Offshore staff

BEIJING -- China Oilfield Services Ltd. (COSL) has signed agreements with GOIMAR SA de CV for the supply of four module rigs in the Gulf of Mexico.

COSL shall be responsible for the investment and construction of the four rigs as well as the completion of mobilization, installation and rig-up. Each will be employed for a three-year term. The construction of the rigs is expected to be completed in 2Q 2007.

"This project not only enables COSL to successfully tap into the traditional business areas of oilfield service providers in Europe and America, but also provides the group with an opportunity to secure market share in the Gulf of Mexico, a region of utmost political and economic importance with abundant oil and gas reserves, as well as active oil and gas E&P," says Yuan Guangyu, president and CEO of COSL.

"The operation model of the oil rigs in this region is different from that in the PRC," adds Zhong Hua, executive VP & CFO of COSL. "With active oil and gas exploration in the Gulf of Mexico, the demand for module rigs continues to surge."

12/19/06