Reference is made to the announcement of the Company dated 4 April 2024，China Oilfield Services Limited (hereinafter referred to as “COSL” or the “Company”) received a sudden notice from the customer in the Middle East to suspend the operation of four drilling rigs (the “Operation Suspension”).The operation suspension of certain drilling rigs is attributable to the adjustment to operation plans of the customers. The operation and market of other businesses of the Company are carried out on a normal basis, which did not affected by the operation suspension.

Recently, the Company has confirmed drilling rig services contracts with CNOOC (China) Limited and a renowned oil company in the Southeast Asia in respect of two of the four suspended drilling rigs (Zhenhai 6 and SEEKER), respectively. The drilling rig services contract determined with CNOOC (China) Limited is an implementation agreement under the 2023-2025 master services framework agreement entered into between the Company and China National Offshore Oil Corporation at the end of 2022 with the transaction amount being within the annual cap under the framework agreement. At present, Zhenhai 6 drilling rig has fixed the domestic well location for operation, and is expected to commence the domestic operation in late August or early September. The contract term of the SEEKER drilling rig services determined by the Company and the renowned oil company in the Southeast Asia is three years, and the agreed timing for commencing operation under the contract shall be from 15 December 2024 to 15 January 2025.

The Company has thoroughly implemented the strategy of internationalization and regional development, strengthened efficient resource allocation and close business connection, continuously released the value-added potential of equipment, constantly created a new situation of high-quality development and created greater value for shareholders.