What is Yao Yuan’s purpose in mentioning China’s overall economic growth prospects? Nazaryev Men’er understands that China’s economic development prospects are Yao Yuan’s motivation to compete for Kazakhstan’s oil and gas resources.
In the signed agreement, Oriental Petroleum promised to export 100% of the oil and natural gas extracted from Kazakhstan. This is Kazakhstan’s main source of foreign exchange. In contrast, Kazakhstan’s source of foreign exchange is single and far inferior to the trend of foreign exchange earning methods.
Nazarev is also very clear about the diversity of China.
However, Oriental Petroleum wants to transport most of the oil and natural gas back to the country, which means that Oriental Petroleum has no way to obtain U.S. dollars through the domestic market, and Oriental Petroleum needs to pay Kazakhstan in U.S. dollars.
Nazaryev knew that Yao Yuan planned to sell refined oil products to East Asia after refining in China.
Where is the refined oil market in East Asia?
It’s just Japan and South Korea.
Especially Japan, as the world's second largest economy, has extremely huge demand for oil, so Nazarev believes that Oriental Petroleum is capable of completing the agreement.
At this time, Yao Yuan took the initiative to mention that the Chinese market will develop rapidly in the next ten years. The subtext is that most of the oil mined by Oriental Petroleum in Kazakhstan will remain in China, which means that Oriental Petroleum must obtain sufficient oil from other places.
US dollars paid to Kazakhstan.
Of course, Kazakhstan lacks light industrial products. Dongfang Petroleum can use China's abundant light industrial products to offset part of the US dollars, but the quantity is limited after all.
Based on this, Nazaryev shook his head slightly and said, "According to the agreement, no matter where Dongfang Petroleum sells the oil, the payment to our country must be in U.S. dollars. Of course, it can be deducted through some light industrial products, but you also know,
That’s not a lot.”
Yao Yuan knew as soon as he heard that Nazaryev had misunderstood, or did not fully understand what he meant. He sorted out his words and said, "Mr. President, this is just the first thing I want to say. Dongfang Petroleum is the Dongfeng Group
As a wholly-owned holding group company, you don’t have to worry about the shortage of US dollars.”
After a pause, he said, "The second thing I want to explain is that China's economic aggregate will enter a stage of explosive growth in the next ten years, which will require the consumption of a large amount of oil. In other words, relying solely on oil pipelines will
Roads or dedicated railways cannot meet the demand."
"The 10-million-ton refining and chemical base constructed by Dongfang Petroleum in northwest China has basically completed the first phase of construction. It will be completed and put into operation simultaneously with the Buck Oil Pipeline. We also need to lay a pipeline from northwest China to the eastern coast of China.
Oil pipelines, building refining bases in the eastern coastal areas, facing the international refined oil market, not just in East Asia. You know, the annual transportation volume of the Barker Oil Pipeline alone is far from meeting demand. These are based on the Chinese economy
An extremely optimistic judgment on future development and an optimistic judgment on the future trend of world oil prices..."
Nazarev captured the key point, "Mr. Yao, you, do you think oil prices will rise?"
Production remains unchanged but oil prices rise. This is undoubtedly the best news.
Yao Yuan smiled and said, "Rising oil prices are a general trend."
He analyzed the situation since the Gulf War, and Nazarev nodded frequently, agreeing with his view. Kazakhstan's biggest capital is its oil and natural gas resources, but Nazarev actually did not have many choices.
"If it is a common railway line for both passengers and freight, Kazakhstan's economy can be connected to China and it can benefit greatly from China's economic development, which is far more meaningful than billions of dollars in oil exports every year. As you said in your extremely
It is of great significance to the country of Kazakhstan, just like the plan to move the capital with great courage." Yao Yuandao.
Nazarev mused.
He must be given another irresistible promise.
Yao Yuan took out a document and handed it to Nazaryev and said, "Mr. President, this is Panshi Mining's investment plan in Kazakhstan in the next three years. After three years, the mining sector plus oil exports will provide Kazakhstan with
There is no problem in bringing in US$10 billion in foreign trade revenue every year.”
Nazaryev was slightly surprised. He looked through it carefully and his brows slowly widened.
Slowly, he raised his head and said with a smile, "Mr. Yao, I will do my best to promote the railway plan. I can only guarantee the approval of the central line."
"Thank you, Mr. President." Yao Yuan breathed a sigh of relief.
Without revealing the true output of the Kashagan Field, using Panshi Mining's investment plan in Kazakhstan over the next three years as a "sweetener" to get Nazaryev to agree to fully promote the Hua-Kazakhstan railway plan is a risk.
Fortunately, it worked.
President Nazaryev is a man of his word. Parliament cannot stop him from what he decides. The lack of approval by Parliament is just an excuse for him to ask for more benefits.
Three months later, after many consultations, the Chinese delegation flew to Almaty, and the two governments signed a cooperation agreement on the construction of the China-Harbin Railway. The first responsible company on the Chinese side was Dongfang Petroleum, which was responsible for the project.
Implementation of the project.
For a cross-border cooperation project with an investment of nearly 50 billion Chinese dollars, this efficiency is astonishingly high.
Yao Yuan finally brokered the signing of the China-Harbin Railway before the end of 1996.
By the end of 1996, the Huaji-Urumqi Railway Project was officially signed. In the large-scale railway plan, this is the first phase of Line 2.
This marks that this important railway line, which is likely to be stuck for more than 20 years, will be completed within this century.
According to the plan negotiated by all parties, Dongfang Petroleum, as the financier and investor, packaged and contracted the Hua-Harbin Railway to Southern Industrial, and then Southern Industrial jointly cooperated with state-owned enterprises such as railway construction, roads and bridges, and steel in China, as well as Chunfeng Academy of Sciences in
More than a dozen design units within Kazakhstan, plus a dozen upstream companies, form a huge project company responsible for design and construction. The project company will recruit certain workers locally in Kazakhstan, purchase certain materials and logistics supplies, and drive local development
economic development.
If the project company plus hundreds of subcontracting companies are included, the scale is staggering. The number of construction personnel alone is expected to be as high as 50,000. This is an astonishing large-scale operation.
Yao Yuan quietly retreated behind the scenes early and returned to his hometown in Nangang to spend the Spring Festival of 1997. In the first half of 1997, he signed a contract with the Petroleum Group Company to build an oil pipeline project from Karamay to the Yangtze River Delta region, and finalized an agreement with the Petrochemical Group Company.
Two major cooperation projects - the construction of a 30-million-ton refining and chemical base in eastern Shandong and the construction of a 30-million-ton refining and chemical integrated base in the Yangtze River Delta region with a front-port and back-plant model.
In addition, Yao Yuan decided to increase the ethylene production capacity of the East Coast Island Petrochemical Base to 1.2 million tons per year, to be completed in 1999, and to increase the base's refining capacity to 70 million tons per year, to be completed by 2003.
In the next three years, Dongfeng Group, as the headquarters group, will invest 12 billion Chinese yuan in Dongfang Shipbuilding to develop Dongfang Shipbuilding into an internationally competitive shipbuilding enterprise.
In the big budget plan for the next three years formulated and approved at the beginning of 1997, Dongfeng Group will also allocate 90 billion Chinese yuan in research and development funding to the Dongfeng Academy of Sciences, 30 billion per year...
In other words, Yao Yuan has basically arranged all the available funds of Dongfeng Group and the expected profits for the next three years, and for the first time there is a deficit.
In the first half of 1997, Lin Wei lost a full thirty pounds!
Because the company not only has no money, but also overdraws its income for the next three years, which means it needs to borrow money.
The first time he owed so much money, Lin Wei was scared!
In June 1997, Yao Yuan flew to Hong Kong with Lin Shuting who was on summer vacation. He couldn't come because the Hua-Harbin Railway had completed the first phase of investment, and the money for the second phase of investment was not yet known where.
Lin Wei is naturally accompanying him. If the funding problem for the second phase of the Hua-Harbin Railway investment cannot be solved within one month, he will resign from his position as chief financial officer.
Of course, this is just a matter of anger, but it also reflects the actual predicament of Dongfeng Group’s shortage of funds.
Six months ago, He Xueli offered to go to the United States to take charge of the business there, and Yao Yuan agreed. Yao Yuan knew why He Xueli did this. He couldn't give He Xueli what she wanted, so he let her go.
He Shirley went to the United States to take charge of the business there. He did not leave Dongfeng Group, but his position changed.
The position of director of the board of directors office was handed over to Su Wangting. At this time, many people realized that Su Wangting, the head of European business, chairman of the French Ward Investment Group, and a man of great reputation in Europe, was just a young man in his thirties.
He took the initiative to resign from his position as a prince, and the reason was so simple that it made people laugh or cry - his family was urging him to get married!
Yao Yuan agreed to let him temporarily serve as the office director until a suitable candidate was found.
In this way, Yao Yuan will be surrounded by singles.
Lin Wei, Lin Xiaohu, Su Wangting, Chen Chao... are all single, and except for Lin Wei, everyone else is older than Yao Yuan. Su Wangting is the oldest. He was twenty-seven or eighty when he went to study in Moscow. By the time he joined
After joining the Dongfeng Group, I was thirty years old, and now I am a thirty-five-year-old single young man!
In this era, people who are not married at the age of thirty-five basically go to the five-guarantee household. Su Wangting is the only child in the family. You can imagine how anxious his parents are. It is no wonder that Su Wangting does not hesitate to give up his status as a prince and run away.
He came back and worked as the office director for Yao Yuan.
Lin Wei joked, "Lao Su, it would be good for you to find a French girl. French girls are very good."
Su Wangting said, "Then I don't have to go home. My parents will sever ties with me."
"It's not that serious. I think there are many locals in Shanghai who are proud to marry foreign wives and proud to marry foreigners." Lin Wei said with a smile.
Su Wangting didn't think Lin Wei was being sarcastic, because it was indeed such a trend now, especially in coastal areas, which were the first to open to the outside world.
"What's the use of you if your blood is impure, my dad said." Su Wangting shook his head and said.
It is impossible to marry a foreign wife, which is the main reason why he wants to return to China to develop his career - to find a woman to marry in China.
After having fun all the way to Hong Kong, Yao Yuan didn't care about anything and took Lin Shuting to their world. They visited Hong Kong and played for five days. Lin Wei was so anxious that Yao Yuan and Lin Shuting ran to Macau again.
Lin Wei stayed in his villa, spending five days with Su Wangting, a bachelor with big eyes and small eyes, and he was almost going to get moldy.
On this day, Yu Yongan came over, looking dusty.
"What's going on with you guys? I heard that I've been staying at home for five days and don't want to go out to play?" Yu Yong'an picked up the cigar on the coffee table, cut a cigar, burned it, and sat down.
Lin Wei said angrily, "I'm not in the mood."
Su Wangting also shook his head and said, "It's nothing fun."
Europe is much more fun than Hong Kong. Su Wangting has never done anything. He really feels that there is nothing fun, and of course he is not in the mood.
Yu Yongan took a puff of his cigar and said, "Is it because Ayuan overdrafts his income for the next three years?"
The two of them didn't speak, and the answer was obvious.
Yu Yongan said with a smile, "I have traveled to more than a dozen countries in the past six months, and my general feeling is that the world market is too big, and we still have a lot of room for development. Ayuan is right to do this. Time is the first
One person."
Lin Wei snorted and said, "You're talking lightly. It's easy for you to live with hundreds of billions of debts."
Yu Yongan was stunned for a moment, then raised his brows and said with a smile, "It's nothing. The debt ratio has not reached 50%, right?"
He does not know the specific total assets of Dongfeng Group.
"Three years of short-term debt, all." Lin Wei did not answer, but said, "The interest alone costs more than 7 billion every year, and the interest in three years is nearly 22 billion."
Yu Yongan did a quick calculation and asked with a smile, "Awei, do you know what the debt ratio of the four major family businesses in Hong Kong is? Do you know how much it costs them just to repay their loans every year?"
Lin Wei didn't understand it, because Dongfeng Group had always had no debt and had extremely abundant cash flow. But this time, it not only emptied money, but also overspent.
The free construction of the new capital of Kazakhstan has consumed most of the Dongfeng Group's funds. In the first half of the year, Yao Yuan identified several large projects and production-increasing projects in one go. The total budget is as high as 300 billion Chinese dollars. The investment must be completed within three years, with an annual investment of 1,000 yuan.
One hundred million Huaxia coins...
The most important thing is that it was operated with almost zero debt before. Now it is difficult for many people to adapt to so much debt all of a sudden, and the operating system also needs to adapt.
Lin Wei shook his head and said, "I only know that this time I might have to sell assets to pay off debts."
He is not an alarmist.
Only then did Yu Yong'an notice that Lin Wei had lost a lot of weight. One can imagine how much pressure he was under during this period of time.
He said with relief, "In Hong Kong, companies with a debt ratio of 80% are considered high-quality companies. If you can borrow another short-term loan equivalent to 80% of your assets from the bank, it is nothing. Besides,
Well, don’t you still believe in Ayuan’s ability?”
"I don't doubt it, but who can say that we can win 100% in the stock market? According to what A Yuan said, this financial crisis is measured in billions of dollars, and all our funds are tied to it. If
If you lose, it won't be as simple as selling your assets to pay off your debts, and you may end up going back to before liberation overnight." Lin Wei said in a deep voice.
Su Wangting said, "Mr. Yu, Mr. Lin's concerns are justified. The stock market is too risky. It is indeed too risky for Mr. Yao to place all his hopes on the stock market."
In fact, Lin Wei still had something to say, which was that Yao Yuan had invested all his private money and was ready for war in the Korean financial market. That money was Yao Yuan's gains in the Tokyo stock market in the past few years, and it was real
Life-saving money cannot be used easily.
In other words, Yao Yuan no longer has the funds to act as a fallback.
At the beginning, Yao Yuan told Lin Wei that even if Dongfeng Group was completely gone, with this money, it would not take long for it to make a comeback, and only the two of them knew about this money.
Now that Yao Yuan has used this money, it means that he has no way out for himself.