recording the second highest transaction value for the day

Share Price Closes at HK$2.26 per Share

18.9% above Offer Price

(Hong Kong, 29 September 2006) – Shares of China BlueChemical Ltd. (“China BlueChem”, HKSE code: 3983.HK), a leading nitrogenous fertilizer producer in China, commenced dealings today on the Main Board of the Stock Exchange of Hong Kong.

Following the enthusiastic market response of over 477-times subscription for its publicly offered shares, China BlueChem’s shares were actively traded and recorded positive price movements today. Share price reached an intra-day high of HK$2.38 per share and closed at HK$2.26 per share, approximately 18.9% higher than the offer price of HK$1.90 per share. A total of approximately 828.26 million shares changed hand on turnover of approximately HK$1.89 billion, making China BlueChem the most traded stock by trading volume with the second highest transaction value.

Mr. Wu Mengfei, Chairman of China BlueChem, commented, “We are very pleased indeed with the strong performance of our share price and trading volume on our first trading day. It is indicative of China BlueChem’s favourable future prospects being recognized by institutional and professional investors as well as the public. We will continue to enhance our business growth in the future and strive for excellent results.”

About China BlueChemical Ltd.

China BlueChem is one of the largest and most efficient nitrogenous fertilizer producers inChinain terms of production volume and energy consumption, respectively. 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 its 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, thus ultimately raising 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.