Since high-tech is an important feature of the offshore oil industry, CNOOC has always insisted on the principle of technological innovation to support its future growth and has continuously improved its independent innovation capability, so as to ensure a clean, reliable and stable energy supply to the society.

Since 2004, CNOOC has implemented the strategy of technological innovation as one of its core strategies. Combined with its development strategy, the Company has closely followed the development trend of petroleum technology, adhered to the development direction of energy technology, and actively explored a technology innovation mode and a research mechanism with its own characteristics. The Company focus on technology research on critical problems in production and the key fields in future development, and has made many breakthroughs in new offshore oil exploration fields and technologies. It has enhanced its recovery ratio, marginal oilfield development, deepwater oilfield development, comprehensive utilization of heavy oil, LNG and chemical industry, alternative energy development and overseas exploration and development, giving full play to the leading role of technology in the development of CNOOC.

CNOOC has set up a technology innovation platform consisting of CNOOC Engineering Technology Center, key laboratories of CNOOC, national technology centers and postdoctoral stations. It provides integrated services through prospective research, research and development of core technologies and products, production technology support, technology imports and assimilation, and the application of new technologies. It is an important carrier for realizing CNOOC's mid and long term objectives of technology development and building a strong team of technology talent for offshore oil industry in China.

CNOOC Engineering Technology Center was set up on July 25, 2006. It comprises 8 engineering technology research institutes which are operated as entities and constitute the science and technology innovation system of CNOOC. It is an important base for conducting research for the Company's science and technology planning as well as for the national and the Company's important research programs.

As a significant part of CNOOC's science and technology innovation system, the key laboratories consist of 5 segments including recovery ratio study, geophysics, deepwater engineering, marginal oilfield development and heavy oil utilization. Their main responsibility is to solve the key technical problems hindering the long-term sustainable development of CNOOC and the major technical difficulties in production through innovative research, and to set up a core technology system with independent intellectual property rights. In 2008, sound progress had been made in the scientific research of each key laboratory.

CNOOC also owns two national technology centers. The National Research Center of Industrial Water Treatment Engineering and Technology was set up in 1994 and is located in CNOOC Tianjin Chemical Research & Design Institute, engaging in the research and development of industrial water saving technology and wastewater resource recovery technology, engineering integrated development, technical services, information, standards, and the production and marketing of water treatment chemicals and equipment. The National Coatings Engineering and Technology Research Center was approved for setup by the Ministry of Science and Technology in November 2003 and was officially put into operation at the end of 2007, mainly engaging in the research and development of coatings, the synthesis of resin for coatings, and relevant technical products including paints. This also involves the quality supervision and testing of coatings and the development and revision of standards for coatings and paints.

Since the new century, CNOOC has successively set up 3 postdoctoral stations. As an important part of CNOOC's research and production as well as technology innovation, the postdoctoral stations provide training for high-level talent in order to meet the requirements of science and technology.

With continuous increase in its independent innovation capability and the improvement of its science and technology innovation system, CNOOC has made fruitful achievements in science and technology. In 2008, two achievements of CNOOC were awarded the second prize of the National Award for Science and Technology Progress. So far CNOOC has won a total of 37 National Award for Science and Technology Progress.

Meanwhile, CNOOC's patent application and authorization has maintained steady growth, laying a solid foundation for the setup of its core technology system with independent intellectual property rights. By the end of 2008, CNOOC had received 423 patents in total, including 105 patents for invention.

In 2008, CNOOC began to participate in projects of the National Basic Research Program, or 973 Program, realizing new breakthroughs in the levels of scientific research. The national program on the Development of Large Oil and Gas Field and Coal-bed Methane was launched, and CNOOC obtained approval for construction of 6 projects and 2 demonstration projects. The Company made new progress in the construction of its science and technology innovation system. The Deepwater Engineering Research Center and New Energy Engineering Center jointly constructed by CNOOC and Shanghai Jiao Tong University were put into operation, and the National Laboratory of Petrochemical Industrial Water Treatment received approval for construction. With 32 subsidiary research institutes under its command, CNOOC's science and technology innovation system has begun to take shape aiming to improve production efficiency through technological progress.

In 2009, CNOOC presented the overall objective of expediting the construction of a world-class international energy company in the near future. Further strengthening the capability of independent innovation plays an important role in realizing this objective. The Company will continue its principle of innovation through independent initiatives and breakthroughs on key technologies to:

·Support the Company's future growth
·Comprehensively improve its independent innovation capability
·Perfect its science and technology innovation system
·Promote the rapid and efficient development of the Company
·Enable the science and technology innovation capability to become one of the core 
    competitiveness of CNOOC and
·Build CNOOC into an innovative enterprise.

In 2008, two achievements of CNOOC including "Safe Rapid Drilling Technology in Complex Structures in the Western South China Sea Area" were awarded the National Award for Science and Technology Progress. "New Prediction Technologies and New Exploration Breakthroughs of Paleogene Mid-deep Reservoir in the Bohai Sea" and another 13 achievements were awarded the Science and Technology Progress Award at Provincial and Ministerial Level. "Theory and Practice of Progressive Exploration and Development in the Weixi'nan trough in the Beibu Gulf Basin" and other 29 programs received the Company's R&D Progress Prize, and many other achievements received the R&D Progress Prize launched by social organizations.

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