China Oilfield Services Limited (“COSL”, stock code: 2883) is the leading integrated oilfield services provider in the offshore China market. With over 30 years experience in marine operation, COSL’s services cover each phase of offshore oil and gas exploration, development and production. Its four business segments are drilling services, well services, marine support and transportation services and geophysical services. COSL was successfully listed on the Main Board of the Stock Exchange of Hong Kong Limited on November 20, 2002 after business integration. Since March 26, 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 and the ticker symbol is CHOLY. This provides greater convenience for shareholders’ trading.

During the cooperation with domestic and overseas companies, COSL introduced their advanced technologies and management experience which laid a foundation for a number of in-house advanced technologies developed by COSL that had been successfully applied in production. Besides, COSL’s quality and efficient services received lots of praises under the premise of a “win-win and mutual benefits” situation between COSL and its numerous clients or business partners.

Since its listing in 2002, COSL achieved a sustained and impressive performance. With competitive financial indexes among peers, COSL’s operating performance in 2006 was recognized by the capital market as always: turnover increased by 32.9% compared with 2005; operating profit and net profit grew by 63.7% and 37.4% respectively over the same period last year.

COSL owes China’s largest equipment capacity for offshore oil services. It operates 15 drilling rigs, including 12 jack-ups and 3 semi-submersibles. In addition, COSL owns and operates the largest and most diverse fleets in offshore China, including 74 support vessels, 4 oil tankers, 5 chemical vessel, 8 seismic vessels, and 4 geo-technical survey vessels. It also has a vast array of modern facilities and equipment for well services including ELIS, FEWD and hundreds of other kinds. COSL’s completed service chain from exploration to production can realize win-win between the Company and its clients through integrated project management.

"Technology driver, leading cost structure, integrated management and international penetration" are COSL’s four strategies.

COSL’s internationalization is enhancing. As of 31 December 2006, overseas revenue as a ratio of gross revenue increased from 9% at the year end of 2005 to 17.3%, representing an increase of RMB 1104 million or 151.4% in the same period last year. COSL’s three drilling rigs and other geo-technical survey vessels provided services in Indonesia, Australia and Myanmar while COSL’s premier services were recognized by clients. As the Company increasing its influence in overseas market, its operating sphere has now expanded to 13 regions and countries including Indonesia, Myanmar, the Philippines， Australia and Mexico, shaping the trend of diversified development.

COSL is dedicated to providing premier quality services, while adhering to the highest quality, health, safety and environmental standards. “Prioritizing safety and prevention; valuing humanity and life; honoring quality and credibility; respecting our nature and environment” is the Company’s policy of quality, health, safety and environment (QHSE). The establishment of the QHSE and SMS systems was proactively promoted in production and operation. Various laws, rules and regulations for safety production are strictly complied with. COSL also insists upon “prevention First and People-oriented” in safety management and pursues “Reputation is paramount and Customer is god” in quality management in order to ensure employees health and safety, to avoid lost financially, to provide clients with safe, premier, cost-effective and efficient services and to prevent, reduce or control environmental pollution. At the same time, COSL plans to obtain certifications under the ISO 14000 environmental management standard as well as the OSHA 18000 occupational health and safety standards.

COSL has always been dedicated to corporate governance and investor relations, valuing shareholder’s interest and return, and strictly complying with the Exchange Listing Rules to disclose the Company’s operational and financial states. Since 2004, COSL spontaneously disclosed its operational results quarterly. This helps investors better understand the Company’s situation and improve the Company’s transparency. COSL’s management attaches a great importance to the communications with the capital market. By means of holding and participating various investor relations activities, the management communicates with the market sufficiently therefore develops COSL in a great effort more responsible to its shareholders.

COSL’s corporate governance has been accepted by the capital market over several years’ effort and has extensively attracted the attention of the capital market and media. The Company received many rewards. It was chosen by Finance Asia magazine as one of the 10 Best Managed Companies for the year 2003 , by Euro Money magazine as one of the 10 Most Accessible Management in Asia for the year 2003, and by Standard & Poor’s as one of the 30 stocks globally with most investment potential for the year 2004 and 2005. In 2005, the Company’s CFO Mr. Wu Mengfei was ranked as “The Best CFO” in the Oil and Gas category by Institutional Investor Inc.

COSL will provide clients home and overseas with safe, quality, efficient and environment-oriented services with an aim to realize a “win-win” situation for our shareholders, clients, staff and business partners under the mission of “we must do better” and further develop COSL to a top oilfield services company.standard.