11

COSL Investor PresentationMay 2008

22

Disclaimer

The information contained in our presentation is intended solely for your personal reference. In addition, such information contains projections and forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. These views are based on assumptions subject to various risks. No assurance can be given that future events will occur, that projections will be achieved, or that the Company’s assumptions are correct. Actual results may differ materially from those projected.

33

22.. Company OutlookCompany Outlook

1.1. Company OverviewCompany Overview

44

Profit Breakdown*

73 working vessels+4 oil tankers+5 chemical carriers

12 jack-ups + 3 semi-submersibles+2 onshore drilling rigs+4 module rigs

16%15%

44% 25%

8 seismic vessels + 4 survey vessels

A A UUnique nique IIntegrated ntegrated OOilfield ilfield SService ervice PProviderrovider

Revenue Breakdown*

Integrated well services

DrillingDrilling Well servicesWell services

Marine SupportMarine Support GeophysicalGeophysical

19%14%

53%

14%

* For the year ended 31 Dec, 2007

55

0%

30%

60%

90%

Drilling WellServices

MS&T Geophysical

COSL Others

Absolute D

ominance

>60% >70% >80%

Market Share in Offshore China MarketsMarket Share in Offshore China Markets

For the period ended 1Q2008

China

TianjinKorea

Guangzhou

HongKong

Philippines

BeijingOffshore China0 100 200 300 km

Shanghai

BohaiBay

Eastern South China Sea

East China

Sea

Western South China Sea

AllAll--round IPM offshore oilfield services provider with leading positround IPM offshore oilfield services provider with leading position in ion in offshore China marketsoffshore China markets

Dominant offshore China

66

Successfully Penetrate into Overseas Markets

Reinforce: Develop Middle East, Gulf of Mexico, Russia and Africa markets

Realize: Parallel development for domestic and international markets

Sustain: Leading position in offshore China marketsConsolidate: South-East Asian markets

Existing Markets

Overseas Target Markets

77

Company Performance Since Listing

354466

701821

1128

2238

891.3

0

500

1000

1500

2000

2500

3000

2002 2003 2004 2005 2006 2007 1Q2008

Net ProfitNet ProfitRMB Mn%

17.7 18 18.1 17.8

21.9

31.4

41.7

0

10

20

30

40

50

2002 2003 2004 2005 2006 2007 1Q2008

Operating Profit MarginOperating Profit Margin

COSL’s operating profit and net profit has grown by 5.8 times and 6.3 times since listing

28133153

3942

4929

6524

9242

2504.6

0

2000

4000

6000

8000

10000

2002 2003 2004 2005 2006 2007 1Q2008

RMB Mn RevenueRevenue

483 550692

850

1392

1021

2827

0

500

1000

1500

2000

2500

3000

2002 2003 2004 2005 2006 2007 1Q2008

RMB Mn Operating ProfitOperating Profit

88

Company Profitability Since Listing

8.17.3

10.3 10.8

13.6

19.9

5.7 5.8

8.1 8.79.9

12.4

0

5

10

15

20

25

2002 2003 2004 2005 2006 2007

ROA & ROEROA & ROE%

ROE ROA

7958 82319141 9664

13130

23089

0

5000

10000

15000

20000

25000

2002 2003 2004 2005 2006 2007

Total AssetTotal AssetRMB Mn

COSL’s total asset has grown by 1.9 times since listing

99

Operating Results Hit Record High (cont’d)

(RMB Mm)

Competitive cost advantageAlthough revenue and operating profit increased significantly, operating cost grew by a moderate 24.3%

Increases in operating cost were mainly due to business expansion, full capacity utilization and increasedexpenses on equipment and staff headcount

We have the confidence tomaintain growth in both top line and bottom line

Employee compensation costs Repair and maintenance costsConsumption of supplies, materials, fuels, services and othersSubcontracting expensesOperating lease expensesSelling, general and administrative expensesDepreciationOther expenses

YoY growth = 24.3%

387274

1,042900

10281

366313

357206

2,525

1,935

318

357

1,123

937

2006 2007

1010

Steady Growth in Overseas Business

0

300

600

900

1200

1500

1800

2003 2004 2005 2006 20070%2%4%6%8%10%12%14%16%18%20%

679(27.7%)

Overseas revenue keep growingOverseas revenue keep growing Overseas markets adding momentumOverseas markets adding momentum

Drilling services grew by new businesses, development in overseas market and increase in daily rateWell service grow with the increase in operation volumeMarine support and transportation services driven by in daily rate increase, and increase in operation volume of utility vessels and chemical tankersGeophysical services has increased by COSL718 in Myanmar’s significant increase in income

RMB mn RMB Mn

Overseas revenue Overseas/total

Globalization strategy

marked initial success

• By end of 1Q2008

1111

Positive Recognition from the Capital Market

Corporate bond credit rating: AAALong-term credit rating: AAA

The highest investment value listed company in China 2007

COSL was named a Top-30 stock with highest investment potential by Standard & Poor‘s for three consecutive years between 2005 and 2007

China Enterprise Confederation and China Enterprise Directors AssociationNamed Mr. Yuan Guangyu, CEO and President, the “Most Watched Entrepreneur for 2006”

China Enterprise China Enterprise ConfederationConfederation

China Enterprise Directors China Enterprise Directors AssociationAssociation

A Top-100 Most-respected listed Company in China in 2007

Recommended as Top 8 golden stocks

Chinese Academy of Social Sciences

International Investment Research Center

1212

Continuous Emphasis on QHSE

Health:The foundation for

our corporate success

Environment:Be a responsible

international citizenQuality:

In pursuit of high quality

QHSEQHSE

Safety:Our persistent promise

COSL’s OSHA score further improved to 0.25 (0.32 in 2006)

Unit output energy dissipation was 0.0703, down 14.6% y-o-y; Unit value-add dissipationwas 0.1116, down 18.7% y-o-y

Saved 10,804 tonnes of standard coal, met energy saving targets for the year

0.25

0.45

0.22 0.27 0.29 0.32

0.00

0.20

0.40

0.60

0.80

1.00

2002 2003 2004 2005 2006 2007

International standard:0.75

OSHA

1313

22.. Company OutlookCompany Outlook

1.1. Company OverviewCompany Overview

1414

International oil prices are expected to climb 1.6% per year with the surging E&P expenditure, fuelled by the growing demand of the global market.

International oil prices are expected to climb 1.6% per year witInternational oil prices are expected to climb 1.6% per year with the surging E&P h the surging E&P expenditure, fuelled by the growing demand of the global market.expenditure, fuelled by the growing demand of the global market.

International Oil Prices Hike New HeightsTrend of global demand on crude oil, E&P and oil prices

1515

217229

252

293 300323

346

187184181164 167 170 176

159139119117

836253

0

100

200

300

400

2001 2002 2003 2004 2005 2006 2007

Domestic Production Net I mport

Steady Increase in Crude Oil Demand

World demand for crude oilWorld demand for crude oil China demand for crude oilChina demand for crude oil

7.5

52.4 52.7 53.3 54.9 56.4 57.0 57.5

77.1 77.8 79.382.5 83.9 84.9 85.8

20.820.720.820.0 20.1 20.4 21.1

7.26.76.55.654.7

0

10

20

30

40

50

60

70

80

90

100

2001 2002 2003 2004 2005 2006 2007

USA China Other

CAGR：1.8%

CAGR：8.1%

Source：CEIC, China Petroleum and Chemical Industry Association Source：IEA

1616

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2002 2003 2004 2005 2006 2007E 2008E 2009E 2010E

CAPEX OPEX

Continuing Increase in World Investments in Marine Oil and Gas

Continuing Increase in World Investments in Marine Oil and Gas

Bright Future for Oil and Gas Exploration

World investments in marine oil&gas exploration and operations are expected to increase to US$144bper annum on average in next 10 years.

Average investments in deep water operations will exceed US$15B per annum. Deep waters and ultra deep waters will continue to be hot exploration spots for world oil and gas.

Investments will grow faster in West Africa, Brazil, Gulf of Mexico and Asia Pacific regions. Investments in Marine oil and gas in Asia Pacific in 2008 will increase 65% from the levels in 2002.

Exploration activities are seen to kick off in emerging marine regions including Southeast Asia.

Source: Energyfiles Ltd. Source: Oil.IN-EN.com

1717

Goals of COSL

20202020

20102010

Near-term goalNearNear--term goalterm goal Long-term goalLongLong--term goalterm goal

Become a top-notch international oilfield service providers

Become a topBecome a top--notch international notch international oilfield service providersoilfield service providers

An oilfield service provider with strong competences in the

international market

An oilfield service provider with An oilfield service provider with strong competences in the strong competences in the

international marketinternational market

Accelerate development of integrated capabilities. Comprehensively enhance professional capabilities

Explore new business opportunities new oilfield production services

PlansPlansExpand facilities, upgrade service capability Strengthen deep water operation capability

Increase investments in R&D to enhance COSL’s technological competitiveness

Expand scope of service, implement global development strategies

Achieve breakthroughs in technology, capacity expansion and capability upgrades through capital market operations including M&A

1818

Four Core Strategies

TechnologyTechnology--drivendriven Cost CompetitivenessCost Competitiveness IntegrationIntegration GGloballobal OperationOperation

A unique publicly-listed integrated oilfield service providerA unique publiclyA unique publicly--listed integrated oilfield service providerlisted integrated oilfield service provider

Strategic positioning: Expert in conventional technologiesKeen follower in advanced applicationsEnabler of highly efficient operationsContributor to cost reduction Pioneer in integrated servicesParticipant in global competitionPartner in win-win developmentServant for shareholder value

1919

CAPEX since listingCAPEX since listing: in excess of RMB 10 billion: in excess of RMB 10 billion

RMB Mil’

CAPEX to Introduce New Equipment

0

1100

2200

3300

4400

5500

2002 2003 2004 2005 2006 2007 2008

2020

2010201020082008COSL942 to operate in 2H; 4 module rigs operate for six more months; 5 onshore rigs commence operation

R&D, building, procure equipment like cementing pump, ELIS, liftboat etc.

9 new supporting vessels will commence operation in 2H

One 8-streamer seismic vessel start operation in April

20092009Jack-up COSL936 will commence operation by year end. 4 onshore rigs have half year more revenue.

R&D and procure tools for MWD, acidizing and crushing

9 new supporting vessels to operate in 1H. 2 high-powered deep water vessels will commence operation by year end

Jack-up COSL937 to operate; Four 200-feet jack-up rigs to operate in 2010 and 2011

One 12-streamer seismic vessel will commence operation

Drilling Services

Well Services

MS&TServices

Geophysical Services

Increase New Capacity

16 offshore engineering supporting vessels to bedelivered respectively in 2010 and 2011

20112011

Manage the 3000m deep water drilling rig invested by parent company in Mid 2011

1 deep water suveyvessel will commence operation

2121

COSL COSL –– An oilfield services company offering integrated services An oilfield services company offering integrated services spanning across drilling, development and productionspanning across drilling, development and production

Exploration Stage

Production Stage

y

Development Stage

GeophysicalMarine Support and TransportationDrilling Well Services

One Stop Solution

2222

Increase Work Throughput

Numerous market opportunities in different stages of oilfield production

Besides increase in work throughput of logging, directional drilling, cementing and well completion, acidizing, crushing, screen pipe production activities are expected to grow

Uptrend in CAPEX and OPEX of oil companies on oilfield exploration

CNOOC announced discovery of 10 new oil and gas reserves in Nov 2007

Source: CNOOC Group annual report

2323

Jack-up: USD/Day

Semi-submersible：USD/Day

Service Prices Have Room to Increase

Utilization to remain high due to strong demand, saturated capacity, good customer relationship and tight schedule management

Utilization to remain high due to strong demand, saturated capacUtilization to remain high due to strong demand, saturated capacity, ity, good customer relationship and tight schedule managementgood customer relationship and tight schedule management

20,000

40,000

60,000

80,000

2002 2003 2004 2005 2006 2007

US$78,337/day

US$142,302/day

0

40,000

80,000

120,000

160,000

2002 2003 2004 2005 2006 2007

2424

Tap the deep water segment

Expand foothold in overseas

markets

Targeted Southeast Asia, Middle East, Gulf of Mexico, Russia and Africa

Expand into onshore services, leveraging our strength in the offshore market.

Expand presence in the deep water segment following footsteps of oil companies

Consolidate existing

market share

Secure first-mover advantages in

new markets and new businesses

Explore New markets, New businesses

Penetrate into onshore markets

2525

COSL-LR7001 commenced drilling

Explore New markets, New businesses (cont’d)

2626

MarketMarket--orientedoriented

COCOSSLL’’s technologys technology--driven strategydriven strategy

Integrated Integrated InnovationInnovation

LeapfrogLeapfrogDevelopmentDevelopment

TalentTalentorientedoriented

Accelerate Technology R&D

Introduced proprietary ELIS logging system into domestic and overseas marketsEstablished the first joint laboratoryIntroduced cementing services to XinjiangProprietary “Bohai low-density-high-strength well cementing technology widely applied

COSL’s application of technologiesCOSL’s application of technologies

ConventionalCement

Low-Density,High-Strength

Cement

2727

ASDD

To start the well testing in 2Q08

Upgrade deep water operation from 500m to 1500m

PSC

Independent

Well-geared for Challenges in Deep Water

Well equipped in deep water facilitiestwo high-power deep water working vesselone 12-streamer seismic vessel One 3000m deep water drilling rig invested by parent company will under operationOne deep water survey vessel

Well prepared in technology R&DASDD technology increases the depth of the third generation submersible rigs to 1,500m

Well collaborated in human resources On-job training enables our staff experienced in deep water operation

COSL’s deep water development strategiesCOSL’s deep water development strategies

2828

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