(Hong Kong, February 17, 2006) - CNOOC Limited (í░the Company", NYSE: CEO, SEHK: 883,) announced today that its subsidiary, CNOOC Africa Limited has singed a production sharing contract (PSC) for block S with the Ministry of Mines, Industry and Energy, and The National Oil Company of Equatorial Guinea (í░GEPetrolí▒).
Block S covers a total area of approximately 2,287 square kilometers in the south offshore Equatorial Guinea. Water depth of the block ranges from 30 to 1500 meters.
The exploration period of the contract is 5 years and CNOOC Ltd. acts as the technical operator. Under the terms of the contract, the company is committed to conduct seismic data interpretation and drilling exploration wells.
Mr. Zhu Mingcai, Vice President of the Company and General Manager of the International department commented, í░The signing of the PSC for block S in the Republic of Equatorial Guinea is another progress in CNOOCí»s overseas expansion. I believe in the favorable geological conditions of the block and look forward to making breakthrough for the benefits of both parties in the future.