Study On CNPC’s Overseas Exploration And Development Cost Management

The petroleum resource is a country’s strategic reserve resource. Petroleum securityrelates to the country’s energy security, and petroleum is the lifeblood of the country’seconomy. Therefore, strengthening the cost management and control of petroleum enterprisesnot only plays an important role in improving the economic and social benefit of petroleumenterprises, but also plays a profound role in the whole country’s economic sustainabledevelopment.Since1993, CNPC began implementing the "Going Out" strategy, initially built fivepetroleum and gas cooperation areas, and the scale of international business continues toexpand. However, at the sight of the sustainable development of its overseas petroleumexploration and development business, we also need to pay attention to that there still existsome problems in its cost management of exploration and development. This paper is basedon the subject of CNPC’s overseas cost management of exploration and development, analyzethe existing problems in it’s cost control of exploration and development, and finally find themeasures to this subject.Firstly, in order to obtain the basic grasp of the theories, this paper summarizes CNPC’soverseas exploration and development cost and cost management, mainly introduces thecomposition and influence factors; then analyses the status and the existing problems ofCNPC’s overseas exploration and development cost management; based on the analysis of it’sstatus, combined with the theory of cost management, this paper constructs the explorationand development cost management system, mainly including: cost forecast subsystem, costdecision-making and plan system, cost control subsystem, cost accounting system, costanalysis and evaluation subsystem, and cost management post assessment subsystem. Tomake sure the smoothly operation of the cost management system, the paper finally putforwards some guarantee measures: updating the concept of cost management, and adhering to the principle of comprehensive system; perfecting organization system, establishing andimproving the cost responsibility system; making use of modern information system;improving the risk early warning mechanism.