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CNOOC Limited (the "Company", NYSE: CEO, SEHK: 00883) announced today that its parent company, China National Offshore Oil Corporation (CNOOC) has signed production sharing contracts (PSCs) with Shell China Exploration and Production Company Limited (Shell) for Blocks 62/02 and 62/17 in Yinggehai.

According to the terms of the contract, Shell will conduct 3D seismic data survey and drill exploration wells in the two blocks during the exploration period, in which all expenditures incurred will be borne by Shell. CNOOC has the right to participate in up to 51% working interest in any commercial discoveries in the blocks.

Mr. Zhu Weilin, Executive Vice President of the Company and General Manager of Exploration Department commented, "We are very pleased to cooperate with Shell again. Shell has rich experience in oil and gas operations, and we look forward to the joint exploration of the great potential in Yinggehai."