Chapter 521【Invest in a refinery】

  China Gas Headquarters Meeting Room

  Wu Guangyao sat as the chairman of the company, looking at a group of executives and shareholders with a smile on his face;

  In the eyes of shareholders and executives, Wu Guangyao is more like a confident king, full of confidence and domineering!

  What everyone has not understood is that China Gas is only a medium-sized listed company;

  Although there is a pipe gas franchise on Hong Kong Island, it may not be worth mentioning to the God of Wealth!

  But it is precisely this ‘small company’. The God of Wealth has always served as the chairman of the company’s board of directors, and has frequently inspected work and provided opinions. This has made the business people on Hong Kong Island curious. What does the God of Wealth want China Gas to do?

  Of course, Wu Guangyao’s approach was warmly welcomed by a group of shareholders;

  Being on the boat of the world’s richest man is not only a kind of glory, but also a financial reward.

  Compared with four years ago, the China Gas at this time has undergone earth-shaking changes;

  First of all, the number of pipeline gas users in Hong Kong has increased from 30,000 to 150,000, an increase of up to 5 times; pipeline gas is no longer the patent of the rich, and the middle class has begun to use it.

  Secondly, China Gas has become an oil supply retailer (gas station) on Hong Kong Island and has a 250,000-ton oil depot on Tsing Yi Island.

  Finally, China Gas has also become a retailer of stoves and other kitchen equipment, acting as an agent for many foreign products, and almost monopolizing the supply of stoves on Hong Kong Island.

  It can be said that China Gas took off directly in the hands of Wu Guangyao!

  The market value of China Gas has increased by 8 times compared with four years ago, with a total market value of up to 700 million Hong Kong dollars;

  This is undoubtedly an exciting thing for shareholders, and it is also quite a real thing.

   "Everyone, I am convening this board meeting. There is an important investment issue and I need to inform everyone!"

  Wu Guangyao’s words shocked everyone and raised their ears;

   "I plan to let China Gas Company enter the oil refining industry!"

this?

  Everyone looked at each other, asking question marks on their heads?

  The entry into petroleum retail and petroleum storage was completely understandable to everyone at the beginning;

  But now it enters the oil refining industry, does China Gas have the technology? Are there funds? Are there resources?

  A shareholder said worriedly: “Chairman Wu, we don’t have any technology in the oil refining industry. It’s possible to enter this field hastily.”

  Wu Guangyao looked at the shareholder and said: “As long as there is capital, there will be technology!”

  The shareholder asked tentatively: "Chairman Wu meant to cooperate with European and American oil companies?"

Wu Guangyao nodded and said: "It can be cooperation or technology transfer! My idea is like this. We go to talk to oil companies about the transfer of refining technology. I think it is not a big problem; of course, having technology does not mean us. It can develop very well in this industry; therefore, I plan to invest in an oil refinery in Singapore, the transportation hub."

  Without a drop of crude oil, Singapore has vigorously developed its oil refining industry since the early 1960s;

  In the later generations, it is one of the world's three largest oil refining centers;

  Jurong Island Industrial Zone is the world’s third largest oil refining center after Houston in the United States and Rotterdam in the Netherlands.

  At this time, it is not too late to enter Singapore’s oil refining industry;

  After all, European and American oil companies also entered in the late 1960s.

  The petroleum industry chain is mainly divided into three parts: mining, refining, and chemical industry;

  "Petroleum refining" is the process of processing crude oil into gasoline, diesel and other oil products;

  In addition to processing different oil products such as gasoline, the refinery can also produce gaseous fuels, synthetic gases, petrochemical products, lubricating oil and asphalt raw materials.

  A shareholder asked: "How to solve the problem of funding?"

Wu Guangyao said: "This is the peak of the Hong Kong stock market. We can issue new shares and raise 150 million Hong Kong dollars to invest in oil refineries. At the same time, my family will contribute 100 million Hong Kong dollars to form a joint venture company. So, what do you think? "

  Everyone started to discuss, and the whole meeting room was noisy. Wu Guangyao was not in a hurry, but looked at Madden;

  The two had communicated beforehand. Madden admired Wu Guangyao very much and directly affirmed Wu Guangyao's investment advice.

  Soon, most of the shareholders agreed to the investment project, so it was approved!

  Wu Guangyao put the first object of cooperation on the British BP oil company, after all, Hong Kong Island at this time is still a British colony;

  Moreover, the British capital of China Gas also accounts for a large part;

  More importantly, London has been wooing Wu Guangyao, not only out of political inclination, but also out of economic investment.

  So, Wu Guangyao plans to go to the British BP oil company to talk in person this time;

  In addition to talking about the oil refinery, I also plan to talk about the Wu family's march into Beihai Ishida;

  This time, we will extend the Wu family's industry into the lifeline of the economy—the oil field.

  Of course, the Wu family does not have an oil company, so it can't explore and exploit oil fields;

  But the Wu family has funds, which is the biggest advantage;

  It is entirely possible to adopt a joint venture company formed by the Wu family and British BP oil company to enter the North Sea oil field;

  The reason why Wu Guangyao is confident that the British will cooperate is because they have released the exploration rights of the North Sea oil field.

  In the 1960s, under the impact of the national liberation movement that emerged in the Middle East, the influence of the "suzerain states" in Western Europe was no longer in the past;

  The major energy players in the Middle East not only no longer follow the call, but often threaten these European countries with oil.

  For Western Europe, which hardly produces oil, the risk is too great!

  In order to deal with the severe problem of oil, European countries, led by the United Kingdom, had to turn their attention to the North Sea, which has not been developed on a large scale.

  However, due to the outcropping of the surrounding land and the harsh ocean conditions, the North Sea has been left unattended for a long time at this time.

  And from the perspective of oil extraction, the North Sea, with its complicated seabed topography and harsh maritime climate, is really not a good place for exploration.

In order to be able to extract oil in a short period of time, the United Kingdom liberalized the North Sea oil field exploration rights and first divided the country's one-third of the North Sea into 960 blocks (each block is about 259 square kilometers). Use bidding to issue exploration licenses to oil development companies around the world.

  What worries the British government is that even if Britain made huge concessions in oil exploration rights, the major oil companies in the world at that time were still not interested in it. After the tender is over, there are still 60% of the sea area unattended.

  Not only that, after the UK's exploration rights were released, dozens of oil companies that participated in the bidding failed to produce a well that could be put into production, and they all fell into a loss-making situation.

  Because oil has not been extracted for several years, the “no oil in the North Sea” theory has spread in Europe, stirring the sensitive nerves of all parties.

  Until December 1969, the Phillips Oil Company, which spent more than US$30 million in exploration for three years, could no longer afford the exploration losses of the North Sea oil field.

  So the company’s management decided to abandon Beihai’s “return to camp” after drilling the last well.

   is the last well, and finally an oil field with a storage capacity of 200 million to 300 million tons of oil has been surveyed;

  So, from 1971 to 1975, the North Sea Oilfield entered a harvest period for oil and gas exploration.

  Wu Guangyao thought, since your British are short of money, you have let go of exploration rights;

  Then I will invest, and you will work hard. After the prospecting is out, you can give me some soup.

  Wu Guangyao did this, in addition to wanting to make some profit, he also wanted to train some teams to accumulate some experience for future entry into petroleum exploration and exploitation.

  (End of this chapter)