Aug 2017

Disclaimer

The information contained in this 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. Past track record

cannot be used as guidance for future performances.

2

Company Outlook

Results Overview

Market Environment

International crude oil prices slightly rebounded but still maintained at low levels

Upstream E&P spending has slightly increased over last year

Oversupply remained a challenge for heavy equipment

Oilfield services industry was still facing uncertainties

2017年全球上游油气资本开支显示复苏迹象

Source: Bloomberg, market data as of Aug 8, 2017

Global E&P Spending Expectation

211 234

306344

436

531

437489

595662

694 693

503

368399

461515

569

0

100

200

300

400

500

600

700

800

global E&P spendingUnit：USD Billion

2017年全球上游油气资本开支显示复苏迹象

Oil Prices slightly Rebounded

$49.39

$52.37Low:$27.88$26.21

High$115.06$107.26

USD/ barrel

0

20

40

60

80

100

120

14-01 14-07 15-01 15-07 16-01 16-07 17-01 17-07

WTI期货价格 Brent期货价格

Source: IHS Markit, market data as of Jul 28, 2017

4

5

Business Strategies

• Follow customer demand closely

• Enhance the market shares and utilization rates continuously

• Eye greater international market exposure

• Leverage on integrated business model to satisfy new requirements

• Accelerate technological serialization and industrialization and reduce subcontract

• Reduce CAPEX substantially and maintain robust financial strengths

6

Operating Achievements

COSL actively responded to industrial changes

Source: IHS Markit. Marine support segment peers include Boubon Offshore, Edison Chouest, Gulfmark, etc.

Utilization Rates of Geophysical and Surveying Vessels

Equipment utilization rates increased

Contribution of technology segment increased

Active international exposure of geophysical segment

Stable safety production performance

Reasonable debt structure and stable cash flow

Significant cost control result

COSL 1H 2017

Industrial Average 1H 2017

Utilization Rates of Vessels in 1H2017

0%

30%

60%

90%

COSL Swire Pacific Edison Chouest Seacor Marine GulfMark Tidewater Bourbon

Offshore

Average 1H 2017

COSL Company A Company B Company C Company D Company E Company F

RMB 1H2017 1H2016

Operating Revenue (million) 7,095.9 6,962.6

Operating Profit (Incl. Assets and Goodwill Impairment) (million)

237.5 -8,141.6

Operating Profit (Excl. Assets and Goodwill Impairment) (million)

237.5 -997.9

Net Profit (million) -350.4 -8,399.5

Distribution policy for 2016: 0.05 yuan RMB per share

Cash available²: RMB 7.8billion

Debt-to-capital ratio at 48%; net debt-to-equity at 69.2%

RMB 1H2017 2016

Total Assets (million) 74,191.8 80,544.1

Total Liabilities (million) 39,690.8 45,247.7

Shareholders' Equity (million) 34,501.0 35,296.4

1. All above financial data are from the unaudited financial report prepared by the Company under HKFRS.2. Available cash includes cash equivalents and available-for-sale financial assets.

Financial Performance 1

Remark1: Financial data as of June 30, 2017

7

Segments Performance1

DrillingWell

Services

Marine Support

Geophysical and

Surveying

39%

16%10%

35%

Drilling

Marine Support

Geophysical and

Surveying

Well Services

1H 2017Revenue

contribution

3310.9

1H2016 1H2017

3651.7

3054.9

4041.0

Q1 RevenueQ2 Revenue

Unit：RMB million

Remark 1: The financial data as of June 30, 2017

32 jack-ups

11 semi-subs

3 accommodation rigs

5 module rigs

Logging, drilling and

completion fluids,

directional drilling,

cementing, completion,

well workover, etc.

85 self-owned

utility vessels

34 utility vessels

managed

6 seismic vessels (46

streamers)

7 surveying vessels

1 ocean bottom cable

team

8

Operating Revenue 6,962.6

Operating Revenue 7,095.9

Market Expansion & Client Recognition

美洲12%

Aggressive market expansion

Consolidated COSL's leading position in domestic market

72 new overseas contracts, 2 new markets, 5 new clients in

global market

• CNOOC SES Limited, CNOOC Iraq Limited and other

integrated contracts, extended to 2019

• Breakthrough – the Nexen market and plugging and

abandonment business

High customer satisfaction

HYSY936 HTHP well services was praised by the US energy

company Fieldwood Energy

The“2016 Outstanding Contractor” award by PEMEX

9

Technology Segment

Applicable stratum temperature range for

COCEM Cement Slurry System was

extended to 0℃-260℃

Successfully applied in 1,700m ultra-deep

water wells and 210 ℃ ultra-high

temperature wells

Develop Deep-water & HTHP Markets Stimulation for Old Oilfields D+W System Increases Operation Capacity

Series including PA-UN Acid System, PA-

OS3 Organic Plugging Removal Agent

and Nano-Polymoer Flooding

Modification

Nano-Polymoer Flooding Modification

technology increased average yield for

single well group by nearly 10,000m³

Performed 27 operations, 24 wells were

successful, success rate was 89%

Well pattern operated included vertical wells,

conventional directional wells, high-angle

directional wells, horizontal wells

10

11

Effective Cost Control

Reduced costs effectively

In the first half of 2017, cost represented a decrease of RMB 1billion

Reduced material cost: Strengthened inventory management

Reduced repair and maintenance expenses: More maintenance using

in-house resources

Reduced rental expense

Reduced other operating expense: Suppressed administrative expense

Reduced subcontract expense: Extensively used self-developed

technology, reduced subcontract expense

Lowered Staff cost: Localized overseas hiring, internalized share of

human resources

Refined and classified management risks with

0.046 OSHA incidence rate

Favorable safety culture

Actively engaged in charity work

QHSE and Charity

Excellent OSHA Index

Premium QHSE record helps to achieve operation target

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

12

Caption: Charity Work

Caption: Safety Drill

January 2017, COSL won the

“Best Investor Relations”

award of Golden Hong Kong

Stocks Awards February 2017, COSL won the

“Best Corporate Governance”

award in the “2017 China Financial

Market Listed Companies Award

April 2017, COSL won the “Best

Board of Directors of Investor

Relations of China Main Board

Listed Companies” for the

second consecutive year

April 2017, the 2016 annual

report of COSL won the Gold

Award of “Vision Awards”

and many awards from LACP

13

June 2017, COSL won

“Certificate of Excellence in

Investor Relations” from

HKIRA

Awards and Recognitions

Results Overview

Company Outlook

Industry Overview

50%

Oil and gas will still

be an important

part of the energetic

structure

Recovery in oil

prices will drive up

CAPEX

Oil prices expected

to rise gradually

from 2017 to 2020

• Segments synergies and cost advantages maximization

• Prudent financial policy

• 50:50 revenue mix target from domestic and overseasprojects, technology and equipment segments

15

16

Oilfield services companies have to be equipped with global and

integrated operating capacity to meet customers' new needs

New Market Opportunities

Maintain advantage in per barrel cost

Improve the effective production capacity

of “low permeability, old, transboundary

and high viscosity” oilfields

Propose the management requirements

for plugging and abandonment business

HTHP and high-difficulty well operation

Technical reserves for stabilizing and

stimulating production

High-quality and efficient operation

Full IPM services chain, more flexible

business models

More competitive cost structure

Flexible deployment of the global

resources

Operating

Drilling Rig2017

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecLocation

Do

mestic

14Jack-ups

1Jack-up（HYSY932）

2Jack-ups（HYSY941/HYSY942）

1Jack-up（HYSY943）

2Jack-ups（Kaixuan/Gift）

1Jack-up（Gulf Driller1）

2Semi-subs（NH2/NH5）

1Semi-sub（Prospector）

1Semi-sub（NH6）

2Semi-subs（NH7/NH9） -

1Semi-sub（HYSY981）

Inte

rnatio

nal

3Jack-ups（Superior/Craft/Hunter）

1Jack-up（HYSY937）

1Jack-up（HYSY936）

1Jack-up（Strike）

1Jack-up（Seeker）

1Semi-sub（Promoter）

1Semi-sub（NH8）

全年合同

17

Rig Operation Status（14th Aug 2017）

Full-year contract coverage

Full-year contract coverage

Full-year contract coverage

Full-year contract coverage

Jack-up Semi-subRemarks: 4 Jack-ups(Force/Boss/Power/Confidence) are in bidding or negotiation processes. Pioneer and Innovator have gained the contract in 2018.Source: Data as of Aug 14, 2017

The Middle East Southeast

Asia The Americas

Africa

The Far East

• Closely follow CNOOC's projects

• Mainly expand high-end drilling and geophysical and surveying business

Europe

Remarks: COSL has obtained

some overseas projects from

CNOOC

18

• Nexen wireline logging

bundled services contract

(2017~2019)

• COSL Pioneer received the letter of award for drilling services from Nexen (2018~)

• COSL Innovator won the drilling services contract (2018~)

• Horizontal well land drilling services contract (2019~)

• Work-over IPM and stimulation services project (2018~)

• NH9 drilling services contract (2018~)

• HTHP Slurry Contract (2019~)

• HYSY937 won the drilling services contract (2018~)

• TCP, DST and wireline logging services contract (2019~)

• Obtained the drilling services contract (2019~)

Contract Status in the Near Future

IPM Synergies New Opportunities

First-class operating

efficiency of equipment

Excellent equipment

management capabilities

Continuously optimizing

equipment structure

Promote serialization and

industrialization of D+W

System

Cooperate with world-class

oilfield services companies

Accelerate the stimulation

experiment ability

Equipment Technology

Proportion of Technology Revenue Increased

2011 2012 2013 2014 2015

35%

2016 1H17

50%

……

Regular

Logging

175℃ ELIS Enhanced Logging Imaging System

Max diameter rotary coring tool

Acoustic and electrical Casing Crossion logging

technology

10,000 feet ultra-deep water, HTHP well operating

capacity and supporting techniques

Deep-water anti-shallow groundwater flow cementing

technology, filled low density cement slurry technology,

Flat Rheology Synthetic-based drilling fluid, etc.

204℃ ESCOOL high-temperature and high-speed

logging system

Continuous negative pressure pulse plug removal, non-

acid plug removal, organic plug removal, etc.

Nanoscale Dispersed Particle Flooding Modification , In-

Situ CO2 Generation Profile control Flooding, etc.

Multi-component thermal fluid huff-puff stimulation

treatment technology

19

HTHP

Deep-water

High-difficulty

Stimulation

Disposal

IPM & Technology Segment

Company Moody's S&P Fitch

Oilfie

ld S

erv

ices

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) BB- (Neg) -

Ensco B1 BB -

Noble B2 (Neg) BB- (Neg) BBB-(Stable)

Rowan B2 (Neg) B+ (Stable) -

Transocean B2 (Neg) B+ (Neg) B+ (Neg)

Seadrill Caa2 (Neg) CCC+ (Neg) -

Further on Comparative Advantages

2015 2016 2017 2018 2019 2020

CAPEX

Unit: RMB billion

2015

6.7

2016

3.5-4.5

Remarks: long-term unamortized expenses is not included

2017 2018E

~2.5

Interest and Principal Payment

20

Core Competences

Secure of the core market and

core clients in offshore China

The first-class operational

efficiency and improving

international reputation wins

more market opportunities

Significant cost advantages

enhances the Company's

competitiveness in the

industry downturn

Robust financial strengths

enables the Company to

adopt flexible business

model

Expanding the scale of self-developed

technology applications, boosting the

revenue contributions from the

technology segment

01

02 03

04 05

21