Choosing appropriate commercial models for overseas business: a case study of a Chinese oil service provider towards internationalization

Abstract

Due to ever increasing domestic demands on oil and gas, more and more Chinese oil and gas companies have been encouraged to expand towards overseas markets, which potentially brings opportunities for the domestic OFS providers. While as new comers to the international market, recently the Chinese OFS companies have frequently been in problems or sometimes even got trapped not in servicing itself but inappropriate commercial models. Through benchmarking the international peers competitors and series of in-depth analysis, the author has proposed a detailed restructuring scheme for a case company. While implementing of such a restructuring, with acceptable costs the liability could be minimized, which is of apparent significance to both the case company and others with similarities.