Taipei, May 12, 2008 (CENS)--After CPC chairman Pan Wen-yen visited China in April, CPC Corporation, the state-run oil firm in Taiwan will again talk with CNOOC (China National Offshore Oil Corp.) about joint oil exploration, and at the same time tie up with Sinopec (China Petroleum and Chemical Corp.) to explore oil fields in Ecuador and Australia.

Pan said CNOOC has proposed to work with his company to jointly invest US$10 million to drill for oil in China. The agreement between CPC Taiwan and CNOOC proposes to begin drilling by the end of May or early June.

Pan noted that CPC Taiwan would work closely with Sinopec to explore an oil field in Ecuador and Australia.

CPC Taiwan has acquired 30% stake to explore the No.17 oil field in Ecuador, which Sinopec in China has also done recently through its subsidiary-SinoCom, by buying the stake from the original owner, the Canada-based Encana Co.

Moreover, CPC Taiwan has the same right as Sinopec to explore the ACP21 oil field in Australia.

Pan said that China has unique skills in oil exploration. He said he has won promise from China`s top-three oil companies to jointly explore for oil overseas that may target African nations.

Bilateral trade between CPC Taiwan and Sinopec has so far reached NT$20 billion (US$657.89 million at US$1:NT$30.4) per year, with both sides to expand cooperation in the near future.

Pan noted that the world`s top-three international petrochemical groups have invested in China, whose top-three petrochemical groups have accumulated top-notch skills and ample operating capital. Accordingly, CPC Taiwan will seriously consider further developing business in China.

As China`s top-three petrochemical groups have set up units to further cooperation with CPC Taiwan, Pan said that he has instructed setting up investment departments to prepare for business in China; however CPC`s China-targeted investment plans have yet to be approved by its board of directors.
(by Ben Shen)