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China National Offshore Oil Corporation (CNOOC) announced Wednesday that its holding company China Oilfield Services Limited (COSL) has signed a contract to provide drilling services for a Malaysia-based oil firm.

 

According to the contract with Genting Oil and Gas Limited (GOGL), Nanhai II, COSL's semi-submersible drilling rig, will operate in the Natuna Sea of Indonesia.

 

The drilling rig is scheduled to leave Singapore and arrive at the designated location at the end of June.

 

Operations will commence in July and the contract is expected to be completed in October.

 

GOGL will be responsible for the mobilization and demobilization costs, and operation fees will be charged on day-rate basis, according to the contract.

 

Soaring international oil price in recent years have resulted in an increase in the price of oilfield services.

 

This contract will contribute significantly to the COSL's overseas operations, and accelerate the achievement of the company's overseas expansion goal for 2006, said a senior executive with COSL.

 

(Xinhua News Agency June 29, 2006)