"The Akjiubin project has a high maturity. From the surface, its two oil fields have made the Nanore Oilfield and Kenkiyak Oilfield have passed their peak production period. In addition, it lacks relatively complete supporting pipelines and transportation capabilities. Either the pipeline is transported to the Orsk refinery in Orenburg, Russia, which is currently under operating, or it can be transported to Atlau and Aktao by high-cost railways, and then to Europe. These two factors are probably the main reason for the lack of interest in European and American oil and gas giants."

Sha Zhengyang began to analyze the pros and cons of the Akjiubin project in detail.

"Of course, this also has more and more potentially valuable goals from the region. For example, the oil and gas resources in the Caspian coastal areas are very rich. Kazakhstan is also preparing to conduct large-scale exploration and exploitation in the Caspian coastal areas next. This is the main goal that European and American oil and gas giants plan to invest heavily in the next step."

"For us, the reason for choosing the Akjiubin project is also very simple. First, Changhe Energy Group was initially established and its overseas strategy was also an attempt, and it was not experienced enough, so we hope to choose a target with relatively mature conditions; second, Changhe Energy Group's primary goal is to obtain a relatively stable oil source. The crude oil produced by the Akjiubin project can be transported back to China by railway. Of course, the cost is higher, but this can solve the food problem of our two major refineries in Changhe Energy,..."

The representatives of CNPC are willing to say something but stop. If transported back from the railway, it seems that CNPC Dushanzi refinery is the most cost-effective. If it is to be transported to Qindu Petrochemical or Wuyang Petrochemical, which is owned by Changhe Energy, the cost will be further increased. So they would like to ask how Changhe Energy Group considers this issue.

"Third, Akjiubin Oil Company is a state-owned oil company in Kazakhstan, and this time they sold only 61% of the shares. In other words, even if our Changhe Energy Group successfully bids and won Akjiubin Oil Company, it will continue to deal with the Kazakhstan government in the future. This will help us form a community of interests with Kazakhstan, and it will also help us to continue to deepen our efforts in Kazakhstan with the identity of this community of interests in the future. This is also one of the most important main battlefields for our Changhe Energy in the future...."

"We believe that if Kazakhstan's rich oil and gas resources are to be explored and developed, it requires a lot of capital investment. Although European and American countries have entered Kazakhstan before us, the Kazakhstan government is obviously very mature in considering the issue. They hope to introduce foreign capital, but they do not want to simply control the country's oil and gas resources. At the same time, they also have certain doubts about the chauvinism of Russia's great power. Therefore, Chinese collaborators should be a very good choice. We hope that Changhe Energy can assume the role of this pioneer and pathfinder, and we also hope that the central government can support us on this issue..."

Fang Jinsong has been listening and observing the performance of this young man carefully.

There is no doubt that this guy should be a rising star in Hanchuan politics, and it is the most dazzling one. Vice Premier Hong obviously admires this guy very much, and this look can be seen from the expression revealed by Vice Premier Hong’s facial expression and gaze.

But I have to admit that this guy has a good eloquence and is also very familiar with the situation in Central Asia, especially in combination with the situation in the oil and gas industry, which is very inciting and persuasive.

In particular, the grasp of the mentality of the Kazakh government and state-owned oil and gas companies is well-known and profound.

Moreover, Fang Jinsong could even feel that the other party was still reserved. I believe the leader and some other insiders could have noticed this.

Of course, this may involve trade secrets, and it is impossible for them to tell them about the future of China National Petroleum Corporation, Sinopec and CNOOC.

But even what he said now has greatly shocked and gained everyone here.

"Combining with JP Morgan is a very important part. In fact, according to our understanding, JP Morgan has already begun to deploy in Central Asia since the 1980s before the former Soviet Union collapsed. The focus of this is Russia, Kazakhstan and Azerbaijan. They have invested a lot in all areas of the former Soviet Union. This is also the key to JP Morgan being able to be in every country now,..."

"They also cooperated with PetroChina in the early stage and failed to succeed due to other objective reasons, but this time they showed great confidence. If this time is not successful, it will have a great negative impact on JP Morgan's influence in the region and the professionalism of the industry. So from any perspective, JP Morgan will do its best..."

"In the early stage, we have held multiple rounds of consultations and negotiations with JP Morgan and have determined relevant bidding strategies. At present, our team has been carrying out relevant cooperation with JP Morgan in Kazakhstan. As of now, the progress is still relatively smooth. The Kazakhstan government still welcomes Chinese companies to enter the oil and gas field in Kazakhstan...."

"Of course, the more mature oil and gas resources in Kazakhstan are currently mainly controlled by Chevron, Karachaganak, controlled by Shell and Eni, and PK and Kazakhstan National Oil Company, plus the five Kazakhstan Akjiubin Oil Company, the top three are controlled by European and American oil giants,..."

"Akjiubin Oil Company belongs to Kazakhstan, but it is currently in the worst condition, lacking capital injection, aging of mining equipment, stagnating exploration, and inefficient efficiency. Its production has exceeded its peak production period. In addition, its main downstream business, the Orsk refinery of Russia's major downstream business, has poor efficiency and often defaulted on oil payments. This directly leads to the high debt of Akjiubin Oil Company at present,..."

"As the Kazakh government urgently needs funds to increase efforts to explore and develop oil and gas along the Caspian coast, and the situation of Akjiubin Oil Company is not good, the Kazakh government decided to take 61% of the equity to raise funds. At the same time, the main attention of European and American oil and gas giants is currently focused on the Caspian coastal blocks that are about to usher in the period of large-scale development, so there is little interest in Akjiubin Oil Company, which is obviously not worthwhile to put into and output. Currently, two European and American oil and gas companies, Texaco and Amoko, participated in the bidding,..."

"Some people may question, since European and American oil and gas giants are not interested, why do we still have to bid for the Akjiubin Oil Company project?" Sha Zhengyang said calmly and his eyes were full of confidence. "This needs to be determined according to the situation. The early layout of European and American oil and gas giants provided them with strong support. Most of them are listed companies and need to provide shareholders with satisfactory annual reports regularly, so their capital investment direction must be invested in more rewarding areas..."

"But it is different for us Changhe Energy Group. Everyone may know that the exploration and collection blocks designated by our Changhe Energy Group have long been fixed and very limited. It can be said that we have repeatedly explored the areas that can be explored many times. Moreover, as the existing mining areas enter the middle and late stages, the mining costs are getting higher and higher. Tens of thousands of employees and refining equipment of Wuyang Petrochemical and Qindu Petrochemical are in urgent need of crude oil to start construction,..."

"To be honest, our Qindu Petrochemical mainly relies on crude oil provided by PetroChina. However, with the reform of the national energy system, PetroChina will definitely further improve and strengthen its refining and chemical capabilities. In the future, the crude oil supply of our Qindu Petrochemical and even Wuyang Petrochemical will inevitably be restricted or even threatened..."

Sha Zhengyang pointed out the current crisis and weaknesses facing Changhe Energy Group, which also attracted everyone present.

This is a bit too naked.

In fact, everyone present knew that even CNPC had begun to supply Qindu Petrochemical with limited crude oil output as it had limited supply. Once CNPC and Sinopec completed the division of the refining and chemical industry, some of CNPC's oil and gas field resources will be transferred to Sinopec, and some of Sinopec's refining and chemical resources will be transferred to Sinopec. Once this situation is established, Qindu Petrochemical will face the crisis of crude oil supply cut off.

Of course, this may be exchanged for some compromises and exchanges in interests, but this undoubtedly leaves one's lifeline to the other party to control and slaughter it. This is something that the Hanchuan Provincial Party Committee and the Provincial Government and Changhe Energy Group cannot accept.

"We have no intention of playing the tragic card. Business is business, it has nothing to do with feelings, only interests. I believe that in the choice of our own interests and other interests, CNPC will make the right choice, so we cannot fail to plan and consider these issues in advance, which are related to the livelihoods of tens of thousands of people and the fate of our largest state-owned enterprise in Hanchuan. We must make a difference. This is also the unshirkable responsibility of our Hanchuan Provincial Party Committee and the generation of Hanchuan State-owned Enterprises!"

Sha Zhengyang said the last few words firmly and powerfully, which moved everyone present.

Especially Zhou Yuanwang, Wang Yunxiang, You Wangang and others were even more surprised. It was obvious that Sha Zhengyang's words touched their hearts, which was just right, making them feel excited.

"So after carefully studying the situation of the two major oil fields under Akjiubin Petroleum Company, we believe that although both of these oil fields have entered the medium-term, their mining costs are still much lower than the existing main oil fields of Changhe Oil. Even if the transportation costs are added, it is still profitable. In addition, we also hope to take this opportunity to open up the situation in the oil and gas field of Kazakhstan and actively participate in more extended areas, such as participating in the oil and gas pipelines of the Kenkiyak oil field that are quite interested in the oil and gas pipelines of Atlau and Aktao, so as to sell a good price to Europe, and further increase the mining and processing of natural gas to expand new markets,..."
Chapter completed!