Chapter 559: Bidding Briefing

"This time, there are 11 areas to be explored in the first batch of openings, five at sea and six on land. Five blocks on the sea, Zafar and Mashaal, 110 kilometers southeast of Baku, have been identified at the moment, and six on land, Galaboli and Karamartin have been determined......" said the piece in a stiff tone.

The representatives of the oil companies in the audience exchanged heads and could not contain their excitement, which was diametrically opposed to the expressions of the Azerbaijanis on the stage.

11 exploration areas! Even if only a third of the oil is explored, there are 4 oil fields.

As far as the history of Azerbaijan is concerned, the 11 oil fields they chose are likely to produce great oil, and more than half of them have undergone preliminary exploration by the former Soviet Union, which is the sincerity shown by Aliyev and the displeasure of the Azerbaijanis on the stage.

Put yourself in your shoes, what would it be like if China managed to succeed on its own, but foreign companies went deep into the interior and chose the resource points to extract the country's most important crude oil?

However, this is the case with the ecology of the jungle.

The Azers were defeated by the Bolsheviks in 1920 and did not even keep their own martyrs' cemeteries, and in 1993 the Azerbaijanis could have refused to be given to foreign oil companies and could have refused to open exploration areas to foreign companies, but the result might have been worse. Armenia is on the lookout, Hussein and Mamedov are on the lookout, Russia and Turkey are condescending...... If the legitimacy of the government cannot be guaranteed, the value of a piece of policy can be imagined.

Aliyev, who is 70 years old, thinks very openly, since he wants to take out the oil field, he simply takes out 11 yuan in one go, anyway, foreign oil companies also give money.

This was somewhat unexpected by others.

The so-called others, including both representatives of oil companies and Azerbaijanis.

Sioux City picked up his glass. moistened his lips, and suddenly felt a little excited.

Perhaps, take another oil field unplanned?

Even if it is not as huge as the Azijiu oil field, with the abundance of oil and gas resources in Azerbaijan, it is normal for any oil field to produce one million tons of crude oil per year......

Of course, it is also possible that the oil fields cannot be explored.

Sioux City's swelling of greed was slammed on the brakes. The Zafar oil field is a well-known oil-free exploration area. After signing a big contract, the American company happily explored here for three years, but finally got nothing. Disappointed and lost, losing billions of dollars.

If Dahua Industrial wants to win the Aqijiu Oilfield, it can't afford to toss.

The Azijiu oil field, which once accounted for 80% of Azerbaijan's crude oil exports, was the biggest reliance of bp, which is known as the "elephant dance". If it were not for the collapse of the Tyumen oil field in Russia. bp is on track to become the largest company of the 21st century.

From the perspective of the future, the defeat of BP represents the defeat of the British Empire to some extent. With ExxonMobil, Putin is afraid that it will not be so easy to recapture his Tyumen oil fields.

In China in the 90s, even GDP could not catch up with the British Empire, and it was difficult for Sioux City to rise to the pride of the "Big Four Joys".

"Aqijiu Oilfield No. 1!" Su Cheng said silently, opening the piece that had been delivered. I took a closer look. He made a huge bet in Azerbaijan, and the goal was naturally not just an oil field, but the meal had to be eaten in one bite. Only after taking the Azijiu oil field will he consider other oil fields. Furthermore, the acquisition of the Azijiu oilfield can also enhance the status of Dahua Industry in the international oil industry. Until that time. Ordinary oil fields, there is no need to keep saliva to fight.

Simultaneous interpretation is available in the conference hall. But only three languages are available: English, Turkic, and French. Sioux City turned off the headphones very quietly and focused on the items that had just been distributed.

What little Aliyev said can be found in the pieces, and he is too lazy to practice listening.

The first two pages of the piece are nonsense, and the remaining seven fields are not stated, except for repeating the location of the four fields. Only a few people know that the unidentified oil fields include Zirag, 100 kilometers east of Baku, and Elam in the Caspian section, where the Achizyu oil fields are located, and Murahanley, which is home to the big oil fields that are in high demand.

Sioux City quickly flipped the page and found a way to bid on the oilfield: floating royalties and signing fees.

This is a classic oil development template from the 90s, and Sioux City breathes a sigh of relief.

As long as it's a share-sharing model, it's not as comfortable as the oil concession buyout policy that made oil companies happy in the 80s, but it's still much more comfortable than the oil field extraction service contracts after 2000.

Su Cheng pressed his fingers against the paper and slowly slid down:

For oil fields with an annual output of less than 1 million barrels, the Azerbaijani government's base share is 20%.

For oil fields with an annual output of less than 5 million barrels, the Azerbaijani government's base share is 30%.

For oil fields with an annual output of less than 10 million barrels, the Azerbaijani government's base share is 40%.

For oil fields with an annual output of more than 10 million barrels, the Azerbaijani government's base share is 50%.

The content of the bidding is to increase the proportion of the basic share. In other words, if an oil field with an annual output of more than 1.5 million tons is acquired, at least 50% of the profits will be given to the Azerbaijani government, and in order to win the bid, it is possible for the oil company to give 55% or even 60%.

Judging by the current price of oil, this is not too much. After all, no matter how much it is a business that makes hundreds of millions of dollars a year, in developed countries in Europe and the United States, a high-profit company has to pay so much tax.

The most attractive is the 30- or 35-year contract. Since the 70s, Azerbaijan has the longest contract time, the so-called contract of the century, more than half of the value of which is on this contract time.

Because the price of oil is constantly rising, the price of oil in the 90s hovered between $20 and $30 per barrel, and 50% of the profit share fell on some high-yield oil fields, and it was difficult for oil companies to get a profit of $5 per barrel. If the operation is an offshore rig, the interest expense invested upfront may result in negative equity for the first five years.

However, after 2000, the price of oil stopped hovering, and after climbing all the way, the superiority of the sharing contract was reflected. The highest price of $140 is not to mention, but the average price of $100 per barrel is still expected. Remove into. Oil companies often make $30 or even $40 in profits from 50 percent, so much so that Mexico's deep-sea oil fields, which cost an average of $50 or 60, have become a saga.

Since then, the share of oil producers has been declining, soon falling below 15%, and after 2010, oil sharing contracts have been almost banned, and all have become production service contracts, with oil producers paying oil companies about $2 per barrel according to the amount of production.

Compare it to. Azerbaijan's contract of the century can be executed until around 2025, not to mention the profits that oil companies can grab, and this steady stream of cash income is even more desirable for most companies in the business world.

At the same time, it also makes the proportion of the share extremely important. At this time, take an extra 05 percentage points. It is worth more than the mining service contract in the future, and how to determine the proportion of the bidding will become very testing.

Looking at this piece, the whole conference room became much quieter.

Su Cheng groaned for a moment, turned the page again, and found the second project, the signing fee.

The signing fee is the signing fee of the oil company. It's a pure cash outlay. For each oil field acquired, a signing fee must be paid before exploration and exploitation, and afterwards. Even if the oil field is not found, the signing fee is non-refundable.

The Azerbaijani government set a base signing fee of $50 million, which is less than expected, however. The 11 oil fields also have $5.5 billion in revenue, which is enough for the Azerbaijani government's expenditure.

Aliyev was so nervous about holding a briefing on the bidding for the oilfield. The first thing I am staring at is the signing fee.

The revenue from the share will definitely not be received in a year. The signing fee is different, this is the money that can solve the urgent need, that is, the money that can stabilize the regime, Aliyev would rather have less, but also settle down first.

Sioux City closed his eyes and fell into thought.

Little Aliyev on the stage was still speaking, but almost nothing listened carefully.

There's not much to know about other than the number of fields and how they're being bidd.

Half an hour later, Aliyev ended the meeting and said: "This is the end of the bidding briefing, and from next week, the Azerbaijani Ministry of Oil will start accepting bids from companies, and the deadline is on the 10th of next month." Details of the oil field will be communicated to you before the bidding deadline. ”

The specific information of the oil field will be notified before the bidding deadline, but he did not say which day, which is a common method used by oil-producing countries to restrict information to avoid some not very good oil fields from being sold at a price, or even unsold.

If the oil companies can't find any other means to get this information, they will have to prepare for two sleepless nights two or three days before the deadline - to get as much information as possible in a hurry.

But whether or not oil companies can find other means, oil-producing countries will always suffer.

Aliyev had no intention of chatting with everyone, so he simply said a word and left the venue.

Little Aliyev sent his father away, then came down with a smile and greeted various companies.

There were a lot of companies in the venue, and he only had time to say a few words to Su Cheng before moving on to another table.

A handsome-looking foreigner hurried to Dahua and handed Sioux City a letter, saying, "Mr. Ducatt said that he was willing to fulfill the previous deal. ”

"Got it. "Sioux City opened the letter, and it was Ducat's handwritten letter. Faced with the temptation of 11 oil fields, he was undoubtedly willing to reach a so-called "gentleman's agreement" with Sioux City.

Regardless, the benefits to BP of abandoning a bid for one field in the hope of getting information on another 11 fields are self-evident. In fact, Sioux City is the only oil company that now knows about the other seven oil fields. Even if BP has a way, there is no faster way to get oil field information. Even if it is a week ahead, it can give a more accurate judgment on the oil field. What's more, there are 11 oil fields to be inspected here.

"Now give the oil field information to Ducat, what if he regrets it?" It was Qin Yun who spoke, Dean Qin's daughter and Chubby's wife. This calculating woman, with her personal ability, has been a core employee of Dahua Industry for a long time, unlike the straightforward Dean Qin, Qin Yun's sense of trust is very weak, and when she was in the Dahua Strategy Department, she was a difficult figure that suppliers feared. Now she has set her distrustful gaze on the British.

"Knowing that you are invincible, you naturally have to find a way to know whether Ducater will regret it. Su Cheng's voice was clear, obviously in a state of calm thinking.

Qin Yun's gaze was still on the back of the handsome British student, and at the same time asked strangely: "How can you be sure if Ducatt has repented?"

"yes, how can you be sure. Xiaopang moved gently, blocking Qin Yun's sight.

Su Cheng smiled and said, "The opinions of the oil companies are ultimately to be expressed in the bidding documents. When we get the news of the bid, we naturally know what the oil companies think. ”

"What if they bid at the last minute?"

"As long as the bids are opened later than the time of the bidding. "Sioux City has its sights set on Aliyev Jr. The final decision was made by the president of the national oil company, and the timing of the bid, as well as the entire process of finalization, were also in the hands of Aliyev Jr.

In other words, if you get through the work of Aliyev Jr., you can do the work of bidding. And the final price of Dahua will be determined by the competing companies.

……