The Study Of Foreign Investment Risk About Chinese Petroleum Enterprise

Along with the pace of economic globalization being fast, the Chinese petroleum enterprises evolve into the foreign investment. The oil industry is a high input, high output and high-risk enterprise. In the foreign oil investment process, there are many risks for oil enterprises because of differences in political, economic, cultural and other external environmental elements as well as some internal elements, such as technology, management and development. Taking the three state-owned petroleum enterprises for example, the lack of an effective risk assessment and control of investment projects during the overseas investment may lead to investment failure and a huge loss. Therefore, for foreign-invested enterprises, risk identification, evaluation and controlling play an important role in overseas investment.Based on the research of the current project risk management, the paper constructs the risk management analytical framework for Chinese petroleum enterprise. It includes three parts:risk identification, risk assessment and risk control actions. The framework will be used to guide the research of overseas investment risk of Chinese petroleum enterprise.The paper firstly did the identification of investment risks which consists of external risk factors and internal controllable risks, including natural risks, political risks, economic risks, social risks and technological risks, management risks, production risks. Political risks and management risks are the two main risks for Chinese petroleum enterprise. Then, I identify the reasons of the risk factors by using the methods of Preliminary Hazard Analysis and the Environmental Analysis.Based on the identification of investment risk factors, this dissertation starts to do the risk assignment by establishing the multi-factor hierarchical fuzzy comprehensive evaluation model and analyze the impact of risk factors and the size of quantity.Finally, With the consideration of problems when Chinese petroleum enterprises doing overseas investment, I recommend it in this paper that, on one hand, the Chinese petroleum enterprises establish the risk early warning mechanism and on the other hand, improve the ability of dealing with the overseas investment risk. Such as to strengthen the research and evaluation of the resource country’s political environment, be active in oil diplomacy activities, to pay great emphasis on technical research and development, to establish a better project management system to reduce the impacts of the risks of overseas investment.