CNOOC Turns On the Tap at Penglai

CNOOC Limited reports that the largest oilfield offshore China, Penglai 19-3, began to pump oil. The first phase of Penglai 19-3 in central Bohai Bay was scheduled to come on stream before year-end.

Penglai 19-3 field was discovered in Block 11/05. It is the largest oilfield discovered in offshore China ever. It is estimated to hold approximately 2.6 billion barrels of oil in place with further appraisal upside. Phillips China Inc., a prior company of ConocoPhillips made the discovery in 1999. The development is designed in phases. The first phase is designed to have a maximum production capacity of 40,000 barrels of equivalent per day.

The project is a joint venture between Phillips China Inc. (PCI), a ConocoPhillips company and CNOOC Limited. PCI is the operator. The Company owns 51% of participating interests in the project.

Zhou Shouwei, President of the company commented, "We are happy to see the first oil flowing from the field. The largest offshore oilfield is expected to contribute cash-flow and earnings for both CNOOC Limited and ConocoPhillips in many years to come."