The Study On The Overseas Investment Risks Evaluation About Chinese Petroleum Enterprises

Due to the shortage of domestic resources,Chinese petroleum enterprises actively involve into the overseas investment activities.The overseas investments have long cycle and large scale,and there exist various risks,which come from politics,economy,technology,management,etc.The risks seriously affect the petroleum enterprises gaining economic benefits and developing in a long term.Therefore,it is particularly important to complete the risk management of overseas petroleum investment projects.Based on the project risk management theory and other related theories,this article studied the petroleum enterprises overseas investment risks,which includes three parts:risk identification,risk assessment and risk control measures.Firstly,the paper reviewed the development of three big Chinese petroleum enterprises overseas investment process,and the achievements so far.Then analysed some existing problems of Chinese petroleum enterprises overseas investments,preparing for the risk analysis in the later part.The paper did the classification of investment risks which consist of external environment risk and internal controllable risks.The external environment risks include geological risks,natural risks,political risks,economic risks and social risks.The internal controllable risks include technological risks,management risks,production risks,human resource risks and HSE risks.In the risk assessment part,the paper established the Analytic Hierarchy Process evaluate model,to analyze the quantity of risk factors and measure the impact of these risk factors on the overseas investment projects.Finally,contracted to foreign petroleum enterprises' risk control experience and combined with the result of risk assessment,the paper put forward the suggestion on how to effectively control overseas investment risks for Chinese petroleum enterprises.