CNOOC’s New Oil Field in South China Sea Starts Production

CNOOC Limited announced that its new oil field Xijiang (XJ) 23-1 in the South China Sea has successfully started production.

XJ23-1 is located in Block XJ04 in the Pearl River Mouth Basin, about 19 kilometers east of the XJ23-4 oil field. Its development facilities contain one platform, one FPSO and 15 producing wells.

Currently, the field is producing approximately 31,000 barrels of oil per day via 10 wells. The other wells will start production in succession. The peak daily production of XJ23-1 is expected to hit 40,000 barrels.

Mr. Liu Jian, Executive Vice President of the Company commented, "XJ23-1 is one of the major projects we are working on in 2008, it is also the third field of the Company which has commenced production this year.

The on-schedule start-up of XJ23-1 will strengthen our ability to realize this year's production target as well as to benefit our long-term production growth in the Eastern South China Sea."