COSL signs design and equipment procurement contract for DW-AHTS

(14 March 2008 - Beijing) China Oilfield Services Limited ( COSL or the Company , HKSE stock code: 2883, SSE stock code: 601808) announces that the Company has signed with Rolls-Royce Marine AS ( Rolls-Royce ) a contract for design of two deep water anchoring handling tug supply vessels ( DW-AHTS ) and procurement of related equipment.

A signing ceremony for this U 100 million contract was held in Beijing and saw attendance by representatives from the Royal Norwegian Embassy in China, China Classification Society, and the two signing parties.

These two DW-AHTS represent an integral part of the key facilities for COSL s deep water ocean crude and natural gas exploration operations. They epitomize COSL s responses to challenges of deep water operations and rising demand for deep water operations. They will support the 12-point mooring operations of semi-submersible drilling rigs in depths of 500-1,500 meters; and supply and security operations of drilling rigs in depths of 1,500-3,000 meters. COSL is speeding up the progresses of works supporting this project, including selecting a shipyard for building of these vessels.

Officiating at the ceremony, COSL Senior Vice President Li Xunke said, Rolls-Royce is renowned for high technology and quality standards. We hope to create a win-win situation through our collaboration with them.

Mr. Yuan Guangyu, Vice Chairman, CEO and President of COSL, expressed, As a company listed in both Hong Kong and Shanghai, COSL achieved rapid growth in both the domestic and overseas markets in the recent years. As it strengthens its deep-water operation capabilities and boost its competitiveness, COSL is investing into deep water operation facilities, including DW-AHTS, which will be ready to start serving our operations between 2010 and 2011. These facilities lay a solid foundation in achieving COSL s goal of becoming a world-class oilfield service provider.

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About COSL

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. In addition, COSL owns and operates the largest and most diverse fleets in offshore China, including 75 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.

About Rolls-Royce

Rolls-Royce, a world-leading provider of power systems and services for use on land, at sea and in the air, operates in four global markets - civil aerospace, defence aerospace, marine and energy. Rolls-Royce has been present in China for over 45 years. In addition to Marine, the Civil Aerospace and Energy businesses have a strong presence in China. . The Rolls-Royce combined order book for China and the Middle East in 2007 was equal to the entire global order book four years earlier.

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