Compensation for Ecological Damage Caused by Penglai Spill

CNOOC announced that the compensation for marine ecological damage caused by Penglai 19-3 oil spill accident was in significant progress under the guidance of the State Oceanic Administration of People's Republic of China ("SOA").

ConocoPhillips China Inc. ("COPC") and CNOOC will pay an aggregate amount of RMB 1.683 billion, among which COPC will contribute RMB 1.09 billion to compensate for the marine ecological damage caused by the oil spill accident. In addition, CNOOC and COPC will each fund RMB 0.48 billion and RMB 0.113 billion to resume the social responsibility for Bohai environmental protection. According to SOA news release, the above mentioned funds will be used for ecological and environmental protection in Bohai, reduction on oil pollutants discharge at entrance to Bohai, habitat restoration of damaged marine ecological environment, as well as monitoring and researching on oil spill impact on ecological environment.

During the process, CNOOC has been working actively on promotion of communication between the Operator and related governmental organizations and the adoption of effective compensation measures.

Under the guidance of SOA, CNOOC will continue to actively participate in marine ecological protection activities.