) announced today that its parent company, China National Offshore Oil Corporation ("CNOOC") has signed amendment agreements to the Production Sharing Contracts (PSCs) with Chevron China ("Chevron"), BP China ("BP") and Devon Energy Corporation ("Devon") for deepwater blocks 42/05, 64/18 and 53/30 in South China Sea. These agreements have been approved by the Chinese government.

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Prior to this, Chevron and BP signed Sale and Purchase Agreements with Devon for the above blocks: Chevron acquired a 59.18% interest in block 42/05 and a 100% interest in blocks 64/18 and 53/30 from Devon in the exploration phase BP acquired the remaining interest of Devon in 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. Blocks 64/18 and 53/30 are located in Qiong Dong Nan Basin in the Western South China Sea with acreage of 7,712 and 6,313 square kilometers respectively. Water depth of the three blocks ranges from 300 to 2,000 meters.

During the exploration period, Chevron will act as the Operator in the three blocks. CNOOC Limited has the right to participate in up to a 51% interest in the event of any commercial discovery in the blocks.

Mr. Zhu Weilin, Executive Vice President of the Company and General Manager of the Exploration Department commented, "We welcome Chevron and BP to become our new partners in these blocks and look forward to the joint exploration of the great deepwater potential in the South China Sea."

In 2005 and 2006, CNOOC signed three PSCs with Devon for blocks 42/05, 64/18 and 53/30.

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
     Email: [email protected]

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

SOURCE CNOOC Limited