Chapter 576 Winning the bid

"The final result of the No. 6 oil field, after the judgment of His Excellency the President..." As soon as little Aliyev said this, there was a burst of tension and whispering.

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

Those who are familiar with the situation in Azerbaijan looked at Dahua Industry for the first time. Whether it is BP, Exxon or PetroChina, we all know in our hearts that Dahua Industry's efforts in Azerbaijan, especially in public relations, are unparalleled by other companies.

However, although the relationship is important, cash and income are decisive. Aliyev will not shake the foundation of his rule to return the favor of the Soviet city. Therefore, the representatives of the 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 and continued: "The company that finally won the bidding is Dahua Industry, and the basic share increased by 10.1..."

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

Ryutaro Watanabe of Japan's INPEX company stood up, pushed the chair back with one foot, and roared, "The basic share increase of our bidding is 14.8. How to get the bid is Dahua Industry."

BP's Ducat also stood up. Their basic share increased by 15.4, which was the standard value of the whole audience, but it did not win the bid. However, the performance of the British and the Japanese in the venue has always been polarized. He did not shout out in a hurry, but watched the change.

After being interrupted, little Aliyev simply put down the document in his hand and said, "The reason why Dahua Industry won the bid is the signing fee."

"Signing fee? The contract fee is secondary, isn't it?" Ryutaro Watanabe, like those Japanese company people from large conglomerates, knows how to kowtow and fight for the gains fiercely. If he can get the oil field, he doesn't mind kneeling down and asking, but now that the oil field has to be handed over to Dahua Industry, he can only take an opposing attitude and expect things to change.

This trick is very useful in many places, especially in Europe, which often allows Japanese consortia to get what they can't get or are about to lose.

However, in the ups and turns of little Aliyev, the Japanese struggle has no effect at all. Little Aliyev's big cake face seemed to be baked through, as hard as an iron plate, and said indifferently, "The added value of the signing fee of Dahua Industry is $300 million. After discussion between His Excellency the President and the Cabinet, it was decided to agree to their application for three years of concession exploration and 35 years of concession.

"300 million dollars!" This number immediately shocked the stubborn Japanese elites and hundreds of people in the conference hall.

"300 million US dollars." Little Aliyev repeated.'s He also knew that the decision was controversial, so he gave the representatives of the companies a buffer time.

Dahua Industry won the bid. On the one hand, it was Aliyev's promise, and on the other hand, it was also this huge contract money. It was under the action of two parts that Aliyev nodded in the total proportion of 60.1.

Ducat quickly calculated that the difference between Dahua Industry and BP's sharing agreement is nearly 5. Compared with the oilfield with an annual output of 10 million barrels of crude oil, it is the difference of 500,000 barrels of oil. In terms of current profits, 500,000 barrels are equivalent to about $5 million.

That is to say, in the face of oil fields with an annual output of 10 million barrels, 60 years of static can make up for the difference in the signing deposit. In other words, if the output of No. 6 oil block is only 10 million barrels, and the total signing deposit is 320 million US dollars, Dahua Industry will lose money Confused.

With the normal rate of return of oil companies, the costs should be recovered in five to ten years at the latest, including contract fees and exploitation costs. The former is a fixed $320 million, while the latter can be replaced by an activation index, which is $4,500 per barrel per day in Azerbaijan.

With a simple equation, we can calculate the lowest estimate of Dahua Industry for the No. 6 oil block, which requires an annual output of at least 6 million barrels of crude oil to recover the previous investment within 10 years - the recovery of the investment means that it does not make a penny, and it has to be discounted with a huge amount of money.

Even if the oil price rises, its profit is difficult to equalize the interest loss caused by the previous investment. At the same time, the loss is also the opportunity cost that cannot be underestimated.

The annual output of 6 million barrels of crude oil is the standard of the Setan oil field.

No matter how you look at it, a large oil field of such a scale as the Sertan oil field can't come out casually.

In fact, without adequate geological analysis, the previous companies have given a very high evaluation of the oil fields near Baku. However, whether there can be 2 large oil fields in 11 oil blocks is still full of suspense.

Of course, if the output of No. 6 oil block is amazing, it will be profitable to reduce the proportion of shares and increase the signing fee.

If the annual output of 12 million barrels of crude oil is stable, although the development cost will be increased by 80 million yuan, the annual profit will also increase by 48 million. Taking into the early development time, the cost can be recovered in six to eight years, which is almost the most acceptable rate of return for oil companies.

For further comparison, if the annual output of 24 million barrels of crude oil is stable, despite the additional development cost of $250 million, the total annual profit will soar to 200 million US dollars, which is equivalent to recovering the cost in 4 to 6 years.

The faster the cost recovery, the less interest and opportunity costs will be included. At the same time, the gains in the coming years will be greatly increased.

Every oil company understands this truth, but except for Dahua Industry, few companies gamble like this.

The annual output of 24 million barrels of crude oil means a stable daily output of 70,000 to 80,000 barrels of crude oil. Such data is more common in oil-producing Kuwait or Saudi Arabia. However, this does not mean that you can see such a high-yield oil field by obtaining a concession for an oil field.

For other oil companies, they would rather be divided into a lower level than such a risk. Sharing risks is the way for large enterprises to stand, and can even be called the foundation of modern corporate society.

Professional managers such as Ducat are not only unqualified, but also should not make risky decisions like Such a city. The company behind them has more than double-digit shareholders, and there may be many investors behind the shareholders. If it is a listed company, it will face more investors. And these gentlemen who are not necessarily in the oil industry will never allow their money to be gambled by a manager, even if there is a high chance of winning.

Nine times out of ten wholly-owned companies such as Dahua Industrial Co., Ltd. are small and medium-sized oil companies. They may have the courage to gamble, but they may not have the capital to gamble.

"The signing fee of $300 million is going to set a record." Emma, a beautiful Totalian, said in amazement, breaking the small silence.

Ducat shook his head in disappointment. He can't give such a high price, but he regrets that BP has lost the oil field. If you can take this oil field with a share of 65, even if Dahua Industry does not make more money, it will be a lot of profits, and it will be his future promotion capital.

"300 million US dollars."

"Total contract fee of 320 million"

"Total investment of four or five hundred million..."

Arias in various languages sounded in all corners of the conference hall. Even oil companies that spend a lot of money can't be indifferent to hundreds of millions of dollars.

The development cost of multinational companies targeting a country often does not necessarily reach 100 million US dollars. The annual profit of the world's top 500 enterprises may also be only a few billion US dollars. In the years of economic downturn, a respected CEO broke his two thick legs and may only get hundreds of millions of dollars in financing...

"Absolutely... I will definitely lose money." Shigeru Nishioka started with the pronunciation of "zenzen" in Japanese and gritted his teeth.

The representative of Norway National Petroleum Company said faintly, "Dahua Industry may have done secret exploration."

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

If there is no secret exploration, they can't think of a reason for Sucheng's gambling.

This is not as simple as increasing the sharing agreement by 0.2 percentage points, but completely using the signing fee to strive for sharing.

Any company representative understands the meaning. This must be the decision made by Sucheng who is extremely optimistic about oilfield production.

Shigeru Nishioka touched his forehead and whispered in Japanese with a little frustration, "Since he decided to use a high contract fee, why did he submit the tender so late?"

"How much is the high contract fee? Naturally, it should be matched with the high amount." Ryutaro Watanabe also used Japanese and whispered, "How much share we pay will obviously affect the amount of the signing fee."

Xigang Mao is a little clear. If the highest bid for the No. 6 oil block is only 60, Dahua Industry can get the oil field without even giving much contract money...

"Alas..." Ryutaro Watanabe sighed again and whispered, "If it hadn't been for the above, we could have proposed a share ratio of more than 65... Maybe we can add the signing fee to 80 million, so that we still have a chance to win the oil field, at least let the Chinese people bleed more."

"Atop?" Shigeru Nishioka is a little confused.

"The main bank has some questions about the Caspian oil field and asks us to control the price when bidding." Ryutaro Watanabe explained in a low voice. The impact of banks on enterprises is obvious. Some super oil companies can go beyond the existence of banks, while ordinary large oil companies can only seek coexistence. Japanese, Korean and Southeast Asian companies tend to operate in a consortium, which is ultimately dominated by banks or oil companies, which often depends on the situation, but most of the time enterprises are mostly affected by banks.

The main bank is the main investment bank of a project of an enterprise. It has at least the right to speak, control risk control prices and other requirements, which is not surprising that institutional investors such as banks. Like super oil companies, banks would rather make less money than get into gambling, and in the end, these companies will not really make less money.

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

I just hope this is not a large oil field.

Oil fields with a daily production of more than 80,000 barrels were still rare in the 1990s.

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

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

This is not a simple decision. Considering that there are still five oil fields pending, large oil companies will not put themselves in the situation of victims.

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

He is too excited.

This is the Aqijiu oil field, a super oil field that continues to increase production, and it will take more than ten years to reach the stabilizer.

Its output is more than just a Sertan oil field.

When this huge super oil field matures and operates, its stable daily output will exceed 1.3 million barrels, equivalent to 20 Setan oil fields!

And its annual output will reach a staggering 420 million barrels and 60 million tons, which will properly exceed the highest peak output of Daqing Oilfield by 20!

In later generations, in order to reduce the maintenance time of the Aqijiu oilfield, the nine major companies exhausted the means and invested more than 300 million US dollars in technical funds.

Nowadays, it is obviously risky to exchange 200 million US dollars in excess contract fees for about 5 share agreements. But Sucheng knows the potential of the Aqijiu oilfield.

The share of

5 falls on a stable production capacity of 420 million barrels, which means that 21 million barrels of crude oil is equivalent to three and a half separate oil fields.

There is nothing cheaper than this.

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

This is the beauty of the "century" contract.

Sucheng can eat $80, $90, $140 from the era of profit of $5 per barrel of crude oil... After 20 years and 30 years, the profits brought by the Azijiu oil field will be extremely rich.

At that time, if it needs to be realized, whether there are 10 years of concession or 5 years of concession left, the shares of Aqijiu Oilfield can make Dahua Industry get a profit calculated at 100 billion yuan.

At that time, when we look back on the $300 million in 1993, we will only regard it as a dot.

If it hadn't been for Aliyev's cunning, Sucheng would have spent another 600 million US dollars in exchange for another 5 shares.

However, this practice is too easy to arouse Aliyev's vigilance. Moreover, if the share is less than 60, I'm afraid it will cause more disputes in the other day.

Contrary to the excitement of Sucheng, it is the frightened Dahua people, unlike the spontaneous cheers of other companies to get the oil field. The block where Dahua Company sits is quiet.

Spend $320 million in cash in one go, plus the ensuing development costs... For anyone, this is a heavy pressure that they can't jump.

......RS