Final acceptance of the Atlantis Deepwater Concept

Using the system for the first well is decided and ADTH has together with China Oilfield Services Ltd agreed to establish a Joint Venture Company that shall take care of the market in Asian Rim and in Australia

Atlantis Deepwater Technology Holding (ADTH) and China Oilfield Services Limited (COSL) have today signed a shareholder agreement for the establishment of a Joint Venture company called Atlantis Deepwater Orient Limited (ADOL) and for COSL to take the Atlantis Concept into practical use on the first well.

ADTH and COSL will each own 50% each of the new company which has its operating office in Shenzhen , China . ADOL will market and commercialize the Atlantis Deepwater technology in the Asian Pacific countries and Australia .

The Atlantis Deepwater technology is a novel concept for deep water exploration drilling and field development. Drilling units, not specially made for deep water operations, can by the use of Atlantis Deepwater Technology operate in deep and ultra deepwater, without modifications on the rig.

ADOL will complete the first Atlantis System during the third quarter of 2007 and COSL has placed the order for the various tieback components, which is required for the first well. COSL will further mobilize their semi submersible drilling rig, “Nan Hai V” for the first well using the Atlantis Deepwater Technology. The drilling campaign is planned to be perforemed during the 3 rd quarter of 2007.

This is considered as a break through for the Atlantis Deepwater Technology and the partners believe that the full scale demonstration of the Atlantis Deepwater technology will be closely watched by the oil industry operating in the deep water area.

About COSL

China Oilfield Services Limited is the leading integrated oilfield services provider in the offshore China market. Its services cover each phase of offshore oil and gas exploration, development and production. Its four business segments are drilling services, well services, marine support and transportation services and geophysical services. COSL has been listed on the Main Board of the Stock Exchange of Hong Kong Limited since November 20, 2002 . Since March 26, 2004 , COSL's stocks can be traded by means of Level I unlisted American Depositary Receipts at OTC (over-the-counter) market in the United States .

COSL operate 15 drilling rigs, including 11 jack-ups and three semi-submersibles while operating one leased jack-up rig. In addition, COSL owns and operates the largest and most diverse fleets in offshore China , including 68 support vessels and five oil tankers, one chemical vessel, seven seismic vessels, and four geotech survey vessels. It also has a vast array of modern facilities and equipment for logging, drilling fluids, directional drilling, cementing, well completion and well work-over services.

The majority of COSLs business activities are conducted offshore China , with the other activities extending to different regions of the world such as North and South America, the Middle East, offshore Africa and offshore Europe . COSL and its worldwide employees are dedicated to providing premier quality services, while adhering to the highest health, safety and environmental standards. COSL has obtained the ISO 9000 and ISM (International Safety Management) certifications. COSL also plans to obtain certifications under the ISO 1400 0 environmental management standard as well as the OSHA 1800 0 occupational health and safety standards.

About ADTH

ADTH has all rights related to the Atlantis Technology and have since 2000 been developed the concept for practical use for the offshore industry.

Among the ADTH shareholders are the Ship owners Jan Olaf Tønnevold and Andreas Ugland in Grimstad and the New York based Drillinvest, in addition to Statoil and AkerKvaerner.

When now this first well campaign is in progress ADTH will also step up its marketing also outside the Asia Pacific and Australia regions.

For further enquires, please contact:
Mr. Chen Weidong CEO
Tel: 86-10-845 2168 6
Email: chenwd@cnooc.com.cn

For further enquiries, please contact:
Atlantis Deepwater Technology Holding AS
Mr. Arne Johansen, President
e-mail: aj@atlantis-norway.com
telephone: +47 3729 2825

Atlantis Deepwater Orient Limited
Mr. Jan Vervik, President
e-mail: jv@atlantis-orient.com
telephone: +86 1382 8750553

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