CNOOC Limited (HKG:0883) received a notice today issued by the Ministry of Finance (MOF) of the PRC regarding the increase of the threshold of the special oil income levy. Pursuant to the notice, as approved by the State Council, the MOF has decided to increase the threshold of the special oil income levy to US$55 per barrel with effect from 1 November 2011.

Notwithstanding such adjustment, the special oil income levy will continue to have 5 levels and will be calculated and charged according to the progressive and valorem rates on the excess amounts. The levy will be calculated on a monthly basis and collected on a quarterly basis.