CNOOC Begins Production from Lufeng 13-2

CNOOC reports that Lufeng (LF) 13-2, an independent oil filed in the Eastern South China Sea has come on stream successfully. The field is flowing about 18,000 barrels of oil per day from 3 horizontal wells. The production capacity of these wells is tested at 30,000 barrels of oil per day.

LF13-2 is located in the western part of Block LF 08 in the Pearl River Mouth Basin with a water depth of approximately 132 meters. The field is about 210 kilometers southeast of Hong Kong and 12 kilometers northwest of producing field LF13-1. Major production facilities of the project include a wellhead production platform, a 12-kilometer subsea pipeline and cables. The crude will be transported to and processed in LF13-1.

Mr. Liu Jian, Executive Vice President of the Company commented, ''I am happy to hear that LF13-2 is the first project developed by the Company independently in the Eastern South China Sea. The successful start up of the project is another exciting story of our independent development capability.''

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