BEIJING, March 28, 2000 --- CNOOC Limited (the "Company" ) announced today CNOOC signed a Petroleum Contract with the Burlington Resources China Ltd. to explore for oil in a 2,241 sq km block in the Pearl River Mouth Basin of South China Sea.

The block lies in the Pearl River Mouth Basin area of the Eastern South China Sea, next to the Huizhou oil fields in west, where CACT Operators Group, a consortium which includes CNOOC Ltd., Agip, Chevron and Texaco, is currently producing more than 120,000 barrels of crude oil per day. The Company currently has 10 oil fields under production in this area.

Mr. Wei Liu Cheng, President of CNOOC and Chairman & CEO of the Company, and Mr. Gregory Larberg, Executive Vice President and Chief Operating Officer of Burlington Resources Ltd. signed the contract in Beijing. This is the first contract CNOOC signed with Burlington.

Under the terms of the contract Burlington will be responsible for all exploration and appraisal costs. The Company will have the option to take at no cost up to a 51 per cent of participating interest in this block prior to any comercial development.

Mr. Wei Liu Cheng stated that the contract will not only help ensure the long-term production in the Pearl River Mouth Basin Area of the Eastern South China Sea, but also will help in further addition of reserves to the Company′s reserves base in this area.

CNOOC Limited is the only vehicle through which CNOOC carries out oil and gas operations. The Company is the largest producer of oil and gas offshore China and one of the largest oil and gas exploration and production company in the world with net proved reserves of approximately 1.8 billion barrels-of-oil equivalent as of December 31, 1999.