December 2

Key exploration technique for Yinggehai-Qiongdongnan Gas Zone, one of the major tasks of the state 863 programs, passed the review of the Ministry of Science and Technology. CNOOC played a leading role in the task. It was consisted of five themes including Offshore High Resolution Geophysical Exploration in Medium- and Deep Pay and, Offshore Multi-wave Geophysical Exploration and Processing, etc. Some of the technical progresses have been applied in the practice in Yinggehai-Qiongdongnan Basin successfully, which will help develop the gas resources in South China Sea.

December 1

CNOOC and Phillips China Inc. Signed the Supplemental Development Agreement for PL19-3 oilfield in Block 11/05 in Bohai Bay in Beijing. It signified the start of full development phase for the largest oilfield offshore China so far.

November 29

Suizhong 36-1 Phase II started production successfully. Suizhong 36-1 oilfield was a large oilfield discovered independently by CNOOC in the 1980s, with proven reserves of 300 million tons.

November 13

CNOOC and Shell signed a Strategic Alliance Agreement to jointly explore the opportunities in oil and gas exploration and development and development of gas market and gas distribution.

November 7

President Wei Liucheng rewarded a RMB 900,000 President Award to the employees making outstanding contributions in the discovery of large oilfields in Bohai Bay. In 1999, CNOOC and Phillips jointly discovered PL19-3 oilfield, which was the largest oilfield discovered offshore China so far. The discovery will help further CNOOC's international cooperation.

November 2

Chinese State Council named Fu Chengyu, Zhou Shouwei and Luo Han vice president of CNOOC. Dai Huandong, active vice president retired. On the same day, the Central Committee of CPC and the Organization Department of CPC announced that Gao Huaizhong, active vice president of CNOOC had been moved to president of the Supervision Committee of Key State-owned Enterprises.

October 28

President Wei Liucheng and Evert Henkes, Shell Chemical's CEO, signed in Beijing a joint venture contract for China's largest modern petrochemicals complex, with total investment of $4.0 billion. Li Peng, Chairman of the Standing Committee of the National People's Congress presented the signing ceremony. Signing of the JV contract is a corner stone for the petrochemical project. The petrochemical complex will be located at Daya Bay Economic and Technical Development Zone in Guangdong Province. The joint venture partners consisted of Shell Nanhai BV with 50 percent shareholding and CNOOC Petrochemicals Investment Ltd. (CPIL), with another 50 percent. The newly established joint venture will be called CNOOC and Shell Petrochemicals CO. Ltd. The project is to be brought to production in 2005 and produce around 2.3 million tpa high-grade petrochemical products every year.

August 23

Jiang Zemin, General Secretary of CPC listened to the report of CNPC, Sinopec and CNOOC.

August 8

CNOOC held press conference in Beijing for bid issuing for Guangdong LNG Receiving Terminal and Trunk Line Project, in which CNOOC plays a leading role. Guangdong LNG Project Phase I will have an import capacity of 3 million tpa LNG. After completion of Phase II, the capacity will be expanded to 5 million tpa. It will supply gas to the Pearl River Delta and Hong Kong.

June 15

QK17-2 oilfield was brought on stream. It is the largest oilfield of Boxi oilfield group, with an annual production of 550,000-ton crude. The production of QK 17-2 oilfield will increase the production capacity of the Boxi oilfield group and improve economic returns, and becomes an example for successful integrated development of medium- and small-sized oilfields.

June 15

CNOOC Chemical Ltd. held its first board meeting and announced the initiation of Hainan Fertilizer project, the largest single plant fertilizer project in China so far. It is expected to produce ammonia and urea by November 30, 2003. Dongfang 1-1 gas field is to start supplying gas to the plant on September 15, 2003.

June 1

Chinese State Council approved CNOOC to be a pilot state authorized investment institution and state majority held company. It will help CNOOC to conduct overseas financing and capital operation, as well as to establish fully owned subsidiaries in regard to the Corporate Laws.

May 25

CNOOC and China Academy of Science signed a Letter of Intent for technical cooperation during the "Tenth Five-year Plan" period. Lu Yongxiang, president of China Academy of Science and Wei Liucheng, president of CNOOC signed the Letter of Intent. The high-level cooperation between research institution and company will help apply technical progresses into practice earlier.

April 29

The Rewarding Ceremony for National Model Workers and Advanced Workers was held in the People's Great Hall in Beijing. Liu Liming from CNOOC Research Center and Zhang Meijian from CNOOC Nanhai West Corporation were among the 193 national model workers presenting the ceremony.

April 20

CNOOC Engineering Ltd. was incorporated in Tianjin, the first share holding service company of CNOOC. The company will be floated in domestic stock market.

April 7

CNOOC Limited concluded its initial private placement with proceeds of $210 million. The four investment institutions included U.S. International Group, Singapore Government Investment Corporation, U.S. International Insurance (Hong Kong) Company and U.S. International Insurance (Bermuda) Company.

March 24

CNOOC issued bidding notification for offshore oil and gas development for 2000 and offered six blocks located in Bohai Bay, East China Sea, the Pearl River Mouth Basin and Beibu Gulf, with a total acreage of 35,870 square kilometers.

January 16 to 19

CNOOC Annual Conference (also the 9th Ideological and Political Conference) was held in Beijing. The conference came to the conclusion that CNOOC had realized important progresses in economic strength, management mechanism, technical management capability and corporate image over the past 18 years. It set up three key principles for future development, i.e., targeting long-term development, international competition and capital operation.