(August 8, 2006) - CNOOC Limited (NYSE: CEO, SEHK: 883, “the Company") announced today that its parent company -- China National Offshore Oil Corporation ("CNOOC") will join hands again with Husky Oil China Limited (Husky) in exploring deepwater areas Offshore China. A Production Sharing Contract (PSC) has been inked by both parties for block 29/06 in Eastern South China Sea. This is the eighth deepwater contract CNOOC has signed.

In the meantime, CNOOC also signed PSCs with Husky for Blocks 35/18 and 50/14 in Western South China Sea.

Block 29/06 covers a total area of 9,265 square kilometers in the ZhuⅡSag of Pearl River Mouth Basin. Water depth of the block ranges from 500 to 1,500 meters. Under the terms of the contract, Husky is committed to acquire 3-D seismic data and drill exploration wells during the first phase of exploration.

Blocks 35/18 and 50/14 are located in East Slope of Yinggehai Basin, covering 4,496 and 3,137square kilometers respectively with water depth ranging from 20 to 95 meters. During the exploration phase, Husky will drill wildcats in both of the blocks and conduct 3-D seismic survey in Block 35/18.

The Company has the right to participate in up to 51% working interests in any commercial discoveries in the above three blocks.

Mr. Zhu Weilin, Vice President of the Company and General Manager of the Exploration Department commented, “Husky has made important progress in exploring deepwater potential jointly with CNOOC Ltd. The signing of the new PSC indicated again that Husky is highly confident of the deepwater blocks Offshore China. I believe that the huge exploration potential of deepwater areas will bring new opportunities to the development CNOOC Ltd. and its partners in offshore China”.

Up to now, CNOOC has signed 10 PSCs with Husky, 3 of which are deepwater contracts.