CNOOC Limited Announces Record-level Annual Results.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 11, 2001

CNOOC Limited (NYSE: CEO) today announced its annual results for the 12 months ended December 31, 2000. During the period, the Company recorded revenues of Rmb 24.2 billion, a 58 percent jump while net profits reached Rmb 10.3 billion for the same period, an increase of 150 percent. EBITDE, a key industry financial benchmark, increased 78 percent to Rmb 15.3 billion, up from Rmb 8.6 billion in 1999. Earnings per share jumped 136 percent from Rmb 0.69 in fiscal 1999 to Rmb 1.63 in 2000.

"We are very encouraged with the results last year. Profit and EPS growth were both in the triple digits," said Mark Qiu, Chief Financial Officer. "The company is well positioned for fiscal 2001. Management and staff have performed beyond shareholders' expectations and will continue to push the performance of the company."

Higher crude oil prices coupled with strong production growth were key drivers behind its record level profits. The commencement of production on three newly developed fields in 2000 contributed to this increase. These fields, Huizhou 26-1N, Qikou 17-2 and Suizhong 36-1 Phase II, were all developed on schedule and under budget.

The Company had five new significant discoveries in 2000, all oil-bearing fields located in Bohai Bay. These fields, in addition to the discoveries from 1999, have provided the company with a significant proved, undeveloped reserve base for future growth. By December 31, 2000 its net oil and gas proved reserves were 1.8 billion BOE, of which 64% remain proved undeveloped reserves. CNOOC Limited expects these new fields to support sustainable and cost-efficient growth in production, through field development projects, and in reserves, through follow-on appraisal well drilling.

"During the period, we brought our company to market, listing shares in Hong Kong and in New York. The performance in 2000 as everyone can see has been outstanding. Going forward we will all work to sustain high performance, efficiency and share-holder value," said Wei Liucheng, Chairman and CEO.

The Company believes it has a bright future. The development of the Chinese economy and its growing demand for energy offers a strong market opportunity. The Company's vast proved undeveloped reserve base will allow for significant production growth to benefit from this energy demand. To deliver on such growth prospects in a cost-efficient manner, the Company will utilize the advanced technology and management expertise it has acquired from years of experience working with international partners and operating in a competitive market.

"We will push ourselves to be a world-class exploration and production company, with advanced management, modern operations, high growth prospects and global competitiveness," Mr Wei said. "We also have a staff with great technical and managerial expertise. Such human resources are invaluable assets to us and are instrumental to our future development."

In addition to growing production in 2001, the Company will also continue its low cost operating strategy and target further exploration prospects. In particular, it plans a balanced approach to exploration, expediting natural gas prospects in the South China Sea and in the Xihu trough of the East China Sea, while its foreign production sharing contract partners primarily focus on oil prospects in Bohai Bay.

"The company's success stems from management and staff flexibility, proactive attitude, and steady forward progress," Said Fu Chengyu, President and Chief Operating Officer. "CNOOC Limited is well equipped to enter into the global market, and secure a leading position in an industry of intensifying competition."

Notes to Editors:

CNOOC Limited - Background

Incorporated in Hong Kong in October 1999, CNOOC Limited is the dominant producer of crude oil and natural gas offshore China. CNOOC Limited is 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 ("BOE") 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.

CNOOC LIMITED - RELATIONSHIP WITH ITS PARENT COMPANY

CNOOC Limited, incorporated in Hong Kong, is a 70.6% held subsidiary of China's CNOOC. CNOOC Limited is the sole vehicle through which CNOOC carries out oil and gas exploration, development and production activities offshore China and internationally.

CNOOC, the parent company, is involved in the administrative, research, and services functions for the PRC offshore petroleum industry as well as other mid- or downstream petroleum projects.

This press release contains statements that are not historical facts, including statements about beliefs and expectations of the directors of CNOOC Ltd. (the Company). These forward-looking statements are based on current plans, estimates and projections, and therefore you should not place undo reliance on them. Forward-looking statements speak only as of the date they are made, and the directors of the Company undertake no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. You are cautioned that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to changes of the PRC's economic political and social conditions as well as government policies.

2000 CNOOC Highlights
(All amounts in Renminbi `000s, except for per share data)

                                1999            2000    1999 - 2000
                                                         Growth(%)
Key Financial Figures

Total revenues            15,310,587      24,223,918     58.2%

Total expenses            10,489,613      12,023,537     14.6%

EBITDE(1)                  8,630,211      15,314,040     77.5%

Net profit                 4,111,439      10,296,600    150.4%
Net profit per share            0.69            1.63    134.8%

Return on average
 shareholder's equity           55.8%           65.8%     17.9%
Return on average
 capital employed               24.3%           41.9%     72.4%

Capital expenditure        4,318,314       4,584,343      6.2%

Total assets              26,168,560      32,597,405     24.6%
Total liabilities         17,784,320      16,475,602     -7.4%
Shareholder's equity       8,384,240      16,121,803     92.3%

Weighted average
 number of shares
 outstanding           6,000,000,000   6,331,114,421
during the year

      (1) EBITDE calculated as earnings before interest, tax,
depreciation and exploration costs, adjusted for dismantlement and
site restoration allowance and exchange gains/losses

                                    1999                   2000
Key Operating Figures

Net proved reserves
     Crude Oil (mmbbls)             1,241.6                1,215.8
     Natural gas (bcf)              3,320.6                3,249.7
     Total (million BOE             1,795.1                1,757.36
Proved undeveloped reserves             74%                    64%
(% of total reserves)

Reserve replacement (%                 170%                   104%
Reserve life (year)                    23.4                   20.1

Average daily production
     Crude oil barrels/day)         174,745                206,347
     Natural gas mmcf/day)            204.4                  197.9
     Total BOE/D                    208,815                239,337

Total lifting costs (Rmb per BOE)     32.54                  36.85

3 year                                 8.53                  20.87
finding and development costs