super energy power

"The final result of the No. [-] oil field has been judged by His Excellency the President..." As soon as the young Aliyev said this, there was a burst of tension and whispering.

The decision made after the president's evaluation means that the bidding result is not determined purely by the proportion and amount of money. In other words, any company may succeed or fail.

Those who are familiar with the situation in Azerbaijan looked at Dahua Industrial for the first time.Whether it is bp, Exxon or PetroChina, they all know that Dahua Industrial's efforts in Azerbaijan, especially its achievements in public relations, are unparalleled by other companies.

However, relationships are important, but cash and income are decisive. Aliyev will not shake his ruling foundation to repay the favor of Sioux City. Therefore, the representatives of the various companies have not completely given up hope.

Time didn't give them a chance to think too much. Little Aliyev paused for a few seconds before continuing: "The company that finally won the bid was Dahua Industrial, and the basic share increased by 10.1%..."

"Ah!" This time, before little Aliyev finished speaking, the following shouted.

Ryutaro Watanabe of Japan's Inpex company stood up "swish", pushed the chair back, and shouted: "The basic share increase of our bidding is 14.8%, and Dahua Industrial won the bidding."

Ducat of bp company also stood up. The increase in the basic share they offered was 15.4%, which was the highest bid value in the audience, but they did not win the bid.However, the performances of the British and Japanese at the venue have always been polarized, and he did not shout out in a hurry, but waited and watched.

When his speech was interrupted, Aliyev simply put down the document in his hand and said, "The reason why Dahua Industrial won the bid is the signing bonus."

"Signing bonus? Signing bonus is secondary, right?" Watanabe Ryutaro, like those Japanese company employees from big conglomerates, knows how to be humble and fiercely fight for income.If he can get the oil field, he doesn't mind kneeling down and begging, but now the oil field has to be handed over to Dahua Industrial.He can only adopt a posture of opposition and hope that things will change.

This trick worked well in many places, especially in Europe, and often allowed the Japanese consortium to gain what they otherwise could not, or were about to lose.

However, the Japanese resistance had no effect on the young Aliyev who had experienced many ups and downs.Little Aliyev's pie face seemed to be completely baked.As hard as iron, he said calmly: "Dahua Industrial's signing bonus has an added value of 3 million U.S. dollars. After discussions between the President and the cabinet, it was decided to approve their application for a three-year exploration concession and a 35-year concession."

"3 million U.S. dollars!" This figure immediately shocked the stubborn Japanese elites, as well as hundreds of people in the conference hall.

"3 million dollars," repeated Aliyev Jr.He also knows that this decision is controversial, so he will give the representatives of each company a buffer time.

Dahua Industrial won the bid, on the one hand, because of Aliyev's promise, and on the other hand, this huge signing bonus.It is under the influence of the two parts that Aliyev will nod under the 60.1% total share ratio.

Dukat quickly calculated that the difference between Dahua Industrial and bp's sharing agreement was nearly 5%.Compared with an oil field with an annual output of 1000 million barrels of crude oil, it is a difference of 50 barrels of oil.In terms of current profits, 50 barrels is equivalent to about 500 million US dollars.

That is to say, for an oil field with an annual output of 1000 million barrels, only 60 years under static conditions can make up for the difference in the contract bonus. In other words, the production of Ruoguo No. 6 oil block is only 1000 million barrels.The total signing bonus is 3.2 million US dollars, and Dahua Industrial will suffer a huge loss.

At the normal rate of return of oil companies, the cost should be recovered in five to ten years at the latest, and these costs include contract bonuses and mining costs.The former is a fixed 3.2 million US dollars, while the latter can be replaced by an activation index.Put it in Azerbaijan, it is 4500 US dollars per barrel per day.

Using simple equations, it is possible to calculate Dahua Industrial’s minimum estimate for the No. 6 oil block, which requires an annual output of at least 600 million barrels of crude oil to recover the initial investment within 10 years—recovering the investment means not earning a penny. Huge sums of money have to be posted.

Even if the oil price rises, its profit will hardly equal the interest loss caused by the initial investment.At the same time, there is an opportunity cost that cannot be underestimated.

However, the annual output of 600 million barrels of crude oil is the standard of the Seitan Oilfield.

No matter how you look at it, a large oil field of the size of the Setan oil field cannot pop up casually.

In fact, without sufficient geological analysis, the previous companies have already given extremely high evaluations to the oil fields near Baku.However, it is still full of suspense whether there will be 11 large oil fields among the 2 oil blocks.

Of course, if the output of the No. 6 oil block is astonishing, it will become profitable to reduce the sharing ratio and increase the signing fee.

If the annual production of 1 barrels of crude oil is stable, although it will cost 0 million more development costs, the annual profit will also increase by 8000 million. Counting the early development time, the cost can be recovered in six to eight years, which is almost It is the most acceptable rate of return for oil companies.

For further comparison, if the annual output of 2400 million barrels of crude oil is stabilized, the total annual profit will soar to 2.5 million U.S. dollars despite spending an additional 2 million U.S. dollars in development costs, which means that the cost can be recovered in 4 to 6 years.

The faster you can recover your costs, the less unaccounted for interest and opportunity costs, and at the same time, the greater your earnings in years to come.

Every oil company understands this truth, but apart from Dahua Industrial, very few companies have made such a big gamble.

The annual output of 2400 million barrels of crude oil means a stable daily output of 7 to 8 barrels of crude oil.Such data is relatively common in Kuwait or Saudi Arabia, which are highly productive in oil.However, this does not mean that you can see such a high-yield oil field after obtaining an oil field concession.

As far as other oil companies are concerned, they would rather take a lower share than take such risks. Shared risk is the way for large enterprises to survive, and it can even be called the foundation of modern corporate society.

Professional managers like Ducat are not only unqualified, but also should not make risky decisions like Sioux City.The companies behind them all have more than two-digit shareholders, and there may be many investors behind the shareholders. If they are listed companies, they will face more investors.And these gentlemen who are not necessarily in the oil industry will never allow their banknotes to be gambled by a certain manager, even if there is a high chance of winning.

And a sole proprietorship company like Dahua Industry.Ten out of ten are small and medium oil companies.They may have the courage to gamble, but they may not have the capital to gamble.

"The signing bonus of 3 million US dollars is about to set a record." The beautiful Total girl Emma said in amazement, breaking the silence of the small area.

Ducat shook his head in disappointment.He couldn't offer such a high price, but he regretted that bp lost this oil field.If you can use 65% of the share to win this oil field, even if you don't make as much as Dahua Industrial, it will be a lot of profit.It will be the capital of his future promotion.

"A billion dollars."

"A total of 3.2 million signing bonuses"

"The total investment is four to five billion..."

Arias in various languages ​​sounded in every corner of the conference hall.Even big-budget oil companies.Nor can one remain indifferent to hundreds of millions of dollars.

The development cost of a multinational company for a country often does not necessarily reach 1 million US dollars.The annual profit of a Fortune [-] company may only be a few hundred million dollars.In a year of economic downturn, a well-respected CEO may only get hundreds of millions of dollars in financing...

"Absolutely... definitely at a loss." Shigeru Nishioka started with the pronunciation of "zenzen" in Japanese, gnashing his teeth.

The representative of Statoil came up with a faint sentence: "Maybe Dahua Industrial has done secret exploration."

For a moment, more than half of the representatives nodded silently.

If they hadn't done secret exploration, they couldn't think of a reason for Sioux City to gamble.

This is not as simple as raising the sharing agreement by 0.2 percentage points.Instead, they completely use the signing bonus to fight for the share.

Any company representative knows the implications.This must be a decision made by Sioux City who is extremely optimistic about the output of the oil field.

Shigeru Nishioka touched his forehead, and said in a low voice in Japanese with a little frustration: "Since he decided to use a high signing fee, why did he submit the bid so late?"

"The high signing bonus naturally has to be compatible with the high sharing." Watanabe Ryutaro said in a low voice, also in Japanese: "The amount of sharing we offer will obviously affect the signing bonus."

Shigeru Nishioka can see right through.If the highest sharing bid for No. 6 oil block is only 60%, Dahua Industrial can get the oil field without paying much signing money...

"Alas..." Ryutaro Watanabe sighed again, and said softly, "If it wasn't for the above, we could have proposed a share ratio of more than 65%... Maybe we could increase the signing bonus to 8000 million, so that .There is still a chance to win the oil field, at least let the Chinese bleed more."

"Above?" Shigeru Nishioka was a little puzzled.

"The main bank has some doubts about the Caspian Sea Oilfield and asked us to control the price when bidding." Ryutaro Watanabe explained in a low voice.The influence of banks on enterprises is obvious. Some super oil companies can transcend the existence of banks, while ordinary large oil companies can only seek to coexist.Companies in Japan, South Korea and Southeast Asia tend to operate consortiums, and the banks or oil companies will ultimately take the lead, depending on the situation.But most of the time, enterprises are mostly affected by banks.

The main bank is the main investment bank of a certain project of an enterprise, and it is not surprising that institutional investors such as banks often require it to have the right to speak at least as much as the management of the enterprise, to control risks and to control prices.Like the super oil companies, the banks would rather make less money than bet on it, and in the end, none of these companies will actually make less money.

Shigeru Nishioka remained silent.Whether it is secret exploration or the courage of bidding, they are inferior to Dahua Industrial, and there is nothing to say about losing the No. 6 oil block.

Just hope it's not a big oil field.

Oil fields with a daily output of more than 8 barrels were still rare in the 90s.

"Since there is no doubt, then I announce that Dahua Industrial has won the bid for the 6-year concession of the No. 35 oilfield..." Little Aliyev dragged his voice a little.

There are always representatives of several companies who are eager to try and want to jump out and continue to oppose.However, no one jumped out after all.

It's not an easy decision, and with five fields up in the air, no big oil company is going to put itself in the victim's shoes.

Su Cheng suppressed the excitement all over his body, clenched his fists tightly, and his thighs trembled slightly.

He is so excited.

This is the Aqijiu oil field, a super oil field that has been increasing production continuously and it will take more than ten years to reach the stabilizer.

Its output is much more than a Seitan field.

When this gigantic super oil field matures, its stable daily output will exceed 130 million barrels, which is equivalent to a Seitan oil field!

And its annual output will reach an astonishing 4.2 million barrels, 6000 million tons, which is more than [-]% of the peak output of Daqing Oilfield!

In later generations, in order to reduce the maintenance time of the Aqijiu Oilfield, the nine major companies have exhausted all means, and invested more than 3 million U.S. dollars in technical funds for this.

Looking at it now, exchanging an excess signing fee of 2 million US dollars for a sharing agreement of about 5% is obviously a huge risk.But Sioux City couldn't be more clear about the potential of the Aqijiu Oilfield.

The 5% share falls on the stable production capacity of 4.2 million barrels, which means 2100 million barrels of crude oil, which is equivalent to three and a half more Seitan oil fields.

It doesn't get any cheaper than that.

What's more, this is still a 35-year long-term contract.

That's the beauty of the "century" contract.

From the era when Sioux City could make a profit of US$5 per barrel of crude oil, it can eat all the way to US$80, US$90, and US$140... In the years that can be met, 30 years later, the profits brought by the Aqijiu Oilfield will be incomparable rich.

At that time, if it needs to be realized, regardless of the remaining 10-year concession or 5-year concession, the shares of Aqijiu Oilfield can make Dahua Industrial obtain hundreds of billions of income.

At that time, looking back at the $1993 million in 3, it will only be regarded as a fraction of a fraction.

If Aliyev was not as cunning as a fox, Sioux City would rather spend another 6 million US dollars in exchange for an additional 5% share.

However, this approach is too easy to arouse Aliyev's vigilance.Moreover, if the share is less than 60%, it may cause more disputes in the future.

Contrary to the excitement in Sioux City, everyone in Dahua was in shock. Unlike other companies who cheered spontaneously when they got the oil fields, the block where Dahua was sitting was quiet.

Spending $3.2 million in cash in one go, plus the ensuing development costs... For anyone, this is a heavy pressure, and they can't jump up.

...(To be continued. If you like this work, you are welcome to vote for recommendations and monthly tickets. Your support is my biggest motivation..)