Oilfield services giant aims for tax cut

China Oilfield Services Ltd (COSL), which dominates the mainland's offshore oilfield services industry, may see its corporate tax rate fall to as low as 15 per cent this year from 33 per cent, chief operating officer Yuan Guangyu said.

The company has applied to the Science and Technology Commission of Tianjin High-Tech Zone, where it was registered, to qualify as a 'high and new technology enterprise'.

The qualification, which must be audited and renewed annually, would entitle the company to a corporate tax rate as low as 15 per cent, Mr Yuan told the South China Morning Post.

'The exact tax rate will depend on the proportion of our business that will qualify as a high and new technology operation.'

The marine support and transportation operation probably would not qualify, he said. The H share's other operations include oilfield drilling, well logging services and geophysical data collecting services. COSL expected to know the result of its application by the end of this month.

The company plans this year to drill more than 200 wells, of which 160 are development wells and the rest exploration, up from last year's 123 - 66 development and 57 exploration.