Oil and Gas E&P

We intensified risk exploration in deep ground and shale oil and gas blocks, strengthened exploration with integrated evaluation in oil and gas rich zones, actively maintained and expanded mining rights, and achieved 4 major breakthroughs, 9 important breakthroughs, and 18 commercial discoveries, exceeding the annual reserve targets. Oil Exploration. A major breakthrough was made in the exploration of ultra-deep oil and gas in the new zone in the central part of Shunbei, Tarim Basin, with newly increased possible oil and gas reserves of 25.08 million tonnes and 144.2 billion cubic meters respectively. A major breakthrough was made in the new field of oil exploration in the complex piedmont belt in the northwest margin of the Junggar Basin, with an increase of 30.63 million tonnes of possible reserves. Significant breakthroughs were made in the exploration of oil and gas in the new Jurassic strata in northern Sichuan, with new possible oil reserves of 8.26 million tonnes and gas reserves of 72.1 billion cubic meters. We continued promoting the construction of National Demonstration Zone of Shale Oil in Shengli Jiyang, with the discovery of three 100 million-tonne shale oil fields including Xinxing, Xinfeng, and Xinhe. Significant breakthroughs were made in the exploration of shale oil in the Fu'er section of the Subei Basin, and the results of shale oil exploration in Fuxing continued to expand.

Refining Operations

In 2023, the Company processed 258 million tonnes of crude oil, up by 6.3%, and produced 156 million tonnes of refined oil products, increased by 11.3%. We firmly grasped the new connotation of "green and intelligent" development for production, focused on the development direction of "world-class, high-tech, and integrated" for refining business, seized the favorable opportunity for market recovery, adhered to the coordinated optimization of trade, storage and transportation, and production, and promoted continuous efficiency and profitability in refining. We closely traced the market demand changes, enhanced the benefits calculation of the entire refining and sales industry chain, flexibly adjusted processing loads, and continuously optimized product structure. Following the market, we promoted the transformation of oil to specialty, accelerated the technological research and development of special oil products and specialty products such as biphenyl and isononanoic acid. We consolidated new energy development. The first integrated hydrogen production and sales "mini-pipeline network" project was completed and put into use. Hydrogen supply centers were established in 11 subsidiaries. New breakthroughs were made in the large-scale production of bio-jet fuel.

New Energy Development and Utilization

In 2023, we continued to vigorously advance the development of new energy businesses, guided by the goals of the "14th Five-Year Plan". Efforts were made to continually improve the business framework of "4 Supplies and 2 Integrations", aiming to establish a diverse system for supplying green energy and ensuring the orderly implementation of various initiatives. Progress in the hydrogen energy industry remained steady, with wind and solar power capacity surpassing 1,000 megawatts. Construction of charging and battery swap facilities was completed ahead of schedule to meet the targets set in the "14th Five-Year Plan", while maintaining a leading position in clean heating.