CNOOC Closes Repsol YPF Deal

CNOOC has completed its agreement to acquire nine Repsol YPF S.A. subsidiaries owning working interests in five oil and gas properties in Indonesia. The transaction has effect from January 1, 2002. CNOOC Limited and the Repsol YPF group previously entered into a definitive agreement on January 18, 2002.

"We are pleased to have completed this acquisition which represents a major milestone in the Company's development", said Mr. Wei Liucheng, Chairman and CEO. "We are already well advanced in our plans to fully integrate these operations and employees with our existing operations and very impressed with the quality of people and facilities and the results of operations to date."

The acquired assets include various interests in oil and gas producing properties offshore Indonesia which held more than 360 million barrels of petroleum reserves. The Company is expected to pay USD $585 million plus a US $6.86 million final oil price adjustment payment. CNOOC Limited also has a presence in Indonesia through a 39.51% participating interest in the Malacca Strait PSC.