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| Article      1  | Scope      of Products and Services                                                        | 3  |
|-----------------|--------------------------------------------------------------------------------------------|----|
| Article      2  | Trading      Principles                                                                    | 4  |
| Article      3  | Pricing      Principles                                                                    | 4  |
| Article      4  | Implementation                                                                             | 5  |
| Article      5  | Rights      and Obligations                                                                | 5  |
| Article      6  | Term      and Termination      of Individual Product and Service Supply      Contract | 6  |
| Article      7  | Representations      and Warranties                                                        | 6  |
| Article      8  | Performance      of      this Agreement                                                    | 7  |
| Article      9  | Force      Majeure                                                                         | 7  |
| Article      10 | Announcement                                                                               | 8  |
| Article      11 | Miscellaneous                                                                              | 8  |
| Article      12 | Notice                                                                                     | 9  |
| Article      13 | Applicable      Law and Dispute Resolution                                                 | 9  |
| Article      14 | Supplements                                                                                | 10 |

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| 1.1 | The      products and services to be provided by COSL to the Company      include: |
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|  | 1.1.1 | exploration      services: well site survey, seismic data acquisition, seismic data      processing, exploration well operation and related technical services on      exploration well, ship tugging, transportation, provision of materials,      research on exploration techniques and other related technical and      supporting services; |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 1.1.2 | development      services: platform survey, drilling and completion well operation, related      technical services on drilling and completion; design, construction,      installation and tuning of production facilities; shipping transportation,      provision of materials, integrated research on development techniques as      well as other related technical and supporting  services; |
|--|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 1.1.3 | production      services: well workover, shipping transportation, oil tanker      transportation, provision of materials, platform maintenance, repair of      equipment and pipeline, production operations, labor services, warehousing      and storage and other related technical and supporting      services; |
|--|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 1.1.4 | management      and other ancillary services: sales agent services, management by proxy,      staff recruitment and integratedresearch. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------|

| 2.1 | With      regard to all the products and services hereunder, the particular parties      may otherwise enter into relevant contracts in accordance with the scope      provided herein. The particular parties refer to COSL, the Company and      their respective associates. The Parties agree that such relevant      contracts shall be executed based on the following general      principles: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      products and services thereunder shall be satisfactory to the other Party;      and |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | The      products and services thereunder shall be provided on a fair and      reasonable price basis. |
|--------|--------|--------------------------------------------------------------------------------------------------------|

| 3.1  | Subject      to the trading principles set out in Article 2.1 hereof, under the      prevailing local market conditions (including considerations such as      volume of sales, length of contracts, package of services, overall      customer relationship and other market factors), the products and services      under Article 1 shall be based on arm’s length negotiation and on normal      commercial terms or on terms no less favourable than those available from      any independent third party to the Company. Where such basic pricing      principles are not applicable, the following general principles and      precedence shall apply: |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | State-prescribed      price; or |
|--------|-----|---------------------------------|

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|   | (ii) | Where      there is no state-prescribed price, market prices (including local,      national or international market price);or |
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|  | (iii) | When      neither (i) nor (ii) is applicable, the cost to COSL for providing the      relevant products and services plus a margin of not more than 10%, before      any applicable taxes. |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.1 | The      Parties shall ensure and procure their respective associates to execute      such individual product and service supply contracts as are complied with      the principles and provisionshereunder. |
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| 4.2 | The      various product and service supply contracts which were entered into by      and between the Parties and their associates before January 1, 2008 and      will remain effective after January 1, 2008, shall be deemed as contracts      entered into in accordance with the provisions of this Agreement. Where      any or all of such contracts are inconsistent with the provisions of this      Agreement, they shall be amended in compliance with the provisions of this      Agreement. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3 | The      term of such individual product and service supply contracts as are      entered into in accordance with this Agreement shall not be more than      three (3) years. Where the term of such contracts is not more than three      (3) years and will expire however after December 31, 2010, the followings      shall be provided therein: "This contract shall be terminated on December      31, 2010 provided that CNOOC Limited fails to obtain the approval of the      annual caps from 2011 to 2013 for the connected transactions falling into      the category of this contract according to the requirements of the Rules      Governing the Listing of Securities on the Stock Exchange of Hong Kong      Limited (the “Listing Rules”) until December 31, 2010.” |
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| 5.1 | The      rights of the Parties include that the Parties  may |
|-----|--------------------------------------------------------------|

|  | 5.1.1 | provide      certain products and services to any independent third party provided that      a guarantee by one Party of supply of the products and services hereunder      has been made to the other Party; |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 5.1.2 | receive      lawfully payment due for products and services in accordance with the      provisions of relevant individual product and service supply      contracts. |
|--|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | The      obligations of the Parties include that the Parties  shall |
|-----|---------------------------------------------------------------------|

|  | 5.2.1 | procure      and ensure their respective associates to provide products and service to      the other Party in compliance with the standards and pricing principles      set out in this Agreement and individual product and service supply      contracts; |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | 5.2.2 | coordinate      the matters related to the aforesaid individual product and service supply      contracts under engagement by concerned parties to such individual product      and service supply contacts; |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 5.2.3 | make      relevant payment and pay service fees due pursuant to the relevant      individual product and service supplycontracts. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------|

| 6.1 | This      Agreement shall become effective from January 1, 2008 upon execution by      the authorized representatives of the Parties and shall remain in effect      for a term of three (3) years. |
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| 6.2 | If      any Party breaches any provisions of this Agreement (the “Breaching      Party”), the other Party (the “Non-breaching Party”) may notify the      Breaching Party in writing of such breach and request the Breaching Party      to make relevant remedies within the reasonable period specified; the      Non-breaching Party may forthwith terminate this Agreement provided that      the Breaching Party fails to make such remedies within the aforesaid      specified period. The Non-breaching Party reserves the right to recourse      and claim compensation and any other claims available under the applicable      laws. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3 | Any      rights or obligations of any Party having arisen out of this Agreement      shall survive the termination of thisAgreement. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| 6.4 | The      Parties agree that each Party may terminate an individual product and      service supply contract in respect of any certain or some products or      services, with at least 6-month prior written  notice. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.1 | COSL      represents and warrants that: |
|-----|-----------------------------------------|

|  | 7.1.1 | COSL      is a company limited by shares duly incorporated pursuant to the PRC laws      with independent legal person status and valid business      license; |
|--|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 7.1.2 | COSL      has obtained all the government approvals (if required) and internal      authorizations necessary for the execution and performance of this      Agreement. This Agreement shall become binding on COSL upon execution by      the authorized representative ofCOSL; |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 7.1.3 | The      execution and performance of this Agreement by COSL will not violate any      other agreements entered into by COSL or its articles of association, nor      conflict as a matter of law with other agreements entered into by COSL or      its articles of association. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 7.2 | The      Company represents and warrantsthat: |
|-----|-----------------------------------------------|

|  | 7.2.1 | the      Company is a Hong Kong company duly incorporated in accordance with the      Hong Kong law with independent legal person status and valid business      license; |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 7.2.2 | the      Company has obtained all internal authorizations necessary for the      execution of this Agreement and this Agreement shall become binding on the      Company upon execution by the authorized representative of the      Company; |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 7.2.3 | the      execution and performance of this Agreement by the Company will not      violate any other agreements entered into by the Company or its articles      of association nor conflict as a matter of law with other agreements      entered into by the Company or its articles of  association. |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.1 | Where      any transaction hereunder constitutes the connected transaction under the      Listing Rules, such transaction may proceed, as required by the Listing      Rules, only if such transaction has been exempted by the Stock Exchange of      Hong Kong Limited (“HKSE”) or approved by the independent shareholders or      has complied with any other provisions of the Listing Rules concerning      connected transactions. Such transaction under this Agreement may be      carried out on conditions that the Company has obtained the approval of      the independent shareholders or has complied with any other relevant      provisions of the Listing Rules concerning connected      transactions. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | Where      the waiver of HKSE is conditional, this Agreement shall be performed in      compliance with such conditions. |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| 8.3 | Where      the waiver for certain connected transaction is withdrawn, revoked or      voided and such transaction fails to comply with the relevant requirements      of the Listing Rules concerning connected transactions, the performance of      this Agreement in connection with such transaction shall be      terminated. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.4 | Where      the performances of this Agreement in connection with all the transactions      hereunder are suspended pursuant to Article 8.3, this Agreement shall be      terminated. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.1 | If any Party fails to perform any or all of its obligations under this      Agreement due to force majeure (“force majeure”      shall mean any circumstances which cannot be reasonably controlled,      foreseen or cannot be avoided and overcome though |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 9.2 | The      affected Party shall promptly after its occurrence notify the other Party      in writing and provide the other Party with sufficient evidence specifying      the nature of such force majeure and its duration by hand or registered      mail within fifteen (15) days. The Party who claims a failure to perform      this Agreement due to force majeure shall make all reasonable efforts to      minimize the loss or damage that may be incurred by the Parties as a      result of force majeure. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.3 | Upon      the occurrence of force majeure, the Parties shall forthwith commence      joint consultations aimed at how to implement this Agreement. After      termination or elimination of force majeure, the Parties shall immediately      resume the performance of their respective obligations      hereunder. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.1 | Unless      otherwise provided, neither Party shall assign in whole or in part its      rights or obligations under this Agreement without the prior written      consent of the other Party. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | This      Agreement constitutes the entire agreement between the Parties in respect      of its subject matter and supersedes all previous oral or written      agreements, contracts, memorandums of understanding and      communications. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3 | Should      any provision of this Agreement be held to be illegal, invalid or      unenforceable, the legality, validity and enforceability of the remaining      provisions of this Agreement shall remain  unaffected. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 11.4 | The      Parties agree that COSL and the Company will bear and pay respectively any      costs and expenses arising out of this Agreement subject to relevant PRC      laws. If relevant laws are not available, the Parties agree to equally      share all the relevant costs andexpenses. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.5 | The amendment of this Agreement shall only be valid and effective      subject to the      signing in writing by      the duly authorized      representative of the      Parties and sufficient      approval by the      Parties. If such amendment      constitutes a substantive and material amendment to this Agreement, such      amendment shall become effective provided that a notification of or      consent from the HKSE (as the case may be) and shareholders’ meeting of      the Company (if applicable) isavailable. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.6 | Unless      otherwise provided, failure of one Party to exercise or exercise on time      any right, power or privilege hereunder shall not act as a waiver, nor      shall any single or partial exercise thereof preclude any further exercise      of any other right, power orprivilege. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.1 | All      notices or other communications made hereunder by one Party shall be in      writing and in Chinese and delivered by hand, or sent by registered mail      or facsimile addressed to the facsimile numbers specified by the other      Party. Any such notice shall be deemed to have been duly      served: |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.1.1 | If      delivered by hand when signing by the intended  recipient; |
|--|--------|--------------------------------------------------------------------|

|  | 12.1.2 | If      sent by registered mail, the seventh (7th)      day after delivery (stamp date) (If the last day is a Saturday, Sunday or      statutory holiday, such date shall be postponed to the next business      day); |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12.1.3 | If      sent by facsimile, upon successful transmission by the sending      party. |
|--|--------|------------------------------------------------------------------------------------|

| 13.1 | This      Agreement shall be governed by and construed in accordance with the PRC      laws. |
|------|----------------------------------------------------------------------------------------------|

| 13.2 | All      disputes arising out of or in connection with this Agreement shall be      settled through negotiation by the Parties. If such dispute can not be      settled, such dispute shall be submitted to China International Economic      and Trade Commission (“CIETAC’) for arbitration which shall be conducted      in accordance with CIETAC Arbitration Rules in effect at the time of      applying for arbitration. The arbitration award shall be final and legally      binding to the Parties. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 14.1 | Unless      otherwise provided in this Agreement, in the  context, |
|------|--------------------------------------------------------------------|

|   | (1) | one      Party includes its legal successors;and |
|--------|-----|--------------------------------------------------|

|   | (2) | the headings of the Articles of this Agreement are inserted for convenience only      and shall not be in      legal force or affect      the interpretation of this Agreement. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2 | This      Agreement is written in Chinese. |
|------|--------------------------------------------|

| China Oilfield Services      Limited |                                                           | CNOOC      Limited |   |
|--------------------------------------|----------------------------------------------------------------|--------------------|--------|
|                                 |                                                           |               |   |   |   |
|                                 |                                                           |               |   |   |   |
| /s/      Yuan Guangyu                |                                                           | /s/      Yang Hua  |   |
|                                 |                                                           |               |   |   |   |
| By                                   | Yuan      Guangyu                                              |               | By     | Yang      Hua |   |
|                                 | Authorized      representative                                 |               |   | Authorized      representative |   |
| Title                           | Executive Director,      Chief Executive Officer and President |               | Title  | Executive Director,      Executive Vice President and Chief Financial Officer |   |

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