Reborn as the richest man in India.

Chapter 426 Previous Lesson

After Anil expressed his thoughts, Dhirubhai did not give him an immediate reply.

"Father, our oil fields can also be mortgaged by some foreign banks. It's 40 billion. It shouldn't be a problem to mortgage a billion dollars, right?" Anil said again.

"It can't be that easy." Droubai then said, "What do you think the U.S. dollar is? It's a few hundred million, but you think it's hundreds of millions. Even if it's hundreds of millions, it's not that easy to borrow."

"But that kid definitely borrowed US dollars." Anil was now absolutely sure that Qiaogo borrowed money.

"It's not surprising that that kid Qiaogo borrowed U.S. dollars," Droubai said. "He has many industries abroad, and whether they invest or expand their scale, they all need U.S. dollars. What about us? We basically have nothing abroad. What to do with so many dollars in investments, mortgages?”

"Father, we can acquire some more oil fields." Anil said, "That kid Qiaogo has already acquired three oil fields, and this time he took out a mortgage. Regardless of whether he will use the money elsewhere, he can I think it is possible that he will continue to acquire some oil fields. In terms of oil field acquisitions, we cannot be surpassed by him, right?"

"Oh, your idea is not bad." Droubai said with a smile.

Mortgage re-expansion is a common tactic.

"Father, did you agree?" Anil asked happily.

He felt that other places on his side were overpowered by Qiaogo, so this advantage must be guaranteed when it comes to overseas oil field acquisitions.

"I basically agreed, but a loan of more than one billion U.S. dollars is too unrealistic." Droubai sighed, "Qiogo is different. He also has a palm oil industry and many export industries, so he has more Confidence.”

"Father, how much do you think we can borrow?" Anil asked.

"Around US$5 million should be enough and within our affordability. Otherwise, if it is too much, the profit will not be enough to repay the interest." Droubai said, "Moreover, our main focus now is still at home. National University The party has stepped down and we have made a turn for the better. The next few years will be a critical period for us, and we must not let anything go wrong domestically. As long as the country is stable, everything else will not matter."

Anil didn't say that the more he borrowed, the better.

After all, borrowed money must be repaid, and the repayments are still in US dollars.

I mainly rely on selling oil for US dollars. If I borrow too much, it is very likely that I will not be able to pay the interest, which would be bad.

Thinking of this, he envied Qiao Ge even more.

That kid has a lot of assets overseas, and they are all put into production to help him earn foreign exchange. It is these incomes that can support Qiao Ge to borrow more.

"Then let's go to the United Arab Emirates to acquire oil fields." Anil said.

"You~~" Droubai was a little speechless, "Even if you compete with Qiaogo, you don't have to keep an eye on him like this, right? If you spend 5 million US dollars, you can probably buy another small oil field. I think it's better to find one in Kuwait. That way It’s also easy for us to manage.”

Anil was right when he thought about it. Five of his oil field companies are now in Kuwait. It would indeed seem a bit weird to go to the United Arab Emirates and build a small oil field.

This will not put any pressure on Qiao Ge.

Not to mention one company, even if you buy all the oil fields for sale in the UAE, it will have no impact on Qiaogo.

If he really wants to acquire oil fields, other countries have many options.

In short, there are too many oil-producing places in the Middle East.

Therefore, it is unrealistic to squeeze Qiao Ge in terms of oil field selection. The only thing that can be done is to invest more in oil fields than Qiao Ge. The first place is still very important.

For now, our side is at the forefront.

My father was right. Kuwait is not a big place, so management is indeed more convenient and can reduce a lot of costs.

"Father, since we have won these oil fields this time, our relationship with the state-owned petrochemical plants should be better, right?" Anil asked.

"Does this need to be said?" Droubai said with a smile, "Your eldest brother's petrochemical plant is of average size and cannot absorb the oil from one oil field, so we sold the crude oil from several oil fields to those state-owned oil companies. Chemical plant. A five-year oil supply agreement has been signed.”

"What about the price?" Anil said.

"As for the price, it will be negotiated once every two years, and the current price will be used for the next two years. However, after two years, it can be changed to once a year." Droubai said.

Droubai must have made some concessions in terms of price. It was a little cheaper than the oil they originally purchased. Of course, more of the benefits were privately given to the company leaders.

The network of these people is also very strong, and Dhirubhai needs to win over more allies.This time the Congress Party stepped down and the new government had too many things to do and could not take care of him at all.

Moreover, Rajiv's suppression of himself does not mean that the incoming government will also suppress them. After all, they came to power with their own support, and the two sides still had a pleasant cooperation.

So he must take advantage of this gap to quickly unite more people around him.

Even if the Congress Party comes to power in the next term, Dhirubhai believes that he will not be as passive as he is now.

"Father, the price has been set for two years. Is the risk too great?" Anil frowned and asked, "Shouldn't it be a floating price?"

"I have also considered floating prices, but I think it will be difficult for oil prices to rise in the future and will have to continue this downward trend." Droubai said, "So the current price will definitely be a positive for future prices. It’s high-end, no matter how cheap it is, it’s still above the average price.”

"This?" Anil was still a little unsure, "Father, I don't deny your opinion, but I think that since that kid Qiaogo has taken action to acquire oil fields, he should be optimistic about the future direction of crude oil prices, right?"

"You, don't make that kid a myth. He can't make money in any industry. Of course, you can't underestimate him. That kid is investing, not speculating. In many cases, we still have to look at the long term, and he may not necessarily make money in the short term. . Think about it, if it weren’t for the recent global economic downturn and major oil-producing countries such as Saudi Arabia have increased their oil production, oil prices have been suppressed. If oil prices weren’t optimistic, how could we have won these oil fields so easily? I I think Qiao Ge must have had the same idea, and took advantage of the current slump in the oil industry to take action. When oil prices really rise, how many oil fields can you buy? Even if you can buy them, high-quality oil fields will basically not be our turn. , ordinary ones cost a lot more. If you buy it now, it should be at a low price. Even if the oil price will be low for a few years, you can accept these. I believe that the oil price cannot always be like this, and the economy will always recover. Of course It may take a few years, we can wait." Dhirubhai explained to Anil.

"Maybe Saudi Arabia will reduce oil production?" Anil asked.

"Impossible." Droubai laughed and said, "At least in the next few years they will not reduce production and oil prices will not rise."

"Father, are you so sure?" Anil was very confused about his father's statement. He couldn't figure it out.

"Anil, with regard to international commodities, you can't just look at the commodities themselves, you also have to consider politics, the international situation, etc." Dhirubhai felt that he should teach his younger son a lesson.

"I understand politics and will generally consider it," Anil said immediately.

He didn't want his father to think that he was not good at this, so wouldn't he be compared to his elder brother?

"Then tell me, what is the basis for my judgment? What international relations is it based on?" Droubai asked.

"This?" Anil pondered for a while before saying, "I know, the Iran-Iraq war has been over for some time. They will slowly restore their economy, and their oil exports will definitely increase significantly, which will suppress oil prices."

Increased oil production will definitely suppress prices.

"You are right on the one hand." Droubai said with a smile. "In my opinion, it is because the beautiful country does not want the price of oil to rise."

"Huh?" Anil stared at Dhirubhai in confusion.

"The Cold War between the two major powers, the United States and the Soviet Union, has been going on. Judging from the current situation, the situation on the Soviet side is not optimistic. The Berlin Wall was pushed down last year. It can be said that the situation and economy on the Soviet side are in trouble. And The Soviet Union's source of foreign exchange mainly came from the sale of oil and other energy sources. If the price of oil has been suppressed, it means suppressing the Soviet Union. This is a national level, no, it is a game between two groups. No matter how you look at it now, the beautiful country Both sides have an advantage. The Middle East, especially Saudi Arabia and other countries, has always been the sphere of influence of European and American countries. They will definitely cooperate with the United States' grand strategy and will not let oil prices rise." Droubai said.

"I see." Anil then realized that his vision was still a bit small, while his father had a broad vision.

Since oil prices are unlikely to rise significantly in the next few years, the risk of a two-year contract is not great.

Especially after two years, we can discuss it once a year, and the risks will be more controllable.

I still have a lot to learn from my father.

"This acquisition of oil fields is not just to grab a few oil fields in the area that kid Qiaogo is interested in, nor is it just for your eldest brother's petrochemical plant. The most important thing is to resolve the crisis of our Reliance Group. At least because of the oil supply I have established good relationships with the senior executives of several state-owned chemical plants." Droubai said, "I believe that within a few years, our current predicament at Reliance Group will be resolved."

"Yes, by then, no one can stop our Reliance Group." Anil said with bright eyes.

If Droubai's words were heard by Qiaogo, Qiaogo would definitely secretly say something powerful.

He is indeed a talented person who can create the Reliance Group, and his vision is extraordinary.

However, Qiao Ge still secretly thought that it was a pity. Droubai's general direction must be correct.

But it is impossible for him to think of various unexpected situations, such as Iraq thinking of using war to resolve domestic economic crises and various conflicts.

After all, the Iran-Iraq war has just ended, who would have thought that he would start another war.

There is also the fact that the Soviet Union is about to disintegrate and collapse overnight. He is far from being as powerful as Droubai thought.

(End of this chapter)