Volume VI Section 49 Domination

"The Aktobe project has a high degree of maturity, and on the surface, its two oil fields, the Gennanor oilfield and the Kenkiyak oilfield, have passed their peak production period, and they lack relatively complete supporting pipelines and transportation capacity, either the pipeline will be transported to the Orsk refinery in the Orenburg region of Russia, which is currently underperforming, or it can be transported to Atyrau and Aktau by high-cost rail transportation, and then exported to Europe, which is probably the main reason for the lack of interest from European and American oil and gas giants. ”

Sha Zhengyang began to analyze the advantages and disadvantages of the Aktobe project in detail.

For example, the Caspian Sea coastal area is very rich in oil and gas resources, and Kazakhstan is also preparing to carry out large-scale exploration and exploitation in the Caspian Sea coastal area, which is the main goal that European and American oil and gas giants plan to enter in the next step. ”

"For us, the reason for choosing the Aktobe project is also very simple, first, Changhe Energy Group has just been established, and the strategy of going to sea is also an attempt, and the experience is insufficient, so we hope to choose a target with relatively mature conditions; second, the primary goal of Changhe Energy Group is to obtain a relatively stable oil source, and the crude oil produced by the Aktobe project can be transported back to China by rail, of course, the cost is higher, but this can solve the problem of eating for our two major refineries of Changhe Energy,......."

Representatives of PetroChina stopped talking, if it is transported back from the railway, it seems that PetroChina Dushanzi refinery is the most cost-effective, if it is transported to Qindu Petrochemical or Wuyang Petrochemical, which are owned by Changhe Energy, the cost will be further amortized, so they want to ask how Changhe Energy Group thinks about this issue.

"Third, Aktobe Petroleum Company is a state-owned oil company in Kazakhstan, and this time they sold only 61% of the equity, that is to say, even if our Changhe Energy Group succeeds in bidding and obtains Aktobe Petroleum Company, then it will continue to deal with the Kazakh government in the future, which is conducive to the formation of a community of interests between us and Kazakhstan, and it is also conducive to our future development in Kazakhstan with the help of this community of interests, which is also one of the most important main battlefields of our Changhe Energy in the future,......"

"We believe that Kazakhstan's rich oil and gas resources need a lot of capital investment if they want to explore and develop, and although European and American countries have entered Kazakhstan before us, but the Kazakh government is obviously very mature in considering the problem, they want to introduce foreign capital, but they do not want to control the country's oil and gas resources simply and European and American capital, and they also have certain doubts about Russia's great power chauvinism, so Chinese partners should be a very good choice, we hope that our Changhe Energy can assume the role of this pioneer and pathfinder, and also hope that the central government can support us on this issue……”

Fang Jinsong has been listening carefully and observing the performance of this young man.

There is no doubt that this guy should be a rising star in the political arena of Hanchuan, and he is the most dazzling one, and Vice Premier Hong obviously admires this guy very much, which can be glimpsed from the look revealed in Vice Premier Hong's facial expression and gaze.

But I have to admit that this guy is very eloquent, and at the same time, he is very familiar with the situation in Central Asia, especially in combination with the situation in the oil and gas industry, which is very incendiary and convincing.

In particular, he has a good grasp of the mentality of the Kazakh government and state-owned oil and gas companies.

Moreover, Fang Jinsong could even feel that the other party still had reservations, presumably the chief and some other insiders could sense this.

Of course, this may involve trade secrets, and it is impossible for people to disclose them in front of PetroChina, Sinopec and CNOOC, which may become competitors in the future.

But even what he said now has given everyone here a great shock and harvest.

"Cooperation with JP Morgan is a very important part, in fact, as far as we know, JP Morgan has been in Central Asia since the 80s, before the collapse of the former Soviet Union, which focuses on Russia, Kazakhstan and Azerbaijan, they have invested a lot in various fields of the former Soviet Union, which is also the key to JP Morgan can now be like a fish in water in various countries,......

"They have also cooperated with PetroChina in the early stage, but they have not succeeded due to some other objective reasons, but this time they are very confident, if they can't succeed this time, it will have a great negative impact on JP Morgan's influence in the region and the professionalism of the industry, so no matter from which point of view, JP Morgan will go all out,......"

"In the early stage, we have conducted several rounds of negotiations with JP Morgan, and determined the relevant bidding strategy, and at present, our early team has been carrying out relevant cooperation with JP Morgan's team in Kazakhstan, and at present, the progress is relatively smooth, and the Kazakh government still welcomes Chinese enterprises to enter the development of Kazakhstan's oil and gas field,......

"Of course, at present, Kazakhstan's more mature oil and gas resources mainly include Tianziz, which is controlled by Chevron, Karachaganak, which is controlled by the Shell and Eni consortium, and PK and Kazakhstan National Oil Company, plus Kazakhstan's Aktobe Oil Company, the first three are controlled by European and American oil giants,......"

"Aktobe Petroleum Company is owned by Kazakhstan, but it is currently in the worst state, with a lack of capital injection, aging production equipment, stagnation in exploration, low efficiency, and its production has passed its peak period, coupled with the poor efficiency of its main downstream business, the Russian Orsk refinery, and often defaults on oil payments, which directly leads to the current high debt of Aktobe Oil Company,......"

"Because the Kazakh government is in urgent need of funds to increase efforts to explore and develop oil and gas in the Caspian coastal area, coupled with the poor condition of the Aktobe oil company, the Kazakh government decided to sell 61% of the equity to raise funds, and at the same time, the main attention of European and American oil and gas giants is currently focused on the Caspian coastal block that is about to usher in the period of large-scale development, so there is little interest in the Aktobe oil company, which is obviously not cost-effective in input and output, and there are currently two European and American oil and gas companies, Texaco and Amoco, participate in the bidding,......"

"Some people may question, since the European and American oil and gas giants are not interested, why do we still go to such great lengths to bid for the project of Aktobe Petroleum Company?" Sha Zhengyang said in a calm tone, his eyes were full of confidence, "This needs to be determined according to the situation, the layout of European and American oil and gas giants in the early years provided them with strong support, and most of them are listed companies, and they need to provide shareholders with satisfactory annual reports on a regular basis, so their capital investment direction must be invested in a more rewarding regional ,......"

"But it's different for our Changhe Energy Group, everyone may know that the exploration and acquisition blocks delineated by our Changhe Energy Group have long been fixed, very limited, it can be said that we have repeatedly explored the area that can be explored, and as the existing mining area enters the middle and late stages, its mining cost is getting higher and higher, and our Wuyang Petrochemical and Qindu Petrochemical tens of thousands of employees and refining equipment are in urgent need ,......of crude oil to start construction."

"To tell you the truth, our Qindu Petrochemical mainly relies on crude oil provided by PetroChina, but with the reform of the national energy system, PetroChina will definitely further enhance and strengthen its refining capacity, and the crude oil supply of our Qindu Petrochemical and even Wuyang Petrochemical will inevitably be restricted or even threatened in the future,......

Sha Zhengyang did not shy away from pointing out the crisis and weakness that Changhe Energy Group is currently facing, which also made everyone present look sideways.

It's a little too naked.

In fact, everyone present knows that even at present, PetroChina has begun to limit the supply of Qindu Petrochemical to the limited output of crude oil to give priority to ensuring its own demand and limited supply, once PetroChina and Sinopec complete the separation of the refining and chemical industry, some of the oil and gas field resources of PetroChina will be transferred to Sinopec, and some of the refining resources of Sinopec will be transferred to PetroChina, once this situation is established, then Qindu Petrochemical will face the crisis of crude oil supply.

Of course, this may be exchanged for some compromise of interests, but this will undoubtedly hand over their lifeblood to the other party to control and be slaughtered by others, which is unacceptable to the Hanchuan Provincial Party Committee and the Provincial Government and Changhe Energy Group.

"We have no intention of playing any sad card, business is business, nothing to do with feelings, only interests, I believe that in the choice of their own interests and the interests of others, PetroChina will make the right choice, so we can not help but consider these problems in advance, related to the livelihood of tens of thousands of people, related to the fate of our largest state-owned enterprises in Hanchuan, we must make a difference, this is also the unshirkable responsibility of our Hanchuan Provincial Party Committee and the provincial government and a generation of Hanchuan state-owned enterprises!"

The last few words Sha Zhengyang said categorically and forcefully, which moved everyone present.

Especially Zhou Yuanwang, Wang Yunxiang and You Wangang and others were even more amazed, obviously Sha Zhengyang's words touched the depths of their hearts, which was just right and made them feel excited.

"Therefore, after carefully studying the situation of the two major oil fields of Aktobe Petroleum Company, we believe that although these two major oil fields have entered the medium term, their exploitation costs are still much lower than the cost of our existing main oil fields of Changhe Petroleum, even if it is coupled with transportation costs, it is still profitable, in addition, we also hope to take advantage of this opportunity to open up the situation in the field of oil and gas in Kazakhstan, and actively participate in more extension areas, such as participating in the oil and gas pipelines that Kazakhstan is interested in transporting crude oil from the Kenkiyak oilfield to Atyrau and Aktau, so as to facilitate the sale of oil at a good price to Europe, and further increase the exploitation and processing of natural gasto expand into new markets,......"

The powerful voice echoed in the conference room, and people couldn't help but follow his train of thought.