Zhang Guohua

Apr.30, 2004,in Marrakesh

China National Offshore China National Offshore Oil CorporationOil Corporation

NOT AN OFFICIAL UNCTAD RECORD

2

CNOOC Overview

Established in 1982 as the national offshore petroleum company

Largest offshore oil and gas producer in China

Largest offshore oil and gas producer in China

Fast growing into integrated energy company

Fast growing into integrated energy company

One of the 3 largest oil companies of China (CNPC, SINOPC, CNOOC)

One of the 3 largest oil companies of China (CNPC, SINOPC, CNOOC)

3

China National Offshore Oil China National Offshore Oil CorporationCorporation （（ CNOOCCNOOC ））

ServicesServices

CN

OO

C E

ng

i-C

NO

OC

En

gi-

neerin

g L

tdn

eering

Ltd

CNOOC Ltd (CNOOC Ltd (E&P)E&P)

Tijin

Bran

chT

ijin B

ranch

Zh

anjian

g B

ranch

Zh

anjian

g B

ranch

Sh

ang

hai B

ranch

Sh

ang

hai B

ranch

Overseas SubsidiariesOverseas Subsidiaries

Mid & Mid & DownstreamDownstream

Research

Cen

terR

esearch C

enter

Sh

enzh

en B

ranc

hS

hen

zhen

Bran

ch

LogisticsLogistics FinanceFinance

LNG

,Petro-

chemicals,R

efining

gas and power generation,

bitumen and fertilizer

finance,trust, investment

and insurance

Lo

gis

tics a

nd

serv

ices

Ch

ina O

ilfield

Ch

ina O

ilfield

Services L

tdS

ervices Ltd

CNOOC Overview

4

Petro-chemical (PE & PP)

Production: 230,000 t

in 2006

Fertilizer (Urea & Ammonia)

Production: 1.3 MMt

in 2003

LNG Terminal & Pipeline

Production: :5.5MMt/a

in 2006

E & P

Reserve: 2.1Billion BOE

Production: :357M BOE

in 2003

Gas power generation

Production: 430,000 kw

in 2007

Upstream Downstream

CNOOC Overview

Independent E&P Independent E&P Integrated EnergyIntegrated Energy

5

Listed on the New York and Hong Listed on the New York and Hong Kong Stock Exchange market in Kong Stock Exchange market in

20012001

One of the world’s largest One of the world’s largest exploration and production exploration and production

companies with an offshore China companies with an offshore China focusfocus

One of the world’s largest One of the world’s largest exploration and production exploration and production

companies with an offshore China companies with an offshore China focusfocus

Highest credit ratings from both Highest credit ratings from both agencies (A2/BBB) among Chinese agencies (A2/BBB) among Chinese

corporatescorporates

Highest credit ratings from both Highest credit ratings from both agencies (A2/BBB) among Chinese agencies (A2/BBB) among Chinese

corporatescorporates

Only Chinese company permitted to Only Chinese company permitted to enter into production sharing enter into production sharing

contracts with foreign companies contracts with foreign companies offshore Chinaoffshore China

Only Chinese company permitted to Only Chinese company permitted to enter into production sharing enter into production sharing

contracts with foreign companies contracts with foreign companies offshore Chinaoffshore China

CNOOC Ltd. Overview

LimitedLimited

LimitedLimited

6

China

Tianjin Korea

Guangzhou

Hong Kong

Philippines

BeijingOffshore China0 100 200 300 km

Shanghai

Bohai Bay

East China

Sea

Western SouthChina Sea

Eastern South China Sea

MALACCA STRAIT

Operation and Assets LocationAs of December 31, 2003

Offshore China Offshore China

Reserve(MMBOE)Reserve(MMBOE) 1,991.7 1,991.7

Oilfields in production 25 Oilfields in production 25 Gasfields in production 4Gasfields in production 4

Oil & Gas fields in construction 8Oil & Gas fields in construction 8

OverseasOverseas

Reserve(MMBOE)Reserve(MMBOE) in Indonesia 136.7 in Indonesia 136.7

Reserve(MMBOE)Reserve(MMBOE) in Australia in Australia

Total Reserve Booked 2,128Total Reserve Booked 2,128

Reserves (MMBOE) and Oil/Gas FieldsAs of December 31, 2003

CNOOC Ltd. Overview

7

ProductionOffshore China and OverseasCore Operation Area

●

●

●

●

2003 1-4Q

137,353 (boepd)

Bohai Bay

2003 1-4Q

4,908(boepd)

East China Sea

2003 1-4Q

84,010(boepd)

Western South China Sea

2003 1-4Q

72,981(boepd)

Eastern South China Sea

2003 1-4Q

57,477(boepd)

Overseas

●

●

356,729 BOE per day as of December 31, 2003

CNOOC Ltd. Overview

8

Strong Reserves and Production Growth

0500

1,0001,5002,000

1995 1996 1997 1998 1999 2000 2001 2002 2003

(MMBOE)

Significant Reserve Growth in 2002

736

1,4551,742 1,795 1,757

CAGR (1995-2003) = 17.1%

Crude Oil Natural Gas

070

140210280350

1995 1996 1997 1998 1999 2000 2001 2002 2003

CAGR (1995- 2003) = 18.2%

175.4 201.2 206.9 208.8239.3 261.4

107.6

Continuous Production Growth(MBOE/D)

1,7872,016

356.7

668

346.6

2,128

CNOOC Ltd. Overview

9

Cost Per BOE offshore China

2.99 2.99 3.01 2.85 2.82

1.14 1.15 1.42

3.843.62

3.32 3.523.70

0.64

0.931.45

0.83 0.720.820.80

0.160.140.120.140.29$8.81$8.48$8.39

$8.84$8.88

$0.00$1.00$2.00$3.00$4.00$5.00$6.00$7.00$8.00$9.00

$10.00$11.00

1999 2000 2001 2002 2003 H1

Operati ng Expenses Producti on TaxesDD&A SG&ADi smantl ement

USD/BOE

Maintained low production costs offshore China

CNOOC Ltd. Overview

10

Countries and regionsCountries and regions Oil companiesOil companies Contracts and Contracts and agreementagreement

TotalTotal 1818 7171 161161

Under ExecutionUnder Execution 1010 2929 3434

Partners in PSC in Offshore China

CNOOC Ltd. Overview

11 With 3 overseas acquisitions CNOOC Ltd achieved a new milestone on the way of internationalization

AustraliaAustralia

ChinaChina

IndonesiaIndonesia

North West Shelf Venture and North West Shelf Venture and GorgonGorgon

Tangguh LNG ProjectTangguh LNG Project

Repsol-YPF’s Indonesian AssetsRepsol-YPF’s Indonesian Assets

Oversea production in 1998Oversea production in 1998

Oversea production in 2003Oversea production in 2003

CNOOC Ltd. Overview

24.8%

12(1) Includes time deposits and short-term investments

40.644.3

9.05.3

15.214.5

36.6

39.7

5.45.2

19.1

22.8

As at Dec. 31, 2002 As at Jun. 30, 2003

Total Debt/Total Capital 11.6% 16.9%

2002 H1 2003 H1

EBITDE/Interest Expenses 54.1x 103.8x

Total Assets: 61.1 67.7

RM

B b

illi

on

s

As at Dec. 31, 2002 As at Jun. 30, 2003

Liabilities

Cash(1)

Cash(1)

+19.8%

Other Current Assets

Other Current Assets

Non-current Assets

Non-current Assets

Liabilities

Equity Equity

+9.2%

+69.2%

+8.4%

DebtDebt

Increase in cash from debt offering and operation is partially offset by payment for acquisition of equity interest in Tangguh LNG Project

Debt portion increased by 69.2% due to recent debt offering

Ba l

ance

Sh

eet

Mo

vem

ent

CNOOC Ltd. Overview

13

Total Revenue: USD $4.9 Billion Oil & Gas Sales:USD $3.4 Billion

18.2% yoy Growth

Net Profit: USD $1.4 Billion 24.9% yoy Growth

Highlight of CNOOC Ltd in 2003Highlight of CNOOC Ltd in 2003

Reserve Increase: 243 MMBOEOil/Gas Production: 130

MMBOE

ROE: 26.4%

CNOOC Ltd. Overview

Maximize exceptional

value to shareholders

14

5060708090

100110120130140150160170180190200210220230240250

02-27-01 05-30-01 08-30-01 11-30-01 03-04-02 06-04-02 09-04-02 12-05-02 03-07-03 06-09-03 09-05-03

CNOOC PetroChina Sinopec Hang Seng DJIA

CNOOC Limited’s stock has increased 156% since its IPO as of Mar.31, 2004

+142%

July 23, 2001CNOOC Ltd. to

become Hang Seng Index Constituent in Record Time Third

Consecutive inclusion market indices

Mar 04, 2002Raises

financing through issue of US$500m Baa2

global bonds

Oct 16, 2001QHD 32-6

development successfully completed

Jan 18, 2002Agrees to buy

Indonesian assets of Repsol-YPF for

US$585m

Aug 23, 2002Acquire approximately 5%

interest in the upstream reserves of the NWS Gas

Project for US$320m

Sep 27, 2002Acquire from BP 12.5%

stake in Indonesian Tangguh LNG gas Joint Venture for

US$275m

Dec 12, 2002CNOOC Ltd. earned Baa1

(positive) rating from Moody's

May 15, 2003Issued US$500 mm 10-year and 30-year global bonds

Signed SPA to acquire reserves in the NWS

Venture

Jul 18, 2003Increased interests in QHD 32-6 and LH 11-1 from BP and Kerr

McGee

Jul 28, 2003Announced significant gas discoveries in Eastern and

South China SeaSep 4, 2003

CNOOC reported

record 75% jump in first-half net profit

Aug 19, 2003Announced plans to

explore and develop gas in East China Sea

Aug 15, 2003Tangguh project chosen as supplier of LNG to SK

Power and POSCO

CNOOC Ltd. Overview

15

Continue to maximize exceptional value to shareholders,and maintain sustainable, stable and profitable growth

Superior ReturnSuperior ReturnLong Dated GrowthLong Dated Growth

SustainabilitySustainability

Adding Reserves Offshore China exploration Opportunistic worldwide exploratio and

acquisitions

Growing Production Active offshore China

development Production uplift from

Indonesia assets

Financial Performance Maintain competitive cost

structure and improve efficiency

Maintain financial prudence Improve capital structure

and increase returns

Developing Natural Gas Business Offshore China gas projects Completion of LNG related upstream

acquisitions Natural gas market development in the

coastal area

CNOOC Ltd. Overview

16

China

Africa

Rich in Petroleum Resources

Frontier Areas with Prolific Mature Areas

Competitive E &P Investment Environment

Good Relationship between China and African Counties

Potential for CNOOC in Africa

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Potential for CNOOC in Morocco

Frontier Offshore for Exploration

Existence of Oil & Gas Discoveries in Neighboring Basins

Favorable Fiscal Terms and Policies

Economically & Politically Stable and Good Partnership

THANKS!THANKS!