China Oilfield Services Limited announced that it has signed a wellcementing services contract today with Sinopec International PetroleumExploration and Production Corporation for the provision of well cementing services to its Sakhalin-Veninsky project in Russia.

COSL has always maintained an excellent working relationship with Sinopec International Petroleum Exploration and Production Corporation. To ensure the smooth operation of this project, the Company has established a Sakhalin-Veninsky well cementing project team to strengthen the coordination and leadership of the project. The estimated operation period of this project is 5 months, and pursuant to the contract, the Company will provide facilities, toolsand part of the casing hardware.

Mr. Zhong Hua, CFO and Executive Vice President of COSL, said, “Theprovision of well cementing services this time is the first overseas project between the Company and Sinopec. Through this project, we hope to further enhance our cooperation with Sinopec, and through the provision of quality drilling services in the overseas market, the Company’s capabilities will be further enhanced.”


Background Information on Sinopec International Petroleum Corporation

Sinopec International Petroleum Exploration and Production Corporation is an international oil exploration and development services company established after the reorganization of Sinopec and CNSPC in 2003. The Company currently operates 32 overseas projects, in which the Company undertakes the operator role in two-thirds of the projects. The project involves 22 countries and regions including the Middle East, Central Asia, and Africa.

Background Information on COSL
China Oilfield Services Limited (“COSL”, stock code: 2883) 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, including drilling, well services, marine support and transportation and geophysical services. COSL has been listed on the Main Board of the Hong Kong Stock Exchange since 20 November 2002. Since 26 March 2004, COSL's stocks can be traded by means of American Depositary Receipts in the United States. The ticker symbol is CHOLY.

For the year ended 31 December 2005, COSL's total revenue amounted to RMB4,788.8 million, representing an increase of 25.2% over the same period in the previous year. Net profit for the year surged 17.0% from RMB 701.7 million in 2004 to RMB 821.0 million in 2005. Income from the Company's principal operations and net profit increased by 19.3% and 31.7%, respectively on a compound basis from year 2001 to 2005.

As at 31 December 2005, COSL operated 14 drilling rigs, including 10 jack-ups and 3 semi-submersibles, and 1 rented jack-up. In addition, COSL owns and operates the largest and most diverse fleet of marine support and transportation vessels offshore China, including 68 vessels, 5 oil tankers and 1 chemical tanker.

Moreover, COSL owns 7 seismic vessels, 4 geotech survey vessels and an array of modern facilities and equipment for logging, drilling fluids, directional drilling, cementing, well completion and well work-over services.

Majority of COSL’s business is conducted in offshore China, in North and South America, the Middle East, offshore Africa and offshore Europe. COSL and its employees worldwide are dedicated to providing premier quality services, while adhering to the highest health, safety and environmental standards. COSL has obtained the ISO 9000 and ISM (International Safety Management) certifications. COSL also plans to obtain certifications under the ISO 14000 environmental management standard as well as the OSHA 18000 occupational health and safety standards.

For further enquires, please contact:
Mr. Chen Weidong
Tel: 86-10-84521686
Email: chenwd@cnooc.com.cn
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