(Hong Kong, March 24, 2006) CNOOC Limited (the "Company" or “CNOOC Ltd.”; NYSE “CEO”, SEHK “883”) announced today its annual results for the 12 months ended December 31, 2005.

During the year, the Company’s net income hits a historical high of RMB 25,323 million, the highest since listed. The net income represents an increase of RMB 9,184 million or 57% from 2004. Earning per share reached RMB 0.62, an increase of 58% year-on-year.

The total revenues of the Company for 2005 increased sharply by 25.8% to RMB 69，456 million. The Company generated revenues of RMB 53,418 million from oil and gas sales, an increase of RMB 16,532 million, or 45% year on year.

The Company’s net production amounted to 154.8 million barrels of oil equivalent in 2005, a year on year increase of 10.6%, and 130 million barrels of oil and 142 billion cubic feet of natural gas.

In 2005, the unit cost in the sector went up, the cost per barrel for CNOOC Ltd. rose slightly as well. However, the Company’s effective cost management has allowed it to maintain its competitive cost structure amongst its peers.

To follow the company’s tradition of sharing its success with shareholders, the Board of Directors has proposed a year-end final dividend of HK$ 0.1 per share to all shareholders. Together with the interim dividend of HK$ 0.05 per share and the special interim dividend of HK$ 0.05 per share, we distributed total dividend of HK$ 0.2 per share to our shareholders during 2005.

Mr. Yang Hua, Chief Financial Officer and Executive Vice President of the Company commented: “ I’m very proud that our financial results hit a new record this year. This is the result of our consistent efforts to maintain prudent financial policy.”

In 2005, the Company’s exploration activities resulted in 14 oil and gas discoveries, and 8 appraisal successes offshore China, achieving a reserve replacement ratio of 186% and increasing net proved reserves by 288 million BOE。As of December 31, 2005, the Company has accumulated net proved reserves at approximately 2.36 billion BOE.

Seven new projects commenced production successfully in this period, contributing significantly to the production Offshore China, which increased 13.7% to 141million barrels of oil equivalent.

“Successful oil and gas exploration, development and production of CNOOC Ltd this year prove again our capability to create value for our shareholders. Our larger reserves base and higher production volumes are derived from the Company’s persistent efforts.” Commented Mr. Zhou Shouwei, President of the Company.

From perspective of overseas business, CNOOC Ltd successfully completed acquisition of a 16.69% stake in Canada based MEG company. At the beginning of 2006, we also announced to acquire 45% working interests in the deepwater OML 130, offshore Nigeria. By the end of 2005, the Company has assets or interests in different countries or regions such as Indonesia、Australia、Myanmar、Canada、Morocco.

“In my opinion, CNOOC Ltd, as a company in pursuit of growth and development, has made extraordinary achievements in 2005. The Company has considerably enhanced its production, reserves and net profit. In 2006, the Company is determined to carry out our established strategies and further enhance our enterprise value in the market. As ever, the Company will do our best to reward shareholders and benefit the society. ” Commented Mr. Fu Chengyu, Chairman and Chief Executive Officer of the Company.

Notes to Editors:

More information about the Company is available at http://www.cnoocltd.com.

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This press release contains statements that are not historical facts, including statements about beliefs and expectations of the directors of the Company on the Company and its development and future plans. These forward-looking statements reflect the directors’ current views with respect to future events and are not a guarantee of future performance, and therefore shareholders and potential investors should not place undue reliance on them. The directors of the Company undertake no obligation to update or revise publicly any of these forward-looking statements, whether in light of new information, future events or otherwise. Forward-looking statements involve inherent risks and uncertainties. Shareholders and potential investors are cautioned that a number of 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 in the Chinese economic, political and social conditions and government policies and in the oil and gas industry.
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For further enquiries, please contact:

Mr. Xiao Zongwei
General Manager of Investor Relations
CNOOC Limited
Tel: +86-10-8452-1646
Fax: +86-10-8452-1441
E-mail: xiaozw@cnooc.com.cn

Ms. Sharon Fung
Ketchum Newscan Public Relations Ltd
Tel: +852-3141-8082
Fax: +852-2510-8199
E-mail: Sharon.Fung@knprhk.com