CNOOC Updates Exploration Efforts

"CNOOC Limited and its partners continue to execute the exploration plans for 2002 with an initial focus on the Bohai Bay oil prospects and the South China Sea gas prospects in the first two months," said Mr. Ru Ke, Executive Vice President. "We are building on the successes announced in 2001 and cautiously optimistic about 2002."

CNOOC Limited's exploration strategy includes three components. Cooperative relationships with PSC partners allow CNOOC Limited to leverage their experience, technologies and resources. CNOOC Limited's cluster exploration program results in independent drilling focused on prospects adjacent to existing producing areas. CNOOC Limited's independent drilling is also focused on continuing to explore for and add natural gas reserves. In 2002, CNOOC Limited plans to drill a total of approximately 40 wells, while its PSC partners plan to drill between 20 to 40 wells.