SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 6-K
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REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For June 19, 2006
CNOOC Limited
(Translation of registrant's name into English)
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65th Floor
Bank of China Tower
One Garden Road
Central, Hong Kong
(Address of principal executive offices)
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(Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F)
Form 20-F X Form 40-F
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(Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.)
Yes No X
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(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): N/A.)
Company Announcement
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[LOGO OMITTED]
CNOOC Limited
[COMPANY NAME IN CHINESE CHARACTERS]
(Incorporated in Hong Kong with limited liability under the Companies Ordinance)
(Stock Code: 883)
CLARIFICATION ANNOUNCEMENT
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The Company has noted that certain newspapers recently reported that Husky
Energy Inc. has discovered a large natural gas field in the South China Sea
and that the Company has rights to a 51% interest in the field.
A subsidiary of the Company is one of the contracting parties to a production
sharing contract with Husky in relation to the relevant contract area in the
South China Sea. The operator of the Husky PSC is Husky. The Company
understands that Husky reported its discovery by means of a press release. The
Company is currently not in a position to comment further on the information
contained in newspaper reports.
SHAREHOLDERS OF THE COMPANY AND POTENTIAL INVESTORS SHOULD BE AWARE THAT ANY
EVALUATION OF THE HYDROCARBON POTENTIAL OF ANY PARTICULAR CONTRACT AREA
EXPRESSED BY THE OPERATOR OR OTHER PERSONS WOULD ONLY CONSTITUTE PRELIMINARY
ESTIMATES AND MAY OR MAY NOT BE ACCURATE. THEY ARE ADVISED TO EXERCISE CAUTION
WHEN DEALING IN THE SHARES OF THE COMPANY.
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CNOOC Limited (the "Company") has noted that certain newspapers recently
reported that Husky Energy Inc. has discovered a large natural gas field in
the South China Sea and that the Company has rights to a 51% interest in the
field.
Husky Oil China Limited ("Husky"), a subsidiary of Husky Energy Inc., entered
into a production sharing contract with China National Offshore Oil
Corporation (the "CNOOC"), the Company's controlling shareholder, in relation
to the relevant contract area in the South China Sea (the "Husky PSC"), and
CNOOC transferred its rights under the Husky PSC to CNOOC China Limited, a
subsidiary of the Company. The operator of the Husky PSC is Husky. The Company
understands that Husky reported its discovery by means of a press release. The
Company is currently not in a position to comment further on the information
contained in newspaper reports.
As disclosed in the Company's prospectus dated 16 February 2001, the Company
conducted some of its exploration and production operations through production
sharing contracts, and upon discovery of hydrocarbon reserves the operator of
the oil or gas field must submit a detailed evaluation report and an overall
development plan to the Company. The overall development plan will need to be
approved by the contracting parties under the production sharing contract and
finally by relevant government authorities. Commercial development of the oil
or gas field may only commence after the relevant governmental approvals are
received. Under typical production sharing contracts, the Company has the
right to take up to a 51% participating interest in any oil or gas field
discovered in the contract area and may exercise this right after the foreign
partners (in this case, Husky, as operator) have made commercially viable
discoveries. The foreign partners retain the remaining participating
interests.
Daily operations in the contract area, being the subject of the relevant
production sharing contract, are carried out by the designated operator. For
production sharing contracts where the foreign partner is the operator, after
the foreign partner has fully recovered its exploration and development costs
under the production sharing contract, the Company will have the right to take
over the operation of the particular oil or gas field. With the consent of the
foreign partner, the Company may also take over operations before the foreign
partner has fully recovered its exploration and development costs.
The Company therefore clarifies that, although Husky has reported, by means of
a press release, a new discovery in a contract area in the South China Sea, a
number of procedures have to be completed before the production commences.
Moreover, the hydrocarbon potential of the contract area has yet to be
ascertained and will require further verification. Whether or not the Company
will exercise its participating interest in full or at all will depend on
evaluations made by the Company pursuant to the terms of the Husky PSC.
SHAREHOLDERS OF THE COMPANY AND POTENTIAL INVESTORS SHOULD BE AWARE THAT ANY
EVALUATION OF THE HYDROCARBON POTENTIAL OF ANY PARTICULAR CONTRACT AREA
EXPRESSED BY THE OPERATOR OR OTHER PERSONS WOULD ONLY CONSTITUTE PRELIMINARY
ESTIMATES AND MAY OR MAY NOT BE ACCURATE. THEY ARE ADVISED TO EXERCISE CAUTION
WHEN DEALING IN THE SHARES OF THE COMPANY.
As at the date of this announcement, the Board comprises the following:
Executive Directors Independent Non-executive Directors
Fu Chengyu (Chairman) Edgar W. K. Cheng
Luo Han Sung Hong Chiu
Zhou Shouwei Evert Henkes
Cao Xinghe Lawrence J. Lau
Wu Zhenfang Tse Hau Yin, Aloysius
Wu Guangqi
Yang Hua
By Order of the Board
CNOOC Limited
Victor Zhikai Gao
Company Secretary
Hong Kong, 16 June 2006
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the registrant has duly caused this report on Form 6-K to be
signed on its behalf by the undersigned, thereunto duly authorized.
CNOOC Limited
By: /s/ Victor Zhikai Gao
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Name: Victor Zhikai Gao
Title: Company Secretary
Dated: June 19, 2006