CNOOC Begins Production at BZ25-1/25-1S Platform A

CNOOC reports that Bo Zhong (BZ) 25-1/25-1S Field Phase II Platform A has successfully come on stream. More than 2,200 barrels of light crude oil per day are produced from 2 wells currently.

The successful commencement of Platform A concluded the development of the field by six platforms in the overall development plan of BZ 25-1/25-1S field.

BZ 25-1/25-1S field is producing 30,000 barrels of crude oil per day. The daily production of this field is expected to increase, with more wells coming on stream later on.

BZ 25-1/25-1S field is located in southeast Bohai Bay, about 127 kilometers southeast of Long Kou City. Water depth of the field is 20 meters approximately. Development period is divided into two phases. Platforms B, D, E in Phase I and Platforms C, F in Phase II successfully started production in 2004 and 2005 respectively.

Mr. Liu Jian, Executive Vice President of the Company commented, "This is our first field development under a unitization agreement with the adjacent block. Its full-scale production reflected the outstanding project management capability of the Company and its partners."

CNOOC Ltd holds 83.3% interest of BZ 25-1/25-1S field and acts as the Operator.
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