Risk Management Research For Overseas UAE Exploration And Development Projects In Oil&Gas Field Of Huabei Oilfield

Overseas projects characterized with high investment,long executive cycle and high comprehensive risk.Huabei Oilfield Company is still in its infancy in the international oil and gas exploration and development project.Compared with other domestic petroleum companies,Huabei's overseas project management experience is limited.it is important to evaluate risks and figure out risk management methods.Therefore,it makes practical and instructional significance to study risk management in overseas oil and gas exploration and development projects for Huabei as well as for other domestic oil companies.This paper introduces challenges faced by Huabei Oilfield Company engaging in overseas projects.Associated with on-going projects,under the guidance of risk management theories,Huabei applies risk management techniques to do the research referring to the risk management procedure.First,the paper identifies and describes total nine categories,thirty-nine types of risks concerning politics,economics,society,natural environment,techniques,organizations,business contract,project implementation and laws,applying with techniques such as SWOT,checklist method,brainstorming and the Delphi method.Secondly,risk assessment indicators system is established for overseas oil and gas exploration and development projects.Analytic Hierarchy Process(AHP)and fuzzy comprehensive assessment are used to construct models,calculating weights of risk assessment indicators on which were based to rank various risks.It is found that probabilities of economic risks,contract risks and technical risks are all exceeding 50 percent,among which the probability of contract risks is the greatest to 64.8 percent.This finding is consistent with the practical business.Therefore,contract risk control should be run through the whole process from business bidding,contract negotiation,terms examination,signing,performing and closing.Finally,according to evaluation results,this paper provides countermeasures and recommendations for risk management of Huabei Oilfield overseas oil and gas exploration and development project.The general results show the comprehensive risk probability of the overseas projects is 26.1 percent,on a "relatively low" level,which indicates lower risk of overseas oil and gas exploration and development projects operated by Huabei Oilfield.It is suggested overseas oil and gas exploration business be expanded on the basis of effective countermeasures.