The R&D Strategy

Sinopec implements the R&D strategy of "Self-innovation, Key technology breakthroughs, Pioneering new technologies, Differentiation, Green and Low-carbon and Supporting the worldleading performance". Intensified efforts have been made to develop internationally advanced technologies for new energy, new materials, energy conservation and environmental protection, and by doing so, the Company not only consolidates its leading position in the emerging industries with strategic importance, but also achieves leapfrog growth. At the same time, Sinopec has persistently enhanced the technology capacity for its core businesses including E&P, refining and chemical production, and strengthened fundamental and forward-looking research to improve the indigenous innovation ability and ensure sustainable development.

R&D System

The innovation of the management mechanism is critical to technology innovation. Through internal integration and the reform of the R&D system, Sinopec has preliminarily set up the R&D management mechanism of "One entity, Three platforms, Unified planning and Integrated development". Meanwhile, with the close collaboration with our industry peers and clients, we have sharpened the R&D capabilities, achieved better research results and realized common development with our partners and clients.

Accelerating the Import of Overseas Resources

Faced with the unstable situation in the Middle East and North Africa, Sinopec has pressed ahead with the diversification of its crude import, strengthened international cooperation, explored more sources and mitigated supply risks. We have adopted multiple trade patterns, optimized logistics and transportation and expanded the gross volume of international trade, therefore guaranteeing the stable supply of oil and gas to the domestic market.

In 2011, the gross volume of Sinopec's crude trade reached 234 million tons, up by 25.8% on yearly basis. Meanwhile, Sinopec accelerated the import of overseas natural gas and signed the 6.3 million-ton/year LNG long-term procurement agreements with relevant suppliers.

R&D Achievements

Sinopec has developed a crop of internationally competitive core technologies and proprietary technologies for our businesses along the oil and gas value chain. Technology research and development has played an important role in the discovery, development and utilization of energy resources, oil product quality upgrading, optimization of chemical products mix, energy conservation, emission cut and the fight against climate change.

In 2011, Sinopec has successfully commercialized a number of world-class proprietary technologies, including MTO, PX adsorption and separation, and the liquid-facies recycling hydrorefining for diesel production. Progress was also made in the research and development of forward-looking technologies for bio-mass fuel and CCS, etc.

In 2011, Sinopec filed 4,030 patent applications, 37.2% higher year on year, with 1,352 patents granted, up by 28% year on year. The Company won 13 National Technology Invention Awards and National Science & Technology Progress Awards, including the First Prize of the National Science & Technology Progress Award for "The Research, Development and Commercialized Application of the Production Technology for High-end Products from Naphthene Base Viscous Oil". Sinopec also won the Gold Prize of the 13th China Patent Awards for "The Preparation and Application of Fully Vulcanized Powdered Rubber with Controllable Particle Diameter" and 6 China Patent Awards of Excellence.