CNOOC Reports Key First Quarter Highlights

CNOOC Limited announces certain selected unaudited key operational statistics of the Company and its subsidiaries (together the 'Group') for the first quarter of 2011 (ended 31 March 2011). The comparative statistics for the first quarter of 2010 (ended 31 March 2010) are also disclosed in this announcement.

The Company achieved a total net production of 85.2 million barrels of oil equivalent (BOE) for the first quarter of 2011, representing an increase of 26.6% year over year (YoY).

For the first quarter of 2011, the Company made five new discoveries and successfully drilled six appraisal wells offshore China.

On the development side, Jinzhou 25-1 project offshore China commenced production successfully. Other major projects were progressing as planned.

In the first quarter of 2011, the Company purchased a 33.3% undivided interest in Chesapeake's Niobrara project. In addition, the Company and Tullow Oil plc entered into agreements for the acquisition of its one-third interests in each of Exploration Areas 1, 2 and 3A in Uganda. The transaction is expected to be completed in the first half of 2011.

Benefiting from increased oil and gas production and higher realized prices, the total unaudited revenue of the Company reached approximately RMB48.51 billion for the first quarter of 2011, representing a significant increase of 59.1% YoY. During the period, the Company's average realized oil price increased 32.7% YoY to US$99.98 per barrel. The Company's average realized gas price was US$4.81 per thousand cubic feet, representing an increase of 8.6% YoY.

For the first quarter of 2011, the Company's capital expenditure reached approximately RMB6.40 billion, representing an increase of 10.3% YoY.