(February 21, 2006) - CNOOC Limited (“the Company", NYSE: CEO, SEHK: 883,) announced today that its parent company, China National Offshore Oil Corporation (“CNOOC”) has signed a production sharing contract (PSC) with Devon Energy Corporation (“Devon”, NYSE:DVN) for block 11/34 in the South Yellow Sea.

Block 11/34 covers a total area of approximately 10,840 square kilometers in the Northern Part of South Yellow Sea Basin. Water depth of the block ranges from 20 to 60 meters. The Company has acquired 2-D seismic data and drilled wells in block 11/34, one of the blocks CNOOC offered publicly in 2005.

Under the terms of the contract, Devon is committed to conduct 2-D seismic survey and wildcats drilling during the exploration period. All expenditures incurred during exploration period will be borne by Devon. CNOOC Ltd. has the right to participate in up to 51% of interests in the event of any commercial discovery in the block.

Mr. Zhu Weilin, Vice President of the Company and General Manager of the exploration department commented, “I am very pleased to see Devon team up with CNOOC again. South Yellow Sea is a new exploration area. I hope Devon will continue its success in exploring the potential offshore China and create another win-win project for both companies.”

This contract is the eleventh between CNOOC and Devon.