Sorry, your browser does not support JavaScript!

About CPC

CPC Corporation, Taiwan (CPC) is the foremost energy enterprise in the Republic of China.

Read more

Vision, Mission & Core Values CPC at a Glance CPC Worldwide


Youtube E-mail


Global Operations

Home > Global Operations > Upstream Operations

Upstream Operations

Strategic positioning: domestic/international exploration and M&A

Exploration & Production


Taiwan has only very limited indigenous energy resources and depends on imports for almost all of its fossil fuels. CPC has therefore focused on doing better at expanding its upstream operations by developing its own reserves overseas – ramping-up exploration and production at source abroad - to help stabilize Taiwan’s supply of oil and natural gas and ease the impact on the public of fluctuations in their price. This has taken place in the context of the government's policy of strengthening Taiwan’s energy security mechanisms and promoting international cooperation in energy-related matters.

In order to improve its overall strategic positioning and stay in alignment with the philosophy of 'active expansion, focused development', CPC has adopted exploration strategies that aim to gradually increase its ratio of self-owned and self-controlled energy reserves within the entire sourcing range. Achieving that means, in summary: expanded development of overseas resources while exploiting indigenous resources to maximum capacity; boosting exploration activity through both M&A and partnering for progress; and training and retention of talent, an important renewable resource essential to success.


Taiwan's onshore oil & gas: ongoing development


In 2015 CPC completed 2D seismic surveys extending over 75 kms of the mid-section of the Pingtung Plain, a precise gravity survey of the Fongshan mud structures, other geological surveys covering 66 sq. km and repaired three producing wells. Production from 35 wells in southern and south-west Taiwan yielded 370 million cbm of natural gas and 9,500 kiloliters of condensate.


Oil & gas exploration offshore Taiwan


CPC is cooperating with Canada's Husky Energy in the exploration of deep-water blocks in the Tainan Basin, an arrangement that enables it both to acquire deep-water exploration technologies and mitigate the associated risks. Comprehensive interpretation and evaluation of 2D seismic data covering 5,154 has been completed and four prospective leads identified; further assessment is underway. Husky returned 25% of the contract area in December 2015 and entered the second stage of exploration.


Assessing energy potential in the Taiwan Strait and East and South China Seas

CPC has joined forces with National Taiwan University and National Cheng Kung University to serve as joint contractors to the Bureau of Mines, MOEA, for the government-mandated assessment of potentially oil and natural gas-bearing structures in the East China Sea and South China Sea. CPC has completed interpretation and comprehensive assessment of 3D seismic data covering 2,196 sq. km in the Taichao contract area and plans to drill one well in the area showing the greatest potential.


Overseas Exploration & Development


As of end-2015, CPC was engaged with international oil companies in the joint exploration of 25 fields1 in 8 countries, the operation of 1,152 producing wells; 78 new wells had been drilled and 83 existing ones repaired. That year, CPC's share of the output from 15 producing fields in Ecuador, Indonesia, Niger, and the USA was just over 5.34 million barrels of crude oil and 300 million m3 of natural gas. Included in that total were both conventional and unconventional fuels, such as heavy fuel oil, coal bed gas and tight (shale) gas; ultra-low pressure yield increase methods and other yield enhancement technologies were employed to lift large volumes of high-quality hydrocarbons.

*Note 1: As of the end of May 2016, the number of jointly explored fields fell to 24.


Increasing involvement in overseas exploration


The likelihood of Taiwan's terrestrial oil and gas fields becoming depleted over the next ten years calls for action to replace their output. We are therefore continuing our efforts with both domestic and foreign exploration and production, as well as engagement with suitable M&A opportunities.

Taking foreign exploration as an example: in 2015, six exploratory wells were drilled in the Chali West III block and other areas in Chad; oil and gas were found in two of them and the current drilling of one confirmatory well is being expedited.  Two exploratory wells were drilled in Libya's Murzuq 162 Block and both turned out to be dry. The outbreak of civil war in that country forced CPC's local subsidiary to suspend operations and continuing unrest has precluded both their resumption and completion of one obligatory well.

In mid-2015 CPC acquired three concessions in Texas - the San Jac, Lazy M5 and Snickers; three wells were drilled, of which two were producers. 


Upstream has produced outstanding results


From their beginnings in 1959, CPC's upstream operations - exploration and production at both onshore and offshore oil and gas fields in Taiwan, the Taiwan Strait and overseas – have been highly successful in terms of yield, which so far amounts to over NT$200 billion-worth.

The inherent vision behind upstream is to see the company become an international oil and gas exploration player with high asset value. 

Accordingly, CPC’s upstream entities will maintain their efforts with international cooperation and M&A in exploration to boost autonomously-controlled oil and gas reserves – by acquiring mid-to-small oil and gas fields, especially those with low risk, and extending contracts with producing fields - and will seek opportunities for investment in overseas assets during times of low oil prices. In addition, development of diversified business operations including green industries will be ongoing.