The Group’s further deepened research efforts in oil and gas exploration theory produced more and more results. The research on large gas field exploration objective and key technology in north east area indentified the distribution rules of premium reservoir, and set up different deposition modes of reef and bank, which strongly supported rapid growth of natural gas proven reserve. The research on key technology of Puguang gas field capacity building produced 6 innovative results and 8 key technology serials including the evaluation and predicting technology of reef and bank phase reserve formation, high sulfur gas reserve exploration technology and 6 innovation results, providing technical supports for Puguang gas field capacity building. Research on water flooding development technology for major oil fields identified time change character of physical property of reservoir fluids and reservoir rock of typical high permeability sandstone and rules of change in viscosity of crude oil at different water-cut stage, optimized well network unit indicator and consolidated the foundation of unit stabilized production. Super heavy oil reservoir steam flood pilot experiment has produced highly effective steam flood process which has been used to recover in trial oil of 38.5 k tons. The research on exploration and recovery rate increase in Tahe oilfield has caused the constant expansion of reserve scale and constant increase of oil production. In addition, the Group newly established two directly affiliated research institutes, i.e. research institute of petroleum engineering and geophysical research institute in order to intensify the research on petroleum engineering technology and geo-physical technology.

New progress was made in oil product qualification up-gradation technology and processing depth increasing technology. Super low pressure continuous reforming technology was commercialized successfully. The Group has been able to built large-sized modern refineries totally relying on technologies with its independent IPR. Different sizes of S-Zorb FCC gasoline absorption and desulfurization equipments were put into production successfully in a batch of subsidiaries. Selective hydrogenation gasoline desulfurization technology was commercialized in a batch of subsidiaries. These two technologies provided guarantee for the up-gradation of oil products quality. Commercialization of SJ gasoline engine oil of two viscosities and CF-4 10W-40 diesel engine oil improved the technological level of high profile internal combustion engine oil. The Group completed the development of process package of commercial demonstration facilities of 50 thousand tons/ year biodiesel.

New progress was made in the development of complete sets of petrochemical technology. The whole set of technology of 50 thousand tons/ year production of hexene-1 by tri-polymerization of ethylene has achieved independent innovation in the aspects of catalytic system, reactor model design and control, quality control so that the whole set of technology reached international level. The whole set of gas phase polyethylene technology has achieved successful commercialization which further increased the technical strength of its chemical business. Based on resin structural characterization and molecule structure design, the Group successfully developed the technologies of specialty PE for gas pipe and direct production of auto bumper specialty material from polymerization equipment with both the technologies reaching batch production capacity, which facilitated product mix adjustment. The Group successfully developed the whole set of high performance polyethylene fiber technology, and built 300 tons/ year pilot production facility with all the performance indicators of its products reaching international level.

New progress was made in energy conservation and emission reduction technologies. The research on water saving and emission reduction technology for chemical system produced 40 items of technologies including the one of increasing concentration times of circulating water for water treatment chemicals and the one of biological aerated filter waste water treatment and recycling and these technologies took obvious effects in water-saving and emission reduction. The Group developed clean fuel coal production technology with low energy consumption and low emission. by using the low valued products like petroleum coke from the refinery facilities to provide electricity, steam and hydrogen to production facilities so that the carbon emission was reduced at the source. The Group adopted 10 items of domestically advanced energy-saving new technologies, new equipments and new materials of heating furnace and integrated the heating furnace with demonstrative refining facility so as to form a whole set of energy-saving technology of refining heating furnace.

New progress was made in the expansion towards renewable and new energy area. New breakthroughs were made in thousand ton level of molecule sieve manufacturing technology for methanol-to-low carbon olefin, GTL and syngas to glycol technology, which consolidated the combination of petrochemical and coal-based chemical technology and provided technical foundation for the Group’s strategic development.