Jan 2019

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

Industrial Recovery

Gradual increase in oil prices Huge cost reduction for oil and gas E&P

Source: IHS Report, data as of 6 December 2018 Source: IHS Report

Constant increase in CAPEX ofglobal upstream E&P

YOY increase in CAPEX of global upstream oil and gas companies

Source: IHS Report, data as of 6 December 2018 Source: Bloomberg, data as of 4 January 2019 3

Unit：USD Billion

0.0

5000.0

10000.0

15000.0

20000.0

25000.0

30000.0

XOM SHELL BP CVX TOTAL STO

2017A 2018E 2019EUnit：USD Million

408472

0

100

200

300

400

500

600

700

800

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E 2020E

Domestic Opportunities

4

Source: Barclays Report

China's energy consumption structure Three major oil companies investment

Source: National Bureau of Statistics

348.0

438.3469.0

Oil and gas continue to make up a large proportion

Proportion of clean and renewable energy will increase

China will increase E&P activities to ensure energy safety

Three major oil companies will increase investment continuously in E&P of oil and gas

Renewable energy

14%

Oil and gas

26%

Coal

60%

2017A 2018E 2019E

26%

7%

Unit: USD 100 million

5

Source: CNOOC Limited

CNOOC's domestic exploration CAPEX increasing CNOOC's key projects in 2019

Source: CNOOC Limited

In 2019, CNOOC's CAPEX is expected to increase by 11%~27% compared with 2018E

CAPEX in China will increase substantially in 2019

Enhanced efforts on exploration, domestic exploration accounts for a high proportion of total investment

In line with the low-carbon development trend in global energy industry, CNOOC actively explore the offshore wind power industry

CNOOC's CAPEX in 2019

Qinhuangdao 33-1S oil field

Bozhong 19-6 gas field test area

Nanbao 35-2 oil filed S1 area

Luda16-3/21-2 oil field

Caofeidian 6-4 oil field

Luda 29-1 oil field

Liuhua 29-1 gas field

Hokchi oil field

Liza oil field Phase I

LLSW project

Tangguh Phase II project

Buzzard oil field Phase II

Mero oil field

…

~12.0

6.2

8.0

10.0

Drilling rigs utilization rate: outperform Global drilling rig day rate: hover at low level

Vessels utilization rate: outperform Seismic vessels utilization rate: outperform

Source: IHS Report, data as of December 2018

Source: IHS Report, data as of December 2018 Source: IHS Report, data as of October 2018

Source: Clarksons Report, data as of November 2018

COSL Actively respond to Challenges

6

COSL 3Q 2018

COSL 3Q 2018

COSL 3Q 2018

Industrial Reorganization and Consolidation

7Source: Bloomberg and relevant news reports

Year: 2018

Newcomers:

Borr Drilling, ARO, Northern Drilling

Bankruptcy or restructuring :

Hercules, Vantage, Seadrill, Pacific

The merger will be completed in

the first half of 2019

Take stakes

8Source: companies reportsBenchmarking companies: Baker Hughes , Halliburton, Schlumberger, Weatherford, Transocean, Ensco, Noble, Diamond Offshore Drilling,

Rowan

3Q18 Results of International Companies

Absolute Net Profit - 3Q 2018

YOY Change in Revenue - 3Q 2018

1,599.00

992.00

64.00

-38.13 -101.00-333.00 -433.50

-708.00 -852.00

-1,754.00Oilfield

serviceC

Oilfield

serviceB

Oilfield

serviceA

COSL DrillingD DrillingE DrillingB Oilfield

serviceD

DrillingC DrillingA

Unit：USD Million

2019

Development Direction for 2019

9

To pursue technological and international development,

COSL will leverage on the synergies and cost advantages.

Domestic market: Seize opportunities

of market and clean energy operation

International market: Selectively enter

and expand business in overseas markets

Technological innovation: Cover

traditional fields and increase application

for renewable energy

Service upgrade: Provide a completely

service solutions covering multiple

energy fields

i

Projects secured

1H2018 2018E 2019E

Overseas Domestic

No

te: it is a

schem

atic d

iag

ram

10

Increase in Production Capacity of Equipment

Adequate workload for seismic vessel

Five new rigs in 2019

2 jack-up rigs, 3 semi-submersibles

4 chartered rigs, 1 self-purchased rig

Operation volume of submarine cables in Bohaiwill increase and multi-client business

will generate sales revenue

Vessels utilization rate to remain stable in 2019

55

3528

71

Vessels utilization rate for 1H 2018: 89%

4

10

5

Seismic vessel Survey vessel

Number of vessels

34

12

36

15

Jack-up rigs Semi-submersibles

1H 2018 2019

Corporate Development Backlog

11Source: Company's annual report and Spears Report, data as of 2017

Unit: USD billion

Cementing NO.3 Wireline Logging NO.6 Directional Drilling NO.6Drilling & Completion

Fluids NO.8

324.04

270.92 291.60

353.40

396.38 426.43

464.75

336.19

225.86 237.97 261.99

282.64

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

0.00

100.00

200.00

300.00

400.00

500.00

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019E

Size of global oilfield service market(Left axe) Market share of COSL's technology segment(Right axe) Market share of COSL's equipment segment(Right axe)

Acceleration of Technological Innovation

12

Provide a completely highly-efficient and low-cost drilling & completion solutions

Enhance oil recovery and productivity of heavy oil, low permeability and marginal oilfield

Overcome exploration and development challenges in severe operation environment

Diversify types of service to accommodate changes of global energy landscape

Well completion& production enhancement

Cementing & drilling mud

Loggingservice

& directional

drilling

Geophysical surveys for oil reserves

Well Drilling &

completion

Development & exploitation

Exploration

Integrated solution

An integrated oilfield services provider for multiple energy resources with international competitiveness

Exploration for marine wind power industry

Deep-water exploration of new energy

Wireline logging for thermal wells

Operation for hot dry rock wells

13

Domestic Market Opportunities

CNOOC to increase explorationand development of oil and gas

Bohai Bay: Maintain stable and increase operation

South China Sea: Onshore and deep water operation

New energy business:

Unconventional operation

Environmental protection:

new energy construction, EPS

waste disposal

23

5

26

8

Jack-up rigs Semi-submersibles

1H 2018

2019E

Cover both offshore and onshore marketsAdjusted equipment capacity in expectation of an increased work volume in 2019

Domestic Rig Operation Status

14

Type Drilling Rig2019

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

Jack

-up

23 Jack-ups Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Oriental Dragon

Superior

Force

Sem

i-sub

NH2

NH5

NH6

NH7

KT4

HYSY981

HYSY982

SS A

Mob/DemobOperation Repair Stand-by

Remarks: Data up to 10 Jan 2019. Operation status may be changed due to some projects are in the biding stage.

Economies of Scale in Overseas Markets

15

Middle East

Europe

Pacific Asia

Far East

America

Africa

Increase the proportion of technology sectors, speed up serialization and industrialization of products

Set clear goals to achieve economies of scale in overseas markets and increase revenue

Middle East

• Strive to introduce more rigs to market

• Follow progress of Missan Oilfield

Pacific Asia

• Reinforce presence in Indonesia, Malaysia, Thailand

and Myanmar

America

• Consolidate business in Mexico and strive for other

cooperation

• Pay attention to deep-water projects globally

Africa

• Establish footholds in Africa through Uganda project

and Cameroon project

• Focus on business opportunities from Senegal and

Nigeria

16

Key Overseas Markets for 2019

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

Establish footholds in Africa throughUganda project and Cameroon project, andincrease revenue from Africa.

Actively identify business opportunities andincrease leasing rate of semi-submersibles;

Focus on general services projects, enhanceintegrated services, enter the high-endmarket.

Closely follows market opportunities in Iraqand other projects;

Step up market expansion and strive tointroduce more rigs to market.

Europe

Middle East

Africa

17

Type Drilling Rig2019

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

Jack

-up

Confidence

Strike

Gift

HYSY943

Hunter

Craft

HYSY936

Power

Boss

Seeker

Sem

i-sub

Pioneer

Promotor

NH9

Prospector

NH8

NH10

Innovator

Overseas Rig Operation Status

Mob/DemobOperation Repair Stand-by

Remarks: Data up to 10 Jan 2019. Operation status may be changed due to some projects are in the biding stage.

Technological Assurance

18

Support international expansion, reduce development costs

Cover offshore and onshore markets

High-end logging

technology meets needs of

global mainstream markets

Expand unconventional

business capabilities

through technological

upgrades

Operation opportunities

Develop advanced LWD

and rotary steerable

systems

Achieve breakthroughs in

technologies for drilling &

completion fluids,

cementing and production

enhancement

Improve technology and operation for difficult works

Technological application

Accelerate industrialization and commercialization

Servicecompetitiveness

Enhance technological

acquisition and speed up

R&D by making use of

intelligent resources across

the world

Improve commercialization

system and relevant

support to shorten

commercialization cycle

19

Steady Financial Situation

Capital Expenditure

Source: Bloomberg and rating reports

Focus on cost management in 2019

Unit: RMB

Remarks: long-term unamortized expenses excluded

2019E2016

3.5-4.5b

2017

2.5b

2018E

2.5b ~3.0b

Material consumption

Depreciation

Subcontracting

Leasing

Repair costs

Other

Strict control the cost increase caused by the increased workload

Structural cost reduction• Institutional reform• Management process optimization• Boosting labor productivity

Companies Middy's S&P Fitch

4 m

ajo

rs oil co

mp

an

ies

Schlumberger A1 （Stable） AA-（Neg.） -

Halliburton Baa1（Stable） A-（Stable） -

Baker Hughes A3（Stable） A- (Stable) -

Weatherford B3（Neg.） B-（Neg.） CCC

COSL Baa1（Stable）BBB（Positive） A（Stable）

Offsh

ore

drillin

g

Diamond Ba2（Neg.） B（Neg.） -

Ensco B2（Neg.） B-（Neg.） -

Noble Caa1（Stable） BBB（Stable） BBB-（Stable）

Rowan B3（Neg.） B（Neg.） -

Transocean B3（Neg.） B-（Neg.） B+（Neg.）

Seadrill B1（Stable） CCC+（Stable） -

20

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