China Oilfield Services Signs Marine Services Deal

China Oilfield Services Limited has signed a new annual marine support services contract with CNOOC China Limited – Tianjin, involving services worth a total of RMB 187.0 million. The contract is effective from January 2003 to December 31, 2003, and will involve 15 vessels providing regular services and 18 vessels providing ad hoc services. Vessels involved in this annual agreement will operate mainly in the Bohai Bay area to provide marine support services including platform supply, standby services and lifting support.

Mr. Yuan Guangyu, President and COO of COSL, and Mr. Yang Yexin, Executive Vice President, attended the signing ceremony for the agreement. At the ceremony, Mr. Yuan expressed, "Bohai Bay is the centralized area for offshore oilfields and the demand for marine support vessels in the region has continued to rise. In recent years, we have actively expanded our fleet size by purchasing new vessel models to satisfy offshore China's growing demand for our marine support services. With more oilfields put into production offshore China, the increased work volume of our marine and transportation services is to be one of our major drives for the Company's revenue increase."