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As Published In The China Daily...
Oil Data Firm Plans Office As Trading Potential Grows
Shu Nan
China, February 22, 2005
OILspace, a leading global developer of online applications and market data delivery services for oil and gas companies, is poised to set up its first office in China to cash in on the country's huge potential for trading oil.
"We are now planning to launch our Shanghai office by the end of this year," said Jensen Koo, a Singapore-based senior manager at OILspace.
"China's huge demand for energy has increased significantly its oil trade volume with foreign companies. We see it as a good opportunity for oil trading companies like us," Koo said.
Companies with rapid growth of oil trade volumes can be confronted with many challenges, he said.
There are possibilities for Chinese companies, still immature in handling commodity derivatives trading, to get into trouble, due to the lack of check and balance systems.
The recent fiasco of Singapore-listed China Aviation Oil in the futures market provides a good lesson, Koo said.
The company, which supplies almost all of China's jet-fuel imports, disclosed last November that it had lost US$550 million on derivatives trading, forcing it to seek court protection from creditors.
It is very important for Chinese oil companies to develop a risk-control mechanism and put check and balance systems in place without disruption to existing systems that companies rely on for the day-to-day running of their businesses.
Koo also said supply chain solutions for oil companies are hugely important as many energy companies are primarily active in long supply chains of physical oil transportation by tanker, pipeline, rail and road; in refinery processing, downstream storage and marketing, and also in futures, swaps and options.
OILspace US/ Canada
Brigette Gebhard
bgebhard@oilspace.com
+1 732 797 0046
EMEA PR Agency
Kevin Fiske
kevin@sagepartnership.com
+44 1189 344007
OILspace Asia-PAC
Kishor Sujanani
ksujanani@oilspace.com
+86 21 6122 1075 |
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