Production and Reserve Volumes Hit Another Record High - Major Operational Indicators Met Targets

  Production and Reserve Volumes Hit Another Record High - Major Operational
                            Indicators Met Targets

  PR Newswire

  HONG KONG, March 28, 2014

HONG KONG, March 28, 2014 /PRNewswire/ --



CNOOC Limited (the "Company", NYSE: CEO, SEHK: 00883, TSX: CNU) today
announced its annual results for the year ended December 31, 2013.

In 2013, the Company continued to increase its investment in exploration.
Benefitting from the Company's cognitive innovation and technological
advancement, 18 new discoveries were made and 20 oil and gas structures were
successfully appraised by the Company. As at the end of 2013, the Company
owned net proved reserves of approximately 4.43 billion barrels of oil
equivalent ("BOE"). The reserve replacement ratio of the year amounted to
327%.

In 2013, the Company exceeded its production target set at the beginning of
the year. The net oil and gas production reached 411.7 million BOE,
representing a 20.2% increase year-over-year ("yoy"), with 60.8 million BOE
contributed by Nexen. During the year, a total of 7 new projects commenced
production in succession, and Liuhua 19-5 has also come online in early 2014.

In 2013, the Company's average realized oil price was US$104.60 per barrel,
representing a decrease of 5.3% yoy, and the Company's average realized gas
price was US$5.78 per thousand cubic feet, representing an increase of 0.2%
yoy. In addition, the Company's oil and gas sales revenue reached RMB226.45
billion, representing an increase of 16.3% yoy, and net profit amounted to
RMB56.46 billion.

During the period, the Company's all-in cost was US$45.02 per BOE,
representing an increase of 26.0% yoy, mainly attributable to the relatively
high cost of Nexen's assets and the new projects.

Including RMB15.67 billion of Nexen's spending, the Company's capital
expenditures reached RMB92.43 billion in 2013.

As for overseas development, with the successful completion of the acquisition
of Nexen in February 2013, the Company has embarked on a new phase of
international development. To date, the integration of the two entities has
progressed smoothly and the overall progress met the Company's targets. In
addition, the Company has successfully entered into the production sharing
contract for the Libra oil field located in the Santos Basin in Brazil. This
marks a significant milestone for the Company in the course of its strategic
entry into the ultra-deepwater field, which is in line with our philosophy of
expanding our global presence through partnership arrangements.

Mr. Li Fanrong, CEO of the Company, said, "In 2013, CNOOC Limited made steady
progress in all production and operational activities while stepping up the
pace of its international development. While working hard to achieve various
targets for the year 2014, we will maintain a long-term vision and seize the
right opportunities to fully promote the Company to a new phase of
development."

In 2013, our basic earnings per share reached RMB1.26. The Board of Directors
has proposed a year-end dividend of HK$0.32 per share (tax inclusive).

Mr. Wang Yilin, Chairman of CNOOC Limited, said, "In 2013, the Company
undertook various activities under its 'New Leap Forward' strategic roadmap,
achieving notable results and significant progress in exploration, production
as well as international growth. We will adhere to carrying out innovation and
reforms and seeking long-term progress in order to create further value for
our shareholders."

Notes to Editors: 

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

This press release includes "forward-looking statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995, including
statements regarding expected future events, business prospectus or financial
results. The words "expect", "anticipate", "continue", "estimate",
"objective", "ongoing", "may", "will", "project", "should", "believe",
"plans", "intends" and similar expressions are intended to identify such
forward-looking statements. These statements are based on assumptions and
analysis made by the Company in light of its experience and perception of
historical trends, current conditions and expected future developments, as
well as other factors that the Company believes reasonable under the
circumstances. However, whether actual results and developments will meet the
Company's expectations and predictions depends on a number of risks and
uncertainties which could cause the actual results, performance and financial
conditions to differ materially from the Company's expectations, including
those associated with fluctuations in crude oil and natural gas prices, the
exploration or development activities, the capital expenditure requirements,
the business strategy, whether the transactions entered into by the Company
can complete on schedule pursuant to its timetable or at all, the highly
competitive nature of the oil and natural gas industries, the foreign
operations, environmental liabilities and compliance requirements, and
economic and political conditions in the People's Republic of China. For a
description of these and other risks and uncertainties, please see the
documents the Company has filed from time to time with the United States
Securities and Exchange Commission, including 2012 Annual Report on Form 20-F
filed on April 24, 2013.

Consequently, all of the forward-looking statements made in this press release
are qualified by these cautionary statements. The Company cannot assure that
the results or developments anticipated will be realized or, even if
substantially realized, that they will have the expected effect on the
Company, its business or operations.

For further information: Ms. Michelle Zhang Deputy Manager, Media / Public
Relations CNOOC Limited Tel: +86-10-8452-6642 Fax: +86-10-8452-1441 E-mail:
MR@cnooc.com.cn Ms. Cathy Zhang Hill+Knowlton Strategies Asia Tel:
+852-2894-6211 Fax: +852-2576-1990 E-mail: cathy.zhang@hkstrategies.com
 
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