China Oilfield Services Limited received a sudden notice from the customer in the Middle East to suspend the operation of four drilling rigs, and the Company is negotiating with the customer about the specific time for suspension, follow-up arrangement and corresponding solution. During the suspension period, the Company will proactively seek for suitable market opportunities in a simultaneous manner. The Operation Suspension will have certain impact on the original business expectation of the Company in the Middle East, and the specific impact is still under further evaluation.

The Board of the Company believes that although the Operation Suspension will pose a short-term challenge to the Company's development in the Middle East, there is no material impact on the overall business and financial position of the Company. The Company remains optimistic about the overall development of the overseas operation. The Company anchored the goal of building a world-class enterprise, thoroughly implemented the five development strategies of "technology-driven", "cost leadership", "integration", "internationalization" and "regional development", coordinated and promoted the work of production and operation, corporate governance and reform and innovation, continued to create a new situation of high-quality development and constantly created value for shareholders.