Abstract: The present Arctic petroleum exploration and development has shown two characteristics: expanding offshore drilling and prevailing of strategic alliance among companies.There are three major challenges facing oil companies'arctic operation:demanding technological requirement,sensitivity to economic condition and unfavorable political environment.However,participating arctic petroleum development is strategic importance to China's energy security and China's oil companies(COCs),including diversifying supply channels and realize companies'sustainable development and core competence.Therefore the COCs needs to re-thinking urgently their strategic position in the Arctic.First,COCs strategic positioning in the Arctic should take national energy security into consideration at the first place.Second,to realize core competence is a top priority of COCs strategic positioning.Third,COCs's arctic strategy should heavily rely on consolidation of cooperation between Russia,Norway,and Iceland.