Offshore staff

HONG KONG -- China National Offshore Oil Corp. has signed two production sharing contracts with Devon Energy Corp. for deepwater blocks 64/18 and 53/30 offshore China.

Block 64/18, in the Qiong Dong Nan basin in the western South China Sea, covers 7,712 sq km (2,978 sq mi). Block, 53/30 covers 6,313 sq km (2,437 sq m) in the Pearl River Mouth basin. Water depth in the blocks is 300-2,000 m (984-6,562 ft).

Devon will conduct a 2D seismic survey and wildcat drilling during the eight-year exploration period.

All expenditures incurred during exploration period will be borne by Devon. CNOOC Ltd. has the right to participate in up to 51% interests in the event of a commercial discovery in the blocks.

"With the breakthrough in Liwan 3-1, we are very confident in the resource potential of deepwater area offshore China. We hope Devon will continue its success story in pursing offshore China's opportunities," says Zhu Weilin, vice president of CNOOC and general manager of exploration department.

In December 2005, CNOOC and Devon signed a PSC for deepwater block 42/05.

12/15/2006