CNOOC signs PSC with Devon Energy

CNOOC has signed a PSC with Devon Energy Corp. for block 11/34 in the South Yellow Sea.

Offshore staff

(Asia-Pacific) - CNOOC Ltd.'s parent company, China National Offshore Oil Corp. (CNOOC), has signed a production sharing contract (PSC) with Devon Energy Corp. for block 11/34 in the South Yellow Sea.

Block 11/34 covers a total area of approximately 10,840 sq km in the northern part of South Yellow Sea Basin.

Water depth of the block ranges from 20 to 60 m.

The company has acquired 2D 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 2D seismic survey and wildcats drilling during the exploration period.

All expenditures incurred during the exploration period will be carried 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.

This contract is the eleventh between CNOOC and Devon.

02/21/06

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