Study Of Joint-venture And Cooperation Project Risk Control In Jilin Oilfield

Jilin Oilfield embarked on a joint venture development of three low-field road since 1988. In this process, different models of cooperation projects were come into being, which include of a joint-venture, cooperation and domestic foreign cooperation project. These joint-venture and cooperation projects signed contract with Petrochina are on exploration in the oil and gas block. Different contracts form three kinds of different contract model, the input of both parties and the distribution of the output is different, thus resulting in the different project management. During the operation, the anticipated risk to Jilin oilfield is different. The original purpose to adopt a cooperative mode was, in the process of cooperation with other companies, to use of their capital and advanced technology for the low abundance, low permeability, low output of the "three low" oil, accumulated the exploitation of advanced technology, summed up valuable experience. However, by the end of the project these project will bring operational risks to Jilin oilfield, which could have an impact on future earnings, or even in the entire operation, we must pay more than the income from the projects.In recent years, with crude oil prices rise rapidly, investors faced rising production costs, and ten years after mining blocks declining trend in crude oil production, some partners began to stir, to find flaws in the contract, Drilling legal loopholes, making the risk control gradually put on the agenda. Jilin Oilfield different modes of cooperation, taking a different means of risk control in order to achieve win-win situation can only ensure that both the purpose of avoiding risk.For the joint venture company, we adopt the manner that control their costs from control their annual budget target, to prevent extravagance and waste projects; In order to avoid the risk of its future obligations, we limit their investment scale, so that enterprises to develop within their own funds.For the cooperation project, investor pay all the investment and payment of costs, but if the project in high debt, and return value does not meet expectations, the project will face insolvency. But according to the contract, when cooperation project end, all the oil and gas assets owned by Jilin oilfield. The higher debt will lead to recovery risk of oil and gas assets. Besides the higher bank lending may also bring associated risks to Jilin oilfield.The domestic foreign cooperation projects come from the contract modeled of a sea foreign cooperation contracts, contracts of foreign cooperation in offshore experience running test after changes made is relatively mature, but in the actual implementation process, most of the terms of the contract is not in accordance with the standards implementation, For example, the contract, the project is no debt, but in actual implementation, each project has a debt, and this part of the handover of foreign liabilities in the ownership of the problem can not be paid on schedule, the contract provides no clear terms. Thus in the course of the problem also vaguely defined, can lead to risks to the oil side.For different expected risk under the different contract model, will be treated differently and take different approaches to management.