CHINA OILFIELD (02883) announced that the company will convert its debt claim on COSL Norwegian AS, due by August 31, 2025, into an equity investment, with the converted debt amount totaling $746 million. COSL Norwegian AS is a wholly-owned subsidiary of COSL Singapore Limited (CSL), which is itself a wholly-owned subsidiary of the company's fully-owned entity, COSL Hong Kong International Limited, and is responsible for business operations in the Norway region. As of the date of this announcement, CSL holds a 100% equity stake in COSL Norwegian AS.

The company intends to convert its debt claim on COSL Norwegian AS, due by August 31, 2025, into an equity investment and will sign a debt-to-equity swap agreement with COSL Norwegian AS. The debt amount to be converted is $746 million, comprising a principal of $648 million and interest of $97.845 million. The conversion price is set at NOK 1.00 per share, resulting in the issuance of 7.533 billion shares. Upon completion of this investment, the company and CSL will hold 83.02% and 16.98% equity stakes in COSL Norwegian AS, respectively.

Confronted with a complex and volatile international landscape and industry environment, the company is deepening its presence in the Norwegian market as a key initiative, continuously implementing its five major development strategies, including "internationalization" and "regional development," to consolidate and enhance its core position within its overseas strategic layout. Investing in COSL Norwegian AS through a debt-to-equity swap is conducive to optimizing the subsidiary's asset-liability structure, improving its overall strength and comprehensive competitiveness, streamlining corporate management layers, and enhancing management efficiency.

This move will further advance the company's business development in Norway, aligning with its long-term development objectives and the interests of its shareholders. Following the implementation of this investment, COSL Norwegian AS will remain a wholly-owned subsidiary of the company, and the scope of the company's consolidated financial statements will remain unchanged. The investment is not expected to have a material impact on the assets, liabilities, current revenue, or profit at the consolidated statement level, nor will it significantly affect the company's financial condition or operating results.

It does not constitute a major asset reorganization, and there are no circumstances that would harm the legitimate interests of the company or its other shareholders.