My 1999

Chapter 1093 Natural Gas Pipeline

"I just think the ultra-deepwater area is more likely. After all, nearly 300 exploration wells have been drilled in the Santos Basin, but there is still no large oil.

So I am not very optimistic about it."

Xu Liang nodded.

During this period, in addition to the information of major oil companies, he also read the past development information of Brazilian oil, and even asked Andrew to collect geological information of Brazilian oil exploration areas.

The purpose is to see if these materials can stimulate his memory of Brazilian oil in his previous life.

Even a little bit.

After simply flipping through the information in his hand.

"When will the auction start?"

"November 5! The venue is in the Rio de Janeiro City Hall Auditorium."

"How many oil companies are involved?"

"37, including international oil giants such as ExxonMobil, Lanco, Shell, ChevronTexaco, and some Brazilian oil companies."

Xu Liang nodded in understanding, "Do you plan to take all three ultra-deepwater blocks?"

"No, the risk is too great.

We can bid for one block and try our luck."

Xu Liang pondered for a moment and shook his head decisively.

"No, if you want to take it, take it all.

Otherwise, others will drill oil wells in ultra-deepwater areas, but we won't.

I will regret jumping into the Atlantic Ocean."

Andrew nodded quickly.

As the CEO of Unocal Resources, he certainly doesn't mind investing in a few more blocks, so that the probability of oil production is greater.

"How much money does it take to take three ultra-deepwater blocks?" Xu Liang asked.

"Although there are many oil companies interested in the three deep-sea blocks, there has been no large oil field in Brazil's oil exploration.

The deep-water area is being developed for the first time, so the price will not be too high.

Two or three hundred million dollars is enough."

The current oil exploration boom in Brazil has not yet erupted, so the price of oil blocks in ultra-deep sea areas is naturally not high.

But after taking the block, the subsequent exploration and development costs are the bulk of the investment.

The semi-submersible drilling platform that can explore the two-thousand-meter deep sea has a daily rental of 400,000 to 500,000 US dollars, which is close to 200 million a year.

The price of buying one is 500 to 700 million.

For deep-sea drilling, after more than 300 meters, the average cost per meter is 10,000 to 30,000 US dollars.

This does not include labor, equipment depreciation and other expenses.

So, oil exploration is a game that can only be played by real national oil companies and multinational oil giants.

The state-owned capital of some small countries has no money to play.

Brazil also had to pass on the risk because the cost of exploration and development was too high.

"Where is the contract?"

Xu Liang continued to ask.

"A standard mining tax sharing contract.

If there is oil, we will get a 35-year franchise for three blocks.

During the operation, we have to pay 2-8% mining fees to the Brazilian government.

1.5% landowner cost, 25% corporate income tax, and 10%-15% resource tax.

In addition, if we can discover a large oil field and make a lot of profit, we will also need to pay land use rent, about 10-5,000 reais per square kilometer.

There is also a privilege participation fee, that is: a special compensation paid by the franchise holder, depending on the company's profitability, generally between 0.2-1.5%.

Royalties, that is, the payment made by the franchise holder for the oil resources it holds, and the franchise holder pays 5%-10% of the output at each stage."

After listening to Andrew's words, Xu Liang couldn't help but frown.

Although Brazil is currently implementing the international mainstream mining tax contract, rather than the later product sharing contract,

Foreign oil companies can be allowed to obtain the full ownership of the oil field, instead of Petrobras having to hold 30% of the shares later, but the indirect tax is too complicated and too high.

A simple calculation shows that even if Unocal can find an oil field here, half of its gross profit will have to be paid as various taxes in the future.

But there is nothing we can do about it. You are an outsider, and you have to exploit resources on someone else's land.

"Give me a copy of the information you prepared.

Let the exploration department prepare, and once the auction is successful, immediately start mining."

Speaking of exploration, Xu Liang is somewhat grateful to those former executives who risked everything and resolutely let Unocal go to the ocean.

Although the 2,000-meter deep sea area is the crown of the oil exploration industry, it is not difficult for Unocal's offshore exploration team.

"Yes!"

Andrew nodded respectfully.

He glanced at the big boss's face.

"Boss, I have another project that suits Unocal's appetite very well."

"The project that allows you to take the initiative to speak up requires a lot of investment."

Andrew smiled and handed over the information he had prepared in advance.

"Natural gas pipeline?"

"Yes."

Xu Liang flipped it open and looked at it.

There were two natural gas pipelines in it.

First, the Bolivian natural gas pipeline.

From the main natural gas production area of Santa Cruz to Campo Grande and Sao Paulo in Brazil, the main pipeline is 2,093 kilometers long, with a total length of 2,415 kilometers and a total investment of 3.7 billion US dollars.

Second, the Colombian natural gas pipeline.

From its main natural gas production area on the eastern coast to Bogota.

Then it continues to extend southward from Bogota to Brasilia in Brazil, Santa Fe in Paraguay and Buenos Aires in Argentina.

The main pipeline is 3,381 kilometers long, with a total length of 4,380 kilometers and a total investment of 7.5 billion US dollars.

"These two natural gas pipelines, one horizontal and one vertical, are part of Enron's ambitious 'Grand Cross Plan', which aims to control the South American natural gas sales market and become a real market leader.

However, Enron's so-called 'Grand Cross Plan' is more about boosting stock prices rather than investing money in construction.

The investment in these two natural gas pipelines is limited. Later, Enron went bankrupt.

The two natural gas pipelines, except for the Bolivian pipeline project, which has been built for less than 100 kilometers, the Colombian pipeline project has only remained on paper.

Now Brazil, Colombia and other South American countries hope to build these two pipelines, so they took the opportunity of this oil bidding to send invitations to all the oil companies present."

Unocal does have a pipeline business. In addition to the West Asia Atug pipeline that has been sold, they also operate the Myanmar-Thailand natural gas pipeline with a length of nearly 200 kilometers.

Xu Liang put down the information.

"Do you think we should participate?"

"We can participate in the parts of Brazil, Uruguay, Argentina and Paraguay. As for the others, it is best not to participate." Andrew said.

Xu Liang understood what he meant.

Enron's Grand Cross Project needs to cross the Andes Mountains and pass through a huge tropical rainforest.

The geology is complex and the public security is chaotic.

Unless you are stupid, no one will invest here.

In contrast, Brazil, Argentina and the other four countries are all in the flat Pampas, with low construction difficulty and relatively developed economy.

If you can participate in the pipeline project here, it is indeed a good business.

...

The next day, because the date of the oil bidding is November 15, there is still a week left, and with Andrew watching, he doesn't have to worry too much.

Coming to the famous Rio de Janeiro for the first time, Xu Liang certainly has to take a good tour.

After putting on makeup and covering up his original face, Huo Gang, who was full of resentment, left the house with Zhang Hongwei.

"Boss, where are we going?"

"Let's go to the beach first, taste local food at noon, and go to Sugarloaf Mountain and Monte Cristo in the afternoon."

It's a rare opportunity to come here, so you have to see the landmarks.

Zhang Hongwei naturally has no objection.

The villa that Andrew prepared for him is not far from the sea, so it didn't take much time in between.

Rio de Janeiro's urban planning is similar to that of India.

The villa area where the rich live is separated from the slums by a road.

In addition to tourists and wealthy people, adults and children in the slums also lazily enjoy the beautiful beach and warm sunshine on this beautiful beach.

At the end of October, it is already a cool late autumn for people in the northern hemisphere.

But for Rio de Janeiro in the southern hemisphere, it is spring and summer.

In addition, it is located on the Tropic of Capricorn, so the daytime temperature is basically around 29 degrees, which is the time to wear T-shirts and shorts.

Xu Liang and Zhang Hongwei bought two pairs of beach pants, and they didn't look for anything to cover themselves, so they took off their clothes and changed.

Here, there are so many naked women, and no one comes to see the two men.

"Boss, what are we going to play?"

"Of course it's a motorboat."

When on land, Xu Liang never races for fear of his life.

But when he comes to the sea, the project he plays is always a motorboat.

The two changed their clothes, had a good time on the sea, and then lay down on the rented beach chairs nearby.

Drinking iced cola, watching the Brazilian beauties running back and forth.

Comfortable.

I haven't been so relaxed for a long time.

Suddenly.

An old football flew from nowhere and hit his left arm with a "bang".

Zhang Hongwei, who had been paying attention to his safety, changed his face, stood up like lightning, and looked into the distance with a vigilant look.

A group of half-grown children ran over.

"I'm sorry, we didn't mean it!"

The boy who spoke was about twelve or thirteen years old, with a slightly dark complexion and faint sweat marks on his naked upper body.

After patting Zhang Hongwei's shoulder and signaling him not to be too nervous.

Xu Liang shook the football in his hand, which was already prickly.

"Are you playing beach football just now?"

"Yeah."

"Can you take me with you?"

"Take you?"

The little guy looked at him in surprise.

"Why, is it not possible?"

"Of course not. ... But there are only eight of us."