A Study Of Multinational Business Of China Petroleum Enterprises

As net importer of petroleum, China's implementing transnational operation strategy by its national petroleum corporations is an objective necessity to safeguard national security and sustainable development, also the only way to engage in the internationalization business and participate in the international competition for China petroleum corporations.In this article, the relevant transnational theories are applied and integrated into the experiences of the big international petroleum companies on the transnational operation to approach the feasible strategies from two aspects: Operation Model and Investment Spots, based on the analysis of current transnational operation profiles and existing problems of china petroleum corporations.In this article, diversity petroleum strategies adopted widely by the big international petroleum corporations are used as reference and combined with current profiles of the china petroleum industry to put forward the effective approaches: integrate crude oil trade, oil & gas exploitation and development into relevant equipments exportation to realize the diversity strategy and internationalization business. Based on such consideration, transnational operation models embrace Importation Strategy, Production Strategy on the oil & gas exploitation and development, and Exportation Strategy. Importation Strategy attaches importance to adjusting the importing structure, enlarging the oil importing proportion from non-sea gulf areas, mainly focusing on the Russia, Middle Asia regions. Production Strategy for oil & gas exploitation and development summarizes 8 methods to obtain the oil & gas resources. Exportation Strategy mainly concentrates on the study of Engineering, Procurement & Construction (namely, EPC) project and oil equipments exportation. Feasible study has been made on the 6 oil-rich regions in terms of the oil abundance, exploitatation to which extent, political and economic situation, oil and gas relevant taxation regulations and possible accession to these regions based on the principles of selection and evaluation of the investment spots. Regional advantage theory is adopted to select Middle Asia--Russia, Middle East--North Africa and SouthAmerica as three strategic regions to carry out the transnational business. Centralization strategy will be recommended in the Middle Asia--Russia strategic region, while decentralization strategy will be adopted in the Middle East--North Africa and South America strategic regions.