COSL has announced that according to the Business Strategy and Development Plan for 2009 approved by the Company's Board of Directors in a meeting on December 19, 2008, COSL expects healthy growth momentum in its major business segments in 2009.
Due to the extra capabilities from newly acquired CDE (Awilco Offshore ASA has been renamed as COSL Drilling Europe AS ("CDE"), COSL expects a notable increase in the number of operating days for its drilling services. The number of operating days for jackups is expected to increase by 55% from 2008, while the number of operating days for semisubmersibles, module rigs, land rigs and accommodation rigs will remain stable. About 90% of COSL's rigs have already secured contract terms that last beyond 2009 and contracts for the reminder are in the bidding stage.
Work volume for its well service will remain stable at the level achieved in 2008. The number of operating days for its standby vessels and multi-purpose vessels is expected to increase by 30% from 2008 while the number for anchor handling towing supply (AHTS) vessels, accommodation rigs, vessels on leases and work-over support vessels will remain stable. On geophysical services, the volume of 3D data collection is expected to grow by about 30% while the 2D data collection volume will remain stable.
COSL expects that its capital expenditure budget for the financial year 2009 will be RMB12.88 billion, of which 70% will be deployed in projects the Company already committed to.
The above highlights of the Business Strategy and Development Plan for 2009 were prepared in accordance with reference to the current operating business and market environment. Whether or not the Company will achieve these performance and development targets will primarily depend market and economic conditions.