Research On The Evaluation In Overseas Investment Of Chinese Oil Company

In recent years,with the rapid development of China’s economy,China’s demand for energy,especially oil,increased day by day.It becomes the second largest consumer and the largest importer in the world.The degree of dependence on foreign countries reach to 65%.Under the national energy strategy,the pace of overseas expansion of Chinese oil enterprises has gradually increased.With the global economy in recession and oil prices in the doldrums,in the oil and gas asset supply side,The low oil prices provide a golden window for a large number of high-quality oil and gas assets to enter the trading end,a major oil-producing region in North America and along " Belt and Road," Opportunities for mergers and acquisitions of oil and gas assets have been emerging one after another in decades.At the same time,the most important,complex and professional aspect of overseas investment in oil and gas assets is the valuation of oil and gas assets.Traditional pricing methods are relatively lacking in management flexibility.It is difficult to deal with the investment risk after delivery,and it is easy to ignore the value of option.This paper discusses the main centralized cooperation mode,common valuation methods and their applicable scope of overseas oil and gas assets investment.Based on the comparative analysis of the advantages and disadvantages of the common valuation methods,the characteristics of the oil and gas assets themselves are discussed.On the basis of the traditional cash flow discounted method,the real option model is introduced,and the overseas investment cases of Chinese enterprises are extrapolated to verify the feasibility of applying the research results in practice.