LAUSR

Abstract In the past two decades, China’s national oil companies have become new players in the international oil industry. When they first entered the global scene in the 1990s, Chinese NOCs held few competitive advantages over international oil companies. They lacked the organizational capabilities and expertise to manage large projects overseas and had little experience with political and security risk. This article argues that political, social and security dynamics in the host countries of Chinese NOCs can play a transformative role in shaping their competitiveness and global strategy. It demonstrates how experiences in Sudan and South Sudan were instrumental in leveraging the competitiveness of the China National Petroleum Corporation, China’s largest oil company, particularly through developing its risk management capabilities, and steering its global strategy towards a more diverse and balanced investment portfolio.