Feasibility Study On SDLL Petroleum And Gas’s Sales Company

With the sustained and stable economic growth in China, especially after entering on the new century, the constant expansion of automobile industry and a significant increase in basic building have been promoting the rapid development of petrochemical industry. Shandong Branch of China Petroleum cooperated with Communications Bureau of Shandong Province to be a joint venture named SDLL petroleum oil and gas marketing company which is owned by the Highway Bureau, administrating 16 gas stations in Qingdao - Laiwu highway. Through the analysis of market competitiveness, as well as facing an unprecedented opportunity for development, according to market demand, combined with national, local industrial policy and the enterprise’s own reality, whether the project is feasible or not, whether it can improve economic efficiency or not, whether it has become a new profit growth point or not have all become an urgent need to demonstrate subject.In this paper, we make research on the feasibility of SDLL petroleum oil and gas sales company by using qualitative and quantitative analysis, forecasting and statistical analysis. We have had a deep and detailed investigation of the project, including aspects of social, economic, technological and others so as to make a careful research and comparisons about product supply, market analysis, estimation of investment, costs, sales revenues and taxes. On this basis, we make a financial evaluation of its economic benefits. At the same time, we make research on the risk prevention and measures for its effective control in order to improve the reliability of project economic evaluation and obtain the scientific decision-making.After the research on the investment estimation and economic benefits of the project, we find that the cooperative project of SDLL Petroleum and Gas’s Sales Company has certain risk resistance capacity and the investors could get satisfactory returns. Meanwhile, we make use of the sensitivity analysis to research uncertainties and risks of the project and have concluded that the project is feasible in practice and economy. In the end, this paper sums up the analysis and research about this joint venture to analyze risks and possible problems exsiting in this project, and put forward some suggestions in connection with the results from evaluation and analysis. Obviously, the research of this joint venture project have also provided the basis for pre-project engineering design, investment budget, construction quality and real-time control in progress, evaluation and conclusion after the completion of the project.