CNOOC Starts First Production from NB 35-2

Bohai Bay
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CNOOC says that Nanbao ("NB") 35-2, an independent field in Bohai Bay, has commenced production successfully. The field is producing approximately 3200 barrels of oil per day via 9 wells.

NB 35-2 is located approximately 110 kilometers southwest of Tanggu in a water depth of about 12 meters in central Bohai Bay. The main development facilities include two platforms, a 29.5 kilometers subsea pipeline, etc. The flowing-in crude, after being processed in the platforms, will be transported to the FPSO of QHD 32-6 for storage and sales.

Peak production capacity of NB 35-2 is estimated to be 18600 barrels of oil per day.

Mr. Zhou Shouwei, President of the Company commented, "The successful start-up of NB 35-2 once more illustrates our commitment to deliver production growth effectively. We will continue the success with more projects to on line in the remaining days of 2005."

CNOOC limited acts as the operator and holds 100 percent interest of the field.


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