China Oilfield Services Limited has obtained a competitive market margin with a relatively complete service chain through integration of various disciplined services to Operators in the offshore/onshore oil & gas exploration, development and production projects of China for the past 30 years. The overall range of services of “Integrated Management” is now one of the mainstays for business strategy of COSL.

Our operation must keep international standard and expectation after COSL is listed in Hong Kong Stock Exchange. The execution of integrated project management (IPM) strategy enhances COSL’s competitive strength and share in domestic market by restructuring various disciplined services to create competitive advantage for a complete range of large offshore oilfield operation with low cost and enhance value to our clients. We’ll extend the range of our resources of integration globally and make use of all service resources favorable to increase COSL’s growth and expansion, to increase our market share, revenue and profits, so as to expand COSL’s business opportunities step by step in overseas market.

IPM includes services of Project Engineering, Main Contractor, organizing and coordinating, and administration.

Project engineering services include technical project feasibility studies aiming at COSL’s development strategy of IPM.

Main contractor services refer to the entire package of drilling, completion and workover based on the integration of various capabilities and resources.

Organizing and coordinating services refer to the organization and operational services provided by project teams of COSL consisting of various independent professional disciplined services.

Oilfield administration services refer to the production management of oilfields.

The development of IPM orientates itself toward this kind of service.

a) Fulfill market demand based on domestic oil & gas production requirements.
Based on large service equipments such as jackup rigs and vessels, we have developed and enhanced the overall IPM service capability in an all-around way to achieve a win-win situation with true value delivered to our clients, thereby to create COSL’s characteristic core competence.

b)Expand overseas business greatly and utilize overseas market of oil & gas resources positively.
We are accelerating the development of overseas market and realizing the diversification of market, clients and integrated resources gradually based on the stability of our core market and clients. Meanwhile, we developed our IPM business overseas through our main client namely CNOOC Limited overseas ventures and follow their intended projects overseas.

COSL owns a complete oilfield service chain and all round operational capability. COSL’s IPM service approaches one-stop service, which is cost-saving, more client-oriented and efficient.

Strengths of COSL:

Domestic main market dominance and promising overseas market under the support of the development of CNOOC’s overseas E&P opportunities.
Unique and complete business system that can realize the sharing of costs and clients with IPM operation.
Competitive cost-saving structure. Substantial capital structure with strong cash flow supports the bold development program of COSL.

IPM percentage contributed to our revence in history:

2003 year	2004 year	2005 year
13%	18%	18%