Study On Exporting Chinese Petroleum Equipment With Leasing

In recent years,China's total exports of petroleum equipment has shown a fluctuating growth.Although the total exports has increased slightly,it is still far from the level that it should be.The main reason of the problem is that most of the domestic petroleum equipment manufacturers only adopt the primary mode to enter the international market,such as dealer consignment and independent export,but few of them adopt financial leasing or cross-border merges for export.Due to the high price of most petroleum equipment,it is difficult for many petroleum exploitation countries to import petroleum equipment with a full payment,which leads to China's petroleum equipment manufacturers losing some of the business opportunities in the international market.This thesis first analyzes the export status of China's petroleum equipment.Most of China's petroleum equipment exports are completed by CNTDC(China Petroleum Technology and Development Corporation),a subsidiary of CNPC(China National Petroleum Corporation).As a distributor,CPTDC is responsible to sell the products from equipment manufacturers under CNPC to different countries.Therefore,most of the petroleum equipment manufacturers will not carry out independent export business.Although the financial leasing industry has gradually developed in China,its development in petroleum industry is seriously insufficient.The financial leasing is often used to import petroleum equipment and tools from abroad,but not to export petroleum equipment.One of the reason why petroleum equipment manufacturers seldom use financial leasing to export is that intra group trading companies acting as unified agents for export,another reason is that the three main risks(funds retrieval risk,industry competition risk,production and maintenance risk)that will be faced in the process of financial leasing projects.In order to let the petroleum equipment manufacturers learn from the successful experience of financial leasing export,this thesis analyzes the case of Daqing Oilfield Powerlift Pump Co.,Ltd.using financial leasing to export petroleum equipment,and summarizes the main risk control measures taken by Daqing Oilfield Powerlift Pump Co.,Ltd.Daqing Oilfield Powerlift Pump Co.,Ltd.refers to the "Turnkey Project" mode under the FIDIC(International Federation of Consulting Engineers)and entrusts CPTDC to sign an operating lease contract with the foreign lessee.As the lessor,Daqing Oilfield Powerlift Pump Co.,Ltd.will provide the lessee with services including scheme design,freight construction,production guarantee,etc.during the contract period.Under the business mode of operating lease,the lessee only needs to pay part of the petroleum equipment.Daqing Oilfield Powerlift Pump Co.,Ltd.effectively reduces the contract price through this way,and obtains higher benefits than direct export.The reason why Daqing Oilfield Powerlift Pump Co.,Ltd.can successfully control the main risks of financial leasing is that it has taken three main measures: reducing the funds retrieval risk by providing product trial period and perfect service quality;reducing industry competition risk by targeted technology development and product improvement;reducing production and maintenance risk by establishing service bases and training maintenance person.In order to enable more oil equipment manufacturers to use financial leasing to export petroleum equipment,this thesis combined Daqing Oilfield Powerlift Pump Co.,Ltd.with other relevant petroleum enterprise cases to put forward the corresponding suggestions to the main risks in financial leasing project.With the corresponding suggestions,petroleum equipment manufactures could solve the main risks in financial leasing project,and prevent the risks in financial leasing project in advance.