Case | HBS Case Collection | November 2010 (Revised January 2012)

CNOOC: Building a World-Class Energy Company

by Joseph L. Bower, Nancy Hua Dai and Michael Shih-ta Chen

Abstract

Fu Chengyu is the fifth CEO to lead China National Offshore Oil Company - an SOE founded in 1982 to exploit Chinese offshore deposits. In 2010 he is trying to decide how to drive further growth in a company that has grown 556 times in less than 30 years, with profits grown 2600 times. He believes that the way CNOOC has been managed, a blend of market orientation and concern for employees and the nation has contributed importantly to the success. His challenge is to allocate resources among new areas to explore for petroleum and new sources of energy, and to develop managers with the capability of leading those businesses in the face of world class competitors. Both technical talent and the ability to integrate the efforts of non-Chinese leaders are involved.

Keywords: Talent and Talent Management; Leadership Development; Growth and Development Strategy; Resource Allocation; Organizational Culture; State Ownership; Competitive Strategy; Energy Industry; China;

Citation:

Bower, Joseph L., Nancy Hua Dai, and Michael Shih-ta Chen. "CNOOC: Building a World-Class Energy Company." Harvard Business School Case 311-074, November 2010. (Revised January 2012.)