CNOOC & Husky Sign Exploration Agreement for Block 04/35

CNOOC has signed a petroleum contract with Husky Oil China Limited for the exploration Block 04/35 in the East China Sea. Located about 350 kilometers east of Shanghai, Block 04/35 covers a total area of about 4835 square kilometers.

Under the terms of the contract, Husky is committed to drill one wildcat to a depth of 2500 meters during the first three years of the contract, and will fund 100% of the exploration expenditure, CNOOC Ltd is entitled to participate for up to a 51% interest in any commercial discoveries within the contract area.

"The East China Sea is under-explored currently, the Company and our partners will take efforts to tap oil and gas potential in this area", said Mr. Zhang Guohua, Senior Vice President of the Company.

The contract is the first one the Company has signed with Husky in the East China Sea, however, it is the sixth contract which Husky has signed with CNOOC.