HONG KONG, April 29 /Xinhua-PRNewswire-FirstCall/ -- CNOOC Limited (NYSE:
CEO, SEHK: 883) today reported offshore China oil and gas production increase
of 7.2% in the first quarter of 2004 from the same quarter last year to reach
the level of 314,382 barrels of oil equivalent (boe) per day.  Crude oil and
liquids production was 273,054 barrels per day and natural gas production was
237 million cubic feet per day offshore China.  The increase was largely due
to an 11.8% increase in crude oil and liquids production in Eastern South
China Sea and an 98.1% increase in natural gas production from Western South
China Sea.
    Overseas assets contributed a total working interest production of 9.1
mmboe and EBITDE of RMB627.8 mm (US$75.8 mm), stronger than what was budgeted.
Reported net entitlement production for the company was 362,672 barrels of oil
equivalent (boe) per day.  Crude oil and liquids production and natural gas
production was 306,980 boe per day and 323 mmcf per day, respectively.
    Total unaudited revenues were RMB7.78 billion (US$940.2 million) for the
first quarter of 2004, a 3.8% increase from the first quarter of 2003. This
revenue growth was a result of higher production volume partially offset by
slight decrease in realized oil and gas prices.  The average realized oil and
gas prices were US$29.79 per barrel and US$2.8 per thousand cubic feet
respectively in the first quarter.  "This quarter's production growth offshore
China was encouraging.  The key value driver for overseas operations, cash
flow, performed better than expected.  We had a good start," commented Mr. Fu
Chengyu, Chairman and Chief Executive Officer, "We are however not relaxing."
    "The first quarter offshore China costs performed well.  We are managing
costs very closely.  Production offshore China is back-loaded this year, some
costs components are as well," said Mark Qiu, Chief Financial Officer.
    WZ 12-1N came on stream earlier this year with expected peak production of
14,400 boe per day.  CNOOC Limited confirmed a number of discoveries in Bohai
Bay.  "It was another solid quarter, all 13 major development projects are
progressing on track.  We are going to meet key operating targets for the
year," commented Mr. Zhou Shouwei, President of the Company.
    In February, the Company acquired additional equity interest in the
Tangguh LNG Project in Indonesia.  As a result, CNOOC's stake in the project
increased from 12.5% to 16.96%.

    First Quarter and Year-to-Date Production Summary
                                   2003                     2004
    Crude Oil & Liquids (b/d)        Q1          YTD          Q1         YTD
    Bohai Bay                    125,679      125,679    129,530     129,530
    Western South China Sea       67,072       67,072     61,279      61,279
    Eastern South China Sea       71,365       71,365     79,801      79,801
    East China Sea                 2,718        2,718      2,444       2,444
    Overseas                      41,944       41,944     33,926      33,926
       Subtotal (b/d)            308,777      308,777    306,980     306,980

    Natural Gas (mmcf/d)
    Bohai Bay                         42           42         45          45
    Western South China Sea           87           87        173         173
    Eastern South China Sea            -            -          -           -
    East China Sea                    15           15         19          19
    Overseas                          97           97         86          86
       Subtotal (mmcf/d)             242          242        323         323

    Total Production (boe/d)     351,378      351,378    362,672     362,672


     First Quarter and Year-to-Date Revenue and Expenditure (Unaudited)

                     RMB millions                  US$ millions(1)
                     2003           2004           2003         2004
                     Q1      YTD    Q1      YTD    Q1    YTD    Q1     YTD
    Sales Revenue

    Crude oil and 6,966.0 6,966.0 7,094.8 7,094.8 841.6  841.6  857.2  857.2
     liquids

    Natural gas      487.4  487.4   619.9   619.9  58.9   58.9   74.9   74.9
    Marketing         16.4   16.4    34.5    34.5   2.0    2.0    4.2    4.2
    Revenue, net
    Others            29.4   29.4    32.5    32.5   3.6    3.6    3.9    3.9
       Total      7,499.2 7,499.2 7,781.8 7,781.8 906.0  906.0  940.2  940.2

    Capital
    Expenditures
    Exploration     285.4   285.4   363.6   363.6  34.5   34.5   43.9   43.9
    Development   1,116.5 1,116.5 1,804.8 1,804.8  134.9  134.9  218.0 218.0

    Others            0.3     0.3     3.3     3.3   0.0    0.0    0.4    0.4
       Total      1,402.1 1,402.1 2,171.7 2,171.7 169.4  169.4  262.4  262.4

    (1)  Converted to US dollars at; RMB 8.2771 = US$1.00

    Notes to Editors:
    CNOOC LIMITED - BACKGROUND
    Incorporated in Hong Kong in August 1999, CNOOC Limited (SEHK: 883; NYSE:
CEO) is the dominant producer of crude oil and natural gas offshore China.
CNOOC Limited is also one of the largest independent crude oil and gas
exploration and production companies in the world.
    As of December 31, 2003, its net proved reserves were 2.1 billion barrels-
of-oil equivalents.  Daily production for the quarter ended March 31, 2004 was
362,672 boe (unaudited).
    CNOOC Limited is currently engaged in exploration, development and
production in 4 major areas offshore China, which covers Bohai Bay, Western
South China Sea, Eastern South China Sea and East China Sea.  The Company is
also one of the largest offshore crude producers in Indonesia.
    The Company has about 2,447 employees.

    CNOOC LIMITED - RELATIONSHIP WITH ITS PARENT COMPANY
    CNOOC Limited, incorporated in Hong Kong, is a 70.6% held subsidiary of
China National Offshore Oil Corporation ("CNOOC").  CNOOC Limited is the sole
vehicle through which CNOOC carries out oil and gas exploration, development,
production and selling activities offshore China and internationally.
    CNOOC, the parent company, is involved in the administrative, research,
and services functions for the China offshore petroleum industry as well as
other mid- or downstream petroleum projects.

    This press release contains statements that are not historical facts,
including statements about beliefs and expectations of the directors of CNOOC
Limited (the Company).  These forward-looking statements are based on current
plans, estimates and projections, and therefore you should not place undue
reliance on them.  Forward-looking statements speak only as of the date they
are made, and the directors of the Company undertake no obligation to update
publicly any of them in light of new information or future events.  Forward-
looking statements involve inherent risks and uncertainties.  You are
cautioned that a number of important factors could cause actual results to
differ materially from those contained in any forward-looking statement.  Such
factors include, but are not limited to, changes in PRC economic, political
and social conditions as well as government policies.

     For further enquiries, please contact:
     Mr. Xiao Zongwei
     CNOOC Limited
     Tel: +86 10 8452 1646
     Fax: +86 10 8452 1648
     E-mail:  xiaozw@cnooc.com.cn

     Ms Anne Lui/Ms. Maggie Chan/Ms. Carol Chan
     Ketchum Newscan Public Relations
     Tel: +852-3141-8016/+852-3141-8063/+852-3141-8091
     Fax: +852-2510-8199
     E-mail: anne.lui@knprhk.com
             carol.chan@knprhk.com
             maggie.chan@knprhk.com

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