Shengli Oilfield, The Goal Of The International Engineering Contracting Market Selection

Because of the increasing domestic oil consumption and the dependence on foreign oil, China's petroleum companies are forced to go out to the international oil market to acquire more oil resources. As a state-owned extra-large enterprise, Shengli Oil Field has powerful strength on Oil exploration, development and engineering contracting, and has comparative advantage in many countries competition. In order to have more surviving and developing space, Shengli Oil Field have no choice but start to international co-operation. After exploring and practicing for many years, the international engineering projects of Shengli OilField is running well accompanied with both successful and un successful experience. It's very important to choose the proper target market in the international engineering contracting of Shengli Oilfield.International Project Contracting is a flexible form of Foreign Direct Investment (FDI), but current theories of FDI emphasize particularly on the investment issues in developed countries, and couldn't direct Shengli Oilfield in overseas markets clearly. In this paper, on the basis of analyzing the necessity of go out, the advantages and disadvantages of Shengli Oilfield and considering the primary factors in locating the target market, the author make an analysis of the potential target markets including Middle East, Africa, Central Asia, Latin America and South-East Asia, instructed by the theories of FDI, so as to find out the potential risks and avoid the blindness. This paper has good pertinency and is good guidance in target market selection for Shengli Oilfield.