We are fully aware that science and technology is essential to sustainable development of oil and gas resources. Therefore, we have long been pursuing technological progress in the field of oil and gas exploration and development, exploring new oil and gas resources and expanding the reserves of existing oil and gas fields, thus realizing sustainable succession of oil and gas reserves. We endeavored to raise the level of utilization of oil an d gas resources and maintain steady oil and gas output.

In 2009, Sinopec won the national top science and technology award for its proprietary naphtha catalytic reforming plant technology. The same year, many other technological achievements of the company were crowned with national awards for scientific and technological progress, including “EOR technology through highly efficient binary drive”, “development and application of drilling techniques for structurally complex wells at Shengli Oilfield”, “high-speed rolling bit and vibration screen development and application based on deep-well drilling stem dynamics”, and “non-planar fracturing technology for considerable increase in oil and gas output and its industrial application”.

Thanks to significant theoretical and technological achievements made in offshore oil and gas exploration, Sinopec discovered Puguang Gas Field, the largest and most abundant self-contained marine phase offshore gas field in China. Rapid growth of proven natural gas reserves was effectively supported by further implementation of key exploration technology for large-sized gas fields in northeast Sichuan Province, resulting in cumulative proven natural gas reserves of 498 billion cubic meters. In 2007, Sinopec won the national top science and technology award for its deep marine phase carbonate--gas-reservoir formation mechanism and exploration technology and the discovery of Puguang Gas Field. Sinopec constantly develops key technologies for improving the production capacity of Puguang Gas Field and for Sichuan-East China gas transmission project in order to ensure the project is successfully completed. This project was put into operation in late 2009.

In order to provide more energy sources, Sinopec worked hard to improve resource utilization through technological progress and delicacy management practices, so hard that Sinopec people describe such efforts as spooning out oil from underground. Over the past decade, Sinopec increased recovery ratio by 0.3% and added 10 million tons recoverable reserves each year at Shengli Oilfield, the largest and most geologically complex productive oilfield in China. This is equivalent to discovery of another giant oilfield with 300 million tons of high-quality reserves.