(Hong Kong, 12 December 2006) - China BlueChemical Limited (“China BlueChem” or the “Company”) today announced that CNOOC Kingboard Chemical Limited (“CNOOC Jiantao”) has recognized the mass production commencement date of its 600,000-tonnes methanol plant as 1 December 2006 after due consideration of the actual operational status and the applicable accounting standards. It is one month ahead of the original schedule of not expected to commence mass production until January 2007 as stated in the Prospectus.

Since its trial production started in September, CNOOC Jiantao has continued to test production lines and examined end products to ensure delivering reliable products through highly efficient operations. In late October, CNOOC Jiantao has completed an export order of over 2,900 tonnes of methanol products toVietnam. On 9 December, CNOOC Jiantao underwent performance test run for the plant to assure all requirements attained the designed standard.

China BlueChem has mounted a concerted effort with its cooperative partner in propelling the trial-run, so that the methanol plant was able to commence mass production in 2006 ahead of schedule. Mr. Yang Yexin, CEO and President ofChinaBlueChem, said, “We are very pleased that CNOOC Jiantao starts generating income ahead of time. With the Chinese government pledging support to the methanol industry and expected huge market demand in the future, we are confident that our methanol products will become another major income source of the Company and mark as an important milestone in the Company’s development.”

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. It is the only company in the CNOOC family that engages in the production of downstream mineral fertilizers and synthetic chemical products. 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 800,000 tonnes of methanol. Besides, China BlueChem has also secured long-term natural gas supply for its Hainan Plant. 

For press enquiries：

China BlueChemical Ltd.

Ms. Lydia Zhong           Tel: (852) 22132502          zhongyx@cnooc.com.cn

Strategic Financial Relations (China) Limited

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

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

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

Ms. Karen To                Tel: (852) 2864 4860         karen.to@sprg.com.hk