(Hong Kong, May 17, 2010) - CNOOC Limited (“the Company" or “CNOOC Ltd,” NYSE: CEO, SEHK: 883) is pleased to announce today that, the Company, via its wholly owned subsidiary -- CNOOC International Limited, together with Turkish Petroleum Corporation (TPAO), have signed a technical service contract (“TSC”) for the development and production of the Missan Oil Fields within Iraq.
The Missan Oil Fields are located in the southeast of Iraq, about 350 kilometers southeast of Baghdad. .
The TSC has a contract term of 20 years and the Company has undertaken to increase the daily production of the Missan Oil Fields to 450,000 barrels within six years.
The Company will earn US$ 2.3 per barrel on the incremental oil production once the daily production has been raised by 10 percent from its current level and will recover its expenditure through a cost recovery mechanism.
According to the TSC, the Company acts as the operator and holds 63.75% participating interest while TPAO holds 11.25%. Iraqi Drilling Company, a local Iraqi company, holds the remaining 25% in the project.
Mr. Fu Chengyu, Chairman and CEO of the Company welcomed the signing of the TSC and commented, ”It is a great pleasure to participate in rebuilding Iraqi’s oil industry together with TPAO. CNOOC Ltd and its partner will carry out an active investment plan on the development of the Missan Oil Fields, to increase the production level for the benefits of all parties.”
TSC will be effective subject to a few pre-conditions including the approval from Iraq.
This press release includes “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements regarding expected future events, business prospectus or financial results. The words “believe”, “intend”, “expect”, “anticipate”, “project”, “estimate”, “plan”, “predict” and similar expressions are intended to identify such forward-looking statements. These statements are based on assumptions and analyses made by us that we believe are reasonable under the circumstances. However, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance and financial condition to differ materially from our expectations. For a description of these and other risks and uncertainties, please see the documents we file from time to time with the United States Securities and Exchange Commission, including our 2009 Annual Report on Form 20-F filed on May 8, 2010.
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For further enquiries, please contact:
Mr. Jiang Yongzhi Joint Company Secretary and General Manager of Investor Relations Department CNOOC Limited Tel: +86-10-8452-1731 Fax: +86-10-8452-1441 E-mail: Jiangyzh2@cnooc.com.cn
