Research On Oil And Gas Project Financing Structure

Project financing is an important innovation in recent30years in the international financial market. It not only provides more flexible investment channels to attract private capital, commercial capital and international capital, but also provides strong financial support for all countries'energy development and infrastructure construction as well as the local economic development. For oil and gas project investment, the funds required and investment risk are bigger. To seek international cooperation, exploring the cooperation mode and attracting funds will be the important choice of oil and gas development projects. Deep study of oil and gas project financing theory and financing structure problem is to search for the relations between oil and gas project financing and government institutional environment, the impact on financing ways and channels for oil and gas project financing structure, and oil and gas project financing participants in decision-making process. All these research will undoubtedly have certain guiding significance to oil and gas resources government, oil companies, oil and gas Project Company, investors and other participants.Project financing is a relatively strong problem both in theory and practice. The predecessor in this aspect had much valuable experience in financing, but not in the aspect of oil and gas projects financing structure. This paper, based on former research, through research and documentation, using the logic analysis and the mathematical analysis, the empirical analysis as well as qualitative and quantitative research methods(including the hierarchy analysis method, factor analysis method, principal component analysis, multi-objective decision methods), studied the problems of oil and gas project financing environment, financing channels and sources of funds, arrangement of financing structure, influencing factors and formation of financing structure in decision.The study mainly involves in the following contents:(1) On the basis of elaborating research background, it studied a large number of relevant academic information about domestic and overseas project financing as well as oil and gas project financing in recent years. Then it summed up the shortcomings in oil and gas project financing structure and determined the main contents.(2) Defining the related theory in studying oil and gas project financing, including the meaning and the characteristics of oil and gas projects, project financing and the characteristics, oil and gas project financing structure, oil and gas project financing development and so on.(3) From the perspective of the system environment, the financial system, the financial environment, the political and economic environment, it analyzed the influence of oil and gas project financing structure, and used the hierarchy analysis method, the multiple factors and key factors evaluation method to evaluate and analyze oil and gas project financing environment.(4) By qualitative and quantitative methods, it analyzed the main influence factors of oil and gas project financing structure. After determining oil gas project financing structure rational standard and method, the main influence factors of financing structure are used in a wide range of considerations. From the perspective of oil and gas company (the project sponsor) project financing capability, we used the method of principal component analysis for further analyzing factors. Then it identified5main components of the oil and gas company financing structure. They are oil and gas company scale and strength, the potential for sustainable development, profit ability, growth ability and production capacity. The5principal components are respectively connected with the3oil and gas company financing structure reflecting index (total debt ratio, long-term debt ratio, flow the correlation analysis of indebted rate).(5) From the financial engineering and financing body perspective, it analyzed the oil and gas projects financing methods, studied how to arrange and choose good project financing structure and source, and also analyzed the oil and gas project financing channels, mainly including the global multilateral institutions, regional development banks, and commercial funding channels.(6) It studied the oil and gas project financing structure arrangement problem, based on the analysis of oil and gas project financing structure arrangement principle, and discussed the oil and gas project financing structure arrangement target and the key problems which need to be solved. From the promoters and different credit foundation aspect, it studied several typical oil and gas project financing arrangements, which mainly include oil and gas project sponsors direct arranging financing, oil and gas project sponsors through independent institution arranging financing, oil and gas project financing based on "Oil and gas production payment", oil and gas project financing based on oil and gas facility using agreement, oil and gas project financing based on sale agreements, oil and gas project financing based on oil and gas products market, etc..(7) According to the characteristics of oil and gas project financing, it built oil and gas project financing using game theory, and from the angle of different participants, it studied the negotiations among the participants in oil and gas project financing. Multi-objective bargaining game model is based on utility function of project financing participants, using interactive negotiation way to reach the final financing effect.