Research On Overseas Oil Blocks Investment Co-opetition Strategy Among CNPC, SINOPEC And CNOOC

In recent years, responded to the "Going Out" strategy, CNPC, SINOPEC and CNOOChave achieved fruitful results in the oil blocks business in overseas oil and gas market such asMiddle East, Africa, South America. As CNPC, SINOPEC and CNOOC speeding up the paceof developing overseas market, they compete excessively and lack cooperation, which notonly causes the interest loss of the petroleum enterprises in the short term, but also, they arevery detrimental to China’s energy security. in the long run. Therefore, it becomes very urgentfor us to solve the problem of guiding CNPC, SINOPEC and CNOOC to take the co-opetitionstrategy, compete jointly, coordinate their relationship and avoid "friction".This paper researches on overseas oil investment co-opetition strategy among CNPC,SINOPEC and CNOOC, aimed at coordinate their relationship in the process of developingoverseas markets, reduce the exploiting cost and avoiding "internal friction". Firstly,introduces the main content of co-opetition theory, which provides theoretical basis for theco-opetition of CNPC, SINOPEC and CNOOC. Secondly, studies the current situation ofoversseas oil blocks investment and analyses the reasons for the "Crash"、"internal friction",low success rate, and low profit margins in the aspects of co-opetition concept, organizationand communication. Thirdly, puts forward detailed co-opetition strategies, includingco-opetition strategy guide, companies’ strategies, policies and measures adopted by thegovernment. CNPC, SINOPEC and CNOOC and the government should choose differentco-opetition strategies based on the different stages. In terms of cooperation，CNPC,SINOPEC and CNOOC should put the "co-opetition" to the strategic position, strengthen thecooperation in the oil industry chain, establish overseas oil project developing consortiums,communicate more constantly and sign co-opetition agreements. In terms of competition,they should enhance their bargaining position, establish internal competitive mechanism andintroduce other oil companies to participate in the competition. In addition, fair benefitsdistribution is needed to ensure their cooperation. What is more, the government shouldprovide favorable fiscal, tax, financial and incentives to guide CNPC, SINOPEC andCNOOC. At the same time, the government should support the co-opetition by improving the legal system, establishing organization system and carrying out energy diplomacy.