Chapter 1098 Ultra-deep sea area (two-in-one)


Chapter 1098 Ultra-Deep Sea Area (2-in-1)

“Boss, do we want to add more?” Andrew asked.

Looking at the numbers displayed on the big screen, Xu Liang pondered for a moment and then shook his head.

He just came to fish in troubled waters. Now that his goal has been achieved, there is no need to continue to stir things up.

It would be bad if it backfires.

Moreover, ExxonMobil’s conditions of “signing fee of US$42 million, maximum obligated investment of US$98 million, and local procurement ratio of 44.3%” were too high in his opinion.

In addition to Unocal, the only two companies still competing for Block 6 are ExxonMobil and ChevronTexaco. It is too risky to continue to compete with them.

Andrew was relieved.

Fortunately, the big boss was quite sensible and was not led astray by the fierce competitive atmosphere at the scene.

“ChevronTexaco, signing fee of US$31 million, maximum obligated investment of US$98.5 million, localized procurement ratio of 44.6%.”

At this time, John Watson's nerves were highly tense.

This condition has slightly exceeded the company's bottom line in bidding for Block 6.

But there is no way. The company's order to him is that he must win block 6, so even if he exceeds it, he cannot give up.

"John, Unocal seems to have given up."

The words of his colleague made John Watson feel a little relieved.

The abandonment of Unocal at least leaves ChevronTexaco without a strong competitor.

"Johnny, have you called the head office?"

"Already called. The head office told us that everything is ready, but now it is clearly marked, and finally we The conditions cannot be too far apart, otherwise it will be difficult for the other party to fight for our rights."

John Watson nodded, "Only Exxon is left."

Subconsciously. Looking not far away, there were a lot of people there, and they were obviously having urgent discussions.

Roberto Murici is a veteran hunter who has participated in many oil auctions.

Decisively delayed the time.

Soon the numbers flashed on the screen, giving him the greatest reward.

“ExxonMobil, signing fee of US$31.5 million, maximum obligated investment of US$99 million, local procurement ratio of 44.3%.”

ExxonMobil has something new there quotation.

However, this price did not make John Watson frown. Instead, he showed a hint of joy.

"Send a message to the head office now."

"Yes."

Johnny Dawn, who was in charge of computer operations, quickly sent the message to the head office. Company email.

In less than half a minute, I saw a change in the expression of Roberto Murici, who was in charge of hosting the auction.

He pressed his earphones and listened for a moment before nodding.

Immediately picked up the microphone and said loudly:

"I announce that ChevronTexaco has obtained the exploration and development rights for Block 6."

The words have not yet been spoken. As soon as he fell, Paul Stevenson suddenly stood up with an angry look on his face.

“I have objections.

Why do we give Block Six to ChevronTexaco when our signing bonus and general investment are higher? "

Roberto Murici glanced at him and said calmly:

"We believe that the main purpose of oil exploration and development is to promote the development of the Brazilian oil industry and increase employment.

Therefore, the localized procurement ratio is the most important weighting indicator among the three evaluation items. In this regard, Chevron Texaco is 0.3% more than Exxon Mobil. ”

Everyone knows this is a lie, but it is a lie that can be justified on the surface.

Stevenson has also participated in and handled many biddings, and it is easy to figure out the tricks involved.

Now even if he is unwilling to do so, Roberto Muric cannot change the bidding result in full view of the public.

“We can only find a solution after the bidding is over.”

Looking at Paul Stevenson with a unwilling face, Andrew gloated: “ExxonMobil made a miscalculation.”< br>
Technological progress has obviously reduced office processes.

Signatures, seals, secret notes, etc., these commonly used methods in the era of secret marking, are now compressed step by step by computer software programs, greatly reducing the possibility of secret operations.

Especially when a technology has just been invented, its preventive effect is the strongest.

Especially now, international oil bidding has become an electronic screen-style public bidding. All companies, bidding prices and other information will scroll on the bidding electronic screen, allowing oil companies to re-bid.

At this time, the chance of operating behind the scenes is very small.

But this does not mean that there is no possibility of black-box operation.

Just like now, when the prices of both parties are similar, the country that owns the oil block with the final power of interpretation can easily decide who has the last laugh.

Looking at John Watson, who was hugging and cheering with his colleagues, Xu Liang narrowed his eyes slightly.

“I didn’t expect that he could make Exxon Mobil suffer. It seems that we have to be more careful.”

After Andrew nodded, he suddenly said:

“If it is still It would be nice to use hidden labels like they did in the 1990s.

A barrel of oil costs US$30, and the oil company earns US$10.

Now a barrel of oil costs US$40, but we can only earn US$8.

The transparent bidding environment has intensified competition, making the income of oil-producing countries higher and higher, while the profits of oil development companies have become smaller and smaller. ”

Corruption contains huge profits. There is too much room for manipulation in hidden bids, and the profits contained are naturally more.

In fact, according to Xu Liang’s understanding, with the increase in oil bidding, With transparency, the profits from oil development will be even lower

Even in four or five years, there will be a point where you can only earn $5 from $100.

So, in the 1980s and 1990s, only small and medium-sized oil companies were interested in the oil services industry, but more and more large companies began to enter.

Compared with the hard work of exploration and development, and having to bear the risk of rising and falling oil prices, we only earn $5 per barrel.

Strive for an oil service contract and earn a stable $5 per barrel. Of course, the latter has lower risks.

Now this trend is becoming more and more obvious. BP and ExxonMobil have begun to shrink their international business, especially in the field of oil exploration and development.

ConocoPhillips had to improve its balance sheet by spinning off and selling off non-core businesses because profits were too low.

Even Exxon Mobil has less than 10% of its net profit, ChevronTexaco has only a little more than 7%, and ConocoPhillips is the worst, with less than 5%.

It once expanded and merged wildly, becoming the third largest multinational oil company in the United States and the fifth largest in the world, but in the end it had to face the dilemma of indigestion.

Of course, Unocal should also learn from ConocoPhillips’ lessons, but it is too early to say this now.

No matter how unwilling ExxonMobil is, it has to accept the fact that it lost to ChevronTexaco.

After John Watson and the others celebrated their completion, the bidding for the No. 7 oil block began.

The last exploration block in this shallow sea area fell into the hands of a joint consortium of Nippon Solar Co., Ltd. and Argentine Petroleum Company after a moderately competitive bidding process.

So far, in the sixth round of Brazilian oil bidding, each of the seven shallow-water oil blocks has been assigned to its owner.

The happiest people are undoubtedly BP and ChevronTexaco.

They respectively obtained Blocks No. 2 and No. 6, where large oil fields are most likely to exist.

In particular, Chevron also obtained the exploration and development rights of Block 4.

The most disappointed one is undoubtedly ExxonMobil. They made two attempts and got nothing.

Of course, in the eyes of outsiders, Unocal also belongs to the unlucky category. It also made two bids to enter the top three, but both ended in disgrace.

But ExxonMobil is the world’s largest integrated upstream and downstream oil giant.

Extremely strong.

Despite missing out on seven blocks in the shallow water area.

But of the five blocks in the deep sea area, except for No. 11, which was taken by Shell, the rest all went into their pockets.

After Roberto Murici announced the start of the bidding for the 13th oil exploration block, his nerves were highly tense and his attention was focused as never before.

“The next step is our stage.”

Xu Liang took a deep breath.

...

Internationally, oil and gas resources in sea areas with a water depth of more than 300 meters are generally defined as deepwater oil and gas, and water depths above 1,500 meters are called ultra-deep water.

The three blocks No. 13, 14 and 15 put up for auction by the Brazilian Petroleum Administration this time are located in the ultra-deep sea area.

Especially in Block 15, the water depth has reached 2,000 meters.

This is just the depth of the water.

According to the actual drilling data of the Brazilian Petroleum Administration in the Santos Basin in the past few years, two sets of source rocks containing oil and gas have been developed in the Santos Basin, namely 'lacustrine dark shale' and 'deep water marine shale'.

The former is the main source rock in the Santos Basin. In the diving area with a water depth of less than 400 meters, its burial depth is 7 to 8 kilometers, and it is in a mature stage.

The probability of discovering oil is high.

Most of the offshore oil and natural gas fields that Brazil has developed are located in this area.

So in this bidding, the seven blocks in the shallow sea area are the most competitive.

In continental slopes and deep water areas, the strata are relatively shallowly buried, and the 'lacustrine dark shale' is between immature and mature stages, and the probability of oil production is very low.

Deepwater marine shale is organic-rich calcareous mudstone and black shale deposited in a global anoxic environment.

It is located in the deep water area of ​​the southeastern continental shelf and the super deep water area of ​​the sub-depression in the Santos Basin. It is still in the main oil production window or has not yet reached the stage of oil production window.

In short, the probability of discovering oil is not high. In addition, different source rocks have different oil-bearing layers, so I won’t go into details here.

According to information released by the Brazilian Petroleum Institute, in addition to the seawater depth of nearly 2,000 meters in the three blocks in the ultra-deep water area, it is necessary to continue drilling down for two to three thousand meters to reach the oil-bearing layer. area.

In other words, drilling must be at least 5,000 to 6,000 meters from sea level down.

What is the concept of 6000 meters?

It means that drilling an exploratory well, commonly known as a 'wildcat well' in the industry, costs at least several hundred, or even tens of millions of dollars.

What is a ‘wild cat’?

The proverb ‘a blind cat kills a mouse’ is a perfect explanation.

Often if ten exploratory wells are drilled, one good well will be found, and nine dry wells will be considered good.

But as oil field exploration becomes deeper and deeper, and the area becomes more and more remote, it is often difficult to find one good well among ten wells.

So, oil exploration is really about burning money.

The darker it is, the more it will be burned!

It is precisely because the oil production volume of the oil-bearing layer is not high and it is too deep, making exploration and development difficult.

Therefore, the three blocks 13, 14 and 15 are regarded as useless by most oil companies on site, tasteless and a pity to abandon.

“The next bid is for Block No. 13.”

“Let’s get started.”

Andrew nodded.

As the person who advocates targeting three ultra-deep sea areas, he is also burdened with a lot of pressure.

"Unocal, a signing fee of US$5 million, a general investment of US$50 million, and a 40% localized procurement ratio."

The general investment is ten times the signing fee, which is relatively much higher.

This is also understandable.

After all, the cost of exploration in ultra-deep sea is very high. If you only spend 10 to 20 million US dollars, you will only be able to survive with less than ten wells.

How are you playing?

That's not how luck works.

USD 50 million, neither too much nor too little, just happens to allow the Brazilian Petroleum Authority to see its sincerity.

"Unocal?"

"Are they interested in ultra-deep water areas?"...

Seeing the numbers on the display, the person in charge of the oil company present was surprised He glanced at the area where Unocal was.

Of course, it was just surprise.

In their view, Unocal’s current bid is just the last act of stubbornness after all 12 blocks in the popular shallow water and deep water areas failed.

The person in charge of Petrobras saw that someone was backing up the offer, so they simply did not quote the price.

As a Brazilian state-owned company, they can get the best exploration blocks in the Santos Basin without participating in this bidding.

Generally speaking, if no other company bids again within one minute after a company quotes, the former will be declared the winner.

And Unocal's quotation is neither too high nor too low.

It happens to be above the psychological price of those oil companies who try their luck to get a block at a low price.

So, a minute later, there was still only Unocal on the front display.

“Congratulations to Unocal for winning the bid for the No. 13 exploration block.”

Led by Roberto Muric, loud applause broke out in the hall.

However, most of the people looking at Unocal contained a bit of ridicule in their eyes.

Xu Liang didn’t care about this.

He was betting on luck.

It would be better if it didn't work, and he could afford the loss of hundreds of millions of dollars at most.

“The next step is the bidding for exploration block 14.”

"Unocal, signing fee of US$5 million, general investment of US$50 million, 40% localized procurement ratio."

Looking at the almost identical content displayed on the big screen again.

The discussion below was much louder than before.

“Why are they again?”

“The cost of exploration in ultra-deep water blocks is high, and the source rocks are underdeveloped, and the probability of containing large oil fields is too low. It is impossible for Unocal’s people not to Know.”

"Maybe they want to try their luck!"...

After John Watson glanced at the display screen, his eyes turned to the area next to Unocal.

From his position, he could only see Xu Liang’s profile.

The other party's calm profile showed no emotion at all, and there was no way to judge what the other party was thinking.

After examining it for a moment, there was a hint of deep thought on his face.

"Congratulations to Unocal for winning the bid for the No. 14 exploration block."

Lack of enough competitors, Xu Liang quickly got what he wanted.

However, compared to last time. This time, after the applause started, everyone looked at him less with the look of watching the fun and more with a touch of inquiry.

“I’m afraid it won’t be that easy next time.”

Although ultra-deep water areas are not popular, there is no shortage of interested people.

"The last is the bidding for exploration block No. 15."

"Unocal, US$4 million signing fee, US$55 million general investment, 40% local procurement ratio."

Look again After Unocal's bidding information appeared on the big screen, the discussion in the audience disappeared.

A strange atmosphere enveloped the entire venue.

The right way is: it can be done once, it can be done twice, but it cannot be repeated.

It's obviously worthless, but if you get two pieces, it can be understood as trying your luck.

But if you take all three, does that mean you know some secret that we don’t know?

Human psychology is like this.

Any normal person would involuntarily make such speculations when encountering this situation again.

And those sitting here today are all elites from the business world.

The mind is sharp and thoughtful.

"ChevronTexaco, signing fee of US$450, one-time investment of US$55.6 million, 40% localized procurement."

Xu Liangliang sighed.

What he was most worried about happened.

But fortunately, he made an explanation in advance.

"ChevronTexaco is also taking action?"

Both giants are interested in Block 15, which instantly convinced other oil companies who were still a little skeptical that there must be something in the No. 15 exploration block. Tricks that I don’t know about.

In order to avoid losing the benefits, a third bidder quickly appeared.

"Toyo Nikki Co., Ltd., signing fee of US$480, one-time investment of US$55.9 million, 40% localized procurement."

"Boss...?"

Facing Andrew's inquiry, Xu Liang shook his head.

“Don’t be anxious, wait and see.”

Ten seconds after the Japanese bid, there was a new bidder.

"Anadarko Petroleum, signing fee of US$500, one-time investment of US$56 million, 40% localized procurement."

More than ten seconds later.

"Japan International Petroleum Development Company, signing fee of US$520, one-time investment of US$56.3 million, 40% localized procurement."

Compared with the previous fierce bidding, although everyone has more interest in the No. 15 oil block There were many doubts, but because of the uncertainty, the price increase was not large, and it was slow and leisurely, appearing to be neither impatient nor impatient.

Of course, there is a reason for this.

One is to prevent the price from being increased too much and falling into a 'trap' after winning the bid.

The other one is also actively contacting the headquarters, using their connections in Brazil to investigate whether there has been secret exploration in Block 15, or whether there are new discoveries around it.

"The headquarters responded that so far only 15 exploratory wells have been drilled in the Brazilian ultra-deep sea area, all of which are dry wells."

John Watson nodded.

“Is it really just luck?”

Looking at the young man with a calm expression, even if John Watson wants to break his head, apart from the possibility of trying luck, there is no other option. There is no other explanation.

Because the relationship between the headquarters can directly reach the highest level of the Brazilian Petroleum Administration, there is no possibility of mistakes.

After he received the reply, companies such as Exxon Mobil, Shell, ConocoPhillips, Total, and BP also basically received replies from their headquarters.

The contents are similar, and they are basically negative.

So, although they suspected Xu Liang and Unique's motives for doing so, no one offered high prices anymore.

After all, tens of millions of dollars is not a small amount of money.

No one wants this money to go down the drain.

(End of this chapter)

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