March 2018

Disclaimer

The information contained in this presentation is intended solely for your

own reference only. In addition, the information includes 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. Past track record cannot be used as guidance for

future performances.

2

I. Results Overview

II. Company Outlook

Market Environment

In 2017, average oil price of Brent increased by 21% over 2016 and WTI increased by 17%

In 2017, global upstream E&P spending increased by approximately 8% over 2016

In the oilfield services industry, the supply still outstripped the demand

Sources: IHS Report

Global upstream E&P spending grew in 2017

250

Oil prices slowly rebounded in 2017

Sources: IHS Report

Unit：USD billion

0

100

200

300

400

500

600

700

800

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

4

Annual Financial Performance1

RMB（million） 2017 2016

Revenue 17,379.4 15,085.5

Operating Profit 1,427.5 (11,367.7)

Net Profit（Incl. Impairment） 71.2 (11,459.5)

Net Profit（Excl. Impairment） 159.2 (3,186.7)

1. All above financial data are from the audited financial report prepared by the Company under HKFRS.2. Available cash includes cash equivalents and available-for-sale financial assets.3. The distribution proposal is subject to the approval at the 2017 annual general meeting of the Company .

Available cash sufficient2：RMB 11.9billion

Debt-to-capital ratio：45.3%

Distribution policy for 20173：0.06 yuan per share

RMB（million） 2017 2016

Total Assets 73,857.3 80,544.1

Total Liabilities 39,179.5 45,247.7

Shareholders’ Equity 34,677.8 35,296.4

Turnaround from Loss to Profit in 2017

5Remark: Financial data as up to December 31, 2017

Business Strategies

6

Secured the coreclients in offshoreChina, enhanced the market share for all businesses

Adhered to "Belt and Road” policy, revenue increased yoy

Reduced CAPEX substantially, and maintain robust financial strengths and healthy cash flow

Accelerated technological serialization and industrialization, speed up transformation of technological results

COSL Proactively Responded to the Challenges

Drilling segment had breakthroughs both in clients and markets. The average calendar day utilization rate and average daily income rose by 5.4% yoy and 3.3% yoy respectively.

Well services and marine support segments made more contributions, recording an increase with revenue rising by 17.9% and 25.1%, yoy.

Geophysical and surveying segment enhanced the efforts in international market expansion by securing a number of 3D acquisition and processing contracts.

Drilling

32 jack-ups

11 semi-subs

3 accommodation rigs

5 module rigs

Well Services

Logging, drilling and completion fluids, directional drilling, cementing, completion, well workover, etc.

Marine Support

91 self-owned utility vessels

34 utility vessels managed

Geophysical and Surveying

6 seismic vessels (46 streamers)

1 ocean bottom cable team

5 surveying vessels

Comparison of Profit

2017 Revenue Contribution

Unit：RMB million

7Remark : The financial data as up to December 31, 2017

Segments Performance1

DrillingWell Services

Marine Support

Geophysical and Surveying

1000

500

-500

0

2016

2017

2016

2017

2016

2017

2016

2017

-1000

-1500

38.5% 37.8%

14.0%9.7%

0.0%

50.0%

DrillingWell Services

Marine Support

Geophysical and Surveying

Domestic Market

Continued to consolidate leading position in offshore China, increasing 1 new service area and 4 new clients

• Utilization rate of self-owned vessels was over 90%

• Successfully completed the 3D acquisition IPM project for two new clients

• Successfully secured two tenders for IPM services projects

• Continued to expand cementing market of land oilfields

• Application of self-developed technology entered into new area for the first time

Overseas Market

140 new overseas contracts, 4 new

markets, 24 new clients

• 4 new markets: Papua New Guinea,

Argentina, Cameroon and Kuwait

• 24 new clients: Kangean in Indonesia,

Fieldwood in Americas, Lundin in

Europe, RAKGAS in the UAE etc.

8

Achievements in Market Expansion

100%

Drilling Well Services

Marine Support

Geophysical and

Surveying

Leading Position in Offshore China

R&D Commercialization

Technological breakthroughs

Boost Capacity

EFDT1 Incongruous Pushing Sticking Releasing

Device acquired Canada PTC International Patent

(Nu

mb

er o

f pate

nt in

ag

gre

gate

)

Number of patents continued to rise

2012 2013 2014 2015 2016

463

621

763

9431076

Unit: patent

2017

9

1150

Lare diameter rotary coring tool acquired the large-sized core of Φ1.5”x2.75”

LDI/INP logging tool was put into operation in South China Sea

Gas Hydrate drilling sampling technology completed the world's first deep

water gas hydrate solid-state fluidization test

Horizontal broadband acquisition technology enhanced quality of seismic data

Subsea BOP risk identification technology reduced operation risks

Large-scale applications of “D+W” system. Operation volume increased

by 90%.

COCEM cementing slurry system successful applied on ultra deep water

well and ultra high temperature well

Conventional well completion tools underwent upgraded , covering all

types of wells in China Offshore Oilfield

MWD transmission speed increased to 8~10bps, enabling data

transmission for high-end surveying

EFDT : Enhanced formation dynamic tester

QHSE and Public Contribution

Excellent OSHA safety management indicator ensured high-quality operations

Maritime rescue

• Participated in maritime rescues for 26 times, rescued 13 vessels and 72 people in distress

Effectively promoted environmental protection

• Actively participated in public environmental activities

Actively integrate into local culture and made charitable contributions

• Built Hope Primary Schools

• Cared for autistic children

• Donate for the earthquake-stricken areas in Mexico

• Voluntary teaching in Kenya

0.45

0.220.27 0.29 0.32 0.25 0.26 0.23 0.2 0.19 0.24

0.18 0.08 0.07 0.1 0.05

-0.1

0.1

0.3

0.5

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Excellent OSHA safety management indicator

1According to OSHA, coefficient 1 is equivalent to one accident per 200,000 man-hours 10

Constituent stock of Heng Sheng

(China A) Corporate Sustainability

Index; and constituent stock of

Heng Sheng Corporate

Sustainability Benchmark Index

February 2017, COSL won the

“Best Corporate Governance”

award in the “2017 China

Financial Market Listed

Companies Award

January 2017, COSL won the

“Best Investor Relations”

award of Golden Hong Kong

Stocks Awards

April 2017, the 2016 annual

report of COSL won the Gold

Award of “Vision Awards”

and many awards from LACP

April 2017, COSL won the “Best

Board of Directors of Investor

Relations of China Main Board

Listed Companies” for the

second consecutive year

11

June 2017, COSL won

“Certificate of Excellence in

Investor Relations” from

HKIRA

Awards and Recognitions

I. Results Overview

II. Company Outlook

Operational Environment

Source：IHS Report Source：IHS Report

2014 2015 2016 2017 20180

100

200

300

400

500

600

700

800

250

Global Utilization Rates of Drilling Rigs

13

CAPEX forecast for global upstream oil and gas companies

Unit：USD billion

Onshore Business

Deep-water

CAPEX growth of oil and gas companies, especially on the onshore and deep-water

According to IHS Report, the utilization rate of the semi-subs increased significantly in 2018

Medium-term Development Plan

COSL will leverage on the synergies and cost advantages;

Adhere to prudent financial policies; Realize the goal of 50/50 mix.14

2018 Domestic market: Focus on new

workload and requirements

International Market: further strengthen the overseas regional management and scale

Maintaining cost competitiveness: through reducing management cost, strengthening technology and optimizing assets

Implement service upgrade: Provide with comprehensive solution plan

Medium-term targets

50/50

Do

mestic

Inte

rnatio

nal

Eq

uip

men

tT

ech

no

log

y

The Middle East

Southeast AsiaThe Americas

Africa

The Far East

Europe

15

• Canadian Nexen Logging

Integrated Contract （2017~2019）

• COSL Confidence Acquired

Drilling Contract (2018~)

• HYSY760 acquired Seismic

Survey contract (2018~)

• NH9 acquired Drilling Contract (2018~)

• HYSY937 acquired Drilling Contract

(2018~)

• HYSY721 acquired Seismic Survey

contract (2018~)

• COSL Superior and COSL Force acquired

drilling contract (2018~)

• HYSY751 acquired Seismic Survey

contract (2018~)

• Integration and Stimulation projects

(2018~)

• COSL Pioneer acquired Nexen

Drilling Contract (2018~)

• COSL Innovator acquired Lundin

Drilling Contract (2018~)

• COSL Promoter executed Statoil

drilling contract (2018~)

• COSL Prospector received the

LOA（2018~）

Overseas Development

• NH8 acquired drilling contract (2018~)

• COSL Seeker acquired Drilling contract

（2018~）

• HYSY720 acquired Seismic Survey

contract （2018~）

16

COSLFORCE enters the UAE market

On March 6th, successfully provided service in UAE

NH9 provides service for KANGEAN ENERGY

On March 12th, provided drilling and completion service

COSLPIONEER conducts sea trials

In late March, going to provide drilling service for Nexen

COSL SEEKER is heading to West Africa

In early April, going to provide drilling service in Cameroon

Efficient operation in Missan Oilfield

On March 10th, completed well drilling project 10 days

earlier to help with follow-up services

Glad tidings

COSLPROSPECTOR arrived in Norway

Received the LOA. Operation is expected to commence in

mid-May

17

Widely application of cementing technology in Mexico

On March 7th, cementing operation was well acclaimed

Application of organic blockage technology in

Southeast Asia and Mid-east market

Acquired production, coiled tubing and wire line

operation contracts of Husky

Reached sales intention with International Company

On March 19th, signed intention-to-sell agreement on

high-end logging equipment

Make a good start in Indonesia market

In January, continuously win bids on cable logging and directional drilling,

D+W system and logging service projects in Indonesia

Glad tidings

First-class offshore wind power exploration technology

Acquired offshore wind power exploration projects in Jiangsu,

Liaoning and Guangdong, etc.

Operation

Drilling Rig2018

Q1 Q2 Q3 Q4location

Do

mestic

16 Jack-ups

1 Jack-up（Gift）

1 Jack-up（Kaixuan）

1 Jack-up（HYSY943）

1 Jack-up（BH7）

1 Jack-up（HYSY941）

2Semi-subs（NH2/NH5）

1 Semi-sub（NH6）

1 Semi-sub（NH7） -

1 Semi-sub（HYSY981）

Inte

rnatio

nal

2 Jack-ups （Superior/Craft）

1 Jack-up（HYSY937）

1 Jack-up（Strike）

1 Jack-up（Force）

1 Jack-up（Seeker）

1 Jack-up（Confidence）

1 Semi-sub（Promoter）

1 Semi-sub（Innovator）

1 Semi-sub（Pioneer）

1 Semi-sub（NH8）

1 Semi-sub（NH9）

Contracts in the year

Contracts in the year

Contracts in the year

18

Contracts in the year

Rig Operation Status （Up to 22 Mar 2018）

Remark：2 Semi-subs（Prospector/HYSY982）and 4 Jack-ups（HYSY936/Boss/Power/Hunter）are in bidding or negotiation processes, respective contracts have yet to be concluded.

Jack-ups Semi-sub

Prudent Financial Policy

Capital Expenditure Plan

Source：Bloomberg and rating reports

2018E2015

7.5b

2016

3.5-4.5b

2017

2.5b ~2.5b

19

Companies Middy's S&P Fitch

4 m

ajo

rs oil co

mp

an

ies

Schlumberger A1（Stable） AA-（Stable） -

Halliburton Baa1（Stable） BBB+（Stable） -

Baker Hughes A3（Stable） A-（Stable） -

Weatherford B3（Neg.） B（Neg.） CCC

COSL Baa1（Neg.） BBB（Stable） A（Stable）

offsh

ore

drillin

g

Diamond Ba3（Neg.） B+（Neg.） -

Ensco B2（Neg.） B+（Neg.） -

Noble Baa3（Stable） B（Neg.） BBB-（Stable）

Rowan B2（Neg.） B+（Neg.） -

Transocean B2（Neg.） B（Neg.） B+（Neg.）

Seadrill B1（Stable） CCC+（Neg.） -

20212016 2017 2018 2019 2020

Unit: RMB

2016-2021 Capital and Interest Repayment

Remarks: long-term unamortized expenses excluded

20

Core Competitiveness

Enhanced Industrial Market Share

New Competitive Framework

• Massive investment expenditure on oil and gas industry

• Slow recovery at industry level

New Operation Model

• Optimize growth dimensions• Restructure Asset structure• Leading in Prudent cost

management• Implement differentiated

and diversified development

New Emerging Markets

• Domestic + InternationalFocus on domestic market + expand global footprint

• Offshore + OnshoreExpansion of the offshore market + seizing for onshore business opportunities

• Traditional Needs + Elevated Service