Citigroup has issued a research report stating that management of CHINA OILFIELD (02883) indicated the company has three JU rig units in Saudi Arabia and two JU rig units in Kuwait, clarifying that these five units are currently not experiencing any operational impact. Due to ongoing geopolitical conflicts, three out of 23 drilling equipment units in Iraq have suspended operations. Management also emphasized that although geopolitical events have introduced short-term volatility for CHINA OILFIELD, the company's long-term strategy to expand internationally remains unchanged. The bank raised its profit forecasts for the company by 5% for the current year and 2% for the following year. Its target price has been increased from HK$9.5 to HK$11.6, based on a projected price-to-book ratio of 1 times, which is one standard deviation above the historical average. The rating is "Buy". Regarding well services, management expressed confidence that by leveraging its integrated operations and securing more overseas contracts, CHINA OILFIELD can enhance revenue, order volume, and profitability in this business segment. Despite ongoing cost pressures from CHINA OILFIELD, the bank expects that the company's efforts to diversify its customer base and market revenue structure, particularly in the well services sector, will gradually alleviate this pressure and lead to improved margins.