Volume VII Section 17 Sinopec's Invitation

As Sha Zhengyang said, there is no need to pursue any strategic investors or so-called partners who can bring rich management experience to the original allotment, which is a gimmick or even a joke.

How can competitors bring you promotion? Cooperation is also based on equal strength, otherwise it is grabbing.

To improve their management experience and risk response, of course, you can absorb and recruit those executive elites, but it is not cost-effective to give a large number of stocks to those strategic investors, and it is not more worthwhile to give these senior executives some options and equity?

Of course, as for choosing the right time to go public, it is also very elegant, and it cannot become a big pit, but with China's current economic development trend, PetroChina and Sinopec, which are basically in a semi-monopoly position, have no reason not to give investors a good return.

Of course, the premise is that drastic reforms are needed, and the various ills that are deeply ingrained in these state-owned enterprises, especially the bloated institutions, superfluous personnel, and even inbreeding, are the biggest problems of an enterprise.

If you look at the ratio of assets, profits and number of employees between PetroChina and Sinopec and foreign giants such as Mobil, BP and Shell, you will see how big the gap is in their own management.

Of course, the characteristics of the national conditions are also a reason, but you must make a clear plan to solve these problems, and you can't rely on the good market to be blindly optimistic.

Of course, this also has a lot to do with the mechanism of the person in charge of a state-owned enterprise who ignores the old accounts; anyway, if I leave after one term, of course I will indulge in indulgence when I am glorious, and as for the next term, or even beyond, what does it have to do with me? I will either retire or be promoted, in short, it has nothing to do with me.

According to domestic practice, no one will seriously hold the previous office accountable, whether it is a promotion, a transfer or a retirement, as long as they do not make mistakes that exceed the bottom line of principles, nothing else matters.

Sha Zhengyang's words obviously had some impact on You Wangang, although he has just taken office, but he has a general understanding of the future development pattern of Sinopec, listing is the general trend of the future, and it is the top priority in the future work, raising funds, benchmarking internationalization, and building Sinopec into a multinational oil giant that benchmarks the world and serves China, which is the goal of Sinopec in the next step.

For now, Sinopec's refining and chemical resources are significantly stronger than crude oil supply resources, and this problem is difficult to fundamentally improve in the previous life, even after many years, but You Wangang's experience at Changhe Energy makes it difficult for him to accept this situation.

Changhe Energy can do, there is no reason why Sinopec can't do it, and Sinopec's resources in all aspects are much stronger than Changhe Energy, refining and sales terminals are strong and even PetroChina has to retreat, and as long as it makes up for the shortcomings of crude oil supply, Sinopec can truly become a global competitor.

Thinking of this, You Wangang looked at Sha Zhengyang's eyes more and more kindly, if Sha Zhengyang can be transferred to Sinopec, this guy's international vision is more forward-looking than those so-called elites within the company, maybe those people are better at specific details, but if it is about strategic vision, You Wangang feels that no one within Sinopec can look at Sha Zhengyang's back.

Seeing that You Wangang was just groaning and not squeaking, Sha Zhengyang felt that You Wangang was not a little moved, and wanted to strike while the iron was hot: " In fact, we don't have to be presumptuous, Sinopec has a very good foundation, and the system is complete, the upstream and downstream industrial chain has been formed, especially in the case that foreign multinational oil companies have not been allowed to enter the domestic market, it can be said that PetroChina is an equal share of the world's pattern, using this semi-monopoly advantage to strengthen its own strength, vigorously go out, and even consider deep cultivation of foreign markets, coupled with the prospects of the domestic natural gas market is very promising, Sinopec can also make a difference in this ,......"

"Okay, Zhengyang, don't sell me a white mouth here, I still don't know your mouth? I'm used to hearing it when I was in Hanchuan, and now when I come to Sinopec, you will give me this again?" You Wangang said angrily: "Don't talk far, are you interested in coming to Sinopec?"

"Huh?" Sha Zhengyang was really blindsided by You Wangang's sudden attack, "Mr. You, what do you mean by this?"

"What else can you mean? I think you can show your talents more when you come to Sinopec, Changhe Group is really good, but that is limited to a corner of Hanchuan, Sinopec is a much bigger stage, I believe you can have a better performance on this stage, how about it?"

You Wangang really wanted to recruit Sha Zhengyang to his command, and he was very comfortable working with Sha Zhengyang for more than a year, and many new ideas and ideas slowly emerged under the inspiration of Sha Zhengyang, which was even brought to Sinopec, which also made him especially miss the time when Sha Zhengyang was there.

"Mr. You, your words have had too much impact on me, I never thought about it, and I am not from the petrochemical industry, I am not familiar with the petrochemical industry, you want to say some strategic planning, I can talk about it on paper, and I am afraid that the rest is really not good." Sha Zhengyang subconsciously pushed back.

"Jin Wuzu is no one perfect, who can be proficient in everything?" You Wangang disagreed, "You are not doing well in Changhe Energy, even the prime minister has given praise to the strategy of going to sea, I went to the prime minister to report a few days ago, he also mentioned that the strategy of going to sea of Changhe Group has been very successful, and also encouraged Sinopec to learn from the little brother of Changhe Group, I think that several vice presidents who went to report work with me are ashamed of it, just by virtue of this, you can straighten your waist when you come to Sinopec." โ€

"It's not the same. Sha Zhengyang calmed down, "Mr. You, I also tell the truth, Changhe Group was in a state of breaking the game at that time, in fact, the goal is one, to find a stable and guaranteed oil source, just in time for such an opportunity, but in the later stage, you also know that other people are still in the specific operation, I just played a role in the early stage of matchmaking, but Sinopec is different, its mechanism is very complete, and there are many talents in all aspects like a carp crossing the river,......"

You Wangang shook his head: "That's not the same. The current situation of Sinopec is still in the original step-by-step slow state, to be honest, I am not very satisfied, I have investigated twice, I feel not very good, and I am immersed in the state of Lao Tzu's first in the world, and I can't feel the pressure from the outside world, like the rise of Changhe Group, CNOOC in the natural gas sector, the outbreak of refining enterprises led by Shandong, with the accession of the WTO, multinational giants may enter, these crises I think we Sinopec are not sensitive, still optimistic about the listing, completely forget what the purpose of the listing is, in the final analysis, you have to build your strength and competitiveness, you can be invincibleIt's not that the listing circle is a trip to make money, the business is not doing well, the stock price is sluggish, and the shareholders also have to vote with their feet, you can't think that you are a state-controlled enterprise and turn a blind eye, then you are really dangerous. โ€

Sha Zhengyang's eyes flashed with admiration, he didn't expect You Wan to see Sinopec's problems so clearly just two months after he took office.

From the most upstream, Sinopec has always had shortcomings, and the assets in the hands of PetroChina that have been separated are not as good as PetroChina in terms of production capacity and quality, and many are in the middle and late stages of exploitation, the mining cost is rising day by day, and the production capacity will gradually decline, of course, in the short term, of course, there is no risk, but in the long run, this short board does not want to make up for it, it will become the shortest piece of the barrel.

But now it seems that PetroChina and Sinopec are focused on the listing, thinking that all problems can be solved after the listing, but they did not expect to get money from the listing, and they should use these funds to give full play to the best benefits, which is the most critical and important.

Sinopec's biggest shortcoming is oil and gas resources, in addition to the pipeline network is also a major bottleneck restricting Sinopec to do bigger, in the division of assets, PetroChina took away most of the pipeline network assets, this is also Sinopec's fatal injury, to create a pipeline network, time-consuming and laborious, and the country will not support this way of restarting the stove, that waste is too big, but this also means that the initiative is in the hands of PetroChina, even if you have a breakthrough in PetroChina in the future, but the pipeline network resources are subject to the other party.

Of course, the state will definitely deploy it uniformly, but the best outcome is that it is more conducive to everyone to compete in handing over the pipe network to a separate neutral state-owned company.

"Mr. You, it seems that you have seen the enterprise problem very clearly, but I am too worried. Sha Zhengyang laughed, and his heart was much happier," I still have that point of view, listing is very important, but you can't put the cart before the horse, to figure out what the purpose of listing is, to use the funds where they are most needed, Sinopec's shortcomings are obvious, then the funds raised should be used on this, when oil prices are sluggish, it is the most suitable time for mergers and acquisitions, for our domestic oil companies, oil and gas resources will only become more and more tight, and our domestic demand will reach a peak in the next two decades, so in a less accurate word, any asset that can provide stable oil and gas resources is worth acquiring, especially in recent yearsใ€‚ โ€

Sha Zhengyang still remembers the record high price of oil prices soaring to more than 140 US dollars per barrel in the previous life, and the rejection of CNOOC's acquisition of Unocal has left a deep imprint in the hearts of many people, so oil and gas resources are by no means simple ordinary resources, whether it is for China or other countries, one step earlier, only benefits.

PetroChina and Sinopec should boldly go to sea and spend money at the right time and place after the listing, and once it is delayed to the later stage, the international situation is becoming clearer and clearer, and after the sense of joy and joy of European and American countries after China's accession to the WTO gradually fades, the consideration of practical interests will make them more and more preventive and even hostile measures against China's rise.

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