Advancing Technological Innovation to Meet Energy Challenges

For the energy industry, it is a major challenge to meet the growing energy demand while optimizing the energy mix to reduce environmental pollution. CNPC believes that innovation is the only way to cope with such a challenge. Technological innovation can improve our ability to ensure energy supply, and provide more clean, low-carbon and affordable energy resources, in order to drive the sustainable development of the company and the society.

At CNPC, we embrace innovation as part of our organizational strategy with a strong focus on business orientation, indigenous innovation, strong incentives, openness and sharing. Under this strategy, we strive to be more innovative and competitive by pushing ahead with breakthroughs in core technologies, nurturing and motivating technical talents and creating an open and innovative corporate ecosystem.

Technological Innovation System

We have further strengthened technological innovation system by introducing a multi-tier, multi-faceted R&D system to support the growth of our business units. A supporting system is also in place to secure funding, streamline processes and facilitate team building. We introduce a series of institutional frameworks for deepening reforms, regulating incentives, and motivating R&D teams and talents to provide a better environment for technological innovation.

The Company continues to consolidate its strategic alliances with international companies to promote the sharing of superior technical resources and the exchange of cutting-edge technologies. We have been partnering with domestic research institutes and universities to carry out technical research and personnel training in the field of oil and gas.

Significant Progress in Technological Innovation

CNPC intensified efforts in technological innovation and formed a batch of innovative theories and new technologies/new products with proprietary intellectual property rights. Information technology has been extensively integrated with our production and operation in the form of digital oilfields, intelligent refineries, intelligent pipelines and smart service stations etc.

Exploring new areas to increase reserves and production under complex geological conditions, in order to consolidate the base for meeting long-term growing energy demand

Developing clean energy utilization technologies to meet social demand for clean, low-carbon and efficient energy products

Enhancing energy efficiency, reducing costs, securing energy security, and improving operational reliability

· Qingcheng oil field, with over 1 billion tons of reserves discovered in the Ordos Basin.
· A 1-trillion-cubic-meter shale gas province took shape in southern Sichuan while central Sichuan saw remarkable advancement in gas exploration.
· More than 10 geological theoretical cognitions and 10 core technologies (e.g. development of extra-large conglomerate oil fields) have been formed, effectively contributing to significant breakthroughs in risk exploration.
· With regard to new energy, new progress was made in geothermal and aviation biofuel technologies.

· Smart sales: It facilitated the cross-border integration of “service + commodity + Internet + finance”.
· Oilfield services: A service platform with real-time data sharing, multispecialty cooperation and foreground-background coordination was built.
· Engineering construction: Life-cycle integrated management and control was promoted for project management.
· International trade: The Pioneer Trade Management System covered the whole trading process.

· Digital oilfield: It was configured with the Dream Cloud platform covering exploration and development, collaborative research, operation management and other businesses.
· Intelligent refinery: Its operational management control and analysis decision-making capabilities were consistently improved.
· Intelligent pipeline: It is characterized by comprehensive and unified data, perceptual interaction and visualization, system integration and interconnection, precise matching of supply and demand, intelligent and efficient operation, and predictive analytics for early warnings.

· Heavy crude oily sludge processing and comprehensive utilization technique: helping treat 103,000 tons of heavy crude oily sludge at the Liaohe Oilfield.
· Refinery waste gas treatment and VOC emission control and utilization technologies were developed, significantly improving the overall treatment capability of refinery gas and VOCs.
· The existing carbon capture, utilization and storage (CCUS) system was improved both theoretically and technically. More than 1.5 million tons of carbon dioxide was stored in the CO2-flooding demonstration project in Jilin Oilfield. The building of new demonstration projects is well underway in Xinjiang Oilfield and Changqing Oilfield.
· Applied the National Ⅵ gasoline and diesel technologies in affiliated enterprises to effectively support the Company’s oil products quality upgrading.

China National Petroleum Corporation