March 2017

Disclaimer

The information contained in this presentation is intended solely for your

own reference only. In addition, the information includes 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. Past track record cannot be used as guidance for

future performances.

2

I. Results Overview

II. Company Outlook

Market Environment

4

Source: IHS report

Global Utilization Rates of Drilling Rigs

In 2016, international oil prices remained at low levels, oil and gas companies' CAPEX decreased for 2 consecutive years

The oilfield services industry was experiencing overcapacity and significant declined in service workload and price

CAPEX of Upstream Oil Companies

Source: Barclays report

Annual Financial Performance1

RMB(mn) 2016 2015

Revenue 15,085.5 23,174.2

Operating Profit (11,367.7) 1,631.5

Net Profit （Incl. Impairment） (11,459.5) 1,108.7

Net Profit （Excl. Impairment） (3,186.7) 2,881.1

1. All above financial data are from the audited financial report prepared by the Company under HKFRS.2. Available cash includes cash equivalents and available-for-sale financial assets.

Distribution policy for 2016：0.05 yuan per share

Sufficient cash available2 : RMB13.1 bn

Debt-to-capital ratio of 50.9%

RMB(mn) 2016 2015

Total Assets 80,544.1 93,525.1

Total Liabilities 45,247.7 46,696.4

Shareholders’ Equity 35,296.4 46,828.7

5

Segments Performance

Drilling

33 jack-ups

11 semi-subs

2 accommodation rigs

5 module rigs

Well Services

Logging, drilling and

completion fluids,

directional drilling,

cementing, completion,

well workover, etc.

Marine Support

85 self-owned

utility vessels

34 utility vessels

managed

Geophysical and Surveying

7 seismic vessels (46

streamers)

6 surveying vessels

1 ocean bottom

cable team

Operation Capacity

（n

o. o

f rigs）

9 6 8 4 3 4 19

<=250 300<=375

400<=1,500

2,500

<=5,500Including rig under construction: 1*5000ft semi-sub HYSY982Remarks: as of March 2, 2017

6

（W

ate

r dep

th: fe

et）

Business Strategies

Secure the core clients in offshore China, maintained or enhanced the market share

Reduce CAPEX substantially, and maintain robust financial strengths and healthy cash flow

Boost business expansion efforts and expand the scale of IPM businesses in the international market

Improve efficiency and cost competitiveness through cost reduction measures

Set mid to Long term targets:

50% revenue contribution of domestic and international market ;

50% revenue contribution of technology and equipment segment .

7

Operating Performance

(Cu

mu

lativ

e n

o. o

f pate

nts)

Patents Increased

2012 2013 2014 2015 2016

463

621

763

943

1076

2015 2016

52.7%

56.3%

Ratio of equipment under the age of 10 years

Ratio of equipment under the age of 20 years

70.9%75.3%

2015 2016

（Percentage）

Equipment Configurations Optimized

Technology Segment Outperformed

68%

32%

Domestic International

Revenue contribution and change

Drilling

Marine Support

Geophysical and Surveying

Well Services

Unit：pcs

8

Domestic Market

01 02

03 04

Market shares

100%

Drilling WellServices

MarineSupport

Geophysical and Surveying

Consolidated the leading presence

in offshore market

Market Breakthroughs

Provided bundled drilling services for Shell

HYSY721 to provide marine 3D seismic acquisition services to SK

Enrich customer & service type

Laid underwater cable for China Telecom

Provided large-scale structure towing services for Guangzhou Shipyard

Expanded the offshore wind power exploration and new energy deep-water exploration business

Applied proprietary R&D results

Cement slurry system successfully won the bidding of Shell

Organic blockage system increased the Company's revenue

9

Breakthrough in International Markets

128 new contracts: 10 of which are worth over RMB100 million

4 new markets: Far East, Oman, Saudi and Gabon

11 new clients : Pan American Energy, DNO, ROSGEO, Spectrum, etc.

IPM contract: Petrofac and Shell, etc.

China

Remarks: blue icons mark the business coverage while yellow icons mark the newly entered markets10

COSL Seeker completed a HTHP operation in Indonesia ( 2016 )

HYSY937 has won a long-term project with SAKA ( 2016 ~ )

NH9 has won the bidding of the Kangean drilling project（2017~）

HYSY718 and HYSY720 completed high-density 3D seismic survey project respectively ( 2016 )

Southeast Asia

Far East

Americas

COSL Rival has obtained the ConocoPhillips contract and won the bidding of its follow-up operations （2017~）

Middle East

COSL Superior and COSL Craft have won contracts ( 2016~ )

COSL Strike has awarded a contract from DNO in Oman （2017~）

Europe

Won integrated service contract from Pan American Energy（2017~）

Africa

Obtained a 3D seismic survey contract from Spectrum, which was the first time to conduct geophysical survey in West Africa（2017~）

Well Services segment has won the Tropic IPM service contract （2017~）

Well Services segment has won the high-end directional drilling contract（2016~）

NH8 and NH9 completed their first projects in the Far East ( 2016 )

NH8 has won bidding contract （2017~）

HYSY685 successfully completed vessel support services project in harsh area（2016）

Awarded an drilling contract from SIRIUS PETROLEUM （2017~）

International Presence

11

R&D Commercialization

Well Services: steady progress of

industrialization of D+W system

Output value of self-developed LWD

System and RSS System reached tens of

millions yuan

Geophysical and Surveying:

high-precise seismic equipment achieved

commercial operation

China's first set of deep-water high-

precise seismic acquisition equipment

Well Services:

HT-FLOW drilling fluid helped to

obtain the Indonesia BD project

Successfully developed HT-FLOW drilling

fluid system and met the needs of high-temp,

high-density and high-acid gas operations

Well Services:

filled gaps in fracture-filling sand

control technology

Fracture-filling sand control technology

has been successfully put into use, which

fills gaps in offshore China

Technology Segment

12

Cost Control

Effectively Variable Costs Reduced

Optimized storage resources: Terminated

tenancy for idle factories

Reduced rental expense: Terminated charter

for HYSY935

Reduced material cost

Reduced repair and maintenance expenses:

Conducted more maintenance using in-

house resources

Reduced other operating expense:

Suppressed administrative expense, retired

aged equipment

Subcontractor costs Materials consumption

Rental and charter costs

Repair costs

42% 17%

13%12%

13

Major Variable Cost Breakdown

QHSE and Charity

Excellent OSHA safety management ensured high-quality

operations

Maritime rescue

• Participated in maritime rescues for 22 times, rescued 17 vessels in distress,

rescued 33 people in distress

Effectively promoted environmental protection

• Actively to participate in public environmental activities

Actively made charitable contributions

• Built Hope Primary Schools

• Cared for autistic children

Excellent OSHA Index

0.46

0.22

0.27

0.29

0.32

0.25

0.26

0.23

0.2

0.19

0.24

0.180.08

0.070.1

0

0.1

0.2

0.3

0.4

0.5

02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

According to OSHA, coefficient 1 is equivalent to one accident per 200,000 man-hours

14

Brand Recognition

Continuously improving market competitiveness

37 honors obtained in domestic and overseas markets

• Awarded the only “Well Emerging Partner”by Shell in 2016

• HYSY937 won the Best Contractor Performance Award from SAKA for two consecutive years

• HYSY981 received “China Quality Awards”

• Statoil's first-ever “Perfect Well” recognition went to “COSL Promoter”

Ensure high quality and High efficiency operations

Equipment aging coefficient 73%, aged average 11.9 years

To meet requirements of various waters and customers

Dispose of low-efficiency assets, retire or write off obsolete equipment

Many vessels passed the performance test with “zero defect” in equipment inspection and zero operational downtime

15

The Board of Supervisors won the “Top 50 Proactive Board of Supervisors of Listed Companies” organized by China Association for Public Companies, Shanghai Stock Exchange and Shenzhen Stock Exchange

Awarded “Best Board of Directors of China Listed Companies - Main Board” and “Best New Media Operators of China Listed Companies” by Securities Times.

July 2016, various awards including “Best Investor Relations Company” by Institutional Investor

Enlisted in “China Top 500 Innovative A Share Listed Companies Index” and received the “2016 PurpleGold Innovation Award”

Constituent stock of Heng Sheng (China A) Corporate Sustainability Index; and constituent stock of Heng Sheng Corporate Sustainability Benchmark Index

Awards and Recognitions

The Company’s annual report won the Gold Award of "2016 Spotlight Awards", “Top 100 Communications Materials of 2016”, Gold Award of "Vision Awards" and many other honors

16

I. Results Overview

II. Company Outlook

Oil price is expected to rise gradually from 2017 to 2020

Recovery in oil prices will drive up capital investment

1

2

5

Further maximize synergies and cost advantages among

different segments. Prudent financial policy.

The CAPEX of CNOOC in 2017 is RMB 60 billion to 70 billion

Not only owing China's offshore markets, CNOOC has also joined multiple projects globally

The Company's workload and partial service prices are expected to rise up at different levels

Over the mid-to-long term, oil and gas will still be an important part of

the energetic structure

3

Industry Overview

18

Growth Drivers

Leading market

share in offshore

China market

Excellent equipment

management

capability

Unique integrated

business model

Flexible business

model promotes

development of

new international

markets

Continue to

expand the scale

of self-developed

technology

applications

Staff stability enables

sustainable

development

19

Market Expansion

Long-term Strategic Partners

Enhance presence in six regions

Penglai 19-9 oil field

Enping 23-1 oil fields

Weizhou 12-2 oil field phase II

Uganda project

……

Northern Europe

the Americas

Middle East

Southeast Asia

Far East

Australia and Africa

Drilling services – provide quality services with more flexible

business model

Well services – expand market size of technology segment

and explore IPM services opportunities

Marine support – keep up with the Company's integrated

services, strive for breakthroughs

Geophysical and surveying – gradually expand the scale of

international market 20

Oilfield Production and Reservoir Protection Technology

Production technology: new blockage removal systems and expand the application in mature field

Reservoir Protection Technology: make field applications plans to solve the technical challlenge of workover fluid in sensitive reservoir

Serialization and Industrialization of Technology Products

D+W System: gradually promote industrial application and serialization of sizes and functions

Well completion tools: high-pressure, high-temp and corrosion-resistant well completion tools serialization to form over 70 kinds of well completion tools with self-owned intellectual property right

Technology in Equipment segment

Geophysical and surveying: industrialization of a complete set of equipment and speed up the cable control and positioning technology applications to provide support to the development of seismic acquisition technology

Drilling services: Improve self-developed drilling equipment research and development capabilities and enhance the "cost-leading capability"

Acceleration Technology Development

21

Prudent Financial Policy

Company Moody's S&P Fitch

Oilfie

ldS

erv

ices

Schlumberger A1 （Stable） AA-（Stable） -

Halliburton Baa1（Neg） BBB+（Stable） -

Baker Hughes Baa1（Stable） A（Stable） -

Weatherford B3（Neg） B+（Neg） CCC

COSL Baa1（Neg） BBB（Stable） A（Stable）

Offsh

ore

drillin

g

Diamond Ba2（Stable） BB+（Neg） -

Ensco B1（Stable） BB（Neg） -

Noble B1（Stable） BB-（Neg） -

Rowan B1（Stable） B+（Neg） -

Transocean B2（Stable） BB-（Neg） B+（Neg）

Seadrill Caa2（Neg） CCC+（Neg） -

22

Strictly control the CAPEX

Continuously optimize the debts structure, ensurethe liquidity of RMB and USD fundraising channels

Cash flows are abundant in the short-to-mid term

Top rated in the industry

Strictly control the cost and enhance the delicacymanagement level

Debt ratio in accordance with the Company'sdevelopment

CAPEX

Unit: RMB

2015

6.7 billion

2016

3.5-4.5 billion

Remarks: long-term unamortized expenses is not included

2017 2018E

~2.5 billion

Operating

Drilling Rig2017

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecLocation

Do

mestic

14 Jack-ups

2 Jack-ups（NH1/HYSY932）

2 Jack-ups（HYSY941/HYSY942）

1 Jack-up（Kaixuan）

2 Semi-subs（NH2/NH5）

1 Semi-sub（Prospector）

1Semi-sub（NH7）

1Semi-sub（NH9） -

1Semi-sub（HYSY981）

Inte

rnatio

nal

3 Jack-ups（Superior/Craft/Hunter）

2 Jack-ups（HYSY936/HYSY937）

1 Jack-up（Strike）

2 Jack-ups（Boss/Power）

1 Jack-up（Seeker）

1 Semi-sub（Promoter）

1 Semi-sub（NH8）

1 Semi-sub（NH6）

23

Rig Operation Status（15th Mar 2017）

Remarks: 1 Semi-sub (Pioneer and 5 Jack-ups(Force/Gift/HYSY943/Gulf Driller Ⅰ/Confidence) are in bidding or negotiation processes. The follow-on contract of Innovator is in negotiation process.

Jack-up Semi-sub

Full-year contract coverage

Full-year contract coverage

Full-year contract coverage

Full-year contract coverage

The leading

integrated

oilfield services

provider in

offshore China

and Asia-Pacific

RegionExperienced

and high

efficiency

management

team, leading

in safety

indicators

Integrated

business

model with

cost

advantage

Competitive

specialized

services

Prudent

financial

policies and

healthy

financial status

1

2

3

4

5

6

Conclusion

50%

50%

Mid and long term

50%

50%

24

Domestic Income

International Income

Equipment Segment

Technology Segment

Mid and long term