COSL 2008 First Quarter Unaudited Results

COSL Announces 2008 First Quarter Unaudited Results
Revenue and Net Profit Increased by 23.7% and 35.5% respectively

(Financial figures mentioned in this release are adapted from the unaudited financial statements for the first quarter of 2008 prepared in accordance with PRC corporate accounting standards.)

Financial Highlights Unit: million Currency: RMB

(29 April, 2008 - Hong Kong) China Oilfield Services Limited ( COSL or the Company ; HKSE stock code: 2883; SSE stock code: 601808), the leading integrated oilfield services provider in the offshore China market, announced its unaudited results for the three months ended 31 March, 2008. During the period under review, revenue amounted to RMB 2,503.6 million, representing an increase of 23.7% from the corresponding period last year. Net profit increased by 35.5% to RMB891.3 million. Basic earnings per share were 20 RMB cents, up 25% from that of the same period last year.

The increase in revenue was mainly attributable to: the highly efficient operation of COSL718, supporting a significant growth in income of geophysical services. Drilling services also saw significant revenue growth driven by expansion into overseas markets and increases in daily rates. Marine support and transportation services experienced growth propelled by increases in daily rates and work volume of utility vessels and chemical tankers. The well services segment achieved growth driven by an increase in work volume.

On drilling services, as at 31 March 2008, the Company operated 15 drilling rigs, including 12 jack-up rigs and 3 semi-submersible rigs. Three of these operate in Indonesia, Australia and Myanmar. During the period under review, the available day utilization rate of the drilling rigs of the Company reached 100.

0%, whereas the calendar day utilization rate dropped to 86.5%, representing a decline of 10.4 percentage points, due to the increase in the number of days for maintenance. The aggregate operating days of the drilling rigs during the first quarter of the year were 1,181 days, a decrease of 127 days or 9.

7% compared with the corresponding period last year.

In addition, the Company was actively expanding into module rigs and land rigs services. As in overseas markets, provision of services to clients in Gulf of Mexico using four module rigs progressed smoothly and achieved a total of 353 operating days in the first quarter and a calendar day utilization rate at 97%.

As for land rigs, the Company collaborated with a local drilling company in Liberia and won a three-year contract for four land rigs. In domestic markets, land rig COSL LR7001 conducted highly difficult drilling and exploring work a 6,000-metre-deep well in Changqing Oilfield of Huan Xian in Gansu province, achieving a total of 91 operating days in the first quarter.

On well services, the work volume of each of the well services businesses was: 165 logging trips, down 22.9% from the corresponding period last year mainly due to the retreating Bohai Bay market; 163 directional drilling operations, up 8.7% driven by increased capacity resulting from leasing of equipment; filled drilling fluids for 67 wells, up 15.

5% due to growth in the operation volume of production wells in offshore Nanhai; performed cementing operations on 92 wells, down 12.4% due to a reduction on work volume for projects that commanded lower prices; performed 114 well completion jobs, up 17.5% driven by the increase in work volume for filtering services in the domestic markets; and well workover of 3,880 team day, up 12.

1% accelerating development in the domestic markets.

On marine support and transportation services, the Company operated 73 utility vessels during the period. Of these, 68 utility vessels were owned by the Company and operated a total of 5,978 days during the period, up 223 days or 3.9% from the corresponding period last year. The average day utilization rate of the Company-owned vessels in the first quarter reached 99.

9%, representing a 1.0% increase compared with the corresponding period last year. The calendar day utilization rate was 96.6%, up 4.9 percentage points from the corresponding period last year. Besides, the five platform supply vessels leased from Eastern Marine Services Ltd, a jointly-controlled entity of the Company, achieved an aggregate 409 operating days in the first quarter.

On geophysical services, through completion of upgrade and conversion work carried out by Shanghai Shipyard Company Ltd., COSL719, the Company s first 8-streamer vessel which is also the most advanced geophysical vessel in Asia currently, successfully commenced operation. Due to the highly efficient operation of COSL718 in Myanmar, the operation volume of 3D data collection increased significantly by 64.

5% from the last corresponding period to 3,644 sq. km. On the other hand, on 2D data collection, due to repair of BH518 in the first quarter, the work volume dropped 8.1% to 12,115 km. For data processing business, the volume of 2D data processing business was 2,910 km., down 52.7% from the corresponding period last year due to declining market demand and the corresponding reduction in coupling the decrease in the operation volume of 2D data.

On 3D data processing business, due to robust market demand, the operation volume reached 2,160 sq. km., up 13.5% from the last corresponding period.

(to be cont d)

Mr. Yuan Guangyu, CEO and President of the Company, said: With surging oil prices and continuing economic growth in countries including China and India, we anticipate further increases in the global oil consumption. The oilfield services sector will continue its prosperity. As the largest integrated oilfield services provider in the offshore China market, we shall take full advantage of this market landscape to excel in our performance through introducing more new equipment and proprietarily developed technologies, increasing work throughput, raising prices of services, exploring new markets and new businesses.

Operating information of the four main segments as at 31 March 2008:

China Oilfield Services Limited is the leading integrated oilfield services provider in the offshore China market. Its services cover each phase of offshore oil and gas exploration, development and production. Its four core business segments are drilling services, well services, marine support and transportation services and geophysical services. COSL has been listed on the Main Board of the Stock Exchange of Hong Kong Limited since 20 November, 2002 under the ticker 2883. Since 26 March, 2004, COSL's stocks can be traded by means of Level I unlisted American Depositary Receipts at OTC (over-the-counter) market in the United States. The ticker symbol is CHOLY. COSL listed its A shares on Shanghai Stock Exchange under the ticker 601808 since 28 September, 2007.

To date, COSL operated 15 drilling rigs, including 11 jack-ups and 3 semi-submersibles while operating one leased jack-up rig. The Company also provides module rigs and land rigs services. In addition, COSL owns and operates the largest and most diverse fleets in offshore China, including 73 support vessels and 4 oil tankers, 5 chemical tankers, 8 seismic vessels, and 4 geotech survey vessels. It also has a vast array of modern facilities and equipment for logging, drilling fluids, directional drilling, cementing, well completion and well work-over services.

The majority of COSL s business activities are conducted in offshore China, with the other activities extending to different regions of the world including North and South America, the Middle East, offshore Africa and offshore Europe. COSL and its worldwide employees are dedicated to providing premier quality services, while adhering to the highest health, safety and environmental standards. COSL has obtained the ISM (International Safety Management) certifications and operated under the ISO 14000, ISO 9000 as well as OSHA 18000 to achieve QHSE management standards.
For further enquires, please contact:
China Oilfield Services Limited
Ms. Helen Wu / Ms. Ada Huang
Tel: 86-10-8452 1322/ 852 2213 2515
Email: wuyy@cnooc.com / huangmiao@cnooc.com

iPR Ogilvy Ltd.
Natalie Tam / Peter Chan / Kent Lau / Summer Si
Tel: 2136 6182/ 2136 6955/ 2136 8059/ 2136 6953
Fax: 3170 6606
Email: natalie.tam@iprogilvy.com / peter.chan@iprogilvy.com / kent.lau@iprogilvy.com / summer.si@iprogilvy.com