COSL Announces 2007 Third Quarter Results(33151)

Turnover and Net Profit Achieved Impressive Growth of 44.7% and 66.8% Respectively.

Highlights

Turnover increased by 44.7% to RMB6,659.3 million
Net profit surged 66.8% to RMB1,699.7 million
Basic earnings per share were RMB42 cents

Financial Highlights

	For the nine months ended September 30
	2007 RMB Million	2006 RMB Million	Change (%)
Turnover	6,659.3	4,602.6	+44.7
Net profit	1,699.7	1,018.9	+66.8
Basic earnings per share	RMB42 cents	RMB25 cents	+68.0

[29 October, 2007, Hong Kong] China Oilfield Services Limited ( COSL or the Company ; HKEx stock code: 2883, A share stock code: 601808), the leading integrated oilfield services provider in the offshore China market, announced its results for the nine months ended September 30, 2007. During the period under review, turnover amounted to RMB6,659.3 million, representing an increase of 44.7% as compared with the same period last year. Net profit increased by 66.8% to RMB 1,699.7 million.

During the period under review, prices of crude oil remained at high levels and the offshore oil and natural gas exploration and development activities in the PRC and around the world have been robust, resulting in strong demand for global oilfield services. The increase in the investment of petroleum exploration and development, stimulated by the demand for energy, resulted in the rapid development of the oilfield service business including China offshore and international seas. Of which, income from drilling activities has achieved a record high, mainly attributed by the introduction of COSL941, an increase in day-rate and an increase in ultilization rate, while the income from geophysical services increased substantially in line with the market expansion and the improved efficiency of 3D seismic data collection. At the same time, income from marine support and transportation services and well services segments increased stably due to the increase in service fees, the introduction of new equipments and the application of hi-tech materials.

Cont d

The substantial increase in revenue was supported by high utilization rate of drilling platforms and the increase of day-rate, the expansion of geophysical market, the increase in operations and the application of new equipments and hi-tech materials, as well as implementation of effective cost control.

The Company has been successfully listed on Shanghai Stock Exchange on 28 September, 2007. This move strengthened the Company s capital strength and broadened its shareholder base. The A share issue helped raise RMB6.6 billion, contributing to the 393.3% increase in net cash flow from financing activities from that of the last corresponding period (January September).

Looking forward into next quarter, Mr. Yuan Guangyu, CEO and President of the Company, said: The Chinese economy will continue to grow at a relatively fast rate, while global exploration and development activities in relation to oil and natural gas fields are expected to maintain their strong momentum.

The listing of the Company s A shares on the Shanghai Stock Exchange during the period under review represents a landmark move by the Company to return to China s major capital market in the capacity as a prime blue chip entity. In view of this, the Company will continue to take advantage of the favourable market environment, adopting a pragmatic and practical approach on its works.

It will also explore into alternatives to boost its value and fulfil its responsibilities to the country s economy, environment and society. It will create good returns to reward its shareholders, the society and its dedicated employees.

- End -

Operating information of the four main segments:

Drilling Services	As at 30 Sept., 2007	As at 30 Sept., 2006	Change
Operating Days (Days)	4,017	3,437	16.9%
Jack-up Rigs	3,213	2,779	15.6%
Semi-submersible Rigs	804	658	22.2%

Utilization Rate (Available Day)	100.0%	100.0%	0.0%
Jack-up Rigs	100.0%	100.0%	0.0%
Semi-submersible Rigs	100.0%	100.0%	0.0%

Utilization Rate (Calendar Day)	98.1%	87.7%	10.4%
Jack-up Rigs	98.1%	89.6%	8.4%
Semi-submersible Rigs	98.2%	80.3%	17.8%
Well Workover (Team Day)	11,985	9,516	25.9%

Well Services	As at 30 Sept., 2007	As at 30 Sept., 2006	Change
Logging (no. of jobs)	703	623	12.8%
Drilling Fluids (no. of wells)	228	239	-4.6%
Directional Drilling (no. of jobs)	462	166	178.3%
Cementing (no. of wells)	379	263	44.1%
Well Completion (no. of jobs)	1,134	995	14.0%

Marine Support and Transportation Services	As at 30 Sept., 2007	As at 30 Sept., 2006	Change
Operating Days (Days)	18,161	17,633	3.0%
Standby vessels	9,942	9,967	-0.3%
AHTS vessels	5,370	4,826	11.3%
PSV vessels	1,599	1,588	0.7%
Utility vessels	1,250	1,251	-0.1%

Vessel Utilization Rate (Available Day)	99.7%	98.9%	0.8%
Standby vessels	100.0%	99.7%	0.3%
AHTS vessels	100.0%	98.5%	1.5%
PSV vessels	100.0%	99.8%	0.3%
Utility vessels	95.4%	93.4%	2.1%

Vessel Utilization Rate (Calendar Day)	95.2%	95.0%	0.2%
Standby vessels	95.8%	96.1%	-0.2%
AHTS vessels	94.1%	93.1%	1.0%
PSV vessels	97.6%	97.0%	0.7%
Utility vessels	91.6%	91.7%	-0.1%

Geophysical Services	As at 30 Sept., 2007	As at 30 Sept., 2006	Change
2D Seismic Data
Data Collection (km)	36,277	43,754	-17.1%
Data Processing (km)	11,637	4,497	158.8%
3D Seismic Data
Data Collection (km2)	8,141	8,155	57.9%
Data Processing (km2)	5,026	1,741	188.7%

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 on Shanghai Stock Exchange under the ticker 601808 since 28 September, 2007.

As at 30 September, 2007, 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 70 support vessels and 4 oil tankers, 4 chemical tankers, 7 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:
Ms. Helen Wu/ Ada Huang
Tel: 86-10-84521322/852-22132515
Email:wuyy@cnoocs.com / huangmiao@cnoocs.com

For any enquiries, please contact
iPR Ogilvy Ltd.

Natalie Tam/ Antonia Au/ Peter Chan/ Kent Lau
Tel: 2136 6182/ 2136 6176/ 2136 6955/ 2136 8059
Fax: 3170 6606
Email:natalie.tam@iprogilvy.com/antonia.au@iprogilvy.com/peter.chan@iprogilvy.com/ kent.lau@iprogilvy.com

COSL Announces 2007 Third Quarter Results

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