CNOOC Limited announced today that Phase II of Southeast Sumatra (SES) Gas Project has started production. CNOOC SES Ltd., a CNOOC Ltd. subsidiary, acts as the Operator. The contractual gas delivery rate of Phase II is 78.4 million cubic feet (approximately 2.22 million cubic meters) per day.

The project is located about 120 kilometers offshore West Java in Indonesia, with an average water depth of 30 meters. The development facilities in Phase II include one production/processing platform, one gas plant, one gas compression/ processing platform and three sub-sea pipelines. The natural gas produced will mainly be supplied to the power plant of the state utility company PT Perusahaan Listrik Negara (PLN).

Mr. Liu Jian, Executive Vice President of the Company expressed: “The successful startup of SES gas project Phase II not only boost the Company’s overseas gas production, but also facilitate our growth with local communities by supplying more clean energy. "

CNOOC Ltd. holds 65.5% interest of Southeast Sumatra PSC and acts as the Operator. The PSC partners include INPEX Sumatra, Ltd., KNOC Sumatra Ltd., Orchard Energy Sumatra BV, Fortuna Resources (Sunda) Ltd., Talisman UK (Southeast Sumatra) Ltd. and Talisman Resources (Bahamas) Ltd.

Phase II of the project has commenced production in 2006.