Page 32 - CPC 2018 Annual Report

30 CPC Corporation, Taiwan 2018
R&D AND INFROMATION
MANAGEMENT
R&D DRIVES TIMELY INNOVATION - A SOILD FOUNDATION FOR CORPORATE DEVELOPMENT
CPC has always attached great importance to research and development (R&D) as being fundamental to corporate innovation and sustainability in operations. The company now has an Exploration & Development Research Institute (EDRI) in Miaoli, its Refining & Manufacturing Research Institute in Chiayi and a Green Technology Research Institute and Material Testing & Certification Center in Kaohsiung. These facilities are responsible for all research in their respective domains, with the Taipei office-based Planning Department responsible for overall R&D operations management and control.
The Exploration & Development Research Institute is primarily focused on evaluating geological and stratigraphic data and samples for their oil and gas production potential and on research into exploration methodology and drilling / extraction technology. The Refining & Manufacturing Research Institute leads in developing solutions for on-site production bottlenecks in manufacturing lubricants, other refined products and petrochemicals. The Green Technology Research Institute is concerned with technological development related to biofuels, renewable energy and green materials; and with aiding the high-value petrochemical industry promotion
policies of the Ministry of Economic Affairs, for example by assisting manufacturers with the methodology for conducting pilot production runs. The Material Testing & Certification Center's work is centered on proving the commercial potential mainly of materials derived from the hydrocarbons handled and processed by CPC in its various businesses.
CPC's research and development fees amounted to approximately NT$1.925 billion in 2017 and the results of that work are as follows:
EXPLORATION AND DEVELOPMENT
● In compiling the overall outlook for oil and gas reserves, we integrated the results of research including seismic survey interpretation, well survey data, seismic characteristics and abductive inference. In the process we discovered no less than 3 different subjects in the 2D seismic survey area that were suitable for exploration.
● Research into, and planning of, the use of hydraulic fracturing in constructing the structural sand protection in Fengshan, as a means of resolving the sand issues while also increasing productivity.