COSL to Acquire 100% Shares in AWO    

On July 7th, China Oilfield Services Limited (COSL, HK: 2883, SH: 601808) announced that it has reached an agreement with Awilco Offshore ASA (AWO), to launch a recommended voluntary cash tender offer for 100% of the shares of AWO. A cash consideration of NOK 85 will be offered per share, which implies a total consideration for all shares of approximately NOK 12.7 billion (approximately US$2.5 billion).
   The deal will be made by COSL Norwegian AS, a Norwegian limited liability company 100% owned by COSL. The acquisition will be financed by way of internal resources of COSL and committed external financing from banks.
   The combination of COSL and AWO would create the world's 8th largest rig fleet, consisting of 34 operated rigs (including rigs under construction) with operation and growth opportunities in most major international markets. AWO's modern high-specification rigs and cutting-edge technology for offshore drilling is a good strategic fit for COSL pursuant to its globalization and growth strategies.
   The deal is expected to close in September or October 2008 subject to the conditions of the offer being met or waived.  
   COSL, under China National Offshore Corporation (CNOOC), is a leading international integrated oilfield service company providing services to each phase of offshore oil and gas exploration, development and production. Its four core business segments are drilling services, well services, marine support & transportation services and geophysical services.