China BlueChem’s IPO Draws Strong Investor Interest

with Public Offer 478 Times Subscribed

And International Offering Heavily Covered

*    *    *    *

Offer Price Fixed at HK$1.90 Per Share

at Top ofIndicativeOfferPriceRange

(Hong Kong, 27 September 2006) – China BlueChemical Ltd. (“China BlueChem” or “the Company”) (HKSE code: 3983.HK), a leading nitrogenous fertilizer producer in China, today announced the results of its initial public offering (IPO) to international investors and the Hong Kong public.

China BlueChem’s IPO has drawn strong investor interest, with the tranche for theHong Kongpublic about 478 times subscribed. About HK$127 billion worth of orders for the public offer has been registered. The portion for international investors was heavily covered. The offer price has been fixed at HK$1.90 per share, at the top of the indicative offer price range of HK$1.38 to HK$1.90 per share.

The significant over-subscription of the public offer has triggered the reallocation mechanism, in which the number of shares reserved for theHong Kongpublic is increased from the original 10 per cent of the IPO to 50 per cent. The proportion of the international tranche in the global offering is changed from the original 90 per cent to 50 per cent. As a result, the number of public offer shares rises to 700,000,000 H shares from the original number of 140,000,000 H shares, and the number of shares for international offering is changed to 700,000,000 H shares.

Mr. Wu Mengfei, Chairman of China BlueChem, said, “The enthusiastic investor response to our share offer shows that the investors share our vision ofChina’s fertilizer and chemical industries, and endorse our strategy for development. We will continue to tapChina’s promising market for growth by launching high-margin fertilizer products and diversifying into production of synthetic chemicals. We will also seize opportunities in industry consolidation by acquiring other fertilizer producers, which have easy access to sources of raw materials and markets, with the aim of expanding our market share, and ultimately bringing good returns to our shareholders.”

China BlueChem will use part of the proceeds from the IPO to build a polyoxymethylene plant. The polyoxymethylene plant, which is expected to be completed in 2008, aims to capitalize on the chemical’s expanding applications and shortage inChina.

Apart from Yara International ASA, a leading supplier of mineral fertilizer in the world, which has become China BlueChem’s strategic investor, there are four other corporate investors who have subscribed for the Company’s offer shares. They are Bestlane Limited, an investment vehicle indirectly owned by Dr. Lee Shau Kee, Sunny Smart Limited, which is indirectly owned by Chinese Estates Holdings Limited, Bank of China Group Investment Ltd. and Bitronic Limited, which is indirectly owned by China Cinda Asset Management Corporation.

J.P. Morgan Securities (Asia Pacific) Limited and UBS AG are the Joint Bookrunners and Joint Sponsors of China BlueChem’s listing.

Trading in China BlueChem’s H shares on the Main Board of the Stock Exchange of Hong Kong will begin on 29 September 2006 (Friday) under the stock code of 3983.

About China BlueChemical Ltd. (HKSE code: 3983.HK):

China BlueChem is one of the largest and most efficient nitrogenous fertilizer producers inChinain terms of production volume and energy consumption. It is the only company in the CNOOC family that engages in the production of downstream mineral fertilizers and synthetic chemical products using natural gas as principal raw material. Its production facilities are located in Hainan andInner Mongolia,China, with a total designed annual production capacity of 1,840,000 tonnes of urea and 200,000 tonnes of methanol. China BlueChem has constructed a new methanol plant. With the completion of construction work in September 2006, the new methanol plant is expected to commence mass production in January 2007, and thus ultimately raises China BlueChem’s total designed annual methanol production capacity to 800,000 tonnes.

For press enquiries:

China BlueChemical Ltd.

Ms. Lydia Zhong       Tel: (852) 2213 2502      zhongyx@cnooc.com.cn

Strategic Financial Relations (China) Limited

Ms. Anita Cheung     Tel: (852) 2864 4827      anita@strategic.com.hk

Ms. Karen Hung        Tel: (852) 2864 4854      karen.hung@strategic.com.hk

Mr. Winston Yau       Tel: (852) 2864 4838      winston.yau@strategic.com.hk

Ms. Arlene Wong      Tel: (852) 2864 4899      arlene.wong@strategic.com.hk

Disclaimer - Forward looking statements

This announcement contains forward-looking statements and information relating to us and our operations and prospects that are based on current beliefs and assumptions as well as information currently available to us. The words “anticipate”, “believe”, “estimate”, “expect”, “plans”, “prospects”, “going forward” and similar expressions, as they relate to us or our business, are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to risks, uncertainties and various assumptions. 

Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may diverge significantly from the forward-looking statement.  We do not intend to update these forward-looking statements other than our on-going disclosure obligations pursuant to the Hong Kong Listing Rules or other requirements of the Hong Kong Stock Exchange.