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844 Mutual benefit

The representative of Huayang Company is a middle-aged man in his forties, named Qin Xiaotian. He is black and thin, and he looks like he is the kind of person who is always running around.

"Oh, Mr. Xiao has been esteeming for a long time, he has been esteeming for a long time!"

The place where we met was in the mansion on Chenjia Island. Qin Xiaotian was very polite when he saw Xiao Feng.

Obviously, he had already figured out Xiao Feng's matter very thoroughly and knew who had the final say on the Kalapag Islands.

"Hello Mr. Qin?"

Xiao Feng shook hands with Qin Xiaotian and greeted him. Yesterday, he received a call from Mr. Zhu of 521 Hospital. Xiao Feng knew that Huayang Oil was not simple.

At least the military background is inevitable, otherwise it would be impossible to tell Mr. Zhu from 521 Hospital to help them call and connect.

As the main family, Chen Yonglu invited everyone to sit down and have tea, and then Xiao Feng began to test the other party's routine.

When Qin Xiaotian mentioned this, he didn't hide it from Xiao Feng, and he was directly complaining to him.

"Hey, Mr. Xiao is actually a branch of China Petroleum overseas..."

Qin Xiaotian said it very bluntly. They seem to be an independent company, but in fact they are still closely related to Huaguo Petroleum.

"I believe Mr. Xiao, you have heard of the fact that the Venezuelan owes us the loan to China?"

"Well, I heard that I owe a lot, and there are tens of billions of dollars in front and after?"

"Yes, Venezuela now owes us a total of 65 billion US dollars, but we have never had the money to pay it back. We are also passive, with great pressure from the domestic market, and have made a lot of jokes internationally. However, Venezuela has also proposed to use oil to pay off debts, but now we are facing a problem."

Qin Xiaotian was very direct and came straight to the point when he came up. It was obvious that he was under a lot of pressure.

Moreover, he must have learned about Xiao Feng's personality through the military and his personal attitude towards the military and the country, so he has no intention of hiding it.

As for Chen Yonglu, he is naturally the target he wants to win over.

Once the Kalapag Islands are developed and built, it will naturally be very beneficial for China to appear in the direction of the Southeast Pacific.

So Qin Xiaotian did not mean to hide it from the two of them. Besides, even if the deal could not be negotiated, it would be no big deal.

“Is it a problem to transport oil back?”

Xiao Feng smiled and said to Qin Xiaotian that he had been studying the development and sales of Venezuelan Petroleum these two days, so he had a thorough understanding of the advantages and disadvantages of Venezuelan Petroleum.

Qin Xiaotian smiled bitterly: "It seems that Mr. Xiao, you have also studied the oil of the Venezuelan country?"

"Well, I don't hide it from you. I wanted to get involved in the oil business before, but after researching it, I found that the oil of Venezuela is really not easy to do."

"Yes! Although they have proven oil reserves in the world, most of them are heavy oil similar to asphalt, and the mining cost is very high. On average, it costs US$23 per barrel, while Saudi Arabia only costs ten dollars per barrel. In addition, it is transportation issues. It takes about 26,000 kilometers from the Venezuelan oil tanker to the country. The freight cost per barrel is more than ten dollars, which is really not cost-effective. In addition, purification and refining have to be added. So last year our country has suspended the import of oil from Venezuelan."

When Qin Xiaotian talked about the cost of returning to China from Venezuela to China, Xiao Feng nodded, which was indeed not much different from their previous estimates.

"When what is the international oil price, we can ensure balance between income and expenditure?"

Xiao Feng asked again, and actually he calculated that it was actually profitable to transport the oil from Venezuela to China.

Why? Because the cost of domestic oil extraction is higher.

When the international crude oil price is less than 60 US dollars, the domestic price is actually losing money without mining a barrel of oil.

Why? You will understand naturally.

When Venezuela was in the country, the mining cost was twenty-three US dollars, and it was sold to China, which was thirty US dollars per barrel. The shipping cost was ten US dollars, and the purification cost was ten US dollars.

In addition to various labor, loss and other costs, the cost price of a barrel of oil is only about fifty-five US dollars, so it is actually profitable to transport the oil from Venezuela back to China.

But why should domestic purchases be stopped for one year?

It is because the oil in the Middle East is too cheap, Saudi Arabia and Persia are constantly making trouble in the Middle East because the United States continues to make trouble in the Middle East, and various political forces continue to stir up trouble in the Middle East.

In order to win over China, the oil exported by these countries to China is very low, so it is more cost-effective to purchase oil from the Middle East.

But what should Venezuela do? If you can’t do it, you won’t want it if you can’t?

Even some time ago, Venezuela proposed to pay China $3 billion in debt by paying oil debts.

But the deal didn't end up happening because the United States made trouble.

The United States is too close to Venezuela, and the United States also guards the Panama Strait.

When Venezuela's oil is to be transported to China, it is definitely impossible to go to Panama. It can only go to South Africa, pass through the Indian Ocean, and then go to Malacca and then return to China.

Or you may pass through the Strait of Magellan and go back to China through the Pacific Ocean.

However, no matter which route you take, it is very dangerous and may be detained by Americans at any time.

This is also the main reason why the three billion US dollars of debt was not successfully returned.

"Now the superiors ask us Huayang Petroleum to complete this debt collection work... Alas, I am the first and the two big ones now, and this is not easy to take. The Venezuelan is willing to cooperate with the oil supply, but the key is how to transport the oil back."

Qin Xiaotian complained to Xiao Feng and Chen Yonglu, but Xiao Feng smiled.

"Mr. Qin, you found us. Didn't you come to us to make a fuss?"

"Ah? Haha..."

Mr. Qin laughed. He didn't expect Xiao Feng to be so direct.

He pondered for a moment, then lit a cigarette for himself, took a sip and said.

"Actually, this time I came to visit Mr. Xiao and Boss Chen to rent a few islands north of the Kalapag Islands. We plan to build an oil inventory base there and a refining and chemical storage factory."

Xiao Feng had long expected this would be the result, but Chen Yonglu's eyes lit up suddenly when he heard this.

"Mr. Qin, can you tell me carefully?"

"Actually, we have finalized an agreement on oil compensation with Venezuela, and Venezuela is very willing to use oil to pay off debts. But the problem that troubles us now is how to transport oil back to China. Now the United States is sanctioning Venezuela, so Venezuela's oil cannot be traded at all, and there are only a few companies in the world who are willing to collect it. We are one, but transporting Venezuela's oil back to China is a difficult problem. Oceanwide oil transport must be used to use large tankers to have economic value, but large cruise ships are not easy to cross the Panama Canal now..."

This is the key that has always troubled Qin Xiaotian.

For example, the world's mainstream oil tankers now start at least 100,000 tons, or even 200,000 tons, 300,000 tons, and 400,000 tons.

But the problem is that such a large tanker cannot cross the Panama Canal at all, and can only take the South African route. Taking the South African route greatly increases the cost.

If the tanker can take the Panama route, it will greatly save the cost of transporting oil back to China.

The largest traffic volume of the Panama Canal is now about 80,000 tons.

"... So our idea is to load ships from Venezuela, 80,000 tons, pass the Panama Canal, and then come to the Kalapag Islands. Without transit here, 400,000 tons of oil tankers are loaded from the new ship and transported back to China. This will greatly save the cost of transporting oil back to China. According to our estimates, the distance will save about 10,000 nautical miles, and because of missing one strait, the final transportation cost will be saved by five dollars..."

I have to say that Qin Xiaotian’s idea is still very creative, and some people have actually thought about doing this before.

Unfortunately, the Kalapag Islands had not yet risen at that time, and China Petroleum had not found a suitable transportation point.

If the oil is transported to Peru in the Pacific, or the Copper Kingdom is transporting, haha, these two countries can charge you to death by just charging fees.

And why I said before that taking this line can save costs, not only because of the short route, but also because I don’t have to go through Cape Town or Malacca.

If you want a place like this, if you pass by a foreign ship, you will have to rest, right? Once you rest, you will have to charge a fee.

But on the Kalapag Islands, that's not necessarily the case. After all, Chen Yonglu has a Chinese background, and Xiao Feng is simply a Chinese.

If you rent an island from them, it will greatly save transportation costs.

I have to say that Qin Xiaotian’s abacus was very beautiful, and Chen Yonglu and Xiao Feng exchanged a few winks.

Chen Yonglu really agrees that he can join Huayang Petroleum because there are indeed several desert islands in the northwest of the Kalapag Islands and there is no output.

It is better to rent it to Huayang Petroleum as an oil warehouse and a transfer terminal.

Xiao Feng pondered for a moment and found that this business was not impossible.

If he took out the purification process developed by Hoffman and cooperated with Huayang Petroleum, then the ones transported by Huayang Petroleum to China will be high-quality light fuel and high-quality diesel.

In this way, the cost of transporting oil to Huayang Petroleum will be lower.

But in this way, what exchange should Huayang Petroleum use to avoid losing money?

He thought about it, and then said to Qin Xiaotian with a smile.

"Mr. Qin, it's not impossible to rent a few islands for you. But what if we don't want rent?"

"Oh? Then what do you want?"

Qin Xiaotian looked at Xiao Feng with fun and said.

"Mr. Qin, you have also seen that our island is currently under construction. We are short of various building materials, workers, telecommunications base stations, and power grid construction. Can you find a suitable supporting construction unit for me?"

When Qin Xiaotian heard Xiao Feng's request, he lit up his eyes at that time.

This is nothing to them at all, and the other party is willing to use Chinese equipment, even if it is given to him for free!
Chapter completed!
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