Beijing, May 8, 2000 --- "Achieving excellence in health, safety and environmental protection (HSE) is foremost in our operations. HSE is not a short-term business. Therefore we keep on implementing our Continuous Improvement Program and striving to achieve the highest HSE standard." Mr. Chengyu Fu, Chief Operating Officer of CNOOC Limited ("the Company") said when commenting on the HSE achievements made in 1999.

In 1999, HSE performance of the Company is impressive. For example, in its Shenzhen Branch, only 10 lost time injury accidents and 15 non-lost time incidents occurred during the 5,200,000 man-hour operations in 1999. The total lost time incidents rate has declined to 1.9 incidents per 1,000,000 man-hours, which is well below the worldwide industry average in 1998 - i.e. 3.97 incidents per 1,000,000 man-hours. In addition, the oil spills and oil-base mud leaks has been reduced to 239 barrels, and the recovery of spilled, leaked oil and mud is timely, efficient and complete. As for produced water, 93.89% has been processed in line with regulations before discharge.

On March 15, 2000, the Company finalized a new rigorous HSE program similar to those practiced by other international oil companies. This program is broadly in line with the US government Occupational Safety & Health Administration Guidelines (OSHA). The Company is implementing this new program for classifying and reporting occupational injuries and illnesses throughout its operations.