A Study On Risk Management Of Service Station Networking Project Of Sinopec Xi’an Oil Company

With rapid development of economy and social demand, service stations, which directly provide services to customers as terminals of product oil sales network, are becoming main sources of revenue; therefore, service station networking project is vital to product oil enterprises’survival and growth. However, the project is at risks due to its large scale of investment, long period of construction, multiple areas involvement and bound by national policies. China Petroleum&Chemical Company (Sinopec Corp) Xi’an Oil Company is a newly established local branch company since its reconstructuring a few years ago. Sinopec Xi’an Oil Company boasts a large service station network of about100stations, covering downtown and surrounding areas of Xi’an. As a branch company located in northwest China, risk management of service station networking project of Sinopec Xi’an Oil Company is still at its initial stage of extensive construction characterized by lack of risk awareness, inadequate risk management regulations and incapability of risk control. At present, risks have been appearing because of failure to gain expected profits, demolishment of service stations by government for urban planning, break contract by station owners, etc., which impact the company’s steady operation and expected benefits but also further endanger the company’s development. This dissertation analyzes the risk management of service station networking project of Sinopec Xi’an Oil Company based on the theory of project risk management and status quo of its service station networking project, indicates problems and relevant causes of its risk management, indentifies and evaluates risks at stages of investment, construction and operation, and proposes a risk response plan and measures for the company with consideration of both internal and external factors.