2005 Operating Review & 2006 Strategy

outline

2005 Operating Review & 2006 Strategy

outline

January, 2006 January, 2006

China Oilfield Services LimitedChina Oilfield Services Limited

22

The information contained in our presentation is intended solely for your personal reference. In addition, such information contains projections and forward-looking

statements that reflect the Company’s current views with respect to future events and financial performance. These views are based on assumptions subject to various risks.

No assurance can be given that future events will occur, that projections will be achieved, or that the Company’s assumptions are correct. Actual results may differ

materially from those projected.

The information contained in our presentation is intended solely for your personal reference. In addition, such information contains projections and forward-looking

statements that reflect the Company’s current views with respect to future events and financial performance. These views are based on assumptions subject to various risks.

No assurance can be given that future events will occur, that projections will be achieved, or that the Company’s assumptions are correct. Actual results may differ

materially from those projected.

3

2005 Operating Review

44

Drilling

As of December 31st 2005 2004 Change

Wells Drilled (No. of Wells) 246 241 2.1%

Exploration wells 56 55 1.8%

Development wells 190 186 2.2%

O perating Days (day) 4604 4519 1.9%

Jack-up 3739 3488 7.2%

Semi-Submersible 865 1031 -16.1%

Utilization Rate based on Available Day 98.0% 98.8% -0.8%

Jack - up 98.9% 98.4% 0.5%

Semi-Submersible 94.2% 100.0% -5.8%

Utilization Rate based on Calendar Day 90.1% 94.2% -4.1%

Jack - up 93.1% 94.3% -1.2%

Semi-Submersible 79.0% 93.9% -14.9%

Well Workover (team .day) 8483 7315 16.0%

55

Well Services

As of December 31st 2005 2004 change

Logging (No. of jobs) 698 585 19.3%

Drilling Fluids (No. of wells) 368 292 26.0%

Directional Drilling (No. of Jobs) 210 191 9.9%

Cementing (No. of wells) 249 236 5.5%

Well Compeletion (No. of Jobs) 1233 1057 16.7%

66

Marine Support & Transportation (MS&T)

As of December 31st 2005 2004 change

Operating Day (days) 23,220 21,806 6.5%Stand by vessel 13,193 11,400 15.7%AHT vessel 6,411 6,339 1.1%PSVs 2,217 2,471 -10.3%Utlity Vessel 1,399 1,595 -12.3%

Utilization Rate based on Available Day 98.7% 98.8% -0.1%Stand by vessel 99.3% 98.8% 0.5%AHT vessel 99.1% 99.6% -0.5%PSVs 99.5% 99.9% -0.4%Utlity Vessel 90.3% 93.7% -3.4%

Utilization Rate based on Calender Day 93.6% 96.3% -2.7%Stand by vessel 95.9% 96.2% -0.3%AHT vessel 92.4% 96.7% -4.3%PSVs 96.8% 96.5% 0.3%Utlity Vessel 76.6% 93.7% -17.1%

77

Geophysical Services

As of Decembe 31st 2005 2004 change

2D Seismic Data

Data Collection (km) 46,166 43,226 6.8%Data Processing (km) 15,746 19,696 -20.1%

3D Seismic Data

Data Collection (km2) 3,693 3,076 20.1%

Data Processing (km2) 2,843 2,273 25.1%

8

2006 Strategy Preview

99

Capitalize The Growth Opportunities

Winning Strategies pave the way for sustainable growth

Technology driver

International International penetrationpenetration

Competitive cost structure

Integrated Solution

Core Competitiveness

1010

Continuous and disciplined Capital Expenditure

Comprehensive capacity growth in all business lines

2006 Capital Expenditure Estimates

Drilling Well Services Marine Support & Transportation Geophysical

856

1560194

500

450

620

1476

196109

112

244

120

0

500

1,000

1,500

2,000

2,500

3,000

2004 2005 E 2006 budget

(RM

B m

m)

1,612

2,025

2,800

RMB 2.8 billionRMB 2.8 billion CAPEX for 2006 budgeted CAPEX for 2006 budgeted

1111

Exploration Program offshore China expect to remain strong and extensive

Sustainable secular potential for development capex As of Dec. 2005, 12 wildcat and appraisal new discoveries had been made

offshore China since 2004

Stable growth of Operating expenditure 9 new oilfields started production in 2005 7 more to come on stream in 2006 Maturity of existing production fields

Further promotion of IPM (Integrated Project Management) project

Extended business scope for MS &T segment 1+2 Chemical carrier

Offshore China Market

Offshore China remains to be the anchor market for COSL in 2006

1212

Enhance corporate branding in international arena

COSL is to rely on:High quality services

Top HSE (Health, Safety and Environment protections) standard

Outstanding operation track record

Win-win approaches with customers

Capitalize on overseas development opportunity of CNOOC Ltd.

Comprehensive and long term preparation in terms of manpower, equipment and technology development and management skills

Right industry cycle for geographical expansion

1313

Sound Track Record & Future

2,3662,726

3,062

3,824

1,797

2,373

0

1000

2000

3000

4000

2001 2002 2003 2004 1H 2004 1H 2005

RMB mm

3-year revenue CAGR =17.4%

3-year revenue CAGR =17.4%

1414

Sustainable and Accelerating Growth

• Hold firm of current market share offshore China• Penetrating into target overseas markets

•RMB 2.8billion capex budgeted•1 new jack-up& 2 chemical carriers to be delivered

•Optimize balance sheet and capital structure via external financing activities• Aim to enhance ROE and shareholders’ return

•Maintain operating margin at similar level•Keep cost side leading position among global peers

•Maintain high standard

Financial Management

Cost Management

QHSE

Capacity

Market Strategy

1515

THANK YOUwww.cosl.com.cn

2883.HK

THANK YOUwww.cosl.com.cn

2883.HK