CNOOC

Capex

CNOOC plans to spend $5.24 billion in 2008 - an increase of almost 50% on last year's budget.

The company aims to produce between 195 million and 199 million barrels of oil and gas equivalent this year, up from a revised 2007 output forecast of between 169 million and 171 million boe.

The $5.24 billion budgeted for capital expenditure is a 43.7% increase on the 2007 budget.

During 2008, 10 new projects are expected to come on stream, including major offshore China projects such as platform B, D, E of Penglai 19-3 phase II, Wenchang oilfields and Xijiang 23-1. The company's exploration programme will continue to focus on offshore China, where more drilling activities and seismic data collection work will be conducted during the year.

Future Plans

During 2008, 10 new projects are expected to come on stream, including major offshore China projects such as platform B, D, E of Penglai 19-3 phase II, Wenchang oilfields and Xijiang 23-1. The company's exploration programme will continue to focus on offshore China, where more drilling activities and seismic data collection work will be conducted during the year.

Production

In 2007, net oil and gas production exceeded expectations, increasing by 2.6% to 171 million BOE, among which the net production from offshore China was 149 million BOE.

The Company produced 167 million barrels of oil equivalent in 2006, a yoy increase of 7.9%, including 136 million barrels of oil and 179 billion cubic feet of natural gas.

The Company's net production amounted to 154.8 million barrels of oil equivalent in 2005, a year on year increase of 10.6%.

Reserves

During 2007, CNOOC realized a reserve replacement ratio of 142% and increased net proved reserves by 244 million BOE.

During 2006, CNOOC realized a reserve replacement ratio of 199% and increased net proved reserves by 332 million BOE. As of December 31, 2006, the Company has accumulated net proved reserves at approximately 2.53 billion BOE.

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