Daqing Oilfield Financial Management Experience Perspective

A set of financial management system has been gradually established during the process of development and reform in Daqing oilfield, which is closely integrated with petroleum industrial practices. It includes budget control, inventory control, funds management, management of fixed assets and profit distribution, as well as accounting personnel management, which contributes to the specific characteristics of a large-sized state owned enterprises. Such system has played an important role in increasing the economic benefits of Daqing oilfield and bringing about a great advance in the development of petroleum industry. Entering a new age of the 21st century, it is very important to give a serious study and sum up the past financial management performances for further development in future work.This paper consists of four chapters.Chapter one, the introduction, briefs you on the background of topic selection, basic theory of enterprise financial management and the overall train of thoughts of this paper.Chapter two introduces in details some experiences in Daqing oilfield in terms of budget management. It includes the background in which the system of oilfield budget management starts and the further development of budget management after restructuring and division of the oilfield. This chapter illustrates the two-level budget control model between oilfield enterprises and its sub-units.Chapter three passes on work experiences of financial control management in Daqing oilfield. This chapter emphasizes on four areas as follows:1) To control settlement funds by establishing standard settling banks;2) To control purchasing capital through management of both material objects and money;3) To control investment in fixed assets by establishing a new asset management model of profit oriented;4) To apply the method of economic accounting at team level and the method of operational cost control to expense control.Chapter four introduces some work experiences of financial management in the Drilling Group Company of Daqing oilfield.This paper has focused on some typical experiences in financial management of Daqing, aiming at introducing some work experiences in Daqing financial management area and conducting a discussion with experienced people from economic circles. The paper also serves the purpose to discard the dross and select the essence to better serve large and medium sized state owned enterprises.Due to the author's limitation of knowledge, there might exists some deficiency or inadequacy in this paper. Any corrections and suggestions to the content of the paper are welcomed.