Chapter 739: Unless there is a low-interest loan
"It's a short-sighted act!"
"Even if the investment in high-sulfur oil processing equipment is higher, and there are corresponding environmental protection investments, the price of high-sulfur oil is lower than that of low-sulfur oil, and the production cost can be greatly saved after it is put into production, and the money saved is enough to make up for the extra money spent on equipment," said Bryce loudly. Moreover, the investment in equipment is a one-time investment, and a refinery can produce for decades, and with the oil reserves of countries such as Indonesia and Angola, it may not be able to support that time. ”
Feng Xiaochen said: "Your Royal Highness, I admit that there is some truth in your words, but at present, for China, the one-time investment is a big problem, unless it ......"
"Unless what?" asked Bryce, almost subconsciously.
Feng Xiaochen smiled and said: "Unless we can get enough low-interest loans to make up for our lack of funds, these two new refineries will have to be designed according to the use of low-sulfur oil." ”
"Loan ......" Bress was stunned for a moment, and then reacted, and after a long time, the other party actually hit this idea.
"Yes, China is currently very short of construction funds, and the NDPC can only raise enough money to build two refineries to process low-sulfur oil. I suggested to NDPC officials that they should consider increasing their processing capacity for high-sulfur oil, and NDPC officials said they would not be able to make such a decision unless additional financial support was available. Feng Xiaochen said.
Feng Xiaochen's words can be described as a combination of fiction and reality. It is true that China lacks capital, and it is also true that the investment in equipment for processing high-sulfur oil is higher than that for low-sulfur oil. However, there is some consensus between the NDPC and oil companies on this issue, that is, the processing of high-sulfur oil in the Middle East should be taken into account, which is an important part of ensuring China's energy security. Of the two to three new sets of large-scale oil refining equipment planned by the NDPC, at least one is suitable for high-sulfur oil. However, this news has not leaked out at present, and only a few people know about it, so Bryce naturally has no way of knowing.
Bryce was silent for a moment, and then asked, "Mr. General Manager, can I get an idea of how much loan the Chinese government needs to get before it can consider building a high-sulfur oil refinery?" ”
"$8 billion. Feng Xiaochen said without blinking.
"How can you need so much money?" Bryce cried, "a refinery with an annual output of 10 million tons, if calculated according to the refining of high-sulfur oil, the total investment is more than 5 billion US dollars. You said that the purpose of the loan is only to make up for the lack of funds, how can you need $8 billion?"
Feng Xiaochen said calmly: "My plan is to use these loans to change an oil refinery planned by the Development and Planning Commission to a process suitable for high-sulfur oil, and to build an additional refinery, which is also suitable for refining high-sulfur oil." After these two refineries are put into operation, China's ability to refine high-sulfur oil will be increased to more than 20 million tons per year, doesn't His Royal Highness think this is a good result?"
"20 million tons per year?" Bryce was really a little moved, and he asked hesitantly: "However, if we provide these loans, can Mr. General Manager guarantee that China will definitely import a large amount of our oil in the future?"
"No problem at all!" Feng Xiaochen patted his chest and said, "At present, China imports very little Saudi oil, mainly due to refining capacity. If we have the ability to refine high-sulfur oil, then we will significantly increase our oil imports from Saudi Arabia, and the amount of imports is related to our refining capacity. If His Royal Highness the Prince can provide us with a low-interest loan of $20 billion, I can help His Royal Highness the Prince sign a long-term import agreement with the National Development and Planning Commission of China, and China will import no less than 30 million tons of oil from Saudi Arabia every year at a reasonable price. ”
"Didn't you just say $8 billion?" Bryce was a little confused, the general manager in front of him was too stream-of-consciousness to speak, and at first he said that he only needed some loans to make up for the funding gap, but it turned out to be $8 billion, and he said that he was going to build an additional refinery. In one turn, $8 billion has become $20 billion, what is this?
Feng Xiaochen said: "I am thinking about His Royal Highness the Prince. If you think about it, if our refining capacity for high-sulfur oil is only 20 million tons, how much can be allocated to Saudi Arabia? As the world's largest oil exporter, Saudi Arabia's export volume of more than 10 million tons is completely insufficient. If Saudi Arabia wants China to be able to import more than 30 million tons of Saudi oil a year, then we need to build more refineries, maybe not two, but three, and each with a production capacity of 20 million tons instead of 10 million tons. As the refining capacity increases, will the oil companies watch this equipment sit idle? When the time comes, there is no need for His Royal Highness the Prince to sell it, and they will naturally increase their oil imports from your country. ”
"This ......," Bryce felt that his brain was a little insufficient. What the other party said was so reasonable, he didn't know how to refute it. But the question is, why do I always feel that there is a smell of conspiracy in this matter? Maybe this general manager makes people feel unsteady.
Feng Xiaochen continued to perform his ecstasy, and he said with a smile: "Your Royal Highness, do you think that 20 billion US dollars is very expensive for opening up the Chinese market? And we just hope that Saudi Arabia will provide us with a loan, and this 20 billion US dollars will eventually be repaid." ”
"I need to report this to the company. Bryce gave in. Indeed, when the company sent him to China, it also said that it would open up the Chinese market at any cost, and if it could be achieved by providing China with a $20 billion loan, it would not be very expensive. The loan is to be repaid, of course, Feng Xiaochen asked for a low-interest loan, considering inflation and other factors, the issuance of low-interest loans is a bit of a loss, but overall the loss of the Saudi side is not large, and in exchange for China's commitment to import at least 30 million tons of Saudi oil every year, this business is worth it.
Feng Xiaochen sent Bryce out of the door of the equipment company, and when he was about to break up, he seemed to ask casually: "By the way, Your Royal Highness the Prince, do you know where the representative offices of Qatar Petroleum and Kuwait Oil Company are?
"Well...... We don't usually have much contact. Bryce replied through gritted teeth. If he couldn't hear what Feng Xiaochen was hinting at him, then he would have eaten for so many years in vain.
In the weeks that followed, Mr. Bryce revisited several Chinese ministries and major oil companies to ask them about the new refinery. These institutions were all given the opportunity by Feng Xiaochen to speak in front of Brys, claiming that China lacks the ability to refine high-sulfur oil, so it is not interested in Saudi oil. As for whether new refineries suitable for high-sulfur oil will be built in the future, it depends on whether sufficient funds can be raised, and whether China's equipment manufacturing enterprises can manufacture corresponding process equipment.
Representatives of Qatar Petroleum and Kuwait Oil Company in China also received an invitation from Feng Xiaochen to go to the equipment company for negotiations. What Feng Xiaochen said to them is exactly the same as what he told Bryss: that unless they are willing to provide low-interest loans to China to help China build new refineries suitable for high-sulfur oil in the Middle East, China will have to choose Africa and South America as its oil suppliers.
"You are really bold enough, and the Planning Commission directly agreed to import 30 million tons of Saudi oil every year, and if the oil cannot be digested, I have to move all of it to your house." ”
In the office of the State Development Planning Commission, Wang Zhenbin teased Feng Xiaochen.
Prior to this, Wang Zhenbin agreed to sing a duet with Feng Xiaochen, and also coordinated several large oil companies to cooperate with the acting, sending a clear signal to Bryce and other Middle Eastern oil tyrants, that is, China is considering its own oil import policy, if it does not get sufficient financial support, China will give up the option of importing high-sulfur oil, so that Middle East oil will not be able to enter the Chinese market.
The anticipation of the development potential of the Chinese market has made several oil bulking countries make up their minds and agree to jointly provide the Chinese government with a low-interest loan worth 22 billion US dollars for the construction of three large-scale refineries in China with an annual processing capacity of more than 15 million tons.
After finalizing the process plan of the refinery, the China Development and Planning Commission initialed a letter of intent for oil imports with several countries, promising to import no less than 40 million tons of crude oil from the Middle East every year after the refinery is put into operation. Saudi Arabia contributed the most money, allocating a share of 30 million tons per year. After getting the signed letter of intent, Prince Brest smiled so hard that he couldn't close his mouth, pulled Feng Xiaochen and said countless exciting words, and repeatedly wanted to make up for Feng Xiaochen's long-lost veneer gift, but Feng Xiaochen of course refused very firmly.
After signing the letter of intent and sending away the Middle Eastern oil tyrants, Wang Zhenbin had the opportunity to protest to Feng Xiaochen. Of course, he said this with a smile on his face, and apparently he didn't think there was anything wrong with this letter of intent. The NDPC also has its own research department, and the research department has accurately calculated China's oil demand in the next few years, and no matter which forecast method is followed, it will not be a problem to import 40 million tons of Middle East oil every year, which is why Wang Zhenbin dared to sign the letter of intent.
"If we can't digest 30 million tons of oil a year, we can't digest it, so we can seal our own oil fields and just use other people's oil. Feng Xiaochen replied lightly.