1. 0 2002 Results Announcement 2 April 2003 China Oilfield Services Limited

2. 1 Overview

3. 2 2002 - A Landmark Year for COSL  IPO in November 2002  COSL shares were successfully listed on the Main Board of HKSE, raising net proceeds of US$286 million  Strong growth across all business segments in 2002  Revenue: ~ 15% increase  Net Income: ~ 30% increase  EBITDA Margin: 39%  IPO in November 2002  COSL shares were successfully listed on the Main Board of HKSE, raising net proceeds of US$286 million  Strong growth across all business segments in 2002  Revenue: ~ 15% increase  Net Income: ~ 30% increase  EBITDA Margin: 39%

4. 3 Summary Results (RMB mn except per share data)

5. 4 Growth by Segments  Key drivers of 2002 revenue growth  7 vessels purchased for Marine Support and Transportation  Higher day rates were achieved for both the vessels and jack-up rigs  Strong demand for Well Services  Turn-around of Geophysical Services  Key drivers of 2002 revenue growth  7 vessels purchased for Marine Support and Transportation  Higher day rates were achieved for both the vessels and jack-up rigs  Strong demand for Well Services  Turn-around of Geophysical Services Revenue by Segment Overall Revenue CAGR of 18% 2001-2002 Growth 26% 13% 8% 2,178 1,662 2,366 2,726 DrillingMarine Support & TransportationWell ServicesGeophysical

6. 5 Cost Structure (1)Includes other operating expenses, provision for impairment of long term investments, and provision for impairment of property, plant and equipment Consumption of supplies, materials, fuel, services and others Repair and maintenance costs Depreciation of property, plant and equipment Employee compensation costsOther SG&A and others (1) % of Revenue 96%83%86%82% Cost Components As % of Total Operating Expenses

7. 6 EBITDA Performance  EBITDA margin consistently higher than 30%, 2002 had a record high of 39%  In 2002, Marine Support & Transportation and Well Services are the key growth drivers  Turn-around of Geophysical Services also contributed to the EBITDA margin growth  Continuous improvement of EBITDA profitability due to cost control and margin expansion  EBITDA margin consistently higher than 30%, 2002 had a record high of 39%  In 2002, Marine Support & Transportation and Well Services are the key growth drivers  Turn-around of Geophysical Services also contributed to the EBITDA margin growth  Continuous improvement of EBITDA profitability due to cost control and margin expansion EBITDA Margin EBITDA YoY Growth 35%61% 4%4% Overall EBITDA CAGR of 28% Drilling Well Services Marine Support & Transportation Geophysical 827 513 792 1,072 2001-2002 Growth 101% 57% 36% 19%

8. 7 Operating Profit Performance  Improved operating profits and margins in 2002 as a result of stronger contribution of Marine Support & Transportation and Geophysical segments Operating Profit Margin Operating Profit YoY Growth 38%393% 4%4% Operating Profit by Segment Drilling Well Services Marine Support & Transportation Geophysical

9. 8 Improving Net Income Overall Net Income CAGR of 59% from 1999 to 2002 Overall Net Income CAGR of 59% from 1999 to 2002 YoY growth = 30%

10. 9 Balance Sheet In RMB Million

11. 10 Segment Analysis

12. 11 A.Drilling

13. 12 Drilling Revenues Total drilling revenue increased 8% from 2001 Drilling Turnover YoY growth = 8% Note:2003 drilling revenue includes all well workover revenues 644 906 985 1,064

14. 13 Well Workover Trends Summary Drilling Activity Number of wells drilled correlates to the development cycle. Well workover volume continues to increase as production activity increases Summary Drilling Activity

15. 14 Utilization and Day Rates Strong domestic demand and international deployment continue to drive up our average day rates, utilization continue to surpass international peers Source: COSL, ODC (utilization based on days available) Jackup WTI (US$/bbl) Utilization Semi WTI (US$/bbl) Utilization COSLGlobalWTI Utilization Rates Source: COSL, ODC (Jackup day rates for 300’ rigs) (US$/day) Comparative Day Rates GOMCOSL West Africa SE Asia

16. 15 Rig Fleet Location China Tianjin Korea Qingdao Fuzhou Xiamen Guangzhou Hong Kong Philippines Beijing Offshore China 0 100 200 300 km Shanghai BH VIII BH X BH V NH I BH XII BH VII NH VI NH IV NH V NH II As of Dec 31, 2002  Primary focus in South China Sea and Bohai Bay  International deployment began in 2002  Offshore Nigeria (Feb 2002)  Offshore Indonesia (Oct 2002)  Primary focus in South China Sea and Bohai Bay  International deployment began in 2002  Offshore Nigeria (Feb 2002)  Offshore Indonesia (Oct 2002)

17. 16 B.Well Services

18. 17 Well Services Revenues Total well services revenue expanded 13% in 2002 Well Services Revenues YoY growth = 13%

19. 18 Well Services Revenue Breakdown 2001 vs. 2002 Well Services Revenue Components Well services experienced robust growth across most of the segments due to increased exploration, development, and production activity 13% 14% 21% 11% 4%4% 13% YoY Growth

20. 19 C.Marine Support and Transportation

21. 20 Marine Support & Transportation Revenues  Consistent revenue growth driven by strong demand offshore China  Higher day rates for vessels  Higher working days supported by enlarged fleet capacity  Consistent revenue growth driven by strong demand offshore China  Higher day rates for vessels  Higher working days supported by enlarged fleet capacity Marine Support & Transportation Revenues YoY growth = 26%

22. 21 Growth of Our Fleet 22.4% growth since 1997 Our fleet has been growing to meet increased demand in offshore China

23. 22 Higher and More Stable Utilization Compared to Global Peers Note:Trico Marine and Seacor Smit calculate their respective utilization rates based on calendar day utilization methodology; Tidewater and Gulfmark calculate their respective utilization rates based on availability utilization methodology. Tidewater, Seacor Smit, and Gulfmark 02 utilization rate is the average for the 9 months ended Sep 30, 2002 Calendar Day Utilization Rate Availability Utilization Rate

24. 23 D.Geophysical

25. 24 Geophysical Revenues Geophysical revenue increased by 26% in 2002 Geophysical Revenues YoY growth = 26%

26. 25 2003 Outlook

27. 26 Substantial Higher Drilling Activities Expected Source: Company Eastern South China Sea  PY 4-2/5-1  HZ 19-3/2 Bohai Bay  BZ 25-1  CFD 11-1/2  PL 19-3  BN fields East China Sea  Pinghu  Xihu Western South China Sea  WZ 12-1N  DF 1-1 26 34 25 27 24 56 31 161 117 134 1997199819992000200120022003E Exploration WellsDevelopment Wells 66 57 160+ 40 - 50 Characteristics of Development Wells  Subject to development schedules rather than exploration uncertainties  Number of wells required varies by region – greater in Bohai Bay  Development well programs typically lead to more stable and predictable demand for various oilfield services

28. 27 Planned Capital Expenditures  Alternatives for drilling capacity expansion:  Seek second-hand rigs in 2003  Build rigs domestically  Upgrade current fleet  2003 work plans could be met by:  Improved operating efficiency  Rescheduling work plans with operators to minimize idle days for rigs  Upgrade jack-up rigs to accommodate broader scope of drilling environment  Alternatives for drilling capacity expansion:  Seek second-hand rigs in 2003  Build rigs domestically  Upgrade current fleet  2003 work plans could be met by:  Improved operating efficiency  Rescheduling work plans with operators to minimize idle days for rigs  Upgrade jack-up rigs to accommodate broader scope of drilling environment Drilling and Marine Support & Transportation segments will continue to account for the majority of our future capital expenditures 2003 Planned Capital Expenditures (in RMB mm)

29. 28 COSL – Dominant Oilfield Service Provider Offshore China Realize growth opportunities and deliver shareholder value Strengths  High growth domestic market  The dominant oilfield service provider for offshore China  Competitive cost structure  Leading technical capabilities Winning Strategy Selectively pursue international opportunities Realize increasing margins Strengthen and expand customer relationship Further integrate service lines Expand operating capacity Increase technical capabilities

30. 29 THANK YOU www.cosl.com.cn