Study On Cooperative Game Of CNPC Iraq Lumaila Project

CNPC Iraq Rumaila project possesses the typical characteristics.Firstly,the project has been operating for a short time since CNPC and BP started the project in Jun,2010.Secondly,the contract mode of the project is technical service contract and it is the first time for CNPC to manage the oilfield under such contract mode.Thirdly,it is the first time that CNPC has worked together with multinational oil company BP to operate the giant oilfield.In addition,the oilfield have high oil production,great investment and huge administration workload.It is very significant for us to make an intensive study of the Rumaila project.This paper analyzed economic plus management items of the contract and obtain the features of the contract.The paper also analyzed the advanced BP giant oilfield management approach applying the life cycle theory combined with many years' working experience.The paper systematically summarized the BP management ideology plus approach which will be very helpful for our petroleum enterprises quickly mastering the advanced management methods and improving the competitive power.Based on these analyses,the paper applied coopetition and cooperative game theory to do research on the Rumaila project.CNPC and BP were competitors before the project bidding and became partners after the bidding.The two companies jointly developed the oilfield.This competition and cooperation relationship is called coopetition,which is competing in the cooperation at the same time cooperating in the competition.The paper analyzed the coopetition of CNPC and BP applying the PARTS strategy plus three-factor theory of coopetition success.The effect analysis on their coopetition has also been done.The paper proposed that the dimensionality of the coopetition should be three dimensions,which include competition ? cooperation and time three factors.The intensity of competition and cooperation is constantly changing with the change of the time.The change of the intensity of competition and cooperation is limited within a certain range which will result in the coopetition game maintaining equilibrium.The paper analyzed the international petroleum cooperation project in different stages using the three dimensions view also pointed out that the intensity of the competition and cooperation was distinct in different stages.The paper analyzed the coopetition of CNPC and the BP applying the three dimensions view also proposed CNPC strategies.One of the most important strategies is attempting to change the rules of the game,for example attempting to alter the procurement policy,senior executives promotion policy etc.Only in this way can CNPC have balance situation with BP in coopetition game.The paper pointed out that coopetition game and cooperative game were closely related and different.If cooperation was predominant and kept strengthening in coopetition game,coopetition game would evolve to cooperative game.According to the Nash bargaining theory and its expansion theory,the paper firstly built the model of cooperative game then used mathematical methods to analyze and drew up four pieces of conclusion.CNPC strategy of cooperative game could be acquired by summing up the four pieces of conclusion.CNPC should perfect the procurement policy to compress the profit space of BP.The paper put forward four pieces of suggestion which are very useful for our petroleum enterprises to promote their competitive ability.(1)Our petroleum enterprises should strengthen the technology R&D,enhance the technical content and increase exclusive assets,meanwhile,they should study the management concepts and methods of BP and apply to practice;(2)CNPC should actively change the rules of the game;(3)CNPC should establish the global purchasing system;(4)CNPC should set up unified technical supporting team.