PRESS RELEASE Malabo - 21st December, 2005 Block S (Blocks K-14(part), K-15(part), L-14 and L-15) Further to meetings held in Malabo on December 17th to 20th, 2005, the China National Offshore Oil Corporation (CNOOC) has signed a Memorandum of Understanding (MOU) with the Ministry of Mines, Industry and Energy and GEPetrol, the National Oil Company of Equatorial Guinea for Block S, Offshore Rio Muni. PSC negotiations between the Ministry of Mines Industry and Energy, GEPetrol and CNOOC will commence early in 2006. Sale of Zafiro Crude Further to meetings held in Malabo on December 17th to 20th 2005, the Chinese National Company UNIPEC has signed a Memorandum of Understanding (MOU) with GEPetrol, the National Oil Company of Equatorial Guinea to lift and purchase 15,000 barrels per day of Zafiro Blend Crude. Both of these MOU’s follow the agreement signed in Beijing on 20th October 2005 concerning China and Equatorial Guinea cooperation.