Chinese Oil Companies Overseas Investment Strategy Research

Petroleum is one of the most important strategic resources, and meanwhile, is one of the scarcest resources in China. Owing to the urgent need of enterprises' self-development and country's security requirement, the Chinese Petroleum enterprises should take active part in the world petroleum market competition and face the challenge of foreign direct investment (FDI). Nowadays, though the supply of petroleum is beyond the demand of that, the distribution and consumption in area does not in equilibrium. Recently, China has become one of the most rapid growth countries in petroleum consumption and the Chinese three giant petroleum enterprises have successfully undergone a series of optimal adjustments and organization reform, which made the Chinese Petroleum enterprises' FDI necessary and feasible. In FDI, the Chinese Petroleum enterprises are of rather strong enterprise advantage, prominent internalization advantage and quite outstanding localization advantage, based on the demonstration of the analysis of Chinese Petroleum enterprises' FDI by the Eclectic Theory of International Production. The Chinese Petroleum enterprises are still in the initial period in FDI. On one hand, they have got some achievement, and on the other hand, they are lacking in advanced management skills and as such. In addition, the petroleum enterprises are also confronted with potential risks in politics, economy, technology and nature. Besides correctly choosing target market and operation tactics, the Chinese Petroleum enterprises should pay much attention to increasing self core competition capabilities. At the same time, the Chinese government should carry out reasonable support in policy as well.