COSL Kicks Off Construction of Second Jack-up

China Oilfield Services Limited

China Oilfield Services Limited (COSL) said Tuesday that construction has begun on the company's second 400-foot jack-up rig, COSL942.

Yuan Guangyu, CEO and President of COSL, hosted a kickoff ceremony with Dalian New Shipbuilding Heavy Industries Co., Ltd. "The newbuild jack-up rig COSL942 is a major step for COSL's continuous development strategy [of] strengthening reinforcement and [enhancing] competitiveness," he said.

COSL's first 400-foot jack-up, COSL941, is operating in the Beibu Gulf of the South China Sea. The newbuild COSL942 is expected to augment the company's capacity in the near future.

COSL is the leading integrated oilfield services provider in the offshore China market. Its services cover each phase of offshore oil and gas exploration, development, and production. Its four business segments are drilling services, well services, marine support and transportation services, and geophysical services.

As of June 30 2006, COSL operated 15 drilling rigs, including 11 jack-ups and three semi-submersibles while operating one leased jack-up rig. The majority of COSL's business activities are conducted offshore China, with the other activities extending to different regions of the world such as North and South America, the Middle East, offshore Africa and offshore Europe.