Research On The Evaluation System Of Oilfield Enterprise’s Financial Management Ability Based On CMM Model

At this stage,the world has entered a major change that has not been seen in a century.The report of the 15 th National Congress of the Communist Party of China proposes two hundred year goals,of which the first one has been achieved and is now striving towards the second one.To this end,the SASAC has issued the "Guiding Opinions on Accelerating the Construction of a World Class Financial Management System by Central Enterprises"(hereinafter referred to as the "Guiding Opinions"),requiring central enterprises to build a world class financial management system to help achieve the centennial goal.The Guiding Opinions require central enterprises to establish a financial management capability evaluation system to evaluate accounting reports,fund management,cost control,tax management,capital operation,budget management,compliance risk control,financial intelligence,and competency,and indicate the direction for improving financial management capabilities.In this process,it is necessary to give play to the guiding role of central enterprises,make them bigger and stronger,strengthen their management,and achieve technological and management innovation.As a representative of central enterprises,oil enterprises bear the heavy responsibility of national energy security;As the upstream of petroleum enterprises,oilfield enterprises are the mainstay of energy enterprises.How does the financial management ability of oilfield enterprises directly affect the success or failure of China’s petroleum enterprises in building a world-class financial management system?What is the current situation of China’s oilfield enterprises’ financial management ability?Can it meet the requirements of building a world-class financial management system?This requires a certain method to evaluate their financial management capabilities.The CMM model(Software Capability Maturity Model)is widely used to evaluate human resource management,comprehensive risk management,financial management,budget management,and other aspects,while there is less literature on evaluating the financial management capabilities of petroleum enterprises.This article uses the CMM model to establish an evaluation index system for the financial management ability of oilfield enterprises,and uses this system to test the financial management ability of two oilfields.On the one hand,it can enrich the research literature on the evaluation of financial management ability,and on the other hand,it can provide a comprehensive evaluation standard for the evaluation of the financial management ability of oilfield enterprises,At the same time,it can also indicate the future development direction of the financial management ability of oilfield enterprises based on the grade evaluation,and promote and guide the continuous improvement of the financial management ability of oilfield enterprises.Firstly,this article uses the literature research method to classify the concept and capability of financial management capability;The connotation and composition of the competency framework;The main content of the Guiding Opinions;Capability evaluation methods;The content and feasibility of the CMM model are discussed.Secondly,this paper combs the impact of the operating characteristics of oil field enterprises on financial management ability,requires good financial decision support ability for energy supply guarantee,requires good financial control ability for the scarcity of oil and gas assets,requires the ability to consolidate financial foundation management for the uncertainty of reserve assets,requires the financial early-warning ability to be alert at all times for the low correlation between risk and return,and requires the digital ability to support benefit measurement for the long interval between input and output.Thirdly,based on the CMM model,this article takes the Guiding Opinions as the guidance,comprehensively considering the operational characteristics of oilfield enterprises,selects the financial management evaluation dimensions,key process areas,key practices,indicator systems,and weights of oilfield enterprises to build an evaluation system for oilfield enterprises’ financial management capabilities,and divides the financial management capabilities into five ability levels: to grow,infrastructure,normative,precise management,and continuous optimization.Through literature review and theoretical analysis,five evaluation dimensions of the evaluation system for the financial management ability of oilfield enterprises are determined,namely: financial basic management ability,financial control ability,financial decision support ability,financial early warning ability,and ability to assist in the digital transformation of the oilfield;There are 9 competency evaluation elements,including internal fund management,tax management,strategic cost management,budget management,capital operation,financial transformation and transformation,competency,compliance risk control,and financial digitization level,as well as 23 key practices.Based on these,an indicator system for evaluating financial management competency has been established.Finally,this article will apply and analyze the evaluation system for financial management capabilities of oilfield enterprises in a certain oilfield of Petro China and a certain oilfield of Sinopec.Aiming at the existing problems in the financial management capabilities of the two oilfields,it is proposed to focus on improving the treasury management in terms of basic financial management capabilities;In terms of financial decision support capabilities,implement the Notice of the National Energy Administration on Accelerating the Integrated Development of Oil and Gas Exploration and Development and New Energy(2023-2025),assist oilfield enterprises in the integrated development of oil and gas exploration and development and new energy,and cultivate a comprehensive and multi-level financial talent system;In terms of financial early warning capability,accelerate the improvement of the compliance risk control system for multi department collaboration and linkage;In terms of helping oilfield digital transformation capabilities,relevant suggestions such as accelerating digital transformation and creating a "digital oilfield" will lay the foundation for oilfield enterprises to build a world-class financial management system.