In order to achieve better growth, and increase stockholder’s returns, CNOOC Ltd. is implementing its prudent overseas acquisition strategy. In this process, CNOOC Ltd. has been striving to present a responsible and friendly image to the international public. In overseas, we observe strict adherence to local laws and regulations during operations. We not only actively expand the Company business, but we also make efforts to be a welcomed investor and responsible corporate citizen. We view the fulfillment of corporate social responsibility as our unshirkable responsibility.

Indonesia

The Indonesia-based CNOOC Southeast Asia Ltd. (Southeast Asia Ltd) is the biggest overseas subsidiary of CNOOC Ltd. Following the consistent tradition of fulfilling corporate social responsibility, Southeast Asia Ltd. devotes great energy, manpower and resources to creating and strengthening the harmonious relations with the local community whom gladly accepts such behavior.

1. Acceptance and Respect to Local Cultures
2. In overseas operating activities, the Company shows its acceptance and respect to local cultures through actual comprehensive action. We represent our value of attaching importance to diversified cultures.
   Southeast Asia Ltd. has more than 770 employees from 7 different countries. Moreover, it has more than 1,500 third party service laborers.
   To respect the religion of local employees, Southeast Asia Ltd. endows a representative selected by Muslim employees with a Haj pilgrimage to Mecca. In addition, the Company also helps local communities maintaining mosques, and makes offerings on Idul Adha (Day of Sacrifice). To Christian employees, Southeast Asia Ltd. supports their religious activities such as Christmas and Easter celebrations.

1. Employee Localization
2. In line with giving priority to the employment of local talents and the talent creating strategy of our international personnel team, during 2002 to 2005, we promoted 5 Indonesian employees to senior managerial positions and 3 young employees to departmental managers.
   Southeast Asia Ltd promotes a special importance to the training program of local employees. In 2005, the Company conducted various training programs totaling to 2,216 hours. Furthermore, we keep a certain proportion of their recruitment for graduated students in its annual recruitment plans.
3. Educational Assistance
4. During the past few years, Southeast Asia Ltd has continually endeavored to improve the educational level of local residents and to help poverty stricken students completing their studies through regular education assistance programs. We continue educational assistance activities, including:
   ○ Providing scholarships to primary, junior and senior high schools students of distressed areas close to operation areas;
   ○ Sponsoring college school enrollment guidance to senior high school students, and setting up student subsidies to local universities. On average, this endows more than 190 college students a year
   ○ Regularly providing books and stationery to schools in distressed areas;
   ○ Providing teaching facilities to local schools.
5. Community Relation Construction
6. In the past few years, we have assisted villagers near our operation areas in setting up economic ocean fish-breeding plants, encouraged and supported villagers to establish small enterprises to improve their living standard and income.
7. Health, Safety and Environment Concerns
8. Southeast Asia Ltd has always maintained Operation and Community Environment. We follow strict observance to the safety, health and environmental protection laws and regulations of the Indonesian government. It has never sacrificed or lowered its environmental protection requirements for the sake of instant benefit. During the operation process, the Company tries to prevent damages to the local environment as much as possible.
   At the same time, we also devoted ourselves to promote the health quality of local community, through the programs of mass circumcision, medical assistance, fogging, etc.
9. Helping Hands to people in Disaster
10. On May 27, 2005, a powerful earthquake of 6.3 Richter scale, again, struck Java Island. The Company leaders sent a telegram to extend sympathy to the family members of the employees and contractors who resided in the disaster area. They also directed emergency relief goods to be sent to disaster sites to help victims overcome their difficulties. In the following days, the Company leaders personally visited the disaster sites, donated foods to victims and a large amount of medicines to hospitals. They also brought in offshore doctors to bring milk and first-aid medicines to assist the rescue. Southeast Asia Ltd. offered US$ 150,000 of financial assistance, and provided emergency relief goods and medical supplies totaling to US$ 20,000.
    At the end of 2004, following the disaster of the Indian Ocean Tsunami, Southeast Asia Ltd was one of the three foreign operators offering financial assistance to the disaster area. Southeast Asia Ltd. provided material aid and sent supply boats to transport relief goods and the Chinese medical team. We also offered a total amount of US$ 25,000 for financial assistance, emergency relief goods and medical supplies.

Fish Shelter Cultivation Farm
We have constructed 3 fish shelters made of 60 used steel racks from warehouse and put them into coastal waters to form manual fishery. It did not only increase fishing quantity, but also attracted tourists to the fishery and therefore increasing revenue. A year later, the villagers artificially cultivated coral in the fishery. It did not just make the environment perfect but also helped to improve the tourism resources.

Subsidize Fishermen to Build Mini Ice-Processing Plant
Villagers of Thousand Islands used to have to go to Jakarta to buy ice to freeze their fish. Approximately 30% of the ice lost during transportation. The Company contributed to the building of an ice plant. The objective is to satisfy the villagers’ needs on the island, to improve the quality of fish preservation and gaining higher market returns whilst cutting expenses.

In Kazakhstan, in accordance the host country’s regulations and company development needs, we made efforts to hire local employees. The local employee rate reached 73%.

The Company attached great importance to the training and professional development planning for local employees. The training courses offered cover the areas of management, professional skills, law, language, etc. The Company encourages local employees to improve the level of business management and professional skills, and help them adapt to the Company culture.

Following our HSE policies, we are carrying out oil and gas operations in Myanmar. We are constantly acting to promote the development of the Myanmar petroleum industry, whilst participating in social commonwealth causes that are beneficial to the local people.

We provide job opportunities and vocational training for the local people. We have also employed local service companies and suppliers engaging in consulting, labor services, transportation services, food and beverage, medical care, and maintenance, etc. In addition to paying respect to local religions, cultures and customs at certain remote project operation areas, the Company also affords support to local community development, provides short term vocational training, and economic development opportunities to the local people.