Spring Breeze 1991

Chapter 623 Breaking Through the Threshold

After the details of the output and oil products of the Shikotan Oilfield were announced, they immediately became popular.

According to international standards, the quality of crude oil produced by Shikotan Oilfield is the best in the world, which is one of the main factors that attract many customers.

The Haicang project is gone, but Formosa Plastics Group still has the six-light project on the island, which needs a stable source of crude oil to ensure the production of the six-light base.

Yao Yuan said, "We are compatriots. Dongfang Petroleum will definitely support Formosa Plastics Group. We are all a family. What do you think, Mr. Wang?"

"Yes, yes, we are a family, and Baodao is an inseparable part of Huaxia. We, the Formosa Plastics Group, have never doubted this." Wang Xiang stated without hesitation.

Don't do business if they're not politically correct, though they might say otherwise when confronted by the island's leaders.

Yao Yuan said, "There is no problem with the long-term contract, but the production capacity of the Shidan Oilfield is limited. How much does the Formosa Plastics Group want and what price?"

"How about 500 million tons per year at a CIF price of US$18 per barrel?" Wang Xiang said straight to the point.

Yao Yuan shook his head with a smile, "Just now, Hyundai Oil won a five-year contract with an FOB price of $23.2 per barrel, 5000 million tons."

"What!" Wang Xiang was shocked by Hyundai Petroleum's generosity.

This is a deal of more than 80 billion US dollars!

"You also know that the Shidan Oilfield has to give priority to ensuring the production of our own petrochemical base. The remaining production is not much, and the price you proposed is not attractive." Yao Yuan laughed.

Wang Xiang looked embarrassed, "The price of 23.2 US dollars is too high, Mr. Yao, the general trend of crude oil prices is to fall..."

How then to explain Hyundai Petroleum's premium purchases?

After so many years of ups and downs in the business world, Wang Xiang felt that it was difficult to deal with such a simple problem.

Yao Yuan would not let go of the price. He waved his hand and said, "Formosa Plastics Group can also get a five-year contract. The price is the same as that of Hyundai Petroleum, 100 million tons per year."

"The price is too high..." Wang Xiang shook his head with a wry smile.

Yao Yuan smiled, "I can only do this, Mr. Wang, you should think about it first."

As he spoke, he picked up the teacup and drank tea.

Wang Xiang had no choice but to get up, "Mr. Yao, I will report to the chairman first. If possible, I would like to treat you to a meal."

"Let's talk about it, you also know that I'm very busy these days." Yao Yuan said.

Wang Xiang had to leave.

The quality of crude oil from Shikotan Oilfield is higher than that of Baku Oilfield, and it is the raw material sought after by petrochemical companies.Simply put, with the same amount of crude oil, if the oil produced by the Shitan Oilfield is used, refined oil with better quality can be produced, and the proportion is even higher.

Naturally the price is expensive.

The annual output of the Shikotan Oilfield is basically consumed, because 2000 million tons per year must be reserved for domestic supply.Before Xia Honghua and Wen Tiejun returned to China, at the strong request of Yao Yuan, the ministries, the Petroleum Corporation, and Southern Industry reached a tripartite agreement.

The construction of oil storage facilities in the coastal areas will be constructed by Southern Industry and Petroleum Corporation separately, as an important part of the national strategic oil reserve system.

This is not only the need for national energy security, but also one of Dongfang Petroleum's specific measures to deal with future fluctuations in crude oil prices.

The oil storage facilities are owned by Southern Industry, and after the construction is completed, they will be rented to Dongfang Petroleum for use, or they can be used as the owner. For Yao Yuan, it is nothing more than a matter of left hand and right hand.

This is also out of the consideration of controlling the scale of Dongfang Petroleum. The commissioning of the Shidan Oilfield has made Dongfang Petroleum the number one company in the Spring Breeze Group, and the former cash king Yuanda Group has already ranked second.

The main assets of Dongfang Petroleum are basically overseas, so it is necessary to control its scale purposefully and transfer back all the assets that can be transferred back to China.

Yao Yuan, who has lived for two lifetimes, has a deep understanding of the truth that all eggs cannot be put in one basket.That's why he spread the billions of dollars he earned from manipulating crude oil prices in several places.

Cornell from France's Total Company finally met Yao Yuan. This was the last guest Yao Yuan met with today, and all others were cancelled.

Since France's Total company allowed to participate in the development of Baku oilfield, the company's future development center has gradually shifted to the Middle East and the Caspian Sea region.

The development of land oil in the world is one piece less, and it is inevitable to enter the deep sea. However, due to the low oil price policy, oil companies are not active in developing deep sea oil fields. Take bp's offshore oil fields in the North Sea as an example. The cost of exploitation per barrel has already More than 12 US dollars, the profits in the hands of oil companies are already very meager.

But we have to mine. There is a problem of mineable reserves.

Now, after the Baku Oilfield, the Shidan Oilfield has been born, and a super large oilfield is just in front of it, and the major oil companies cannot help but be indifferent.

The Shidan Oilfield was won by Dongfang Petroleum and achieved world-renowned success. Naturally, Total did not dare to hope to compete for it, and they no longer have the ability.

However, it is possible to work for Dongfang Petroleum.

Cornell knows that Total's advantage lies in its unique experience in oil and gas refining, especially natural gas production, and this is precisely the disadvantage of Dongfang Petroleum. It is for this reason that Total was able to participate in the development Opportunities in the Baku oilfields.

They are the only Western oil company able to participate in the development of the Baku field.

After Cornell stated his thoughts in a matter-of-fact manner, he took the initiative to say, "Mr. Yao, if we can develop the natural gas from the Shikotan Oilfield together with Dongfang Petroleum, it will allow the natural gas from the Shikotan Oilfield to quickly enter the European market. You know, Europe is the largest market for natural gas."

Natural gas was unpopular in the 90s. Due to resource constraints, Europe began to use natural gas as a living energy a long time ago. At the same time, Europe's environmental protection standards are relatively high, and almost pollution-free natural gas has become the best choice.

In the natural gas market in Europe, Total is the main force, which also makes their natural gas technology ahead of other oil companies.

This is also the main reason why Yao Yuan chose them to cooperate in the development of the Baku oilfield, and they are also strategic partners in the development of natural gas resources in Central Asia.

But Yao Yuan didn't want them to enter the Shidan Oilfield.

Yao Yuan said, "Mr. Cornell, our two companies are strategic partners. I will tell you the truth. The Shidan Oilfield has no plans to develop natural gas for the time being, and the current focus of work is on oil development. However, Dongfang Petroleum has already cooperated with Turkmenistan Oilfield. Stein signed a letter of intent for the development of oil and gas resources, and we can cooperate in this regard."

Cornell hurriedly asked, "Has Dongfang Petroleum acquired the franchise rights in Turkmenistan?"

The competition between Dongfang Petroleum and Nippon Petroleum in Turkmenistan is well known. Dongfang Petroleum, which has already been out of the game, turned defeat into victory due to the political changes in Turkmenistan. Under the huge debt pressure, Shinnichi Chemical’s capital chain broke down, and now it has withdrawn to Japan. Remaining alive, waiting for it is either merged or liquidated.

People in the industry were surprised by Dongfang Petroleum's luck, but they didn't know that Yao Yuan had dug a big hole for Xinri Chemical.

However, there is still no news as to who will get the oil concession in Turkmenistan.Turkmenistan is so wary of Western oil companies for political reasons that they have few options.The success of Dongfang Petroleum in Azerbaijan has given them an example that they can learn from.

Yao Yuan said with a smile, "Turkmenistan is going to set up a national oil company and learn from Azerbaijan's experience. Dongfang Petroleum is the only partner. This is certain. As you know, our oil pipeline has already started construction, and we will also build gas transmission in the future. pipeline."

"Mr. Yao, on behalf of Total, I would like to fully support Dongfang Petroleum's business expansion in Central Asia. We are strategic partners." Cornell said decisively, whether it is the Shidan Oilfield or Turkmenistan's oil and gas resources , all contain huge interests, and it doesn't matter which aspect of cooperation.

Judging from Yao Yuan's statement just now, there is a high probability that Dongfang Petroleum will not allow any oil company to participate in the development of the Shidan Oilfield. Dongfang Petroleum will completely rely on itself to operate the Shidan Oilfield.

Thinking about it, if it were Total, they wouldn't do that either.

After dismissing Cornell, Yao Yuan took a car to the airport to meet the workers from China—the workers in charge of the reclamation project, all of which were airlifted by New United Airlines and New Beihang Airlines.

Taking this opportunity, Lin Wei, the interim head of the two airlines, negotiated with the UAE on the opening of the route.Beijing-Dubai, Beijing-Abu Dhabi, Guangdong City-Abu Dhabi, Guangdong City-Dubai, Shanghai-Dubai, Shanghai-Abu Dhabi, the three major domestic cities have regular flights to and from Dubai and Abu Dhabi, among which There is one flight from Guangdong City every day, which is operated by New United Airlines.

Yaoyuan's base camp is in Guangdong Province, and these flights basically serve Dongfang Petroleum's Shidan Oilfield.The driving effect of a super oil field on the economy has slowly begun to emerge.

In his previous life, the central enterprise where Yao Yuan worked had a big project in a certain place in the south. Because of this big project, a certain place in the south opened a flight to Beijing, and almost all the passengers were related to that big project. It's just a fifth-tier city.

The Shikotan Oilfield is much bigger than that big project.

In order to save time, Dongfang Petroleum assigned the reclamation project to the contractors participating in the Baojun Automobile Production Base and the East Coast Industrial Island Project, forming a consortium to take charge of the reclamation project.That is to say, domestic large-scale construction engineering enterprises are the mainstay, and private engineering companies are supplemented.

The required materials are transported by COSCO SHIPPING freighters.

But because there are no professional engineering ships in China, Dongfang Petroleum can only lease foreign ones, and it is impossible to hand over highly specialized projects to foreign companies.

Dongfang No. 1300 well is only three kilometers away from the coastline, but the deepest part reaches [-] meters. Therefore, it is very surprising that this is a huge reclamation project that was approved by the UAE.

According to the plan, first fill in a dam along the shallow water area, about five kilometers long, to ensure the production of Dongfang No. [-] well, and then slowly complete the filling of the rest of the area, and finally form an artificial peninsula protruding from the Shidan Sea.

It took three years to fully complete the reclamation project.

Dozens of passenger vehicles gathered at the arrival gate of Abu Dhabi Airport, forming a long queue. These vehicles were hired by Dongfang Petroleum to pick up workers from China.

Along with the first batch of workers came Fang Yaozu from Guangdong Provincial Construction Engineering Corporation.The infrastructure construction of the Baojun Automobile production base has come to an end, and the major construction engineering companies have begun to withdraw their personnel. The remaining work is basically done by Southern Industrial itself, such as interior decoration and equipment installation.

Yao Yuan launched a satellite in the United Arab Emirates that caught the attention of the world, and the leaders of Guangdong Province issued a deadly order to mobilize the entire province to support the construction of the Shidan Oilfield, and give them what they want.Yao Yuan put forward a large number of suggestions for recruiting idle laborers in rural areas, all of which were accepted and sent to Abu Dhabi after training.

This is the most direct way to improve the living standards of rural people.

When Fang Yaozu saw Yao Yuan coming to pick him up in person, he trotted over immediately. He clasped Yao Yuan's right hand tightly with both hands as if they were in a victorious meeting, "Mr. Yao! I didn't expect you to pick me up in person! The main leaders of the province asked me to represent the province The government solemnly stated that Guangdong Province is your hometown, and it will definitely support the construction of the Shidan Oilfield with all the strength of the province, and you can speak up if you want people or things. These are the original words of the main leaders of the province."

"Thank you for the support of the leaders in your hometown, Mr. Fang, you have worked hard all the way." Yao Yuan stood at the gangway, shaking hands with every worker who got off the plane one by one.

Perhaps the workers who have never flown in their entire lives, many of them were farmers a month ago, have now become workers who have gone abroad to work and win glory for the country. They are full of anxiety and pride.

When they saw the big boss coming to pick them up in person, the foreigners rushing back and forth, and the beautiful foreign women and handsome foreign men nodding and bowing, their anxiety disappeared. It turns out that foreigners are not superior to Chinese people!

This was specially arranged by Yao Yuan. The purpose was to let the workers find their own positions, instead of bowing their heads when they saw foreigners like some domestic "shepherd dogs" who regarded foreigners as gods.

He just wants everyone to realize that we are here to create wealth for them, and we deserve super-national treatment.

Starting from today's pick-up, Yao Yuan has already implemented his plan - Huaxia people should also enjoy super-national treatment abroad!

Why can foreigners and foreign companies enjoy super-national treatment in China, but Chinese people and Chinese companies cannot be treated the same abroad?

Yes, Chinese people didn't have that ability before, but now they do!

Oil exploration is like a blind man feeling an elephant, and seabed oil exploration is even worse. Can another company drill an oil well with a daily output of 10 tons?

This is a question worthy of serious consideration by oil companies all over the world. Now this great miracle has been born in the hands of Dongfang Petroleum, which is a manifestation of absolute strength.

Absolute power brings absolute power status.

Dongfang Petroleum is going to talk to Westerners and Western Petroleum companies from the perspective of strength...

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