360 million barrels-of-oil equivalent proved net working interest reserves
Significant operated production and extensive infrastructure
Opportunity to make material acquisition of low risk assets at an attractive price
Substantial presence established in Asia Pacific region

(Hong Kong, January 18, 2002) - CNOOC Limited (the "Company", SEHK:883; NYSE: CEO) announced today that the group has agreed with the Repsol-YPF group to acquire 9 Repsol subsidiaries ("Target Companies") owning working interests in five oil and gas properties in Indonesia. The total consideration shall, subject to adjustment, be US$585 million in cash. The acquisition is pending customary closing conditions.

The main business of the Target Companies is the exploration, development and production of oil and gas offshore and onshore Indonesia. The acquisition will make CNOOC Limited the largest offshore oil producer in Indonesia. Estimated net working interest proved reserves to be acquired total approximately 360 million barrels-of-oil equivalent. The assets to be acquired include an aggregate 65.34% interest in the Southeast Sumatra PSC, an aggregate 36.72% interest in the Offshore Northwest Java PSC, a 25.00% interest in the West Madura PSC, a 50.00% interest in the Poleng TAC and a 16.70% interest in the Blora PSC.

Following completion of the acquisition, the Southeast Sumatra PSC will be operated and majority owned by CNOOC Limited. Offshore Northwest Java is operated by a member of the BP p.l.c group.

CNOOC Limited currently has a presence in Indonesia through a 39.51% participating interest in the Malacca Strait PSC.

Merrill Lynch (Asia Pacific) Limited is exclusive advisor to the Company in connection with the acquisition.

Notes to Editors:
CNOOC LIMITED - BACKGROUND
Incorporated in Hong Kong in August 1999, CNOOC Limited (SEHK: 883; NYSE: CEO) is the dominant producer of crude oil and natural gas offshore China. CNOOC Limited is also one of the largest independent crude oil and gas exploration and production companies in the world. As of December 31, 2000, its net proved reserves were 1.8 billion barrels-of-oil equivalents and its net production totaled 239,337 BOE per day.

CNOOC Limited has interests in 45 crude oil and gas properties in four major producing areas: Bohai Bay, Western South China Sea, Eastern South China Sea and East China Sea. The Company is a major oil and gas company in China with approximately 1,000 employees.