CPC, FPG Continue Exploring Oil Sands

Taipei, Sept. 3, 2008 (CENS)--Despite the decline of international crude oil prices and the suspension of the investment project by the Taiwan-based China Petrochemical Development Corp. in mainland China, CPC Corp. Taiwan and Formosa Plastics Group will continue exploring oil sand.

Both companies said there is still room to make profits from investing in oil sands only if the international oil prices linger at between US$70 and US$80 per barrel.

Not long ago, an FPG executive flied to Canada to contact an oil sand firm for launching cooperative exploration of oil sand mine there. On another front, FPG has expressed strong interest in tapping the coal-chemical market. The company said it would take part in a coal-chemical seminar to be held in Inner Mongolia in mid-September.

CPC said it has resolved to spend NT$24 billion (US$761.9 million at US$1:NT$31.5) in the next five years to cooperate with a business partner of Canada to explore oil sand there. In mid-July, CPC just signed a memorandum of understanding with Indian Oilsands Co. in Saskatchewan province to collaboratively explore oil sands.

An executive of CPC said it pays to explore oil sands as the oil resources are draining out day by day. He said his company would continue investments in exploring oil sands only if the international oil prices linger at a level of over US$70 per barrel.