Shengli Oilfield Co., Ltd. Development Strategy

Shengli Oilfield Company Limited, a wholly owned subsidiary of China Petroleum and Chemical Corporation (Sinopec Corp.), was established on the basis of restructured oil-gas exploration and production business of the former Shengli Oilfield, which is the second largest petroleum production base in China. With the intensifying reform, the operating environment of Shengli Oilfield witnessed fundamental change. It is of great importance to do some research on its development strategy.Based on various theories of strategic management here and overseas, this article adopted the PEST methodology in its research and analysis. The author analyzed the international, domestic, and local environment facing oil-producing enterprises. Focusing on its internal environment, the opportunities and threats facing the enterprise and its strengths and weaknesses are intensively analyzed, on the basis of which research on the competitiveness and business strategy and the supporting measures are done.The research shows: Immense pressure is exerted on Shengli Oilfield in realizing sustainable development due to its insufficient preparation. Even so Shengli Oilfield is still possible to realize the sustainable development on the condition that adequate strategic readjustment could be made in recent period. Giving fully consideration to the business strategy of Sinopec Corporation and the status of Shengli Oilfield in its upstream, Shengli Oilfield should concentrate on expanding resources, building of the modern management system, and reducing the production cost, so as to enhance its competitiveness and realize a new progress.Hopefully the intensive research on Shengli Oilfield's business strategy can provide the readers for reference. Since great similarities exist in the business environment, reform process and their facing problems in all petroleum producing enterprises, this article can also be referenced for researching on the business strategies of other petroleum producing enterprises.