China Oilfield Services Limited : Voluntary Announcement: Capital Expenditure And Volume Of Work For 2014

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness, and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. This announcement does not constitute an offer or an invitation to induce an offer by any person to acquire, subscribe for or purchase any securities.

(A joint stock limited company incorporated in the People's Republic of China with limited liability)

This announcement is made by China Oilfield Services Limited (the "Company") on a voluntary basis in relation to its estimation on the capital expenditure and volume of work for the financial year ending 31
December 2014 ("2014").

The board of directors of the Company (the "Board") estimates that the capital expenditure of the Company for 2014 will be between RMB7,000,000,000 and RMB8,000,000,000 (equivalent to approximately HK$8,890,000,000 and HK$10,160,000,000). The capital expenditure will primarily be used in the construction and purchase of the 5,000 feet semi-submersible drilling rig COSLProspector, two 400 feet jack-up rigs, two 300 feet jack-up rigs, one 5,000 feet semi-submersible drilling rig, 15 oilfield utility vessels, one integrated surveying vessel, one 12-streamer seismic vessel, two deep water integrated surveying vessels and two 6,000 horsepower deep water platform supply vessels.

As at the date of this announcement, 90% of the annual operation contracts of the drilling rigs of the Company for 2014 have already been secured and the Company expects that the utilisation rate of the drilling rigs will be maintained at a high level. The volume of work relating to geophysical services, marine support and transportation services in 2014 is expected to remain stable. Benefiting from the growth in the work volume of the drilling segment and new business development in well services, the volume of work for well services is expected to have a relatively rapid increase.
The above statements on the estimated capital expenditure and volume of work are based on the current operations of the Company and current market conditions. These statements are not guarantees of the Company's performance which are mainly dependent on the market and the financial environment.
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An exchange rate of RMB1.00 to HK$1.27 has been used for the conversion of the RMB into HK Dollars for the purpose of this announcement.

By order of the Board

Company Secretary

24 January 2014

As at the date of this announcement, the executive directors of the Company are Messrs. Li Yong and Li Feilong; the non-executive directors of the Company are Messrs. Liu Jian (Chairman) and Zeng Quan;and the independent non-executive directors of the Company are Messrs. Tsui Yiu Wa, Fong Wo, Felix and Chen Quansheng.

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