A.Management system for scientific and technological development

1.A hierarchical management system has been established: One efficient management structure with a “Decision-making level – innovative entity level”.

2.A project management system for scientific and technological development. A two-level project initialization and management system consisting of ZhenHua Oil’s headquarters and project companies has been implemented, forming a completely connected system of “Headquarters controlling the whole process from project initialization and reasoning through to supervision and organization, with research entities executing research assignments for projects and developing innovative findings, while overseas project companies put research findings into practice through field tests and practical application.”

3.An incentive mechanism for scientific and technological development. Rewards and incentive methods have been set for progress in scientific and technological development in order to promote the sustainable and harmonious development of oil/gas exploration and production.

B.R&D Platform

1.Chengdu North Petroleum Exploration & Development Technology Co., Ltd. (Chengdu Research Center)

Chengdu North Petroleum Exploration & Development Technology Co., Ltd. is an integrated platform that combines ZhenHua Oil’s proprietary technologies, technical innovations and technical resources. It aims to satisfy the demand for the rapid development of the upstream by building a multi-disciplinary, strongly functional and richly experienced technical research team. Taking advantage of Chengdu’s unique geographical position and talent pool, it will fully improve the technical capacity of ZhenHua Oil and provide technical support for oil and gas exploration and production projects.

2.Carbonate Research Center

Jointly founded by the Al-Waha Petroleum Company Ltd, the Chengdu North Petroleum Exploration & Development Technology Co., Ltd., USA’s Quantum Reservoir Impact (QRI) and the Chuanqing Geology Research Institute, the Carbonate Research Center formally began operations in 2014.

Presently the Carbonate Research Center mainly provides technical support for Iraq’s Al-Ahdab Oilfield, including research on reservoir characteristics and comprehensive geology, the evaluation and summarizing of development experience and lessons for similar reservoirs, the quarterly analysis and evaluation of the execution of development plans and production status, evaluation of reservoir engineering tasks proposed in the FDP program, drilling and completion plans, provision of practical solutions for onsite technical issues and onsite technical support, and so on.

C.Science and Technology Information Systems

1.The establishment and continuous improvement of an E&P database, provides a platform for oversight and application based on “management, scientific research, and production dynamics”, and generates timely feedback and adjustments.

2.It has introduced internationally advanced oil and gas E&P research software and oil and gas field digital mapping software. The multi-disciplinary, interactive and coordinated work platform has been established to improve research efficiency.

3.It focuses on the gathering of scientific information, strengthens communication and cooperation with domestic and international organizations on possessing advanced technologies, accelerates introduction of advanced technologies and improves its ability to integrate and apply these technologies.