Chapter 924: Picking up a large oil field (fourth update, please subscribe)
Africa!
There is no doubt that Africa is a fertile land!
It’s just that in this era, few countries noticed him at all. After all, apart from being rich in black people, Africa now has no special products.
But now there is no need for people to pick cotton.
However, even so, when the world entered the mid-1950s, the superpowers fighting in Europe and Asia finally turned their attention to Africa. When they cautiously and cautiously reached into Africa, there was a pair of Eyes fixed on Africa.
Nanyang, compared to the United States and the Soviet Union, Nanyang not only entered Africa earlier, but also entered it openly. After all, Nanyang is a member of the British Commonwealth, and it is not normal to enter Africa.
But this is just southern Africa.
While Nanyang was gradually turning southern Africa into its own granary, Li Yian set his sights on northern Africa.
Compared to Southern Africa, North Africa has always been the traditional sphere of influence of the established European powers. Even so, there is still a place in North Africa that is coveted.
"Libya!"
In the study office, Li Yian pointed at the unfolded map and said to Herman.
“We want to enter Libya.”
“Sir, are you saying that we want to obtain the exploration rights in Libya?”
As the general manager of Nanyang Petroleum Company, Herman, who has been paying attention to international oil trends, naturally knows what you mean by entering.
After all, they had been in other places a few years before.
“Yes.”
Li Yian nodded and said.
“At the beginning of the year, Libya revised the Mining Law, which allows foreign companies to profit from exploration licenses. Now they have not issued the licenses. I think we can try here.”
Li Yian said while pointing to the Sirte Basin in eastern Libya.
"European and American oil companies' exploration is mainly concentrated in western Libya. They have already started before the war. If nothing else, the focus of their competition should be the west. I think the company can make a fuss in the Sirte Basin in the west."
Where is the Sirte Basin?
It is the location of Libya's large oil field, known as the "elephant" of North African oil and gas. In the Suter basin, which covers an area of 400,000 square kilometers, billions of tons of oil are stored.
Thanks to Colonel Ka, it was his death that gave Li Yian a certain understanding of Libyan oil. In fact, in the past few years, Li Yian has been trying to get several large oil fields, although the disintegration of oil hegemony is the future basic strategy.
However, oil is still an important industrial raw material. It is definitely better to have it in your own hands than in the hands of others.
However, the result was a little unsatisfactory. After just a little understanding, Li Yian discovered that the oil fields in various countries around the world were actually controlled by the Americans and the British. For example, the Qawhar Oilfield in Saudi Arabia is the largest in the world. As early as the 1930s, Standard Oil obtained 1 million square kilometers of exploration land along the Saudi coast. Although the Qawwar Oil Field has not been fully discovered yet, the land is owned by the United States. Arab Oil Company, other countries naturally don’t even have to think about it.
As for the Great Bulgan Field in Kuwait, this large oil field with a capacity of tens of billions of tons belongs to Anglo-Persian Petroleum Company - they had obtained the exploration rights as early as the 1930s.
As for Iran...the oil fields there were developed earlier than Persia. The British Petroleum Company that developed Kuwait has the word "Persia".
After counting, there is almost no missing place in the entire Middle East!
Almost all oil fields are controlled by British and American oil companies. Under such circumstances, it is simply a fantasy to challenge them and steal food from their mouths.
Where is the only place to pick up the leaks?
Only Libya.
Before this year, even if Li Yian had this idea, there was no such way. Before Libya changed the law, Nanyang had no chance to get involved in local oil exploration rights.
But things are different now. After Libya changed its laws, it means that oil companies around the world have opened their doors.
As long as you are willing to pay, you can obtain oil exploration and exploitation rights in Libya.
How could you miss such an opportunity?
“The Suter Basin is more than 400,000 square kilometers, take it all!”
“More than 400,000 square kilometers!”
Look at it Basin on the map, Herman said.
"Your Excellency, for such a large area, according to the "Mineral Law" promulgated by Libya, we have to rent the exploration and mining rights here, which is a big expense every year!" After thinking about it, Hull Man said again.
“Isn’t this too risky?”
“Risky?”
Li Yian smiled.
“When Standard Oil leased 1 million square kilometers in Saudi Arabia, many people said they took a risk, but the final result is well known. Sometimes, the greater the risk, the greater the reward.”
For others, this is a risk, but for Li Yian, this is an opportunity.
And it’s a once-in-a-lifetime opportunity!
The bigger the waves, the more expensive the fish.
This opportunity cannot be missed.
“That’s because they rent it very cheaply.”
Herman didn't even want to explain.
In 2003, the Kingdom of Saudi Arabia signed an agreement with Standard Oil Company of California on the exploration and production of oil. The agreement stipulates that Standard Oil Company of California in the United States has oil field exploration rights and oil extraction rights within about 1 million square kilometers in eastern Saudi Arabia for a period of 60 years. After the agreement comes into effect, the United States will provide a loan of 50,000 pounds to the Saudi government every year. The Saudi government pays £25,000 in rent!
With such a small amount of money, what risk did they take?
Even if oil cannot be drilled, there is no risk. The loss is only a few thousand pounds a year. If you don't want to pay, you can break the contract at any time.
But the final result proved how vicious the Standard Oil Company of New Jersey was - they discovered the world's largest oil field there.
Over the past few decades, they have returned hundreds of thousands of times.
How can Nanyang replicate all that now? after all. Times have long since changed, and it is impossible for Libya to lease land exploration and mining rights to Nanyang at the same low price.
"I know that times are different, and the money spent must be different. Back then, Americans could send beggars away! But it is different now."
After thinking for a while, Li Yian said.
“I think this way, Nanyang Petroleum Company will take the lead to establish Nanyang Libyan Petroleum Company. The company will provide 20% of the funds, the National Pension Fund will provide 60% of the shares, and the other 20% will be sold internally.”
The National Pension is Nanyang’s National Basic Pension Insurance. It is a social insurance system established to protect citizens’ pensions. This system was implemented in 2006 and aims to provide Nanyang citizens with stable pension income and ensure that they can retire during their retirement years. and finally be able to live a stable life.
At that time, the government and companies provided as much as 500 million yuan as capital. After years of development, Nanyang National Pension is now not only the largest investment company in Nanyang, but also the largest holder of state-owned enterprises in Nanyang.
Li Yi'an has always adhered to one principle - he will never forget the benefits of the National Pension. After all, it is related to the lives of Nanyang people. Only by continuously improving its operating rate of return can this be achieved. 1. The pension system should avoid being limited to the situation where pension insurance is in deficit or even exhausted in later European and American countries. Of course, the more important thing is the fertility rate, which is the prerequisite for everything.
Investability is also important.
The return efficiency of investing in Libyan oil is still very high. As for Cardano in the future... Nanyang has always been a good friend of the tyrant. At that time, it will be a matter of choice.
Staring at the map and thinking for a moment, Herman said.
"The risk of this investment..."
Puckering his lips, Herman looked at Your Excellency and said.
“I think it may be bigger than the investment in the Persian Gulf five years ago!”
The “Persian Gulf” investment in Herman’s mouth was made in Li Yi’an six years ago. Under the instruction, Nanyang Petroleum Company sent personnel to Riyadh, the capital of Saudi Arabia, to sign an agreement with the King of Saudi Arabia on the exploration and extraction of oil. According to the agreement, Nanyang obtained Saudi Arabia’s offshore oil exploration and production rights in the Persian Gulf.
However, despite obtaining the exploration and mining rights, Nanyang has been suffering losses in the past few years - paying hundreds of thousands of dollars in lease fees every year, but not a drop of oil has been produced!
So, from an investment perspective, it is definitely a loss!
Faced with doubts, Li Yian smiled.
“The risk is high because we haven’t mined it yet!”
(End of this chapter)