Release: CNOOC Ltd. inks a deal with Talisman on Tangguh LNG project

(Hong Kong, Jan 28 2008) - CNOOC Limited announced today, it has reached agreement with Talisman Energy Inc. to sell a 3.06% working interest in the Tangguh LNG Project with a consideration of US$ 212.5 million. The transaction has been completed through the equity transfer of an indirect subsidiary of CNOOC Limited and became effective on 1 January 2008 (Hong Kong time).

The Tangguh LNG Project, located in West Papua, Indonesia, consists of a number of offshore gas wells, production facilities, pipelines and LNG plant facilities with a nameplate capacity of 7.6 million tons per year. The Project comprises three PSC areas: the Berau PSC, the Muturi PSC and the Wiriagar PSC. First LNG is expected in late 2008.

Before the transaction, CNOOC Ltd. owned 16.96% of working interests in Tangguh project.

?Such an agreement between both companies is consistent with the portfolio management strategy of CNOOC Ltd. so as to maximize shareholders? value?, Mr. Fu Chengyu, Chairman and Chief Executive Officer of the Company commented, ?With significant presence remained in Tangguh project, we welcome Talisman as a new partner to further develop the gas business, which I believe, will bring generous return to the Company and the shareholders as a whole.? (end of release)

Tangguh Fast Facts

Field Characteristics

Location

Bintuni Bay, Papua

Production sharing contracts

Berau, Wiriagar and Muturi

Date discovered

1994

Water depth of the platform

Up to 60 meters

Proven?reserves

14.4 tcf gas

Development components

Two wellhead platforms offshore exporting unprocessed gas via 24 inch diameter pipelines running 22 km to LNG plant onshore

Development consent

March 2005

First LNG

Late 2008

Max. design capacity for LNG plant (two trains)

7.6 mmtpa

Partners

BP Berau Ltd 37.16%

MI Berau B.V 16.30%

CNOOC Ltd. 13.90%

Nippon Oil Exploration (Berau), Ltd 12.23%

KG Berau/KG Wiriagar 10.00%

LNG Japan Corporation 7.35%

Talisman 3.06%

Estimated development cost

$US 5 billion

Offshore Gas Production Facilities

Lead contractor

PT Saipem Indonesia

Platforms

Two, 6 legged, normally unattended wellhead platforms controlled from shore

Well slots

16 per platform

Weight

Deck : Approx. 1800 MT, Jacket : 2100 MT

Dimensions (height and width at base)

Jackets: approx. 67m (h) x 20mx30m (w). Decks : Approx. 30m x 35 m (w)

Where built

PT Guna Nusa fabrication yard, Cilegon

Date installed

1Q 2007

Pipelines

Two, 24 inch pipelines, running 22 km to shore. To be installed in 4Q-2006

Onshore LNG Facilities

EPC?contractor

Consortium KJP (Kellogg Brown &Root, JGC and PT Pertafenikki)

Processing equipment

Two train 3.8 mmtpa capacity each to liquefy gas into LNG

LNG storage tanks

Two insulated tanks capable of storing 170,000 m³ each

Export

LNG export jetty designed for 140,000 ton LNG carriers

Release: CNOOC Ltd. inks a deal with Talisman on Tangguh LNG project

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