Feb 2018

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

Industry Outlook

Source：IEA, BofA Merrill Lynch Global Research estimates

全球钻井平台使用率

Differentiated S & D for crude oil worldwide

Source：IHS Report

Expectation on the Trend of Oil Price

Moderate increase in oil prices from 2018 onwards

Relative oil supply and demand balance will experience further tightening

International agencies predict moderate increase in oil prices from 2018 onwards

4

Source：Rystad Energy UCube and Rystad Energy research

and analysis

全球钻井平台使用率

Reserve discoveries in 2017 were the Lowest

Source：BP 2017 energy Statics review

RRR hit historical low

Oil and gas reserve discoveries in 2017 were the lowest since 2012

RRR hit historical low after consecutive years of decline

Global Oil and Gas Reserves Forecast

5

Reserves include gas condensate and natural gas liquids (NGLs) as well as crude oil.

-50%

0%

50%

100%

150%

200%

250%

300%

350%

400%

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Oil RRR ratio

3Y

r A

vera

ge R

RR

Operational Environment

CAPEX growth of oil and gas companies, especially on the onshore and deep-water

CNOOC's Capex in 2018 has climbed 40% ~ 60% than 2017E

COSL's Domestic and overseas workload will grow at different rates expectedly

250

CNOOC CAPEX Plan

Source：IHS Report Source：CNOOC Limited

6

CAPEX forecast for global upstream oil and gas companies

Unit：USD billion

2014 2015 2016 2017 20180

100

200

300

400

500

600

700

800

Onshore Business

Deep-water

0

20

40

60

80

2016A 2017E 2018B

Exploration Development Production Others

49.0 50.0

70-80Unit : RMB billion

Industry Outlook

Company Outlook

Industry Consolidation

8

Oilfield service industry is restructuring while few companies filed for bankruptcy

Period：2015-2017; Source：Haynes And Boone and related news report

Medium Development Plan

COSL will leverage on the synergies and cost advantages;

Adhere to prudent financial policies; Realize the goal of 50/50 mix.

2017

50/50Loss to Profit

Medium-termtargets

Domestic market: Focus on new workload and requirements

International Market: further strengthen the overseas regional management and scale

Maintaining cost competitiveness: through reducing management cost, strengthening technology and optimizing assets

Implement service upgrade: Provide with comprehensive solution plan

2018

9

Inte

rnatio

nal

Do

mestic

Eq

uip

men

tT

ech

no

log

y

Expand the overseas markets with theopportunities arising from BRICS.

By 2020, the company will endeavor for abreakthrough in Africa markets andcontinually expand the Far East.

Expand 'Belt and Road' market opportunities

Hold high the development strategy of'Belt and Road' Initiative and increasethe revenue share in the region.

Revenue from the 'Belt and Road' regionhas grown by 10% in 2016 and will keepincreasing as the Company goesinternationalized.

10

Libra oil field

Egina oil field

Appomattox oil field

LLSW project

Tangguh Phase II

……

CNOOC Overseas New Projects

Target at new project assignments

Reconstruct aging oilfields, improve oil recovery• Utilized 'Reservoir Revitalization' technology

• Adopted Thermal Recovery Technology to Nanbao 35-2 Oilfield

• Enlisted Xijiang 23 segment on 'Integrated project for water shut-off treatment'

Enrich oilfield related services in China’s offshore market• Offshore wind power exploration

• New energy deep-water exploration business

Undertake CNOOC’s Projects

11

Liza oil field Phase I

Liza oil field Phase II

Buzzard oil field Phase II

Kingfisher oil field

Tilenga oil field

Long Lake

Appomattox

Stabroek

Libra

Buzzard

EginaUganda

Missan

Step-up Expansion on CNOOC’s Domestic and Overseas Projects

The Middle East

Southeast AsiaThe

Americas

Africa

The Far East

• Drilling, Casting and Cementing

integrated contract

• Drilling Contract

Europe

Note：Closely followed

overseas projects from

CNOOC

12

• Canadian Nexen Logging

Integrated Contract

• COSL Confidence Acquired

Drilling Contract

• COSL Pioneer acquired

Nexen Drilling Contract

• COSL Innovator acquired

Lundin Drilling Contract

• COSL Promoter executed

Statoil drilling contract

• COSL Superior acquired drilling contract

• Onshore drilling integrated service

• Integration and Stimulation projects

• Logging contract

• Acquired drilling, technology

segment framework agreement

• NH9 acquired Drilling Contract

• HYSY937 acquired Drilling Contract

• TCP, DST and Logging Integrated

Contract

• Logging, cementing and directional

wells contracts

Scale Effect of Overseas Markets

13

2018 Selected Key Overseas Markets

COSL Promoter executed Statoil drilling

contract

COSL Pioneer acquired Nexen drilling

contract

COSL Innovator acquired Lundin drilling

contract

Acquired CNOOC Missan integrated

project

• D+W facility launched into Iraq

Acquired customer logging contract

Acquired customer well workover and

cementing contract

Europe

The Middle East

Transformation of Customers' Needs

Collaboratively developed the

"heavy oil, low permeability"

oil field

Provide customers with a

basket of oilfield exploration

programs: Framework for

management of Disposable

Oil Field…

Integrated technical service

model based on geological

reservoir

High temperature/deep water

Environmental requirements

Complex formation

Mature oilfield management

Drilling, completion and

workover

Logging, directional wells

Drilling and completion

fluids, cementing

Oilfield stimulation and

other services

14

Lead the Demand

High-end Needs

General Needs

Technical Guarantee Under New Trend

15

Target: Create High-tech Products, Cultivate High-tech Value

Drilling waste management

technology to meet the new

environmental regulations

Rotary coring equipment enables in-

depth tapping for potential

reservoir information

Gas hydrate drilling and sampling

technology drills into the field of

combustible ice

Engaging steady investment expenditure in R&D

Reinforced incentives for industrialization ushers in

technology boom

North America United Laboratory speeds up

innovation progress

Technical Breakthroughs

Implementations

Large-scale applications of 'D + W'

system

Application of high-end logging

technology at international

advanced standard

Strengthen serialization of standard

completion tools, matching

international counterparts on the

market competitiveness

Boosted Capacity

Cost Competitiveness

Through reform and innovation on management mode, optimize facility management, speed up the

serialization and industrialization of technology products, improve core competitiveness

Global Supply ChainRefine global integrated model

Geophysical IncentivesTarget for incremental growth in profit-making

North America United

Laboratory

Interconnection and Cooperation

Implement logging while drilling high-

speed

Step-up Self MaintenanceReduce maintenance costs

Disposal of 701/702 vessels

…

Maintain Competitive Cost

16

Reduce Management Cost

StrengthenTechnology

Optimize Assets

Disposal of 4 chemical boats

Transformed BH8 into supporting platform

Reform Procurement

Process

Innovative Management;

Incentive-oriented Policies

Reduce Age Effect of

Serialization

Strengthen Technology Capability

Boost Capabilitiesof Equipment Operation and Maintenance

Optimize Asset Structure

Prudent Financial Policy

2016-2021 Capital and Interest Repayment

Unit: RMB

2018E2015

6.7b

2016

3.5-4.5b

2017

~2.5b ~2.5b

17

20212016 2017 2018 2019 2020

Capital Expenditure

Remarks: long-term unamortized expenses excluded

Source：Bloomberg and rating reports

Companies Middy's S&P Fitch

4 m

ajo

rso

il com

pan

ies

Schlumberger A1 （Stable） AA-（Stable） -

Halliburton Baa1（Stable） BBB+（Stable） -

Baker Hughes Baa1（Stable） B-（Stable） -

Weatherford B3（Neg.） B（Neg.） CCC

COSL Baa1（Neg.） BBB（Stable） A（Stable）

offsh

ore

drillin

g

Diamond Ba3（Neg.） B+（Neg.） -

Ensco B2（Neg.） B+（Neg.） -

Noble B3（N.A.） B（Neg.） BBB-（Stable）

Rowan B2（Neg.） B+（Neg.） -

Transocean B2（Neg.） B（Neg.） B+（Neg.）

Seadrill Caa2（Stable） CCC+（Neg.） -

Rig Operation Status（As of 22 Jan 2018）

Operation

Drilling Rig2018

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

Do

mestic

19 Jack-ups

1 Jack-up（HYSY943）

1 Jack-up（HYSY924）

2 Semi-subs（NH2/NH5）

1 Semi-sub（NH6）

1 Semi-sub（NH7） -

1 Semi-sub（HYSY981）

Inte

rnatio

nal

2 Jack-ups（Superior/Craft）

1 Jack-up（HYSY937）

1 Jack-up（Strike）

1 Jack-up（Seeker）

1 Jack-up（Confidence）

1 Semi-sub（Promoter）

1 Semi-sub（Innovator）

1 Semi-sub（Pioneer）

1 Semi-sub（NH8）

1 Semi-sub（NH9）

18Remark：1 Semi-sub（Prospector）and 5 Jack-ups（Force/HYSY936/Boss/Power/Hunter）are in bidding or negotiation processes, respective contracts have yet to be concluded.

Jack-up Semi-sub

Full-year contract coverage

Full-year contract coverage

Full-year contract coverage

19

Core Competitiveness

Enhanced Industrial Market Share

New Competitive Framework

• Massive investment expenditure on oil and gas industry

• Slow recovery at industry level

New Operation Model

• Optimize growth dimensions• Restructure Asset structure• Leading in Prudent cost

management• Implement differentiated

and diversified development

New Emerging Markets

• Domestic + InternationalFocus on domestic market + expand global footprint

• Offshore + OnshoreExpansion of the offshore market + seizing for onshore business opportunities

• Traditional Needs + Elevated Service