2010年3月

China Oilfield Services Limited

Annual Results 2010

March 2011

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免责声明Disclaimer

The information contained in this presentation material is for your reference only. In

addition, these information include predictive and forward-looking representations, which reflect

the Company’s current views regarding future events and financial performances.

These views are based on information which the Company believes to be reliable, but the

Company does not represent that these information are accurate or complete, and therefore these

information shall not be relied upon. Assumptions which these views are based on are subject to

various risks. We could not guarantee that future events would certainly happen, predictions

would certainly realize and the Company’s assumptions would certainly be accurate. The actual

outcome may be substantially different from these predictions (if any), and past performances are

not indicative of future performances.

3

1

2 Business Outlook

Results Review

4

Adapt to changes in the market and clarify the development direction

Stable safety control

OSHA score remained at 0.20, a record low level

Operating results maintained steady growth

Revenue reached RMB17.56 billion, up 4.5% y-o-y1

Operating profit reached RMB5.20 billion, up 16.4% y-o-y

Effective cost control

Operating profit margin increased to 29.6%

Finance costs were RMB510 million, down RMB310 million or 37.8% y-o-y

Expand domestic and overseas markets

Maintain the leading position in domestic market

Continue to expand into overseas markets with a revenue contribution of RMB4.31 billion,

accounting for 24.6% of total revenue

Revenue from IPM increased by 30.7% to RMB1.32 billion

Results Highlights

_______________________________________1 Excluding the impact of writing back the deferred income in 2009, revenue for the year 2010 should have increased by 4.5% y-o-y

RMB (million) 2010 2009 Change

Revenue 17,561.0 17,878.71 4.5%2

Operating profit 5,200.1 4,468.1 16.4%

Operating profit margin 29.6% 25.0% 4.6pp

Net profit 4,128.0 3,135.3 31.7%

EPS (RMB cents) 91.84 69.75 31.7%

12/31/2010 12/31/2009 Change

Debt to assets ratio 59.8% 63.4% 3.6pp

Net Debt to Equity ratio 91.9% 120.5% 28.6pp

RMB (million) 12/31/2010 12/31/2009 Change

Total assets 63,497.4 60,776.5 4.5%

Total liabilities 37,907.5 38,470.9 1.5%

Equity 25,589.9 22,305.6 14.7%

Cash and cash equivalents 5,847.2 3,214.6 81.9%

5

Financial Highlights

1. Revenue declined by 1.8% y-o-y due to the fact that an operation contract for a semi-submersible rig which was still under construction

had been cancelled in 2009. The accrued RMB1,073.1 million revenue for this rig had been booked in 2009.

2. Excluding the impact of writing back the deferred income, revenue for 2010 increased by 4.5% or RMB755.4 million y-o-y

1.8%

6

Drilling

Operate 29 drilling rigs, 4 module rigs, 6 land rigs and 2

accommodation rigs

Utilization rates remained high

Available-day utilization rate reached 99.5%

Calendar-day utilization rate was 94.6%

New equipment drove revenue growth

COSL936 and COSL937 commenced operation and

added 657 working days

Service fees remained stable

YOY average day rate for jack-ups down by 5.8%

YOY average day rate for semi-submersibles up 3.2%

YOY average day rate for accom rigs up 12.8%

Segment revenue : RMB9.33 billion, accounting for 53% of

total revenue.

Segment operating profit : RMB3.51 billion.

Calendar-day Utilization Rate and Day Rate

0%

20%

40%

60%

80%

100%

0

5

10

15

20

25

02 03 04 05 06 07 08 09 10

Jack-u

ps

Se

mi-s

ub

me

rsib

le

USD 0,000/Day

0%

20%

40%

60%

80%

100%

0

4

8

12

02 03 04 05 06 07 08 09 10

日费率 日历天使用率Day rate Calendar-day utilization rate

7

Well Services

Work volumes were enhanced

Expanded into new markets

Newly launched Environmental Protection Services

experienced gradual increases in efficiency

Awarded re-fracturing contracts of offshore gas

well

Continue to improve the R&D capability

Obtained 269 effective patents

R&D results have been used in operation

ERCT 1 started full commercial operation with 100%

success rate

Segment revenue reached RMB4.33 billion, accounting

for 25% of total revenue

Operating profit stood at RMB814 million

No. of Patents Obtained

Unit: Item

5982

118

162

269

0

50

100

150

200

250

300

2006 2007 2008 2009 2010

As at Dec 2010

1. Enhanced Reservoir Characteristic Testers

8

MS&T

Owns 75 working vessels, 3 oil tankers and 5

chemical carriers

Calendar-day utilization rate: 94.7%

Deployed external resources to maintain market

share

Chartered a total 21 utility vessels during the

year, and 9 were still on charter as at the end of

2010

Chemical carriers started backhaul freight

shipping service with shipping volume increased

by 62% y-o-y

Segment revenue was RMB2.35

billion, accounting for 13% of the total revenue.

Segment operating profit stood at RMB542 million

80%

85%

90%

95%

100%

0

20

40

60

80

100

02 03 04 05 06 07 08 09 10

船舶数量 日历天使用率

Remark: writing off of 6 utility vessels during the year

Calendar-day utilization rateNo. of

Vessels

9

Geophysical

Operated 7 seismic vessels, 4 survey vessels, and 1 OBC,

totaling 31 streamers

3D data collection volume enhanced

COSL718 was awarded a 5000 km2 3D data collection

contract in South Sea

Explored overseas markets for the winter time

The first self-developed domestic high-accuracy

offshore seismic data collection equipment in China

was applied into production

Newly launched OBC business enhanced operation

capacity

Successfully completed deep-water operation in LW

Segment revenue :RMB1.56 billion, accounting for 9% of

the total revenue

Operating profit was RMB340 million

0

4,000

8,000

12,000

16,000

三维采集（平方公里） 三维处理（平方公里）

2009年 2010年

3D Geophysical

25.1%

0.4%

km2

3D Seismic Data collection (km2) 3D Seismic Data processing (km2)

2009 2010

10

Integration Entered into a New Phase

Secured service contracts for the 8 jack-ups

Construction of 3 semi-submersible rigs achieved solid progress

• Pioneer: delivered on 26 Oct 2010, was awarded a contract by

Statoil for up to 5 years. Expected to commence operation in

2Q 2011

• Innovator and Promoter: expected to be delivered in 4Q 2011

and 1Q 2012 respectively

Rival was awarded an AOC certificate, the contract lasts up to 20

months, operation to be commenced in August 2011

Effectively implemented operation management and stringent cost

control

Integration of corporate cultures started to take effect

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Fulfilling Social Responsibilities

Continued to improve QHSE and SMS systems and completed the 5-year DOC

review and DNV annual audits

Safety production remained stable

• Further intensified safety checks

• Hosted many emergency drills and improved the emergency solutions

• Safety record remained at a low level, OSHA score: 0.20

“Clean, green, low-carbon and recycle economy” philosophy

Cares for employees and their health

• 99% of the employees working onshore received body checks and 100% of

the front-line employees are holders of proofs of health

Proactively participated in social welfare such as community

activities, disaster relief efforts and donation

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1 Results Review

2 Business Outlook

13

International oil prices continue to increase

Institutions estimated growth in demand for oil to be at 1.5%, mainly coming from emerging countries and regions at a growth of 3.2%

OPEC idle capacity and output increases from non-OPEC countries will be able to satisfy the growth in oil demand in the next two years

In short term, the crises in the Middle East and North Africa may further push up the oil price

GDP

growth2009 2010 2011E 2012E

Global -0.6% 5.0% 4.4% 4.5%

Developed

Countries-3.2% 3.0% 2.5% 2.5%

Developing

Countries2.5% 7.1% 6.5% 6.5%

Global economy started an uneven recovery

Developed countries experience less-

severed-than-expected slowdowns, yet

unemployment rates remain relatively high

Developing countries are economically

active, yet escalating inflationary pressure

may affect their fiscal and monetary

policies

Potential imbalance has set to be

introduced to the global economy from as

different places are in different paces of

recovery

Source: IMF forecasts

Global Macro Economy and International Oil Price

Source: Bloomberg

0

30

60

90

120

150

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

WTI油价

Avg price in 2011:

USD90-100/barrel

WTI

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CAPEX of Major Clients

According to Barclays Capital, the total expenditure on global oil and gas

exploration in 2011 will be US$489.5 billion, up 10.8% y-o-y. The expenditure in

Asia will increase by 9% y-o-y

Major COSL clients are maintaining increasing CAPEXs in 2011, of

which, CNOOC’s CAPEX will increase by 55% y-o-y in 2011

CNOOC plans to construct 2-3 deep-water wells in 2011 and work volume for

2D and 3D seismic explorations will be 19,967 km and 17,129 km2 respectively

Source: Barclays Capital

0

5

10

15

20

25

2010E 2011E

US$ billion

Scale of Global Oilfield Services Market Rebounds

-20%

0%

20%

40%

0

50

100

150

200

250

300

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E

Global Oilfield Services Market Scale Growth RateUnit: US$ billion

Source: Spears & Associates Oilfield Market Report

15

The rebound in oil prices in 2010 drove a recovery in demand for global oilfield services,

of which

Offshore drilling market saw improvement

Geophysical market stopped its decline and expects to see significant growth in 2011

Deep water exploration activities become active with its growing importance

16

Supply of drilling rigs still outstrip demand despite oil prices stay high, yet utilization

rate of drilling rigs remain high with day rates remain stable

Demand for high-end jack-ups increases recently and differentiation in large-scale

equipment portfolios brings about differentiation in service prices

Under

Contract

(Left Axis)

Total No. of Rigs

(Left Axis)

Utilization Rate of Drilling rigs Rigs Price Index and Oil Prices

0

200

400

600

800

1000

1200

Feb-05 Feb-06 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11

30

50

70

90

110

130

150

日费率指数(左轴) WTI价格(右轴) 美元/桶

Slow Recovery of Global Drilling Market

Note: Day rate index is calculated by adding weighted day rates in major drilling markets. Year 1994=100

Source: Upstream, ODS-Petrodata, Bloomberg

Day Rate Index (Left

Axis)

WTI Price (Right

Axis)USD/Barrel

Source: ODS-Petrodata

Under

Operation

(Left Axis)

Utilization Rate

(Right Axis)

17

Technology-driven Cost Leadership Integration Internationalization

Reinforce advantages, gradually shift focus to high-end equipment,

and speed up internationalization process Drilling

Well Services

MS & T

Geophysical

Enhance R&D capability, increase segmental contribution, upgrade technological strength, increase proportion of self-developed products to improve competitiveness

Optimize fleet structure, move to high-end market, and secure share in

the domestic market

Focus on technological innovation, upgrade technological strength, optimize

equipment portfolio, and seize opportunities to explore new businesses

Well-defined Development Blueprint

Structural adjustment; Be competitive & professional; Focus on quality growth

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Equipment Portfolio Optimization

No. of vessels No of vessels

1.Equipment count for drilling and geophysical segments as at 2012, vessels under construction until 20132. 981 was invested and owned by CNOOC and operated by COSL

1艘

250300

375400

1500

2500

10000

11 rigs 6 rigs 5 rigs 5 rigs 3 rigs 3 rigs 1 rig

• Realize phased equipment structure optimization and upgrade

1.Moving from shallow to deep waters

2.Lower overall age of drilling rig fleet, with over 50% of the jack-ups aged less than 5 years

3.Increase high-powered vessels in MS&T fleet and realize diversity

4.Optimize geophysical fleet and improve efficiency

• Newly-built high-end equipment helped participate in international competition

Operation

Depth (ft) ≤250 ft 300 ft 375 ft 400 ft ≤1500 ft 10,000 ft2500 ft

Geophysical Vessels Survey Vessels

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CAPEX and new equipment

1 Invested & constructed by CNOOC and operated & managed by COSL

2 Excluding the AWILCO acquisition

Since listing , CAPEX amounted to RMB32.78 bn1

Actual CAPEX in 2010 : RMB5.48 billion

CAPEX in 2011: around RMB5 billion

CAPEX breakdown since listing

•Two 200-feet drilling rigs(921

& 922 ) to commerce operation

•Two 200-feet drilling (923 &

924) to be delivered for

operation

•COSLPioneer to

commence operation

• COSLInnovator to be delivered

• Ultra deep-water SS 9812

to be delivered

2011 Regular waters Deep-water

•Vessels introducing

acidification and crushing

delivered for operation

•Deep water related

well services

• 2 deep water ATHS vessels

• Offshore Bottom Cable

•12-streamer seismic

vessel

• deep-water survey

vessel

2012 Regular water Deep-water

•COSLInnovator to

commence operation

•COSLPromoter to be

delivered for operation

•Equipment to be delivered

in 2011 will bring more

operation days in 2012

Drilling

Well

Services

MS&T

Geophy

-sical

Drilling

Geophysical MS&T

Drilling*

12-streamer seismic vessel

deep-water survey vessel

Deep-water ATHS vessels

Deep-water equipment portfolio

_____________________

*The three rigs are (from left) 981, COSLPioneer and COSLInnovator.

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COSL’s deep-water operations in China

come to live following deliveries of the

ultra-deep-water semis 981, a deep-

water survey vessels and 2 utility

vessels.

At the moment, three deep water natural

gas fields had been verified in China

waters, including Liwan3-1, Liuhua 34-2

and Liuhua 29-1

CNOOC plans to explore 2 to 3 deep-

water wells in 2011

Deep-water Operations

Liuhua29-1

Liwan3-1

Liuhua34-2

Source:: CNOOC

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Output enhancement met new requirements for extraction of thickened oil in China waters, providing

huge potential for COSL well services

Respond to clients’ demand and apply certain oilfield technologies into new areas

Engage in acidification, pumping, water shutoff, CO2 expulsion operations

Increasing application of integrated acidification and CO2 expulsion techniques

Enhance reservoir recovery through acidification and related services

Achieved revenues of more than RMB100 million a year

Increasing use of injection techniques effectively enhanced output

Wide application of steam injection on location in oilfields

Technical innovation to apply land fracturing techniques in offshore exploration

Fracturing and related operations to drive output enhancement businesses

Low permeability oil reservoir exploration by fracturing techniques

New Business, New Expansion, New Growth Drivers

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Thank you！