Core Viewpoint - The report from Guosen Securities highlights the implementation of tax incentives for the petrochemical industry, aimed at reducing the import tariffs on core equipment for marine exploration and development, thereby lowering overall project costs and enhancing internal rates of return [1] Group 1: Policy Changes - On February 13, 2026, the Ministry of Finance, General Administration of Customs, and State Taxation Administration announced tax incentives for energy resource exploration and development during the 14th Five-Year Plan period, including exemptions from import tariffs for equipment directly used in oil and gas exploration and emergency rescue projects [1] - The policy also includes exemptions from import tariffs and value-added tax for equipment used in cooperative oil and gas exploration projects that cannot be produced domestically or do not meet performance requirements [1] - Additionally, there is a mechanism for the return of value-added tax on imported natural gas for approved cross-border gas pipeline projects and LNG receiving and storage facilities, which helps mitigate cost fluctuations [1] Group 2: Industry Implications - The high dependence on foreign oil and gas in China has led the government to prioritize marine energy as a strategic focus for energy security, with tax incentives aimed at enhancing domestic oil and gas supply capabilities [2] - Imported natural gas plays a significant role in China's gas supply but is subject to high prices and volatility; the tax return mechanism for eligible imported natural gas is intended to support energy security [2] Group 3: Investment Recommendations - The report suggests monitoring companies such as China National Offshore Oil Corporation (CNOOC), CNOOC Services, and CNOOC Development in relation to marine oil and gas exploration [2] - For imported natural gas, it recommends paying attention to China National Petroleum Corporation (CNPC) and CNOOC [2]