Page 12 - CPC 2018 Annual Report

10 CPC Corporation, Taiwan 2018
UPSTREAM
OPERATIONS
EXPANSION OVERSEAS DRIVES STRATEGY: EXPLORATION AND M&A ARE DUAL PATHS TO PROGRESS
EXPLORATION AND PRODUCTION: OVERSEAS IS KEY
Taiwan has only very limited energy resources of its own and depends on imports for almost all its fossil fuel needs. CPC has therefore focused on achieving more effective expansion of its upstream operations by acquiring and developing its own reserves – and ramping up production at sources abroad – to help stabilize the supply of oil and natural gas into the domestic market and so ease the impact on the public of global price fluctuations. This development has taken place in the context both of the government’s policy for strengthening Taiwan’s energy security mechanisms and of promoting international cooperation in energy- related matters.
In order to improve its overall strategic positioning and stay in alignment with the corporate philosophy of ‘active expansion, focused development’, CPC has adopted exploration strategies aimed at gradually increasing its ratio of self-owned and self-controlled energy reserves within the full sourcing range. Achieving this means, in summary: expanded development of overseas resources while exploiting the indigenous ones to their maximum capacity; boosting exploration activity through both M&A and joint-ventures; and the training and retention of talent – an important renewable resource, and one essential to success.