Spring Breeze 1991

Facing Yao Yuan again, Kim Jae-hyun lost the sense of superiority he had before.

The predecessor of Dongfang Petroleum was Dongfang Oilfield Service Company, which was a company that provided full-time oilfield exploration and production services. In fact, Dongfang Oilfield Service at that time was just an empty shelf, and the exploration team, drilling team and related equipment were leased to the Petroleum Corporation.

Later, I slowly built up my own team. Most of the technicians and workers were from the Petroleum Corporation.

After the racing exploration, Dongfang Oilfield Service won the exploration and production rights of the second largest oil field in the Tyumen oil region, but Dongfang Oilfield Service did not want it and sold it to Hyundai Petroleum, which received a huge amount of cash and entered a stage of rapid development. .

Because China and South Korea were negotiating the establishment of diplomatic relations at that time, Hyundai Petroleum was able to win because of the LNG ship technology as a condition.

Kim Jae-hyun was very grateful to Yao Yuan, because at that time Dongfang Oilfield had more and better choices, such as bp and ExxonMobil.

After exchanging pleasantries, Kim Jae-hyun put forward his request straight to the point, saying, "Mr. Yao, we hope to get a long-term oil contract to purchase 2 million tons of crude oil from Dongfang Petroleum within five years at the current price. I hope you can agree."

"It's impossible, whether it's CIF or FOB. 2 million tons, Mr. Jin, you should know what this is." Yao Yuan shook his head and said.

The total output of the Shikotan Oilfield for four years.

Of course, Kim Jae-hyun was asking a lot of money. After thinking about it, he said, "Mr. Yao, how much do you think we can get?"

From 1994 to 1997, the price of crude oil showed a downward trend, but this is a historical trajectory. The problem is that this trajectory has been changed, because now there is an extra-high-yield Shikotan oilfield.

To put it bluntly, Yao Yuan can already influence the international crude oil price!

However, the overall downward trend will not change. Moreover, after the Asian economic crisis in 1997, the global crude oil price plummeted to 15 US dollars per barrel. This general trend is also difficult to change. At least Yao Yuan has not thought of a solution yet.

Most importantly, it is impossible for Yao Yuan to give Hyundai Petroleum 2 million tons of crude oil.

Yao Yuan said, "The current crude oil price is stable at around US$23, and we can sell 23 million tons of crude oil to Hyundai Petroleum at an FOB price of US$2000 per barrel for a period of five years."

"Too little, Mr. Yao, the annual output of the Shidan Oilfield is 5000 million tons, and you also have the Baku Oilfield, you have 8000 to [-] million tons per year." Kim Jae-hyun said in a deep voice, "The price can be discussed, but the quantity must be increased , I think, in the short term, only Hyundai Oil can bring in such a large purchase.”

This statement is true. Before the outbreak of the Asian economic crisis, South Korea was a rising economic star, with a lot of foreign exchange that could not be spent, and the demand for oil and energy was growing.Hyundai Petroleum's oil field in the Tyumen oil region has just started production, and it can only produce a few million tons per year. The oil field exploration service is still provided by Dongfang Petroleum.

Yao Yuan said, "The Shidan Oilfield needs to give priority to supplying our own petrochemical base. We need to reserve part and release part to the international crude oil market. Our production capacity is also very tight."

After thinking about it, Kim Jae-hyun said, "How about 5000 million tons? According to the current price as the FOB price, Hyundai Oil will be provided with 5000 million tons of crude oil within five years, 1000 million tons per year."

$80 billion long-term contract for five years.

quite attractive.

Kim Jae-hyun did not get entangled in the price, which shows that they did not hesitate to obtain a stable oil supply, which is also the case with South Korea and Japan.

Seeing Yao Yuan contemplating, Kim Jae-hyun became a little anxious.

There are several company leaders waiting in line for the meeting, including many petrochemical companies, including Japanese petrochemical companies.The production capacity of the Shikotan Oilfield is on the table. Since it has been announced to stop increasing production, it will only be 5000 million tons per year.

First come, first served, Koreans don't want to give Japanese a piece of the pie.

"Mr. Yao, to tell you the truth, my visit this time was authorized by the government. We may consider sharing the core technology of LNG ships with Chunfeng Academy of Sciences as an additional condition to facilitate this transaction." Kim Jae-hyun opened out of conditions.

Yao Yuan was taken aback, it seemed that the Koreans had already conquered the core technology of the LNG ship, which was a great technical boost for the Ship Research Institute of Chunfeng Academy of Sciences.

After thinking about it, Yao Yuan said, "The five-year contract is fine, but 5000 million tons is too much. In this case, I hope there will be a certain premium. How about adding 20 cents per barrel?"

That's a $7000 million premium.

Kim Jae-hyun froze for a moment, and said, "Mr. Yao, I need to ask for instructions."

Yao Yuan made a gesture of invitation.

Kim Jae-hyun went to the side and took out the satellite phone to make a call for more than ten minutes. After turning back, he said, "Mr. Yao, five-year contract, 1000 million tons per year, FOB price of 23.2 US dollars, a deal."

"Happy cooperation." Yao Yuan happily shook hands with Kim Jae-hyun.

After the outbreak of the Asian financial crisis, the Koreans may regret it too late.

The finalization of this transaction has ensured that in the next five years, Dongfang Petroleum will be able to obtain a profit of at least 32 billion U.S. dollars, with an average annual profit of more than 6 million U.S. dollars.

For every barrel of oil sold, excluding the cost and the share of the UAE, the profit of Dongfang Petroleum is about 9 US dollars, which means that according to the annual output of 5000 million tons, the annual profit is 31.5 billion US dollars. Of course, this is based on the current crude oil price. To calculate, in fact, there are not so many.

Moreover, the Shikotan Oilfield requires continuous investment in construction, but the construction funds of hundreds of millions of dollars are nothing.

Behind Kim Jae-hyun is the South Korean government, otherwise Hyundai Petroleum would not be able to do such a huge deal.

Fearing that the night would be long and dreamy, Kim Jae-hyun immediately called the team over and negotiated the details of the contract with Dongfang Petroleum, hoping to sign it as soon as possible.

The Koreans rushed to give money, Yao Yuan of course raised his hands to welcome them.

After Kim Jae-hyun left, Yao Yuan found a familiar name when looking at the client list——Wang Xiang, the vice president of Formosa Plastics Group, the second-generation head of Formosa Plastics Group.

Yao Yuan was a little puzzled, and asked He Xueli to arrange for Wang Xiang to come in first.

As soon as Wang Xiang saw Yao Yuan, he strode forward to greet him and shook Yao Yuan's hand enthusiastically, "Mr. Yao, congratulations. After knowing that the world's first 10-ton well was drilled in the Dongfang Petroleum Sedan Oilfield, I immediately rushed from Hawaii." Came here and brought my father's blessing."

After changing the previous hostility, Yao Yuan and the Wang family had confronted each other because of the Haicang petrochemical base. It can be said that in the eyes of the Wang family, the Haicang project was destroyed by Yao Yuan. They would only hate Yao Yuan. on friends.

Now Wang Xiang is like a normal person, talking enthusiastically, and those who don't know think they are good friends for many years.

"Thank you Chairman Wang, Mr. Wang, please sit down." Yao Yuan smiled and sat down.

Wang Xiang sat down and started chatting casually. The standard style of Chinese people talking about business is to communicate feelings first, and then talk about business.On the one hand, Yao Yuan prefers the way of foreigners, and it's over after talking about it, and there is no need for so much foreshadowing.

"Mr. Wang, you are not just looking for me to congratulate you, is there anything I can do to help you?" Yao Yuan asked with a smile.

Wang Xiang smiled and said, "I want to buy some oil from the Shidan Oilfield, and I hope to sign a long-term contract with Dongfang Petroleum."

Another long-term purchase contract.