Chapter 151 Petroleum Concessions
"If you give up the right to exploit the oilfield, the bidding fee will not be returned. Dressed in traditional Arabic robes and carrying a bag of clothes, Diab looked like a waiter in a palace suite, but when he spoke, he spoke like a king.
Su Cheng bowed his head and said, "I understand." ”
The oil field exploitation right in the UAE will start at 30 million US dollars, and if you give up the oil field exploitation right, it is equivalent to giving up 30 million US dollars, plus all the twists and turns in the process, it is more than enough as a deposit.
Diab looked at Sioux City seriously, but said: "Japan is the country that imports the most LNP (liquefied natural gas) in Asia, about 30 million tons per year, that is, 18 billion cubic meters, and it is imported from many different countries, so are you sure to underwrite 10 billion cubic meters?"
"That's right. "Sioux City is calm on the surface, but his heart is burning with a raging fighting spirit. The LNG produced in Abu Dhabi is about 52 million British thermal gas per tonne, and the CIF price per million British thermal is about $3 to $3.5, which means that 18 million tons of LNG are worth $2.8 billion.
His plan was to sign the contract at parity and then sell it at a reduced price. However, as long as there is a little problem in the middle, resulting in sales being blocked, or selling at a loss, even if it is only 5%, you have to lose as pants. Even Sioux City foresaw that oil prices would rise and gas prices would rise, and he would have to take a great risk.
Before 2000, natural gas was very difficult to sell, and many developers either stopped extracting oil and gas. Either the natural gas is transported back into the ground and used as water and carbon dioxide. With the exception of Japan and Europe, the world's natural gas imports are not large.
The reason why Japan uses oil and gas is also related to crude oil. In 1977, when they learned that Britain would withdraw from Abu Dhabi's shallow oil fields, they signed a 2 million tonne gas import agreement with the UAE, which was awarded in 1979. Thus entering the Middle East oil circle. But, at the price of oil, they lost tens of millions of dollars because of that agreement.
For officials of the Ministry of International Trade and Industry of Japan. That's a standard loss-making contract. That's why Sakaguchi was so angry when Sioux City brought up the price.
At that time, Japan, in order to obtain Middle Eastern oil. Played a whole set of combination punches. The same is expected to be true in Japan today.
Sioux City estimates that Ito Trading is likely to offer a 5 million to 10 million ton LNG import contract for 10 to 15 years. Countries that have not yet secured oil concessions, such as West Germany and Sweden, may also propose similar agreements to obtain concessions for oil bids.
In order to defeat the United States, Britain, Japan, France, West Germany, Sweden and other combination boxing masters, the only thing that Su Cheng can do is to punch the king and the crown prince directly.
10 billion cubic meters of oil and gas is equivalent to 18 million tons of liquefied oil and gas. This is a contract that no other country can come up with in any way.
They can't underwrite 100 million tons of oil and gas for the sake of a possible 100 million tons of crude oil reserves.
But for the UAE, $2.8 billion is equivalent to a quarter of their import revenues, and it cannot be taken lightly in any way.
Compared with economic cooperation models such as telephone lines and subway lines, Sioux City's approach is less technical. But it's so much more affordable.
Diab was slightly moved, and said, "Okay, I will pass on your opinion to the crown prince." ...... from China Dahua Industrial
"Sioux City. Sioux spelled it out in English.
Diab nodded and walked out of the tailor's shop.
There are many lies in the business world, and only real money is the most reliable. Diab believes Sioux City won't joke with $30 million.
Su Cheng gently sat back in his chair. looked at the mirror and smiled for a while, and suddenly said, "Hey, pour me a cup of black tea." ”
The clerk obediently poured him a cup of tea.
Gorou stayed with him and never spoke. In his eyes, the ancestral hall of the family is also more important than natural gas.
Su Cheng quietly drank the black tea before saying, "Goro, call a car to the embassy." Also, help me book a plane ticket to Taipei. ”
Gorou was a little strange and asked, "Taipei, Taiwan?"
"Hmm. ”
"This ...... You can't make a mistake. "Even Goro, who has just come out of the township, knows that Taiwan is a sensitive place.
"In April, the state had regulations encouraging Taiwan compatriots to invest, and we are overseas and doing business with Taiwan, and there is only encouragement, not violation. "Sioux City has one foot in the system and is quite concerned about the documents of the superiors.
1988 was a year of great changes in Taiwan's policy, and if a Chinese company and a Taiwanese company jointly attacked foreign markets...... Su Cheng believes that the Taiwan Affairs Office of the State Council and the United Front Work Department will be happy to see this happen.
Of course, he's not 100% sure. Therefore, after arriving at the embassy, Sioux City asked the head of the foreign ministry for advice on whether it could cooperate with Taiwanese companies and sign overseas contracts.
This topic obviously frightened him, he glanced at Su Cheng complainingly, and said helplessly: "I will report it to the top." ”
"I bought a ticket to fly to Taipei the day after tomorrow, and if there is no result by then, I will bother to forward it. ”
The team leader said resentfully: "Can't you wait for the results to go to Taipei?"
Su Cheng said slyly: "If they say they don't agree, then I will terminate the negotiation and come back." ”
This period belongs to the stage of "crossing the river by feeling the stones", and it is also a stage where you can try anything, and if you make a mistake, you can withdraw it. As long as Su Cheng goes to Taipei, it is estimated that the above will not forcibly pull him back.
The team leader also knew the mystery, nodded helplessly, but asked: "How is the bidding work of Dahua Industrial?"
"I haven't seen any real people, so I'm going to raise some money first. Su Cheng said not quite so, but he couldn't believe it or not.
The next day, Sioux City still went to the tailor shop in Wahaibi Alley, and in the afternoon, sure enough, he saw Diab.
This time. He changed into a full suit and looked like a successful businessman.
The two of them sat in a small windowless room in the tailor's shop, and after the black tea came up, Diab said to Su Cheng: "His Royal Highness the Crown Prince is very interested in Ling's proposal, and now there are only two questions. First, prove your strength, and second, explain what you need. ”
Sioux City groaned for a moment. "In terms of technology, we are the world's leader. China's Chengdao oil field has already begun to produce oil. In addition, it maintains the state of "not dripping oil into the sea" for a long time, and it is the world's top petroleum environmental protection technology. I'll have someone pass on some of the information to you. In terms of funding, I will go to Taiwan tomorrow. Carry out the second round of financing. ”
He said slowly, and then said: "You have noticed that there are two Chinese groups bidding for the UAE oil fields, and as long as the bid is successful, I can guarantee that no matter whether I have sufficient funds or not, I will eventually carry out perfect development, and the commitment to underwrite natural gas will not change." ”
From the UAE's point of view, they are concerned first about tens of millions of dollars in bidding fees, and secondly about international collaboration. The third concern is the development of oil fields.
If Sioux City had paid for it, underwritten the gas, and ended up not developing the oil fields, the Emiratis probably wouldn't have been angry. Anyway, the oil field is put there, and one more bid. There is only good and no harm.
Diab nodded slightly.
Sioux City went on to say: "On the second point, I hope that Dahua will be able to get the oil concession from the UAE. ”
This concession is the right to allow bidding. All the previous arrangements were for the purpose of obtaining concessions. In the end, the bidding will be conducted among all the companies that own the concession, and the highest bidder will be awarded. Kings, crown princes and members of the royal family. The Prime Minister and government officials, everybody will be entangled in this interest.
Diab was not surprised: "Do you want to finance it through oil concessions?"
"Second round of funding, yes. ”
"Well, you can give you an oil concession for 3 years. "That's what you can do for oil fields in the UAE for three years.
"3 years is too short, at least 15 years for me to have smooth financing. Mr. Diab, if I really can't complete the gas offtake agreement, even if it is less than 15 years, I will not go to the UAE to bid for oil fields again. Su Cheng said in a solemn tone.
ExxonMobil in the United States, Shell in the Netherlands, Total in France, and BP in the United Kingdom are all companies that have already obtained oil concessions in the United Arab Emirates. Sweden's partex, Japan's Ito Trading, and oil companies in West Germany, Italy, South Korea, and China are among the companies that have not yet been granted concessions. Their concessions also vary in length.
If Dahua can squeeze into the concession line, it will be an irresistible temptation for any company that is hungry for oil profits.
"5 years, plus a conditional extension of 5 years. Diab stood up, as if he was not ready to bargain, he stretched out his hand, shook Sioux City, and said, "There will be documents coming over later, looking forward to your performance." ”
Su Cheng clenched his hand and whispered again, "Last question, what is the current bidding price?"
Diab hesitated for a moment and said, "37. ”
He walked away.
37 is naturally 37 million dollars, that is, 37 million. This figure is not speculation, but a near-accurate figure given by the crown prince based on the situation of other companies. Within the UAE, officials and the royal family are not monolithic. It can be said that Sioux City is now tied to the chariot of the crown prince of the UAE.
At the last minute before boarding, Sioux City got the oil concession papers.
It was sent by a young teenager, packed in a special mail bag, and did not say a word during the process.
After registering, Sioux sat in business class, tore open the stamped mail bag, and you could see the heavy leather contract folder inside, and when it was opened, there was only a piece of paper, written in Arabic monolingual, with the crown prince's signature drawn underneath: Khalifa......
Su Cheng looked at it carefully twice, and after letting Li Wei confirm it, he put it in the document bag, and kept holding it, unwilling to let go for a long time.
Li Wei was in shock for a long time, and after taking off for a long time, he asked in a low voice: "In this case, wouldn't Dahua Industrial go hand in hand with companies like Mobil?"
Sioux City thought to himself: Mobil would not dare to agree to a long-term LPG offtake contract of $2.8 billion.
He shook his head and said, "Mobil doesn't have to do what we are doing now, just prepare the money and consider the bidding, we are still too far behind them, we have to work harder." ”
"That'...... Do they already know where the oil fields are?"
"There are no small oil fields in the UAE, and it is difficult to say whether other companies know about it......" Sioux City itself fell into deep thought.
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