COSL Enjoys Tax Incentive Benefits Granted to 2004 High End New Technology Enterprises

[May 17, 2005 Beijing] China Oilfield Services Limited ( COSL or the Company ; Stock code: 2883) announced today that ithasbeengranted a reduced corporate income tax rate of 15% for the year2004, resulted in a refund of income tax of approximately RMB 191 million.

Pursuant to the Notice Relating to the Corporate Income Tax Relief Policy issued by the PRC Ministry of Finance and State Administration Taxation ( SAT ) in 1994, high end new technologyenterprises registered in a Hi-New Tech Development Zoneapproved by the State Council areeligible to enjoy preferentialcorporate income tax ratesof 15%after verification from tax bureau.

In April2005, COSL applied to the Tianjin State Tax Bureau for the aforesaid preferential treatmentfor the year 2004. COSL s application was recentlyapproved and the corporate income tax rate for theCompany in theyear 2004is reduced from 33% to 15%. As a result, approximately RMB 191 million was refunded from thetaxbureau.

Mr. Yuan Guangyu, CEO and President of COSL, said, This is the 3rd consecutive year thatthe StateAdministration Taxationhasapprovedour application foratax refund as a High End New Technology Enterprise. It proves our effortsin developing high end new technology, whichis inline with the encouragement policy of the government, and we are therefore rewarded through this tax rebate. Looking forward, we will continue to increase the investment in high end new technology, enhance the technological standard of the Company to increase the competitiveness of the Company.