In 2017, the company carried out the innovation-driven development strategy in depth, giving high priority to R&D and following the basic principles of development-orientation, deepening reform, strengthening incentives, open-up and coordination. We focused on the supplyside structural reform, continued to deepen systematic reform of R&D mechanism, sped up research on key technologies, reinforced study on cutting-edge technologies and new areas, so as to increase the capacity to support and guide the company's businesses.
We continued to enhance the problem-oriented approach, and made new breakthroughs on key technologies. In E&P, we further developed the evaluation and exploration technology for deep carbonate and shale gas,which supported the scale up of deep shale gas resource in Shunbei oilfield and South Sichuan, leading to breakthrough in new formations in Sichuan Basin. We also improved the natural depletion reduction technology for Tahe fracture-cavity carbonate reservoir which effectively reduced depletion rate. In refining, we realized long cycle and full load operation of ebullition bed residue hydrogenation demonstration plant, and completed industrial test of solid super-acid catalytic technology for C5 and C6 isomerization. In chemicals, we achieved stable operation of syn-gas to ethylene glycol demonstration plant and successful start-up of long chain dicarboxylic acid demonstration facility.