Study On Overseas Investment Risk Control Of YC Oil Group Company

In recent years,with the deepening of Chinese reform and continual improvement of the level of economic development,the shortage problems of upstream raw materials in petroleum and petrochemical enterprises become more prominent.For this reason,China encourages qualified enterprises to go to the foreign countries to explore foreign market as a contribution to domestic shortage.YC Oil Group Company,a century enterprise of oil exploration in our country,starts the foreign business in the year 2008 as a response to the going out policy in China.At present,it has gained the oil and gas exploration and development projects in five countries including the Central African Republic,Madagascar,Thailand,Canada,and Kyrgyzstan.However,since this state-controlled oil company's international investment started late,YC Oil Group Company's overseas investment is influenced by the economic crisis,the geopolitics,exchange rate fluctuations,and the international oil prices.Meanwhile,it contains a gap compared with domestic three big oil companies and international major oil companies in the national policy support,financial strength,personnel quality,and the exploration experience,thus facing the huge risk.Therefore,there is necessity to make a deep research to risk management of its overseas items.This paper summarizes the related theory of project risk management on the basis of research background,research status and so on.By introducing overseas investment situation of the YC Oil Group Company,this thesis identifies its overseas investment risk including politic risks,economic risks,geographic risks,and management risks,using the comprehensive evaluation model for the analysis of its risk factors,and puts forward the corresponding risk management measures in the end.