Chapter 568: Chaotic Order
The eight o'clock celebration does not invite a large range of guests. ใr/>
Members of the missions of various countries, representatives of large companies registered in Azerbaijan, as well as members of the press corps, were almost the main guests of the celebration. On the contrary, there are not many officials in Azerbaijan, only from the foreign affairs, propaganda and oil departments.
Nevertheless, the medal awarded by the President himself is the only one in recent years.
The reason for the official announcement is not of great concern, and the significance of the medal lies in the medal itself. Especially at this special time, there are not many occasions when Aliyev and Little Aliyev appear together. Representatives of many companies just want to meet the two of them, and they have to work hard.
Su Cheng stood on the stage and couldn't help but think of the time when he was bidding for the Setan oil field. At that time, Dahua was weaker than most of the oil companies present, let alone finding the top figures, and even ordinary cronies had to work hard.
However, compared with the super oilfield Azijiu, the Setan oilfield, which can be called a large oilfield, is still a small character. The current Setan oilfield has a daily output of about 120,000 barrels per day, and the annual output of crude oil is between 40 million and 45 million barrels, that is, between 5.5 million tons and 6.5 million tons, in addition to the maintenance period of about 30 days per year. In its full form, the Azijiu oil field is a terrifying 1.3 million barrels per day, which is more than 10 times that of the Setan oil field.
Although it takes more than 10 years to build the Azijiu Oilfield in its full form, even the phased Azijiu Oilfield, with a daily output of 300,000 tons and 500,000 tons, is simply like shooting a target.
Even if the contract for the Azijiu oil field is not as good as that of the Setan oil field, the profits and scale it brings are terrifying.
If it is said that when Dahua Industrial swallowed the Setan oil field, it was still a small company, then. When Dahua Industrial faced the Azijiu oil field, it was still a small company.
"Bang Bang Bang"
The neat applause woke up Sioux City on the stage.
"It's your turn. Aliyev Jr. gave up the microphone position to Sioux City.
"Thank you, I didn't expect to get the Order of Solidarity of Azerbaijan......" Su Cheng took out the speech script, put it in the speech position, and said lightly.
What matters in this celebration is the medal and its meaning, and the content of the speech, which is just a foil.
If there is no promise from Aliyev. Sioux City may take advantage of this opportunity to add a little more confidence to the prospective partner. However, with Aliyev's promises, what he has to think about now is not so complicated.
The reporters were doomed to be disappointed that they had not heard anything interesting from Sioux City's speech. Not even a bit of conflict. If it weren't for the fact that Dahua Industrial had paid a lot in Azerbaijan, they would have thought that Sioux City would give up.
However, the same message is very different to many in the business world.
Everyone watched and probed each other, and the voices below became louder and louder.
Su Cheng laughed on stage and quickly turned the page. After reading the last two paragraphs, he said, "Thank you for joining us today, and feel free to do so." โ
He shook hands with Aliyev and Aliyev Jr., respectively. Then the Azerbaijani officials, who accompanied them, sent the two of them out of the venue.
On the periphery of the security guards, there were cries of regret. In recent days, the president's father and son have obviously avoided everyone. It's not easy to find a chance to meet again.
It's a pity, no matter how strong the gentleman is. At this time, it is impossible to break through the obstruction of the Ministry of Internal Affairs. Seeing Aliyev leave the hall, several people turned around almost at the same time and walked towards Sioux City at the same time.
In addition to these three representatives, representatives of BP Ducat, France's Total, Rosneft and Japan International are all in one direction.
Mega oil companies have their way of surviving, and large and medium-sized oil companies have their way of surviving, but either way, it's always right to get as many fields as possible.
Several representatives took a few steps before they discovered each other's presence. Although they smiled a little awkwardly, none of them relaxed their steps.
"Su Dong. โ
"Mr. Sioux City!"
"Sighow City, Your Excellency. โ
Everyone has their own name, but everyone behaves with general politeness and attention.
Whether it's a deep look or a deep career line, if you want to gain a foothold in the "dueling arena", you have to be a little unique.
Finer and Repsol Petroleum have both signed cooperation agreements with Dahua Industrial. They will jointly bid for some fields, but when faced with some fields, either company can temporarily withdraw and bid alone. In addition, Finer will take on more political tasks, while the Spanish company Repsol will take on more technical work, as a typical southern European company, the Iberian Peninsula high-welfare companies have a large number of useful or useless technical personnel, their employees and layoff costs are unusually high, so Repsol is willing to sign a longer technical contract at a lower price, for the large companies on the Mediterranean coast, having a long-term manpower contract, like having a long-term corporate bond, can bring a very sense of security, to help them survive the economic downturnใ
It can be said that this is also a survival skill that European companies have cultivated over the years. If jobs are not locked in with lower contracts, high labor costs will cost European companies nothing in the economic shock. After all, private companies in the U.S. and many other countries use arbitrary employment, and companies can use layoffs to survive the economic downturn, but the same problem is that when the economy suddenly picks up, the company's labor costs will immediately increase, and it is likely that it will be difficult to recruit enough people even if the salary is increased.
The different forms of existence of European and American companies make them have their own place in the global market.
Su Cheng responded to them one by one, and then said with a smile: "The news I know has actually been taken out, and the rest of the news is not accurate news. โ
Representatives of Japan's International Petroleum Development Corporation (JPC) were the easiest to understand the joke in Sioux City's words. He said: "Our company is here to congratulate Chairman Sioux Cheng on winning the medal." Congratulations. โ
"Thank you. โ
"As for the bidding application, that's not for me to decide. Ducatt also stood up, shook Su Cheng's hand, and said, "I hope you can understand, BP has made a request, BP has been asked to bid for every oil field with all its might, so we are not allowed to give up one of the oil blocks." โ
He had a gentleman's agreement with Sioux City, however, at the time of the bidding application a few days ago. Ducater violated the agreement by including the No. 8 oil block in the bidding application.
While the No. 8 oil block was not the real target oil block for Sioux City, BP's approach put an end to all of Sioux City's illusions.
BP in 1994, a powerful mess, especially on the offensive side. Far more than Mobil and Shell and other giants in the same class. If possible, Sioux City would still be hoping to negotiate a bid with BP for the field. After all, Azerbaijan released 11 oil blocks, and Dahua Industrial's main target was only Azijiu.
However, BP's aggressiveness is not new, and their elephant policy has led them to concentrate their resources and aggressively occupy upstream oil fields. He would even rather give up the chemical business with assets of tens of billions of yuan. So, as Sioux City saw in the documents of Aliyev, Ducatt was reluctant to give up the No. 8 oil block.
In other words, they would rather spend a lot of time and effort researching on their own. I would also like to get such an opportunity.
For now, what they are holding is just an opportunity.
There is no doubt that BP will also be Dahua Industrial's biggest rival and Azerbaijan's most tycoon investor. In the process of bidding for oil fields. They will leave no stone unturned.
If anything, the British still retain a bit of gentlemanly spirit. That is, Ducatt did not lie to his face. He wasn't sure if Sioux would be able to get the contents of the application, so he chose to tell Sioux City.
It is also because of this that Su Cheng maintained the politeness on his face, smiled slightly, and said, "It doesn't matter, Dahua Industrial will also bid with all its might." โ
"We look forward to your participation. Ducatt understood Su Cheng's expression and simply turned away.
For BP, there is no opponent he cannot defeat, the result is only how much BP is willing to give. Ducatt will not work tirelessly just for the sake of working with Sioux City.
Several other companies came and went quickly, some of them got the answers they wanted, and some of them didn't. But in the end, only the French company Fina, Petrobras and Spain's Repsol Petroleum remained with Sioux City.
As collaborators, they began to negotiate the details of the bid.
Su Cheng beckoned Zhang Chao over, he is the chairman of Dahua Industrial, if he also goes up to fight, then the room for turning around will be too small, and the negotiation will fail.
Zhang Chao is also a student from a study abroad, over the years, not only proficient in English, but also clear thinking, he used a very fast speed, while making judgments, while saying: "No. 1 oilfield, we are willing to cooperate in the bidding." โ
"Abandonment of the independent bid?" the Spaniard asked.
Zhang Chao immediately nodded and said, "Yes, give up the independent bid, but we want 51% of the shares." โ
"That's not possible, up to 25 percent, divided equally by the four, unless someone is willing to quit. "It's the Brazilians who are speaking this time, and the other three have also won the right to bid independently, so either company can abandon a joint bid for an oil field and choose to bid independently. However, when this power is not exercised, they will have to discuss more matters of cooperation.
At the same time, in order to avoid the influence of other companies, all four companies will presumably bid for multiple fields independently instead of one.
Sioux City plans to make independent bids for fields 6, 8 and 10. The latter two oil fields are the guise of Dahua.
The four negotiators waited for a few seconds with champagne in hand, and the Brazilian announced: "It seems that no one has withdrawn, so we will divide the shares of each of the four companies equally between the 25%." โ
"Dahua is willing to contribute 40% of the capital and get 40% of the shares. โ
Petrobras is also willing to give 40% and get a 40% stake. โ
"42% of the investment, 40% of the shares. Zhang Chao raised his head and saw Su Cheng nodding slightly, so he felt much more relieved.
The Frenchman interjected at this time and said: "We should acquiesce to the 25% ratio of each company, and then increase or decrease on this basis, and if other companies want to get more shares, they must buy them under the name of the company that is willing to sell." โ
"You mean virtual trading?" the Spaniard clearly liked his advice.
The Frenchman nodded and said, "This will speed up our progress......"
"I guess we have to slow down. Dahua does not admit that each family has a 25% percentage by default. โ
"You mean companies are not equal to each other?"
"I mean we don't give equally. Zhang Chao said quickly: "If you want to default to the proportion." Dahua should receive a default ratio of 45%. โ
He did not use a ratio of 50% or higher because Dahua would not do its best in any field other than No. 6 oilfield.
In fact, in this competitive environment, it would be nice for the joint company to get one more oil field.
Despite this, no one is one step behind.
Because you don't know which oil field will win the bid.
Confidence and preparation are the conditions for a good outcome, but they do not determine a good decision.
Good luck is essential for every oil company.
The Quartet then talked about the proportions, and you and I said it faster and faster. Even Sioux City will have to give it their full attention to keep up with most of them. However, to participate in such a quick negotiation, his English level is definitely insufficient.
The outcome of the discussion of the default scale is that there is no default scale. No one expressed frustration, and they renegotiated from scratch. The proportions of the first field had not yet been negotiated, and the French then brought in the second field, so the negotiations accelerated from another angle and tended to be more complex.
Taking the opportunity of the celebration, it was not just one group of people here that was discussed, BP formed one group, and the strong line-up of Total and Mobil made up another group. Japan International Petroleum Development Co., Ltd., together with Malaysian and Russian state oil companies, formed the third group. In addition, some oil companies with hidden secrets quietly left the banquet hall. Go to an intimate place and negotiate quietly.
The more you negotiate to the end, the more difficult it becomes, that's the law of the corporate world.
11 oil fields, any joint company must rely on negotiations. to decide which oil fields they are bidding for, and then determine the proportion and contribution of each party. Even if you don't go into the details, just discussing these important parts is complex and overwhelming.
Do more and get less, no matter who is unwilling, doing less and getting more is what every company expects.
Contracts in the oil industry are often protracted. At the negotiation table, every inch of land must be contested, and they can also probe each other's bottom line in private.
Negotiation is a process of testing the bottom line, and whichever side reveals the bottom line first may lose more.
Without a deadline, a contract could be negotiated for a year, two years, or even 10 years, as in the case of the Sino-Russian oil pipeline.
Fortunately, the bidding for the oil fields in Azerbaijan proceeded quickly, and the people in the negotiations knew this, so they seized every opportunity to negotiate.
It took Zhang Chao and others two hours to talk about the No. 5 oilfield, and when these oilfields have not yet finalized their proportions, Zhang Chao seized the opportunity and said: "Dahua can reduce the shareholding ratio a little, but we want to get a part of the dollar loan, a long-term loan." โ
After several hours of chaotic discussions, all kinds of conditions have long been fluttering like flying flotsam, and each family has their own small abacus, and it is rare not to delve into the small abacus of other families. The other three companies, whether it was Petrobras or Spanish and French, were not surprised by Zhang's conditions, and they were able to find huge amounts of dollars. Especially in the latter two countries, it is now much easier to get a loan in dollars than it is in China.
Of course, the state loan demanded by Aliyev was not so easy to solve, but in terms of Dahua's current conditions, the only way out is to save the country with a curve.
"With a $500 million, five-year loan, Dahua Industrial gave up 3% of its shares in oil blocks No. 1 to No. 5 to give us. "Spain's Repsol oil company has a lot of money, and the southern European countries in the mid-90s have not been dragged down by the European Union, and they have always had a lot of cash, and they can even take out hundreds of millions of corporate loans without going through banks.
Zhang Chao refused with a smile and said, "The loan period must be more than 7 years, and the amount should be more." For $500 million for an 8-year term, we can give up about 3% of the shares in No. 1 oilfield, depending on your interest rate. โ
Su Cheng listened, almost silently, he didn't really care about one or two percent of the shares, but if he didn't fight for it, it would be too stupid, he couldn't let tens of millions of dollars flow to other places so simply.
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