CNOOC Begins Production at Platforms C/F in the Bozhong Field

CNOOC says that Platforms C/F of Bozhong ("BZ") 25-1/25-1S have come on stream. Currently they flow more than 5000 barrels of oil per day from 17 wells and 38 additional wells will be completed later. BZ 25-1/BZ 25-1S is located in the southeastern part of Bohai Bay in 20 meters of water, 127km southeast of Long Kou City. The development of the field was divided into two phases.

The first phase of the field commenced production successfully in October 2004. It is producing about 20,000 barrels of oil per day from 79 wells. For the first phase, major production facilities include a single point mooring system (SPM), a floating production, storage and offloading facility (FPSO) and B/E/D platforms.

The second phase of the development project, was designed to produce more than 15000 barrels of oil during its peak production period. Platform A is projected to come on stream in 2006.

Mr. Zhou Shouwei, President of the Company commented, "We are pleased to see the project commenced production on schedule. It will strengthen Bohai Bay's core position among our portfolio. "

CNOOC limited acts as the operator of BZ25-1/25-1S, with an interest of 83.8 percent.


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