China Oilfield Services to update governance, renew CNOOC service agreements

China Oilfield Services Limited (COSL) will seek shareholder approval on December 2, 2025, for a new Master Services Framework Agreement with its controlling shareholder, CNOOC, for the three years ending December 31, 2028. This agreement outlines the provision of oilfield, machinery leasing, kinetic energy, material, ancillary, and property services. Proposed annual caps for these transactions include 48,400 million yuan, 52,800 million yuan, and 57,200 million yuan for oilfield services from 2026 to 2028, reflecting anticipated business growth and a 10% buffer.

The company is also proposing amendments to its Rules of Procedure for Shareholders’ General Meeting, Board of Directors, Independent Director System, and Connected Transactions Decision-Making Mechanism. These changes align with updated PRC laws and regulatory guidelines, including the cancellation of the Supervisory Committee, with its functions transferred to the Board's audit committee.

These governance updates and the new framework agreement aim to enhance corporate compliance, streamline operations, and safeguard shareholder interests. CNOOC and its associates, holding approximately 50.86% of COSL's shares, will abstain from voting on resolutions related to the continuing connected transactions.