OREANDA-NEWS. July 21, 2011. CNOOC Limited (the “Company”, NYSE: CEO, SEHK: 0883) announced today that ConocoPhillips China Inc (“COPC”) , the Operator of Penglai 19-3 field informed the Company that the State Oceanic Administration of People’s Republic of China (“SOA”) has required COPC to suspend the production of Platform B and C of the field until the risk of oil spill is eliminated, reported the press-centre of CNOOC.

According to the latest report from COPC, a thin sheen has been observed recently near Platform B and amounts of bubbles have been occasionally generated from the oil-based mud that remains on the sea floor near Platform C. Clean up work by COPC continues, including diving operations to remove any residual oil-based mud on the sea floor at Platform C. Meanwhile, COPC continues to closely monitor the original seep location of Platform B.

As the non-operator, the Company will continue to urge and assist COPC to complete the clean-up work as quickly as possible, and to reduce the impact of the oil spill incidents on marine environment according to SOA’s requirement.

Penglai19-3 field is an oil field under Production Sharing Contract ("PSC")with COPC. COPC is the Operator and responsible for the management of daily operations. CNOOC Limited holds 51% of participating interests under the PSC. Before the shut-in, the net production of CNOOC Limited from the two platforms was approximately 22,000 barrels per day.