Profile: CNOOC Limited (CEO)

CNOOC Limited is a producer of offshore crude oil and natural gas and an independent oil and gas exploration and production company. The Company mainly engages in oil and natural gas exploration, development, production and sales. It has four major production areas in offshore China, which are Bohai Bay, Western South China Sea, Eastern South China Sea and East China Sea. The Company also has certain upstream assets in regions, such as Africa and Australia. During the year ended December 31, 2008, the Company owned net proved reserves of 2.52 billion barrel of oil equivalent (BOE), including 1.58 BOE of crude oil and 5,623.3 billion cubic feet (bcf) of natural gas. In 2008, the Company produced an average of 422,068 barrels of crude oil and 621.1 million cubic feet (mmcf) of natural gas daily, with a total net oil and gas production of 530,728 BOE per day. The Company is organized into three major business segments. It is involved in the upstream operating activities of the petroleum industry that comprise independent operations, production sharing contracts with foreign partners and trading business.

Bohai Bay is the Company’s principal oil and gas producing area. During 2008, approximately 42.3% of reserves and 43.5% of production of the Company were located in Bohai Bay. In 2008, it independently drilled in this area 16 wildcats, few of which include Kenli 10-1, Kenli 3-2, Qinhuangdao 35-2, Bozhong 29-5, Bozhong 29-4 South, Jinzhou 32-4 and Bozhong 35-2. 21 independent appraisal wells were drilled, 15 and oil and gas fields, such as Kenli 3-2, Jinzhou 25-1, Bozhong 29-5 and Qinhuangdao 35-2 were appraised. In 2008, the Company drilled 10 appraisal wells in the Jinzhou 25-1 structure. The Western South China Sea is the Company’s principal natural gas producing area. In 2008, the Company independently drilled in this area 17 wildcats, 10 independent appraisal wells were drilled.

The Eastern South China Sea is the Company’s primary crude oil producing regions. The typical depths of the Company’s operating area in this region range from 100 to 300 meters. The crude oil produced is of medium to light gravity. In 2008, CNOOC Limited independently drilled in this area five wildcats, and five appraisal wells. In 2008, the Company’s partners drilled in this area three wildcats. The East China Sea is the least explored area of the Company’s four principal areas offshore China. Typical water depths of the Company’s operating area in this region are approximately 90 meters, and the crude oil produced is of light gravity.

The Company acquired a portfolio of interests in Indonesia. Such interests included the South East Sumatra Production Sharing Contract, the Offshore North West Java Production Sharing Contract, the West Madura Production Sharing Contract and the BLORA Production Sharing Contract. Among these interests, South East Sumatra is operated and 56.54% owned by the Company. CNOOC Limited also owns approximately a 13.90% interest in the Tangguh LNG Project. In addition, the Company also holds partial interests in the Malacca Strait and Batanghari Production Sharing Contracts.

The Company owns interests in five production sharing contracts in Myanmar and acts as the operator. These blocks are still in the exploration stage. Its oil and gas resources in Oceania are all located in Australia. In addition, the Company owns interests in one exploration block in Australia. CNOOC Limited’s interests in Africa are primarily located in Nigeria. Outside of Nigeria, the Company owns interests in several blocks in Kenya and Equatorial Guinea. These projects are still at the exploration-stage.

CNOOC Limited sells crude oil produced offshore China to the People’s Republic of China (PRC) market through the Company’s wholly owned PRC subsidiary, CNOOC China Limited. The Company’s crude oil produced overseas is sold to the international market through its wholly owned subsidiary, China Offshore Oil (Singapore) International Pte Ltd.