chinese nocs, 20 april 2007 · worldwide cooperation: rationale r/p ratio for ioc (ioc and noc...
TRANSCRIPT
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NOC-NOC/IOC RelationsAn Observation
Xiaojie XuDirector, Overseas Investment
CNPC Academy of Economics & Technology
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Topics
Chinese Learning Curve: An example of its NOCs experiencesWorldwide Cooperation: RationaleNOC-NOC Models: ExistingNOC-IOC Partnership: Models to be exploredHurdles
Conclusions
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Chinese Learning Curve
Direct Investments 25
Technology Services 48
Equipment exports 59
Home cooperation to worldwide; NOC to IOC
Short Learning Curve: 1993, 1996, 2000, 2003, 2007
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Worldwide Cooperation: Rationale
R/P Ratio for IOC (IOC and NOC backed Ones): an access to resources (80% v. 10%+)Tech for NOC: revitalize and enhance operation efficiency and turn dead resources into market/moneyServices pursued by NOC and IOC: [KPC and CNPC S&E]NOC-NOC: Overseas competition leads to cooperation.NOC-NOC: Cross investment [between Asia and the Gulf].NOC-NOC: Risk mitigation and other needs.
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NOC-NOC Models
Project based models (prevailing ones)
Expertise sharing model (CNPC-Petronas)
Strategic oriented models (CNPC-Gazprom, Rosneft, Statoil)
Technical support models (Intl consortia in Kuwait)
Risk mitigation models (many consortia)
Competition reverse models (CNPC-ONGC)
Cross-investment models between CNPC and Aramco
Politicalized models (PDVSA cooperation with its ally)
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NOC-IOC Models
CNPC-Total?
CNPC-US Majors?
These are subject to exploration
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Hurdles
Open policy and changes in host countries: from Privatization to re-nationalizationWeak Trust: some IOCs were frustrated and reluctant to continue to cooperate Conflicts of Interests: CNPC and ONGCMindset or Culture
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CNPC Embarrassments
CNPC: NOC or IOC?
CNPC: Company or Country?
CNPC: Misunderstood by Gov and the Public in host countries and IOC.
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Conclusions
Worldwide cooperation becomes a new scene, greatly impact on world energy structure and market.IOCs and NOCs are inclined to cooperation regionally and globally eventuallySome hurdles may continue to exist or even expand but will could not outpace rationale of worldwide cooperation in the future. Oil policies in host countries would be balanced by market and other forces, in which way, there would be huge rooms for cooperation worldwide. We will continue to learn.