Chapter 538 【120 Million Ton Oil Well】

  At the end of May, Wu Guangyao’s business jet took off from New York and headed to London.

  At this time, Wu Guangyao was in a good mood. Because Kayla called himself, Global BP Petroleum Company discovered a large oil field of 120 to 150 million tons.

  Wu Guangyao fell into ecstasy after hearing the news!

  Although I have great hopes for the 72 regions that I won the bid, it is still quite shocking for the oil field of hundreds of millions of tons!

  It is necessary to know that the oil stock of the North Sea oil fields in Europe is only 5.7 billion tons, while the North Sea oil field owned by the United Kingdom has only 3.7 billion tons;

  In addition to the oilfield reserves discovered by Global BP, Global BP has steadily owned oil fields with 150 million tons of oil reserves.

  According to the current 3 US dollars per barrel (137 kg), a ton is worth 21 US dollars, and these oil fields are worth 3.15 billion US dollars;

  According to the oil price four months later (10.6 U.S. dollars a barrel), the price of these oil fields immediately doubled, valued at 11.1 billion U.S. dollars;

  As for how much Wu Guangyao can make?

   Very good calculation!

  Taking 100 US dollars of oil as an example, its extraction cost is 20%, which means there is a gross profit of 80 US dollars;

  The 80 US dollars must first pay an oil income tax, the tax rate is 45%, which means that there is a gross profit of 44 US dollars;

  The 44 US dollars also need to pay a corporate tax, the tax rate is 52%, which means there is a gross profit of 21 US dollars;

   There is the last tax of $21—the share dividend tax, with a tax rate of 12.5%, leaving a net profit of $18.

  So, the net profit margin is 18%!

  Even if the UK imposes an oil tax halfway, the net profit will be around 15%.

  Calculated based on the oil fields currently surveyed by Global BP Petroleum, it seems that Wu Guangyao has not made much, only a profit of 1.5 billion US dollars;

  In fact, this is not the case. First of all, Global BP still has 36 areas that have not yet been surveyed, and it is very likely that another oil field of hundreds of millions of tons will be harvested;

Secondly, in 1979, oil will skyrocket to 34 US dollars a barrel, and the value of the oil fields that have been explored has climbed to about 33 billion US dollars. According to this calculation, Wu Guangyao will probably have a profit of 4 billion US dollars (only the discovered 150 million Tons of oil).

  Petroleum extraction is a long time. It takes three to four years from the exploration of oil to the actual oil production;

  The mining output is also calculated according to the number of barrels per day. For an oil field of hundreds of millions of tons, the mining time will span several decades before it can be fully exploited.

  So, Wu Guangyao's investment in Beihai Oilfield may eventually earn tens of billions of dollars in revenue!

   Tens of billions of dollars is really just a trivial matter to Wu Guangyao!

  However, Wu Guangyao only needs to do some halfway (privatization of Britain in 1979), and on the condition of two oil fields of more than 100 million tons, buy a stake in BP Petroleum;

  This investment will continue to appreciate and may grow to tens of billions of dollars!

  When he came to London, Wu Guangyao naturally did not rush to visit Brown, the president of BP Oil Company, but returned to his home in London—Yuyue Manor.

  In the past few years, Yaoyue Manor mainly lived with Kaila and her four children;

  In recent years, Wu Xianyi and Wu Xianying have studied in London and occasionally come to live.

  When Wu Guangyao arrived in London, it was exactly the weekend when the family gathered together.

The four children of Wu Guangyao and Kaila are: the eldest son Wu Xianlei (1951), the second son Wu Xianyu (1953), the eldest daughter Wu Qianxun (1956), and the third son Wu Xianming (1960).

  Wu Xianyu, Wu Xianyi (the second child of Lin Yueru), and Wu Xianying (the eldest son of Huixiang), the three brothers were born in the same year and studied at the same university. Obviously, they have a good relationship.

  The family enjoyed themselves, and Wu Guangyao also told the news that the'Guangyao Family Office' will be officially launched.

  The mixed-race daughter Wu Qianxun, sitting on Wu Guangyao’s left hand, asked curiously: “After I turn 18 next year, will that money be given to me directly?”

  Wu Guangyao said dotingly: "Yes, of course I have to!"

  However, when it comes to children, these women of Wu Guangyao will not be obedient to themselves.

  Kayla said without hesitation: "This money is too much, and it needs to stay with me temporarily until I graduate from university!"

  Wu Qianxun quit, shook Wu Guangyao's arm and started acting like a baby, ignoring the warning in Kayla's eyes.

   "Alright! Alright! If you plan to use the money, you can apply to your mother, as long as it is reasonable, and you will support it!"

   "Okay! When I reach 18 years old, what I want to buy most is a sports car!"

  Wu Guangyao heard this wish and immediately warned: “You can buy a sports car, but all drunk driving or drag racing will be confiscated!”

  After finishing speaking, Wu Guangyao also watched several sons who had cars, and several people quickly assured Wu Guangyao!

  The next day, Wu Guangyao and Kayla brought a group of men to the headquarters of BP Oil Company.

  After a hello, everyone sat down in the meeting room.

  Brown said: "Mr. Wu, you really have a clever eye. With a single stroke on the map of the North Sea, you have obtained the right to extract 150 million tons of oil!"

  Wu Guangyao said modestly: "It is the blessing of the **** of luck!"

  Next, Wu Guangyao proactively said: “Since such a large oil field has been discovered, we want to sign a mining agreement as soon as possible, and then our funds will go to the company’s account for the purchase of oil drilling and pipeline laying.”

  Although knowing that the United Kingdom will never confiscate investors’ oil extraction rights, at most it will increase oil taxes to control developers’ profits;

  However, Wu Guangyao decided to get the mining rights before the price of oil rises based on the principle of long dreams.

  Brown said with a smile: "Mr. Wu, don't worry! We in the UK will guarantee the interests of investors. The mining rights are guaranteed to be obtained within one month!"

  Wu Guangyao had no mining technology and professionals, so he gave up 25% of his profits for nothing. For 100 US dollars of oil, Wu Guangyao could only earn 13 US dollars.

  If oil merchants who suspend the United States discover an oil field, their profit will be $18.

  However, Wu Guangyao is also very satisfied. Without cooperating with BP, he would not even be able to enter this field.

  Wu Guangyao added: “The climate in the North Sea is harsh, and the equipment for oil exploration must be advanced enough! I have an unprofessional suggestion, Mr. Brown can comment on it!”

  Because of entering the petroleum field, Wu Guangyao has been paying attention to and learning professional knowledge in this area for more than a year;

  At least not to be a layman, this is what Wu Guangyao requires of him!

  Brown said disapprovingly: "Mr. Wu, please tell me, you are a customer. If you have any good suggestions, I believe that the British equipment manufacturers will pay attention to it!"

  Wu Guangyao ignored Brown’s contempt, and did not show off. This man really thought he was a layman!

  "As far as I know, the casing platform technology of Brazil and the Netherlands is very suitable for North Sea oil field exploitation. I like that British equipment manufacturers can introduce this technology, after all, the entire North Sea Ishida can use it."

  At this time, although the North Sea oil field in the UK has been surveyed a lot, the total annual production is less than 1 million tons;

  In other words, the North Sea Oilfield has not yet been developed!

  Even after other oil merchants have surveyed the oil fields, they have not carried out real exploitation. After all, it takes three or four years to prepare!

  In 1975, the British North Sea oil field produced 1.1 million tons. In 1976, the British North Sea oil field soared to 11.5 million tons, a 10-fold increase;

  In 1977, the British North Sea oil field produced 45 million tons of oil. In 1978, the British North Sea oil field produced 45 million tons, which can meet the annual demand of the United Kingdom, which is about 70 million tons.

  However, because the light oil produced in the North Sea Oilfield is more expensive than the crude oil in the Middle East, the British sell their own light oil while importing foreign crude oil.

   One to two, not only can feed many refineries, but also make a lot of profits.

  After listening to Wu Guangyao’s advice, Brown never dared to peek!

   "Mr. Wu's suggestion is very good. I will contact the equipment vendors in the UK in the near future to focus on this issue!"

  Finally, Wu Guangyao introduced Morse to Brown. After all, the shares of British oilfields must be handed over to the ‘Guangyao Family Office’;

  Even the shares in Kayla’s hands must be handed over to the family office.

  (End of this chapter)