(Hong Kong, July 23, 2001) -CNOOC Limited (SEHK: 883, NYSE: CEO) ("the Company") welcomes the Hang Seng Services′ announcement today that the Company has been included as a constituent company to the Hang Seng Index, effective from July 31, 2001. This is the third in a row that the Company is being enlisted as a constituent company of key international market indices after the inclusion in Morgan Stanley Capital Index ("MSCI") and the Hang Seng China Composite Index ("HSCCI") in May and June earlier this year, and marks the shortest time for any constituent companies to be included in the Hang Seng Index.

"Even though the Company was listed in New York and Hong Kong for just over four months, the Company′s investment thesis and management quality are not new to the market," said Mr. Wei Liucheng, Chairman and CEO of the Company. "The management has consistently focused on the fundamentals and the delivery of promises made to the market, and we will remain committed to our business goals and strategies."

CNOOC Limited. will be the only company representing the oil and gas sector among the 33 Hang Seng Index constituents, and the natural gas it supplies to Hong Kong now generates a quarter of the electricity consumed in Hong Kong.

"Since CNOOC Limited′s dual listing in February this year, the Company′s share has performed well, and the capital market has warmly embraced the story", commented Mr. Fu Chengyu, COO and President of the Company. "This reflects the confidence and positive sentiment placed in Company′s fundamentals by investors. Although the inclusion is a reflection of the market reality, the record speed for the Company to be included is a sign of market′s high expectation for us to truly establish ourselves as a ′blue chip′ ".

The Company′s market capitalization is among the top 30% of the Hang Seng Index constituent companies and has increased from HK$45 billion to HK$62 billion in the four month period since its dual listing in February.