Aug 2018

Disclaimer

2

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.

Results Overview

Company Outlook

International crude oil prices rebounded.

EIA: Brent will be around US$70/barrel; WTI will be around US$64/barrel in 2018.

The oilfield-services sector went back to an adjustment phase of normal growth from 2017.

2017年全球上游油气资本开支显示复苏迹象2017年全球上游油气资本开支显示复苏迹象

4

Crude Oil Price Rebounded 预期全球勘探开发资本支出总量有所恢复Oilfield Services Market Increased

Unit：USD Billion

236 252

0

50

100

150

200

250

300

350

400

450

500

Global Oilfield Services

Market Environment

Source: IHS, market data as of 8 July 2018 Source: Spears, market data as of 1 April 2018

Utilization rate of rig modestly recovered in 2018.

Still face oversupply and downside price pressure. The recovery of international oilfield services

companies outperformed the international drilling companies.

2017年全球上游油气资本开支显示复苏迹象2017年全球上游油气资本开支显示复苏迹象

5

Utilization Rates of Global Drilling Rigs Day Rates of Global Drilling Rigs

Market Environment

Source: IHS Report, market data as of June 2018 Source: Clarksons

Semi-sub: $’000/day Jack-up: $’000/day

RMB 1H2018 Q2,2018 Q1,2018

Operating Revenue (million) 8,127.9 4,705.2 3,422.7

Operating Profit (million) -239.8 131.9 -371.7

Net Profit (million) -363.3 280.6 -643.9

Cash available²: RMB 9.75billion

Debt-to-capital ratio at 45.7%; net debt-to-equity at 68.8%

RMB 1H2018 2017

Total Assets (million) 72,768.1 73,935.6

Total Liabilities (million) 38,665.8 39,253.6

Shareholders' Equity (million) 34,102.4 34,682.1

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.

Remark: Financial data as of June 30, 2018

Financial Performance 1

6

7

Revenue Breakdown

Revenue Contribution in terms of Segment and Geographic

1H2017

58%

1H2018

65%

1H2017

33%

1H2018

63%

1H2017

0

1H2018

16,091

1H2017

16,577

1H2018

15,836

1H2017

13,406

1H2018

14,900

Semi-sub 2D 3DOperating days(day)

Remark: Financial data as of June 30, 2018

Domestic

76%

Overseas

24%

Unit: RMB million

Utilization RatesMarine Support Services

(Self-owned Vessels)Acquisition and

Surveying Services Technology Market

Share Expanded

Jack-up

Slurry and Cementing~100%

Workover~100%

Well Completion~60%

Production e6xpansion~85%

LWD~60%

Grew by 260 m

Grew by 760m

(utiliz

atio

n ra

te o

f drillin

g rig

s)

Acquis

ition (k

m)

Acquis

ition (k

m2)

Equipment

58%

Technology

42%

Grew by 930m

Grew by 90m

美洲12%

Technology

Equipment

• Middle East: 2 jack-up rigs entered

• Europe: 2 semi-sub rigs reactivated

• Far East: 1 semi-sub rig entered

• Southeast Asia: 1 jack-up rig +1 semi-sub rig

entered; newly added 3D operation in Bangladesh

and Myanmar

• Africa: 1 jack-up rig entered; newly added 3D

operation in Gabon

• Middle East: Newly IPM services

• Southeast Asia: Several new services projects in

LWD, directional drilling, production optimization,

cementing, drilling & completion fluids

• North America: Sales of slotted liners increased

8

New Breakthroughs

Enhanced Market Expansion Good Reputations

Acquired 50 contracts from overseas market: 2 new

markets, 5 new clients

Traditional offshore operation volume increased

Enhanced onshore service + new business

HYSY937 garnered “SAKA Drilling Operation

Safe Production 365 Days” award in Indonesia

Received “Best Supplier Performance” award

from HCML, an Indonesian company

9

2018 Selected Key Overseas Markets

Europe

The Middle East

Equipment Segment

COSL Promoter executed Statoil drilling contract

COSL Pioneer executed Nexen drilling contract

COSL Innovator executed Lundin drilling contract

Technology Segment

Actively follows market opportunities

Equipment Segment

COSL Force completed drilling contract

COSL Strike, COSL Gift acquired long-term drilling contract

Technology Segment

Executed integrated well services contract in Iraq

Executed logging, workover and cementing service

contracts for multiple customers

Commercialization of R&D Results

1H2018

1201

2017

1150

2016

1076

2015

943

2014

763

2013

621

2012

463

10

(To

tal n

um

ber o

f pate

nts a

cqu

ired

)

Number of Patents Continued to Increase Unit: patent

51 new authorized patents. Total number of authorized patents hits 1201

First 15 scientific research projects delivered stable performance, 9 of which commercialized with a total

value of RMB1.02 billion

Speeded-up R&D and commercialization through the laboratory in North America

Demands for environmental protection, HTHP boosted related technology services

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Technological Achievements

Offshore: SK's Integrated Services Project

Self-owned technology + equipment

Efficient management and operation:

• Completed operation in just 22 days

• None injury, environment pollution and loss of property

Integrated service for the 4th well in east of South China

Sea

Capability of technological service under deep-water

Onshore: Integrated Services in Missan Oilfield

Full-range services: demonstrated overall technological

strengths

High efficient: average operation days is 80 day, much

lower than those of such region

High Tech: 2 non-standard horizontal wells, strata

movement of salt gypsum layer and cementing in salt

gypsum layer

12

QHSE and Charity

Premium QHSE Record Helps to Achieve Operation Target

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 0.08

-0.1

0.1

0.3

0.5

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H2018

OSHA Index

Refined and classified management risks with 0.08

OSHA incidence rate

Favorable safety culture

Actively engaged in charity work

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

January 2018，COSL won“Top 100 International Energy Enterprise Crystal” awards

January 2018，COSL won "Shanghai-Hong Kong Stock Connect Best Investment Value Award" by “China Financial Market”

April 2018，COSL won“Best New Media Operation”in“Tianma Award”by Securities Times

Constituent stock of Heng Sheng

(China A) Corporate Sustainability

Index; and constituent stock of Heng

Sheng Corporate Sustainability

Benchmark Index

13

May 2018，COSL won“Certificate of Excellence in Investor Relations”from HKIRA

Awards and Recognitions

Results Overview

Company Outlook

International Market Demands

Global upstream E&P spending increased by 12% over 2017

Onshore E&P spending increased by 16%，offshore E&P spending slightly increased by 3%

E&P spending of global offshore deep-water projects increased for the first time since 2014

2017 2018

Global upstream E&P Capex

2017 2018

Onshore E&P Capex

2017 2018

Offshore E&P Capex

15

Source: IHS

16

Domestic Market Demands

To achieve double-50% goal through market opportunities and second startup

CNOOC will enhance E&P investment

Bohai Bay: Operation opportunities for stable production and reservoir optimization

Oil price rise will drive E&P activities from the medium to small-sized oil&gas companies

Onshore sector: Unconventional business in Xinjiang etc

South China Sea: deep-water E&P

Environment protection: Wind power construction, EPS cutting re-injection business

High foreign oil

dependency rate

Operation activities

will increase

Wire-line

Logging

Directional

Drilling

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Operation Guarantee Under New Trend

Marine Support

Well Services

DrillingGeophysical and

Surveying Services

Ranked 3rd and 6th in cementing and well loggingRanked 6th and 8th in LWD and drilling fluids

Water depth : 5-3000m Drilling depth: 5000-12000m

Ranked 3rdMember of International Association of Drilling Contractors (IADC)

Ranked 5th in the worldLeading player in offshore China

Ranked 4thMember of International Association of Geophysical Contractors (IAGC)

Experience of undertaking challenging operation and breakthroughs in

self-developed core technology products since 1985.

Design and onsite construction for all types of projects

Real-time strata evaluation while drilling

Experienced and comprehensive self-developed equipment and

technology system since 1982.

Comprehensive wire-line logging solution

Data processing and information explanation service

Accelerated Technology Development

1Drilog® andWelleader®

System

Achievement: 67 systems in total, 105 well operations; 81336 meters in length and

operation success rate of 85%

Market: revenue of nearly RMB80 million, saved costs of nearly RMB600 million

2

High Temperature Resistant Cementing Slurry Series (COCEM)

Achievement: completed researches on core product formula and production procedureswith 6 products and 3 systems

Market:

• 15 well operations with production value of RMB80 million

• COCEM' s High Temperature Resistant Cementing Slurry helped win operation contract

3

Well Completion 2.0 Wellbore Tool & Premium Slotted Liners

Achievement: • 55 types of well completion tools for wellbore, production value of RMB90.42 million, and

tender success rate of 73% in domestic market• 8 metal slotted liners and production lines, sales of RMB90.8 million, share in China's slotted

liners market increased to 50% and above

Market:

• 218 well operations with well completion 2.0 tool generated production value of RMB70 million

• 12 new contracts with an aggregate value of RMB111 million; acquired Nexen's 30000m slotted liner order for 66 well operations

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The Middle East

Southeast AsiaThe

Americas

Africa

The Far East

• Closely follow CNOOC's projects

• Mainly expand high-end drilling and

geophysical and surveying business

Europe

Note：COSL has acquired overseas projects from CNOOC

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• Canadian Nexen logging integrated contract（2017~2019）

• COSL Promoter executed Statoil drilling contract

• COSL Pioneer executed Nexen drilling contract

• COSL Innovator executed Lundin drilling contract

• Horizontal well land drilling services contract（2019~）• Integration and stimulation projects（2018~）• COSL Craft and COSL Superior executed drilling contract• COSL Strike and COSL Gift acquired long-term drilling contract

• Acquired drilling contract（2019~）

• NH9 acquired drilling contract（2018~）

• HTHP slurry contract（2019~）

• HYSY937 acquired drilling contract（2018~）

• TCP、DST and logging integrated contract（2019~）

Contract Status in the Near Future

Rig Operation Status（Up to 14 Aug）

Remark：2 Jack-ups（HYSY936/Hunter）and 1 semi-sub（ Prospector ）are in bidding or negotiation processes.. Will lease 2 Jack-ups according to the needs of operation. Jack-ups Semi-sub

Operation Drilling Rig

2018

Q1 Q2 Q3 Q4location

Do

mestic

16 Jack-ups

1 Jack-up（Kaixuan）

1 Jack-up（HYSY943）

1 Jack-up（BH7）

1 Jack-up（HYSY941）

3 Semi-subs（NH2/NH5/NH7）

1 Semi-sub（NH6）

1 Semi-sub（HYSY981）

Inte

rnatio

nal

3 Jack-ups（Superior/Craft/HYSY937）

1 Jack-up（Gift）

1 Jack-up（Seeker）

1 Jack-up（Confidence）

2 Jack-ups（Strike/Boss）

1 Jack-up（Force）

1 Jack-up（Power）

1 Semi-sub（Promoter）

1 Semi-sub（Pioneer）

1 Semi-sub（Innovator）

1 Semi-sub（NH8）

1 Semi-sub（NH9）

1 Semi-sub（HYSY982）

Contracts in the year

Contracts in the year

Contracts in the year

Contracts in the year

20

Sufficient cash flows

Low financing costs

Sufficient credit facilities（Totally RMB42billion with 84% unused by 1H2018）

Prudent capital expenditure

Unobstructed financing channels with better ratings

CAPEX

2018E2015

7.5bn

2016

3.5~4.5bn

2017

2.5bn 2.5bn

Interest and Principal Payment

20212016 2017 2018 2019 2020

Further on Comparative Advantages

Unit: RMB

Note: Exclude long-term prepaid expenses

21

Recap

Strong capability in equipment

operation and management

control

Accelerating technological

commercialization and serialization

will raise the proportion of

technology segment

Healthy financial condition and

low financial costs ensure a

more flexible business model

Retained contracts firmed

sustainable development

International gas and oil companies gradually increase E&P spending

Active gas and oil E&P activities in domestic market will boost the operation volume of oilfield services

22

COSL IR（WeChat Official Account）

New Breakthrough in Iraq（English Version）

New Breakthrough in Iraq（Chinese Version）