CNOOC Eyes Gorgon Project

CNOOC Limited has signed a letter agreement with the participants in the Gorgon Joint Venture to commence discussions regarding a potential upstream investment in the Gorgon project by CNOOC Limited. In addition, CNOOC Limited has agreed to explore marketing opportunities for natural gas from Gorgon into China. This agreement builds on the Memorandum of Understanding entered into between CNOOC Limited and Chevron Australia Pty Ltd in August 2001.

Mr. Wei Liucheng, Chairman and CEO of CNOOC Limited, stated that "LNG will play an increasingly important role in meeting China's growing energy demand. CNOOC has already developed a competitive advantage in China's LNG and natural gas markets. A potential partnership with Gorgon will further enhance our substantial position in this market and it will create a win-win outcome for China and Australia."

The Gorgon participants consist of ChevronTexaco (4/7th interest and operator), Shell (2/7th) and ExxonMobil (1/7th). The Gorgon development, located off the north-west coast of Australia, has certified proved reserves of approximately 11 trillion cubic feet (Tcf).