COSL to Buy Equipment for its Newbuild from National Oilwell

China Oilfield Services Limited signed an equipment purchase contract with National Oilwell. The total consideration for the contract is over US$30 million.

Under the contract, National Oilwell provide four sets of equipment for COSL's new 400-foot jackup that is currently under construction. The equipment consists of a drilling system, a mud mixing and solid controlling system, a BOP handling system and a rig jacking system. National Oilwell will provide the drilling system on EPC basis, including its design, construction, equipment supply and commissioning.

Present at the signing ceremony were Mr. Yuan Guangyu, Chief Executive Officer of COSL, Mr. Jiang Longsheng, Vice President of China National Offshore Oil Corporation (CNOOC), controlling shareholder of COSL, and Mr. Pete Miller, Chairman of National Oilwell.

Mr. Jiang Longsheng, Vice President of CNOOC, said at the signing ceremony, "The construction of the new jack-up drilling rig is mainly to satisfy the needs of COSL's operations in the oilfield services market. Its purchase of the internationally advanced drilling equipment and system will enhance COSL's technological and operational capabilities. It will also enable COSL to provide more comprehensive and quality services to its customers."

Mr. Yuan Guangyu, CEO of COSL, also commented during the ceremony, "The selection of National Oilwell was made on basis of a competitive bidding, in which National Oilwell scored very well on operational requirements, technological requirements, construction period, pricing and other requirements. National Oilwell received the highest overall rating. The signing of this contract marked a milestone in our drilling rig construction program. As the drilling system constitutes the core equipment in a drilling rig, our cooperation with National Oilwell will no doubt ensure the punctuality and quality of our jack-up rig construction. We will be signing other equipment purchase contracts in accordance with the progress of our construction program. I'm happy to report that, to date, the construction of our new jack-up drilling rig is on track steadily and smoothly as planned."