CNOOC Signs Gas Sales Agreement in Indonesia

CNOOC Limited's subsidiary, CNOOC SES Ltd., together with other contractors of the Offshore Southeast Sumatra Production Sharing Contract, executed the Gas Sales Agreement on December 12th, with P.T. Perusahaan Listrik Negara (Persero) (PLN), the national electric power company of Indonesia.

Under the terms of the agreement, Offshore Southeast Sumatra PSC will supply the natural gas of 80 billion BTU per day from 2006 to 2018. The natural gas will be produced mainly from gas fields of Zelda area and Banuwati area and the sales gas will be supplied to the Cilegon Power Plant of PLN in West Java by a subsea pipeline.

This project is the first gas supply business of the Offshore Southeast Sumatra PSC and it will contribute to the effective use of gas reserves in Indonesia.

The company is the operator of the PSC with a interest of 65.3%.