The Risk Of Overseas Investment And Its Avoidance Of CNPC

As the petroleum is the important strategic material which protects the world economic development, political stability, military security, the petroleum was, is and will in at least 50 years, be the focus of the whole world. As the development of economy, the import amount of petroleum in China has been increasing. So CNPC should put the strategy of overseas investment into practice to develop itself into an international corporation, and provide China a steady and abundance petroleum supply. The petroleum corporation will face lots of complicated risks in overseas investments as politic risk, economic risk, society risk,technology risk and so on . An active and effective risk management is needed to eliminate risk factors or reduce the probability of risk events to reduce the damage brought by risks. Furthermore, the corporation needs to realize the advantages and disadvantages of it in international realm to make reasonable decisions to get more income. The PEST analysis has been chosen in this paper to analyze the risks of overseas petroleum investment, and a risk assessment model based on AHP analysis has been modeled to analyze the 8 major risks in the investment in Iraq. At last, some advises based on the research results have been brought forward, and these advises are useful for CNPC to execute risk management and boost overseas strategy.