COSL Announced Unaudited Operational Data for 2004(33217)

[24 January 2005 Hong Kong] China Oilfield Services Limited COSL or the Company; stock code: 2883 , the leading oilfield services provider in China offshore market, announced today its unaudited key operational statistics for the twelve months ended 31 December 2004.

The Company achieved remarkable operational growth in all four of its business segments in 2004.

For the twelve months ended 31 December 2004, the total number of wells drilled increased by 23% to 241, of which 186 were development wells and 55 were exploration wells. The Company s jack-up drilling rigs operated for a total of 3,488 days, an increase of 573 days or 20% as compared with 2003, and its semi-submersibles operated for a total of 1,031 days, an increase of 69% as compared with 2003. Average rig utilization rate reached 99% for the period.

The Company s well services recorded impressive growth during the period. The number of wells for which the Company provided logging, drilling fluids, directional drilling, cementing and well completion services surged 35%, 35%, 37%, 46% and 45%, respectively.

As for the marine support and transportation services front, the Company s marine support vessels attained an average utilization rate of 98.8%, a slight increase as compared to 96.6% in 2003. In addition, for the twelve months ended 31 December, 2004, the Company s marine support vessels operated for a total of 21,806 days, an increase of 3,003 days or 16% as compared to 2003.

For the period under review, COSL s geophysical services, especially the collection and processing of 2D and 3D seismic data, achieved growth of 80% and 24%, respectively. Besides, collection of 3D seismic data increased by 31% to 3,076 km2 while collection of 2D seismic data decreased slightly by 8% to 43,226 km.

In addition, the Company s second-hand jack-up rig COSL 931 purchased in July 2004 finished overhaul at the end of 2004and has been put into service in Western South China Sea at the beginning of January 2005.

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During the fourth quarter of 2004, 3 standby vessels and 1 AHTSvessel were added to the Company s fleet. As of 31 December 2004, the Company owned a fleet of 68 vessels and 5 oil tankers.

Commenting on the prominent result of the Company, Mr. Yuan Guangyu, CEO and President of COSL, said, We leveraged on our strong fleet capability, efficient business strategy and eminent one-stop services and has attained further business growth in 2004. In light of its immense market potential brought forth by global development in the energy industry, increased exploration and development activities offshore China and unrivalled competitive edges, we are confident in COSL s future and its ability to bring fruitful returns to its shareholders.

Operational Performance Overview:

Drilling Activities	Twelve Months Ended 31 December 2004	Twelve Months Ended 31 December 2003	Change %

Wells Drilled no. of wells	241	196	23%
Exploration Wells	55	57	-4%
Development Wells	186	139	34%

Operating Days Day	4519	3525	28%
Jackup Rigs	3488	2915	20%
Semi-submersibles	1031	610	69%

Utilization Rate	99%	87%
Jackup Rigs	98%	94%
Semi-submersibles	100%	65%

Well workover team days	7315	6600	11%

Well Services	Twelve Months Ended 31 December 2004	Twelve Months Ended 31 December 2003	Change %

Logging no. of jobs	585	433	35%
Drilling Fluids no. of wells	292	217	35%
Directional Drilling no. of jobs	191	139	37%
Cementing no. of wells	236	162	46%
Well Completion no. of jobs	1057	728	45%

Marine Support and Transportation Services	Twelve Months Ended 31 December 2004	Twelve Months Ended 31 December 2003	Change %

Operating Days Day	21,806	18,803	16%
Standby Vessels	11,400	9,513	20%
AHTS Vessels	6,339	5,333	19%
PSV Vessels	2,471	2,359	5%
Utility Vessels	1,595	1,598	-0.2%

Vessel Utilization Rate	98.8%	96.6%
Standby Vessels	98.8%	96.5%
AHTS Vessels	99.6%	94.9%
PSV Vessels	99.9%	99.2%
Utility Vessels	93.7%	99.0%

Geophysical Services	Twelve Months Ended 31 December 2004	Twelve Months Ended 31 December 2003	Change %
2D Seismic Data
Data Collection km	43,226	46,737	-8%
Data Processing km	19,696	10,944	80%
3D Seismic Data
Data Collection km2	3,076	2,339	31%
Data Processing km2	2,273	1,828	24%

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Background Information about the Company

China Oilfield Services Limited COSL or the Group , Stock code: 2883HK, is a leading oilfield services provider in the offshoreChina market.COSL s servicescover each phase of offshore oil and gas exploration, development and production. Its four business segments include: drilling services, well services, marine support and transportation services, as well asgeophysical services. COSL s shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since 20 November 2002.

As at 31 December 2004, COSL owned 13 drilling rigs, including 10 jack-ups and 3 semi-submersibles, and rented 1 jack-up. In addition, COSL owns and operates the largest and most diverse fleet of marine support vessels offshore China, including 68 vessels and 5 oil tankers, 6 seismic vessels, and 3 geotech survey vessels. It also has large arrays of modern facilities and equipment for logging, drilling fluids, directional drilling, cementing, well completion and well work-over services.

Majority of COSL s business is conducted offshore China, in North and South America, in the Middle East Asia, offshore Africa and offshore Europe. COSL and its employeesworldwideare dedicated to providing premier quality services,while adhering to the highest health, safety and environmental standards. COSLhas obtained the ISO9000 and ISM International Safety Management certifications. COSL also plans to obtaincertifications under the ISO14000 environmental management standard as well as the OSHA18000 occupational health and safety standard.

For further enquires, please contact:

Mr. Chen Weidong

Tel: 86-10-84521686

Email: chenwd@cnooc.com.cn

iPR ASIA LTD

Natalie Tam/Katie Tsui/ Sharis Siu

Tel: 2136 6185

Fax: 2136 6068

Email:Natalietam@iprasia.com.hk/katietsui@iprasia.com.hk/ sharissiu@irpasia.com.hk