On Capital Risk Control Of Overseas Business In DQ Oilfield

Oil exploitation requires a large amount of manpower and material resources for geological exploration and downhole testing which lead to huge initial investment.Therefore,the oil industry is often characterized by capital intensiveness,large flow and high capital risks.It is a high-risk industry with capital risks,and there are capital security and capital use efficiency,receivables collection,capital chain breaks and many other issues.At present,Chinese oilfield companies are actively exploring overseas markets and contracting international engineering projects to further seize oil resources.However,most of the regions with rich petroleum resources are developing countries,which are unstable both in economics and politics.Therefore,Chinese oilfield companies face higher capital risks in their production and operation.As the core of enterprise financial management,which runs through the whole process of the company's entire business activities.Poor management of capital will not only cause waste of capital,but also will cause the company to fall into financial crisis and bring incalculable losses to the enterprise.Therefore,oil companies must pay attention to the control of capital risks,strengthen the management of capital activities,and conduct market research when investing overseas to avoid excessive investment,ensure safe and effective operation of capital,and effectively prevent capital risks.Based on this,this paper studies the capital risk of overseas operation of Chinese oilfield companies.The paper adopt case study methods to study the capital risks of overseas operations in DQ Oilfield.In the course of the research,on the one hand,it collects the literature research on capital risks and capital management both in domestic and foreign,which are mainly collected through China Journal Network,China Knowledge Network,and school libraries;on the other hand,we obtained first-hand information on the overseas operations of DQ Oilfield by talking with the financial director.According to the various first-hand and second-hand information obtained to research the capital risk of overseas business in DQ Oilfield,based on the relevant theories of corporate capital risk and its control,analyze the business scope of the oilfield company's overseas operations,and may face the type of capital risk,the paper establish a case study framework for capital risk of overseas business in DQ Oilfield.According to the above analysis,the method of controlling the capital risk is proposed for the characteristics of overseas business operation in DQ Oilfield,namely: analyzing the basic framework of “Overseas business capital risk——Type of overseas business capital risk——Capital risk control of overseas business”.This paper draws the conclusions through the research on the overseas business capital risk of DQ Oilfield.First,DQ Oilfield company has established a relatively complete capital management related system and system,which provides a good internal foundation for the prevention of capital risk of overseas business.Second,DQ Oilfield company basically realized the integration of capital informationization system at home and abroad,realized the concentration of overseas capital,and greatly reduced the capital risk.Third,DQ Oilfield company actively realized the transformation of risk management to the prior,which is conducive to more comprehensive and perfect control of capital risks in the future.However,there are some problems in the risk control of overseas business of DQ Oilfield.First,the system implementation is not in place and has not achieved the expected results.Second,the risk responsibility has not been implemented,so there is a blind spot of risk control.Third,the funding plan Management and budget management still have a lot of room for improvement.Four,oil futures tools have not been used effectively.