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Volume VI, Section 24, Five-Year Plan, Emotional

"My idea may be a bit grand in the long run, and it may not even be completed in one or two years, so this may be a relatively long continuity process, but for now, we should solve the most urgent problem first based on the principle of easy first and then difficult."

Sha Zhengyang's words made Zhou Yuanwang and Wang Yunxiang feel a little relieved. Whether it is a high-level view or a lofty idea, it is a good thing, but first you have to solve the problem of survival.

How Changhe Energy can open up the situation is the top priority.

Only by taking this step steadily can you convince the public. Even Zhou Yuanwang and Wang Yunxiang cannot unconditionally support you to create a plan that seems a bit illusory in the eyes of others without any reason.

"The Akjiubin project is the top priority. Winning this project can also prove that our Changhe Energy Group's first step in the overseas strategy is right and has taken steady steps." Sha Zhengyang paused, "We have discussed with JP Morgan several times. Relying on JP Morgan's resources and the strength of our Changhe Energy Group, competing with Texaco and Amoco is not without a chance of winning, but there are still some variables, so we hope to further enhance our chance of winning,..."

"Increase the chance of winning?" Wang Yunxiang pondered: "Do you think the central government needs to come forward?"

"No, senior officials, the central government will only backfire. In fact, the Kazakh government is extremely sensitive to the influence of any foreign government, especially when they claim to be close to the Western market economy and strive to do things according to the laws of the Western market economy. This is what we imagined. According to our understanding, although the Kazakh government's oil and gas resources are extremely rich and its mining capacity is still acceptable, it is a weakness in refining capacity. The equipment of the three major refineries is backward and aging, and their operations are chaotic, and their refining capacity is weak. They urgently need to solve their refining shortcomings in order to ensure their domestic supply of refined oil."

Everyone here heard what Sha Zhengyang meant. Wei Qingliang couldn't help asking: "Are you saying we are here to help them solve their refining shortcomings? Should we help them build a new refinery or help them transform?"

"Secretary Wei, there are many possibilities, such as transforming their three major domestic refineries, Chimkent, Pavlodal, and Aktao. Several refineries have many problems. The investment in new construction is too large, which is the last choice. In addition, you can also adopt the method of mergers and acquisitions and stock exchanges,..." Sha Zhengyang smiled.

Everyone's eyes lit up suddenly, "Are you talking about acquiring the Orsk oil refinery and then exchanging it with the Kazakh government?"

"Well, it's interesting. Compared to the exchange with Kazakhstan National Petroleum Corporation, they are very happy to see that the shares of Russia's refinery belong to their Kazakhstan National Petroleum Corporation. This not only enhances their national pride and cohesion, but also increases their refining capabilities from the outside. It is even a good thing for the Akjiubin project. The refined oil of the Olsk refinery can directly enter the Kazakhstan market in the future without being affected."

Zhou Yuanwang and Wang Yunxiang looked at each other and laughed. This wonderful idea was indeed amazing, but the premise was that the Orsk refinery must be acquired and taken down.

"Due to the continued recession of Russia's domestic economy and the conflict between the Orsk Refinery and Aktubin Oil Company, the shareholders of the Orsk Refinery are indeed interested in selling the shares of the Orsk Refinery. JP Morgan also has deep resources and relations in Russia. They are willing to cooperate with us on the Aktubin project and the Orsk Refinery project. Of course, I personally think this is a future matter, but when we win the support of the Kazakh government, we can sign binding commitments to ensure that the Kazakh government makes great progress in refining capacity within three to five years, such as renovating and expansion, new construction, mergers and acquisitions, etc...."

Everyone finally understood that Sha Zhengyang used this method to obtain support from the Kazakh government in this regard, which is indeed very innovative.

"Of course, helping the Kazakh government improves its refining capacity is not free, and the Kazakh government can also achieve it through exchange, such as the remaining 40% of the equity of the Akjiubin project, or the Ujin Oilfield project that they reached an intention to cooperate with PetroChina but later became invalid." Sha Zhengyang added.

"Oh?" Zhou Yuanwang and Wang Yunxiang didn't expect that there was a Wujin oil field project hidden. They were very interested, especially the project that could make PetroChina deficient. "What is the situation with the Wujin oil field project?"

Sha Zhengyang briefly introduced the whole story of the Wujin Oilfield project. "We understand that the reasons why PetroChina failed in this project are many aspects. First, the cost of supporting pipelines is too high, which requires consultation with the Kazakh government. The Kazakh government may have more or less concerns about PetroChina as a super-large state-owned enterprise directly under the central government. In addition, it may also be that the central government is afraid of Russia's reaction in this area...."

This is a bit complicated. Zhou Yuanwang and Wang Yunxiang both looked a little heavy. If you want to involve such a complex project, can Changhe Energy work? Even PetroChina has not been able to handle it. How can Changhe Energy make a breakthrough?

"I think our Changhe Energy still has certain advantages. First, we have a good foundation for cooperation with JP Morgan. Second, our Changhe Energy is a provincial state-owned enterprise, and its nature is relatively less sensitive than CNPC. If we can list Changhe Energy or Changhe Oil in the next step, then the nature of our state-owned enterprise can be further downplayed, which is of great significance for foreign mergers and acquisitions." Sha Zhengyang said word by word: "The reserves and production capacity of the Wujin oil field are worth a try. Once taken down, it will greatly enhance the future development potential of our Changhe Oil. I believe that the central government should also support this area, and the central government should see the value and significance of this in enhancing China's energy security."

Wang Yunxiang couldn't help but say, "Zhengyang, such a huge project group involves such a large area. Do you think Changhe Energy can be obtained?"

"It's up to man, the provincial governor, and we never thought of taking everything alone, that's unrealistic. In fact, we have some other considerations in the Ujin Oilfield project. CNPC is resentful of the Ujin Oilfield project. Its production capacity is indeed considerable. It takes time to repair the Ujin Oilfield. In addition, it also involves pipeline construction, especially if it needs to be imported into our country. This cannot avoid the existence of CNPC, so..."

"So you plan to bring PetroChina in too?" Wang Yunxiang glanced at You Wangang and Zhong Guangbiao.

"Prince i Minister, we will definitely complete the initial and Akjiubin project independently. Even the second phase of the Orsk refinery project, the pipeline project from Akjiubin to Atlau and Akjiubin, we also plan to complete the pipeline project from Akjiubin to Atlau and Akjiubin, but it is too big for the future oil and gas transmission problem of Ujin Oilfield. In addition, the refining and chemical industry in Xinjiang is controlled by CNPC, so we cannot avoid this. If the central government wants to intervene, it is definitely impossible to escape. Instead of passively accepting it, it is better to invite CNPC to join the market openly at that time, but in exchange, CNPC will definitely give us some rewards."

You Wangang, Zhong Guangbiao and Sha Zhengyang have discussed this issue long ago.

There is no free lunch in the world. If CNPC wants to re-enter the Ujin Oilfield project, it will definitely give Changhe Oil some rewards.

For example, when the exchange of interests in Hanchuan or when Changhe Energy will deploy refining and chemical industries in coastal areas in the future, PetroChina should ensure the corresponding supply of crude oil shares. This is the attitude of You Wangang, Zhong Guangbiao and Sha Zhengyang.

After listening to You Wangang's introduction, Zhou Yuanwang, Wang Yunxiang and several other leaders felt that the content of today's report was too rich, so rich that they could not accept it.

This is almost for the specific layout in the next five to ten years, not just the macro strategy, but for the real implementation of specific measures, bit by bit, there is something to do.

"Secretary Zhou, Provincial President Wang, and leaders, this does indicate that the series of projects may last for three to five years, or even ten years. The amount involved is still difficult to estimate now. The preliminary estimate may involve tens of billions of dollars, even if it is divided into years of implementation, it is amazing, so we need to consider it from a higher strategic height." Sha Zhengyang simply made it clear.

"In the future, the central government's energy strategy will become clearer. Sinopec will definitely be the main force, but we Changhe Energy can act as the pioneer, and even in the future, and our performance will be better than the main force in the central government's mind. I think this is also the goal of our Changhe Energy, and it is also an embodiment of our Hanchuan Provincial Party Committee and the Provincial Government's position on a higher position and a contribution to the central government's energy strategy...."

Zhou Yuanwang and Wang Yunxiang were slightly moved.

For them, Changhe Energy wants to build a Fortune 500 company in the world, but only considers it from the perspective of Hanchuan Province. Hanchuan Province needs the storefront of a Fortune 500 company to decorate.

But Sha Zhengyang raised a higher and more attractive possibility, that is, Changhe Energy will represent Hanchuan Province to participate in the entire central energy strategy and play an important role.

This means that the status and position of the Hanchuan Provincial Party Committee and the Provincial Government will be higher and the weight will be more important!

This plan and concept cannot help but make the King of Zhou and the King of Zhou dynasties.

From the perspective of Hanchuan Province, it is of course gratifying for Changhe Energy Group to develop in such a way, and from the central perspective, Changhe Energy can take the lead, which is also worthy of praise.
Chapter completed!
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