Press Release: CNOOC Limited raises financing through issue of US$500 million in Guaranteed Notes

HONG KONG, May 14, 2003 -- CNOOC Limited, through CNOOC Finance (2003) Limited, a wholly owned finance subsidiary, has offered and priced two tranches of guaranteed notes today: US$200 million 4.125% guaranteed notes due 2013 (the "2013 Notes") and US$300 million 5.50% guaranteed notes due 2033 (the "2033 Notes" and, together with the 2013 Notes, the "Notes"). The 2013 Notes were priced at 77 basis points over the benchmark 10-year U.S. Treasury (with a yield of 4.294%), while the 2033 Notes were priced at 118 basis points over the benchmark 30-year U.S. Treasury (with a yield of 5.682%). The Notes are rated Baa1 with positive outlook by Moody's Investors Service and "BBB" by Standard & Poor's Ratings Services. CNOOC Limited intends to use the net proceeds of the offering for general corporate purposes.

Commenting on the offering, Wei Liucheng, CNOOC Limited's Chairman and Chief Executive Officer, said, "We are very pleased with the outcome of this offering, which has been even more successful than our inaugural bond offering last year. The high level of demand for this offering underscores investors' confidence in our sound business fundamentals, solid financials and strong credit profile."

Mark Qiu, Chief Financial Officer and Senior Vice President, added, "We are proud to have achieved one of the lowest coupon rates among comparable offerings by PRC companies. Through the offering of the 30-year tranche, first ever by a PRC corporate, we establish a benchmark for PRC corporate issuers in this maturity bracket. In addition, we have been able to secure low-cost funding that complements our asset profile nicely."

Credit Suisse First Boston and Merrill Lynch & Co. are acting as the joint bookrunners for the offering.

The Notes were placed in Hong Kong only to professional investors within the meaning of the Securities and Futures Ordinance (Cap. 571) of Hong Kong, in the United States only to qualified institutional buyers in reliance on the exemption from the registration requirements provided by Rule 144A under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and outside the United States only to non-U.S. persons in reliance on Regulation S under the U.S. Securities Act.

Incorporated in Hong Kong in August 1999, CNOOC Limited 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, 2002, its net proved reserves were 2.0 billion barrels-of-oil equivalents and its net production averaged 346,639 BOE per day in 2002.

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 slightly over 1,000 employees. The Company has become the largest offshore producer in Indonesia after the acquisition of Indonesian assets. (*)