COSL Announces Success in ASDD Project

China Oilfield Services Limited announced that its artificial buoyancy seabed equipment, which constitutes part of the Artificial Seabed Deepwater Drilling that Company develops jointly with the Norwegian firm Atlantis Deepwater Technology Holding AS, has recently gone through a five-day pre-testing schedule and completed all required items, indicating an initial success of the ASDD project. This establishes a firm technical foothold for the on-location testing of COSL's semi-submersible drilling platform going forward.

ASDD represents a brand new concept on offshore drilling. It works on a principle that a so-called artificial seabed, built 200 meters to 400 meters below sea level using ABS equipment, provides adequate buoyancy on which blowout preventers and other underwater equipments are installed. As such, regular deepwater drilling models are converted into shallow water drilling, allowing deployment of semi-submersible rigs in deepwater operations following relatively fewer adjustments. The pre-testing schedule conducted this time primarily assessed the floating and submerging functions of the ABS equipment, including testing of sea water pipeline valves, electrical, water and gas circuits, air compressors and remote operated vehicles. The floater steel tank and the umbilical worked well in this pre-testing schedule, indicating in an initial success in ABS equipment.

Mr. Yuan Guangyu, Vice Chairman, CEO and President of COSL, said, "The ADSS project is jointly developed by ADTH and COSL. Cooperation on D&R of the technology will be one way that helps COSL strengthen its technological research and development, boost its technology-driven competency. This initial success in pre-testing of ASDD technology forms a firm technical foothold for tests in the next stage. It also illustrates the perfect consensual working relationship both parties have achieved through their unrelenting pursuit, courage to tread untested waters and scientific organizational style. I believe that with the continuing dedication to the project from both parties, ASDD should strike even better successes when undergoing tests with semi-submersible drilling platforms in the second half of this year."