BEIJING, March 12, 2000 --- CNOOC Limited (the "Company") reported today its results for the year ended 31 December 1999. The main points are:

The combined net income for 1999 was US$ 496.5 million, an increase of US$309.4 million, or 265.33 per cent from 1998, reflecting higher production, improved oil prices and lower cost.

Total revenue from oil and gas sales for 1999 was US$1,376.6 million, an increase of US$432.8 million from 1998 due to an increase in crude oil prices and higher oil and gas volumes.

Production was replaced by 170 per cent. Finding and development cost over past three years was US$ 3.2 per boe. Reserves at year end stood at 1796.9 million barrels of oil equivalent as against 1742.5 million boe 12 months earlier.

The company′s net production averaged 208,815 barrels-of-oil equivalent per day due to five fields were brought into production in 1999 as production capacity totals to 34,000 barrels per day of crude oil and 15 mmcf per day of gas.

Net realized crude oil price was USD18.1 per barrel as against US$ 11.71 in 1998.

Mr. Fu Cheng Yu, Chief Operating Officer, commented that 1999 had been a year of significant recovery for CNOOC Ltd., with profits reflecting the impact of rising production levels, lower costs and the improved oil price. "I can assure you that the Company will continue to pursue further managerial, operational and financial improvements to lay the foundation for the efficient and profitable development of our offshore assets. I firmly believe we have the right people and the right financial foundations to generate value for the shareholders.

CNOOC Ltd. is the largest producer of oil and gas offshore China and is one of the largest independent oil and gas exploration and production enterprises in the world with net proved reserves of approximately 1.8 billion barrels-of-oil equivalent.