Significant Technological Development

In 2017, the company carried out the innovation-driven developmentstrategy in depth, giving high priority to R&D and following the basicprinciples of development-orientation, deepening reform, strengtheningincentives, open-up and coordination. We focused on the supplysidestructural reform, continued to deepen systematic reform of R&Dmechanism, sped up research on key technologies, reinforced study oncutting-edge technologies and new areas, so as to increase the capacity tosupport and guide the company's businesses.

We continued to enhance the problem-oriented approach, and madenew breakthroughs on key technologies. In E&P, we further developed theevaluation and exploration technology for deep carbonate and shale gas,which supported the scale up of deep shale gas resource in Shunbei oilfieldand South Sichuan, leading to breakthrough in new formations in SichuanBasin. We also improved the natural depletion reduction technology forTahe fracture-cavity carbonate reservoir which effectively reduced depletionrate. In refining, we realized long cycle and full load operation of ebullitionbed residue hydrogenation demonstration plant, and completed industrialtest of solid super-acid catalytic technology for C5 and C6 isomerization.In chemicals, we achieved stable operation of syn-gas to ethylene glycoldemonstration plant and successful start-up of long chain dicarboxylic aciddemonstration facility.