Daewoo Extends Contract with Nanhai II

China Oilfield Services Limited has been awarded a contract extension from Daewoo International Corporation. COSL's semisub, Nanhai II, will continue to work offshore Myanmar.

Based on the customer's operation requirement and upon negotiation between two parties, the COSL and Daewoo International signed a contract extension which will keep the Nanhai II working offshore Myanmar through May 2006. According to the contract, the COSL will provide drilling services and well testing to Daewoo International at a dayrate of US $100,000.

Mr. Yuan Guangyu, the CEO and President of COSL, said, "During the past operation period of nearly 60 days, the Company obtained reputable recognition from Daewoo International by leveraging on our quality services and efficient management. We are delighted to continue to offer drilling services to Daewoo International. Capitalizing on our exertions, COSL successfully has established its brand in overseas markets. By providing more overseas services, together with our enviable reputation, we believe and are confident of expanding our client base and expediting demand for our services."

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