Facing the strong Yao Yuan, Frank had few options, and he tended to believe that ExxonMobil would definitely offer the price of US$500 million.
At present, the cost of deep-sea oil field exploration is increasing day by day, and the proven recoverable reserves on land are basically exhausted. Dutch Shell has its own doubts about entering the Siberian oil field area of Russia. After losing the Sedan Oilfield, a century-level oil field, in order to be able to work together
To develop Kazakhstan's largest oil field, the Maksha Field, they have to pay a painful price.
Secondly, after analyzing the development trajectory of Dongfang Petroleum and studying every operation of Yao Yuan, the management of Dutch Shell Company became more and more eager to reach a long-term cooperation agreement with Dongfang Petroleum.
Frank went out and called the board of directors, who were waiting in the conference room to make decisions at any time.
After explaining the situation, Frank said, "I think we can agree to his conditions. The Maksha Oil Field was only partially developed during the Soviet period. According to the geological conditions there, the unproven recoverable reserves are considerable. Mr. Yao requested to obtain
For 7% of Shell Oil's shares and US$200 million in cash, we can get 21% of Maksha Oilfield Co., Ltd. I think this condition is acceptable."
The board of directors immediately held intense discussions, and after a few minutes came up with a unified opinion - 5% of Shell Oil's shares plus 200 million in cash in exchange for 30% of the shares in the Maksha Oilfield.
Frank shook his head and said, "I don't think he will agree. ExxonMobil offered US$500 million in cash in exchange for 30% of the shares in the Maxhay Oilfield. Mr. Yao did not agree."
After a pause, he said, "Now is the best time for us because we are ahead of others. If we miss this opportunity, we will miss an opportunity to obtain a large oil field just like we missed the Sedan Oilfield.
.”
The board of directors looked at each other and started discussing urgently again.
Finally, the big boss and the group directors reached a consensus and agreed to Dongfang Petroleum's conditions.
Frank then breathed a sigh of relief. After hanging up the phone, he walked in and said loudly with a smile, "Mr. Yao, the board of directors has agreed to your terms, 7% of Shell Oil's shares and US$200 million in cash in exchange for 21% of the shares of Maksha Oilfield."
.”
"Very good." Yao Yuan smiled and looked at Lin Wei, who took out the agreement he had drawn up and put it on the table.
Frank was stunned, sat down and said with a wry smile, "Mr. Yao, have you already calculated that we will agree?"
"There will always be someone who agrees, either you or someone else. All in all, this agreement will definitely be useful." Yao Yuan said with a smile and lit a cigarette.
Frank shook his head helplessly, picked up the agreement and took his assistants, Lin Wei and Su Jianmin to another room to discuss the details. After initialing the agreement, there was a formal contract, share transfer and other matters.
There are so many things to do.
That leaves Jackson.
The two parties have had very good cooperation experience before. Halliburton is also the main oil field service provider of Baku Oilfield and Sedan Oilfield. In fact, Halliburton’s main development route in recent years is to follow Oriental Petroleum, which is enough for them to make a profit.
The bowl is full.
Jackson smiled and said, "Mr. Yao, what technology of ours do you like this time?"
He knew that Yao Yuan was a technology geek and that Halliburton was able to stand out and win the oilfield service contract from Oriental Petroleum precisely because of its willingness to transfer its high-precision technology patents.
However, this time Yao Yuan did not want technology. Chunfeng Academy of Sciences was already on track. The progress of technological development in the petroleum field was very optimistic, so there was no urgency to purchase new technologies.
Yao Yuan said, "Shell Oil has set a standard demonstration, and we can also cross-shareholding."
"We don't have this option at the moment." Jackson was stunned and shook his head. "The Maksha Oilfield may be big, but it is not as good as the Sedan Oilfield. Mr. Yao, the management will not agree to cross-shareholding."
The implication is that Halliburton is the only foreign-owned oilfield service provider in the Sedan Oilfield, and Halliburton won this contract in exchange for its fourth-generation offshore drilling platform technology and dynamic positioning technology.
Halliburton's operating income last year reached US$3 billion, which is incomparable to Oriental Petroleum, which owns several super oil fields. In terms of cross-shareholding, Yao Yuan cannot even compare what percentage of shares he holds.
The Shell Group is different. It is a behemoth with a complicated ownership structure. Transferring 7% of the shares of the core company Shell Petroleum will not affect the company's operations. It is nothing more than an operation to exchange current benefits for greater future benefits.
Yao Yuan waved his hand and said, "You also know that Dongfang Petroleum started out as an oilfield service company. Our oil services company is not weak and is fully capable of exploring and exploiting the Maxhay Oilfield on its own. If Halliburton cannot get
If we show sufficient sincerity, there will be no basis for cooperation between the two parties."
It has been made very clear that the only way to go is cross-shareholding.
Jackson realized that Yao was far from joking. He thought for a while and said, "Mr. Yao, I have to report to the big boss, and maybe I need to hold a board meeting."
"Go make a call." Yao Yuan nodded.
Jackson went out for more than ten minutes. When he came back, he asked directly, "Mr. Yao, how many shares do you want? If it exceeds our bottom line, Halliburton will give up."
"40% of KBR Company's shares or 20% of Halliburton Oilfield Services Company's shares." Yao Yuan said.
"That's impossible." Jackson refused without thinking.
KBR is an energy engineering and construction group 100% owned by Halliburton. It serves the midstream and downstream of the energy industry, including the design and construction of liquefied natural gas, refining and processing plants, production facilities, onshore and subsea pipelines, and is also engaged in non-energy aspects.
Engineering construction, such as public facilities and civil commercial facilities, such as docks.
Yao Yuan signaled to Jackson to calm down and said, "I can give Halliburton all the exploration and production service contracts in the Maxhay Oilfield for ten years."
Jackson was stunned, his attitude was not as firm as before.
He frowned and said, "Where is Oriental Oilfield Services Company?"
"Harbin is such a big country and there are too many unexplored places. Dongfang Oilfield Services likes to gnaw on hard bones, which is conducive to our technological progress." Yao Yuan said with a smile.
Jackson believed him. Who would leave ready-made food to do gambling-style exploration? It was a bottomless pit.
KBR, a company controlled 100% by Halliburton, is relatively small, with an annual revenue of more than one billion US dollars, but its profits are relatively high, with a net profit of about 18%.
However, in Halliburton's current strategy, kbr company is not the core.
Around 2002, the world's energy pattern and situation changed dramatically. The most representative event was the US invasion of Iraq in 2003. Oil prices soared, and international oil prices have never come down from high levels.
It was at this time that Halliburton began to pay attention to KBR Company, sold all non-energy businesses, and integrated the energy business into two group companies, namely Halliburton Energy Services Group and KBR Group...
Yao Yuan wants to make up for this time gap and buy an energy engineering construction company that can bring hundreds of millions of dollars in profits every year in the future. It can not only make up for the shortcomings of Dongfang Petroleum's own energy engineering construction and oil and gas processing capabilities, but also make hundreds of millions every year.
Dollar.
Judging from Yao Yuan's current actions, it is obvious that he is preparing for a complete split with Petroleum Corporation and Petrochemical Corporation.
Previously, because it had established a cooperative relationship with the Petroleum Corporation and the Petrochemical Corporation, Dongfang Petroleum did not put much pressure on improving its own engineering construction and refining and processing capabilities, so it developed steadily without resorting to acquisitions and other means.
Now that the situation has changed, Yao Yuan must quickly make up for his shortcomings.
Halliburton Oilfield Services Company is the only core of Halliburton. There is a high probability that they will not transfer the company's shares, so KBR Company is the second-tier choice.
It is not unacceptable to transfer the shares of kbr company.
"Mr. Yao, I need to make another call." Jackson stood up and walked out.
This time it took longer. More than twenty minutes passed before Jackson came back, sat down and said, "Mr. Yao, apart from a ten-year oilfield service contract, what else can we get?"
Yao Yuan shook his head, "No more."
"Mr. Yao, just an oil field service contract is not enough. You just exchanged 21% of your shares with Shell Oil," Jackson said.
Yao Yuan said, "Jackson, you are also one of the top executives of Halliburton. Don't you understand the difference?"
Jackson was silent. Indeed, how could Halliburton compare with Shell Oil? Moreover, Shell Oil offered 7% of the shares of its main core listed company in exchange.
After thinking for a moment, Jackson said, "Then we're going to get 20 percent of every barrel of oil."
Yao Yuan burst out laughing and said, "Jackson, you know this is impossible. The Kazakh government took 50%, Shell Oil took 21%, I only have 29% left in my hand, you take 20%,
Do you think it’s possible?”
Halliburton's contract in the Sedan Oilfield is a contract. They are responsible for operating the oil wells and bear all costs themselves, and they can get 12% of each barrel of oil, 12%. Even so, there is still considerable profit.
.
If Oriental Oilfield Services itself provides operating services for the drilling platform, it can reduce the cost to 6%. In other words, for every barrel of oil produced, the cost of extraction is less than $1 at a price of $15 per barrel.
The cost of onshore mining is lower, but to transport oil from Kazakhstan, the transportation cost is higher than that of the Sedan Oilfield. After offsetting the cost, the mining cost of the Sedan Oilfield is almost the same as that of the Maksha Oilfield.
Halliburton actually wants a 20% share, which is of course impossible!
Yao Yuan changed the subject and said, "Of course, it's not impossible for you to ask for 20%. Transfer 100% of the shares of KBR Company to me, plus 49% of the shares of Halliburton Oilfield Services Company, and give it to you
Leave a controlling stake."
"Mr. Yao, you really know how to joke." Jackson was stunned for a moment and laughed out loud.
Yao Yuan took out a report and threw it in front of Jackson, spread his hands and smiled lightly.