China National Offshore Oil Corporation (CNOOC) company internationalization essay part 2Essay Writing Service

China National Offshore Oil Corporation (CNOOC) company internationalization essay part 2Essay Writing Service China National Offshore Oil Corporation (CNOOC) company internationalization essay part 2 China National Offshore Oil Corporation (CNOOC) company internationalization essay part 2China National Offshore Oil Corporation (CNOOC) company internationalization essay part  1In 2008, there was established the National Energy Commission, and one of the six major areas of its activities was to ensure energy resources through international cooperation. Meanwhile, Chinese oil companies had already implemented abroad, so that the new policy actually became a ratification of already developing activities.Overseas expansion of national companies has four main objectives. First, the obvious an increase in production and reserves, which are used to achieve any possible business expansion; second goal is the development of a differentiated network of energy supplies. The third and fourth objectives are aimed at achieving the status of a world scale and the acquisition of technological and managerial know-how.These tasks are solved successfully. Strategy is being implemented in four mai n areas: mergers and acquisitions, alliances and joint venture transactions resources for the market and loans for oil (Spegele,  2012).Since then, China National Offshore Oil Corporation began to consider expansion abroad. It was noted that the pace of CNOOC has slowed, but the pace of activity for the acquisition of production and cooperation accelerated. Acting as a conceptual reality, in these few years CNOOC with its partners continuously explore overseas market. In September 2008, a subsidiary of the Corporation purchased Norwegian oil company â€Å"Awilco† for 2.36 billion U.S. dollars, thus the corporation expanded its services to 20 countries and regions.One of the methods of expansion in foreign business lies through strategic alliances and cooperation with other foreign companies. This path is usually applied in countries where Chinese companies can not compete with foreign corporations, and the possibility of political support for the leadership of the PRC at th e intergovernmental level is insufficient.In choosing a partner and object of cooperation, there often prevails a task to gain experience in the activities of non-trivial conditions. For example, the practice of working in deep water will be useful in promoting the exploration and production in China on its own deep-water shelf. To this end, in 2009, CNOOC has worked with Total on deepwater Akpo and Egina in Nigeria (Waller 2010).Recent Period of Internationalization of CNOOC (2010 until today)In 2010, CNOOC and Chevron announced that they are joining their forces to develop oil fields, but not in the Gulf of Mexico, but in coastal waters of China. Around this same time, CNOOC began to invest in the production of shale gas and hard of recoverable oil in the United States.In order to accelerate the process of internationalization in recent years, the corporation has made a number of successful acquisitions of foreign oil and gas assets. The Corporation acquired oil and gas fields in Indonesia, Australia, Nigeria, Angola and other countries. In early 2010, it has committed the USA $3.1 billion to acquire a 50% stake in a major Argentine oil company  «Bridas » (Caijing 2013).Penetration in developing shale gas projects in the United States is also of great interest. In November 2010, both sides of the joint venture acquired 60% of Argentinas second-largest oil company  «Pan American Energy LLC », owned by British oil company, for $7.1 billion, which allowed full control. A few years before that the company Pan American Energy LLC and US company Exxon Mobile signed an agreement to purchase part of the capital of Paraguay, Uruguay and Argentina. In November 2010, CNOOC was able to negotiate the acquisition of 33.3% of the project on shale gas Eagle Ford Shale.In 2010, the net profit of CNOOC reached 54.41 billion Yuan (US $ 1 = 6.56 Yuan) with an increase of 84.5 percent compared with the previous year. According to their 2010report, in 2009 the companys r evenues from the sale of oil and natural gas rose to 149.12 billion Yuan, up by 77.7 percent. The annual report says that in 2010 the total production of oil and natural gas totaled 328.8 million barrels of oil equivalent, an increase of 44.4 percent compared with 2009. Such a significant increase in total production was achieved through the introduction of new oil fields, foreign purchases of existing oil fields and normal operation of existing wells (Caijing 2014).  Every year the company increases its profit. For example, revenues of CNOOC in the III quarter of 2011 compared with the same period of previous year increased by 23.7% to 46.26 billion Yuan (7.25 billion dollars). Total production of oil and gas of CNOOC in III quarter 2011 amounted 80.9 million barrels of oil equivalent (Saywell 2013).In October 2011, China National Petroleum Corporation (CNPC) and China National Offshore Oil Corporation (CNOOC) in association with Royal Dutch -Shell and the French Total got the r ight to develop and operate for 35 years the worlds largest deep-sea deposits. It is located in 170 km from the coast of the Brazilian state of Rio de Janeiro. Field’s Libra recoverable reserves are estimated at 12.8 billion barrels of oil. 12 production platforms with a maximum total daily production of 1.4 million barrels have already started. It should also be noted that in the framework of the strategy of absorption in November 2011, CNOOC has closed a deal on the absorption of Opti Canada Ltd. for $ 2.04 billion (Armstrong Grindell 2012).In March 2014, China National Offshore Oil Corporation announced that it has recently opened a new middle largest gas field, called Lingshui 17-2. This is the first breakthrough achieved by this company in the exploration of Zyundun basin in the South China Sea. Now the corporations shares are put up for auction at HK and New York stock exchanges, it is the largest offshore oil and gas producer in China.Purchase of parts of foreign com panies has led to the fact that China National Offshore Oil Corporation rapidly began to conquer South America. According to the plan, by 2020 the annual production of the company abroad will be 50 million tons. According to forecasts, this year the volume of crude oil companies abroad will reach 30 million tons (Chinese-champions 2014).ConclusionDevelopment of the world economy can not be foreseen. Economic processes are interdependent and have a feature to evolve or change their usual characteristics. Recently, there are significant changes in the global economy. Global players in international markets and the processes of economic development are changing. Influence of developing economies is increasing. Asian countries come close to the world leaders.China is developing especially rapidly. Beginning of the 21st century was the time of the rapid growth of Chinese economy. It started with various forms of export, development to the countrys infrastructure and gradual market libera lization. In 2001, China joined the World Trade Organization (WTO). The country aspires to economic dominance, domestic companies expand their global presence. A striking example is China National Offshore Oil Corporation. Created 1982, it was actively developed and in 2001 entered the world market, where it works successfully. The company is a world leader in the development of offshore oil and gas resources on the basis of international cooperation and it is Chinas largest offshore oil and gas producer. All this confirms that at the moment Chinese companies have become influential players in the global oil market.